The number of European tourists coming to the United States has fallen significantly amid political and economic instability and concerns about a hostile border during Donald Trump's presidency, threatening some of the world's most lucrative air routes.
The number of Western European travellers who spent at least one night in the US fell by 17 per cent in March compared with the previous year, according to data from the International Trade Administration reported by the Financial Times.
Analysis by the ITA and seen by the FT shows that travel from a number of countries including Ireland, Norway and Germany has fallen by more than 20 per cent.
The trend poses a threat to the U.S. tourism industry, which accounts for 2.5 percent of the country’s overall GDP. Some airlines and hotel chains have warned of a decline in interest in transatlantic travel and a “negative buzz” around travel to the U.S.
The total number of international tourists visiting the U.S. in March fell 12 percent year-over-year, the sharpest drop since March 2021, when the travel industry was reeling from pandemic-related restrictions, according to ITA.
“In just two months, [Trump] has damaged the reputation of the US, which is clearly reflected in the decline in travel from the EU to the US,” said Paul English, co-founder of travel site Kayak. “Not only is this another major blow to the US economy, but it is also a reputational damage that will take generations to repair.”
At the same time, Air France is cutting ticket prices to keep economy cabins full on its transatlantic flights as the airline faces a drop in demand for international travel, the European carrier's CEO tells Bloomberg News.
Chief Executive Ben Smith told Bloomberg TV that the company has seen “a slight decline in prices” for economy class tickets, while premium ticket prices have remained “relatively stable.”
He added that the French airline had not yet changed its capabilities in response to these trends, although the economic downturn could pose new challenges.
Smith noted that travel is one of the first industries to suffer in economic downturns. “This is uncharted territory for us.”
Air France confirmed that Smith made the comments.
Shares in European airlines fell sharply after US President Donald Trump unveiled his “retaliatory” tariff plan on April 2, which included 20 percent duties on EU goods, including Airbus.
The EU plans to introduce its first retaliatory measures against Trump's tariffs next week.
Additional materials from Reuters
Sourse: breakingnews.ie
