5 ways that Trump’s policies are impacting summer vacation
5 ways that Trump’s policies are impacting summer vacation

5 ways that Trump’s policies are impacting summer vacation

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5 ways that Trump’s policies are influencing your summer vacation – The Washington Post

Travel to the U.S. by air is down 6.6% in June compared to last year. Hotel room occupancy in Las Vegas has fallen more than 12 percent year-over-year. Some immigrants are staying home in fear of getting caught in the crosshairs of immigration enforcement. The pullback on summer vacationing is modest but coincides with Americans saying they feel worse about the economy than they have in years as they face a weakening labor market and longer bouts of unemployment. The number of people taking time off work in July dropped to its lowest level since the pandemic, according to Labor Department data.. Luxury travel has continued to boom unabated. Some would-be travelers say they are nervous because of the Trump administration’s policies and rhetoric around tariffs and immigration, among other issues. Stricter visa and immigration requirements have led a number of European countries and Canada to issue travel advisories for the United States. “The United States is not endearing itself to the rest of the world,” said Adam Sacks, president of Tourism Economics.

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Some of America’s favorite resort towns and beach getaways are a little quieter this summer, as President Donald Trump’s trade wars and immigration crackdown appear to be dampening the travel boom that has defined the summers since the pandemic. On the Jersey Shore and Delaware beaches, and in the Poconos, travelers are spending less. Las Vegas tourism is sputtering. And Niagara Falls hotels are emptier this year, according to business leaders and a Federal Reserve policy report . The pullback on summer vacationing is modest but coincides with Americans saying they feel worse about the economy than they have in years as they face a weakening labor market and longer bouts of unemployment. Meanwhile, international travel has fallen because of concerns about Trump administration rhetoric and policies. At the same time, the U.S.-Mexico border is sealed off to immigrants and hundreds of thousands of immigrants in the United States have lost work authorization , meaning the supply of workers for tourism jobs is weaker. But so far, no major labor shortages have been reported, partly because of the drop in consumer demand, experts say. Here’s how Trump’s policies are affecting summer travel. Shorter trips. Day trips. Staycations. After years of splurging , many Americans are budgeting on travel this summer. Fewer households are booking airline tickets or hotel rooms now than they were a year ago, according to data from Bank of America. Consumer spending on recreation fell 5 percent in June compared to the prior month, according to Bureau of Economic Analysis data released Thursday. The number of people taking time off work in July dropped to its lowest level since the pandemic, according to Labor Department data. Luxury travel has continued to boom unabated. Fears that looming tariffs could spike prices again — following years of high inflation — have pushed Americans to pull back on spending on hotels and airfare. “Uncertainty about the direction of the economy and rising costs for basic necessities like food and utilities is reducing disposable income — meaning less travel, less vacations,” said Joe Brusuelas, chief economist at tax and consulting firm RSM US. “Staycations are back.” Some immigrants are staying home in fear of getting caught in the crosshairs of immigration enforcement. Several tourist destinations such as Norfolk and Charleston, South Carolina, have seen a steady stream of tourists this summer, according to local business leaders, while other hot spots, such as Las Vegas, are experiencing a sharp slowdown. Hotel room occupancy in Vegas has fallen more than 12 percent year-over-year as of July 19, according to CoStar, a provider of real estate data and analytics. International travel to the United States is slumping, despite a pickup in tourists from some countries. Foreign arrivals to the U.S. by air were down 6.6% in June compared to last year, according to the International Trade Administration. International arrivals of those staying more than one night are projected to fall 8.2 percent in 2025, according to Tourism Economics, a global analytics and advisory firm. Some would-be travelers say they are nervous because of the Trump administration’s policies and rhetoric around tariffs and immigration, among other issues. Stricter visa and immigration requirements have led a number of European countries and Canada to issue travel advisories for the United States. A new visa fee , included in Trump’s One Big Beautiful Bill, will increase the cost of traveling to the United States by $250 for many foreigners. “The United States is not endearing itself to the rest of the world,” said Adam Sacks, president of Tourism Economics. “We’re seeing declines from major markets, including Canada, South Korea, Germany and France due to consistently divisive policy and rhetoric.” San Diego, Cape Cod and Bar Harbor business leaders told The Washington Post they’re hearing from hotels and restaurants that fewer foreign vacationers are coming this summer. Canadians, who make up roughly 1 in 4 visitors to the United States, are steering clear in reaction to heightened trade levies and hostile comments from Trump about making Canada a “a 51st state.” Canadian travel to the U.S. plunged earlier this year and has not recovered. Restaurants and retailers in New England have reported a “significant slowdown” in visits from Canadians, according to the July Federal Reserve report. In the Upper Midwest and Great Plains states, international travel is also down, especially from Canada. “We have seen a reduction in international visitors in general,” said Paul Niedzwiecki, chief executive at the Cape Cod Chamber of Commerce, adding that the seaside city of Provincetown “usually sees a higher number of Canadian visitors and there have been fewer so far this season.” Trump’s efforts to stop new immigration, deport hundreds of thousands of immigrants and strip legal status from many more could hurt the tourism industry, where 1 in 3 workers is foreign born, according to the U.S. Travel Association and the American Hotel and Lodging Association, trade groups that represents the tourism industry. Since March, the U.S. immigrant workforce has declined by more than 1.6 million, according to Labor Department data released Friday. So far, the sector has not reported widespread impact to their summer workforce. That’s partially because restaurants and hotels especially on the East Coast have been able to secure seasonal workers on J-1 and H-2B visas for this summer. The administration has paused interviews for J-1 visas, which include a program that employers use to hire over 100,000 foreign students every year to work in jobs including restaurants and amusement parks. Still, some communities are on alert as immigration authorities have arrested and deported workers in tourism hot spots this year. In May, ICE agents arrested some 40 immigrants on Martha’s Vineyard , forcing some businesses to temporarily shutter. U.S. Customs and Border Protection agents have detained more than 20 workers on Carnival cruises off the coast of Norfolk since April, according to The Virginian-Pilot. In the years immediately following the pandemic, hotels and restaurants struggled to find and retain workers at the wages they were offering. Hotels cut back on daily room cleaning. Restaurants automated service. Pools closed. But the consumer pullback could be helping alleviate employers’ labor woes. Job openings in hotel and food services fell by 308,000 in June, according to data released Tuesday by the Labor Department, and hover near pre-pandemic levels. The decline in tourism could be softening demand in some sectors and diminishing the need for immigrant workers, economists say. Federal Reserve Chair Jerome H. Powell remarked on Wednesday that a lack of immigration due to Trump’s tougher policies is offsetting a drop off in demand for workers: “Demand for workers is slowing, but so is the supply,” Powell told reporters. “It’s in balance.” In popular tourist destinations, such as Bar Harbor and Niagara Falls, business leaders report that labor shortages that defined summer hiring from 2021 to 2023 have all but vanished. “The last couple of years I felt so bad that I wanted to go over and help my hoteliers, but this year I haven’t heard of any problems in that arena,” said John Percy, president of chamber of commerce in Niagara Falls. Hotel occupancy in the Canada border city is down more than 7 percent year-over-year, he said. Some states, including Florida, where tourism is a major industry and thousands of immigrants have lost or are losing legal status due to Trump administration orders, could take a sharp hit in the coming months. Abha Bhattarai, Alyssa Fowers and Federica Cocco contributed to this report.
Source: Washingtonpost.com | View original article

Source: https://www.washingtonpost.com/business/2025/08/02/trump-policies-impact-summer-travel/

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