US Travel Industry Feeling Impact of Coronavirus Outbreak

A new report suggests the travel industry in the United States is feeling the impact of the coronavirus-outbreak-could-impact-tourism-into-2021.html” target=”_self” rel=”nofollow noopener noreferrer”>ongoing coronavirus outbreak in China.

According to the consulting firm Coronavirus-scenarios-TE-Oxford-1-31-2020.pdf” target=”_blank” rel=”nofollow noopener noreferrer”>Tourism Economics, a recent study found that the U.S. is expected to lose about 1.6 million visitors from mainland China as a result of the coronavirus, which would equate to a 28 percent decrease when compared to 2019.

In addition, the spending from Chinese visitors is expected to drop by an estimated $10.3 billion, cutting 2020’s projected total by over 50 percent. China is the third-largest source of overseas travel to the U.S. behind the United Kingdom and Japan.

The US Travel Association said travelers arriving from China in 2018 spent an average of $6,500, which is “among the highest of all international visitors.” In 2019, the National Travel and Tourism Office said 2.5 million Chinese travelers arrived in the U.S. through the first 10 months of the year, totaling seven percent of all overseas visits.

Tourism analysts initially compared the coronavirus outbreak to the 2003 SARS outbreak, but the 2020 health crisis has dwarfed SARS due to the massive increase in the Chinese travel market over the last decade.

Initial estimates suggest it could take as long as four years before the tourism industries across the world have fully recovered. The issues could get exponentially worse, though, if the virus continues to spread into other Asian markets.

The cruise, airline and hotel industries are all expected to report decreased revenue as a result of the viral outbreak, which has killed at least 1,875 people and infected more than 73,000.

Another portion of the industry being impacted by the coronavirus is travel agents and advisors, with some reporting a drop in bookings by as much as 10 to 15 percent. A Travel Weekly readers’ poll also found that 63.8 percent of agent and advisor respondents had clients cancel trips due to fears associated with the outbreak.