The travel and tourism industry in the U.S. is facing a bleak future as the effects of the travel ban signed by Donald Trump are now affecting the economy. The travel ban is from Africa and parts of the Middle East to the U.S. then followed by an electronics ban on the same regions.
UK followed the ban right after. Carrying of large electronic gadgets will soon extend up to Europe. On the government's side the move is to stop terrorist activities. However, it paints a picture that the U.S. is closed to business.
The Global Business Travel Association (GBTA) recently released its latest forecast on travel-related expenditures in the U.S. Its data shows a projection of a $1.3 billion-plus loss for this year. The expenditures include hotels, car rentals, foods, and shopping spent by tourists in the country.
The forecast says that out of the total, $250 million come from business travelers from the Middle East and Africa, according to Travel Pulse. This has resulted to a six percent slump on the planned travels from the Middle East into the country. In effect, more than 4,200 jobs will be lost and $175 million in wages. The government coffers will have lesser income of $70 million due to lost taxes by employees, according to a forecast of the GBTA.
The organization explained that business travels promotes long-term business growth and is one of the major indicators for jobs and the economy as a whole. Policies formulated that thwart business travel will eventually cause instability across the travel industry and the economy at large.
Donald Trump acts to protect the country, but internally, the stability and economic growth are affected. Those in the travel industry hope that the U.S. may find other options to promote security without jeopardizing the economy.