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Study predicts detour for US travel recovery
The US travel recovery is likely to slow down, according to a new forecast.
The major reasons: Americans worried about rising fuel costs and natural disasters.
“We’ve watched consumer confidence plummet in recent months,” said Suzanne Cook, senior vice president of research for the Travel Industry of America (TIA).
She told a press conference that another factor behind the likely slowdown was many foreigners looking at alternative destinations.
The TIA projected that domestic trips, which rose 6% in the first half of the year, will drop to 4% for the entire year. The group also predicted only a 2% increase in trips next year.
Business travel could also be impacted.
Domestic business trips could grow only 1% this year and by 1 to 2% next year.
Said Ms Cook:
“CEOs’ confidence levels seem to be weakening a bit. There’s a wait-and-see attitude that could dampen business travel short-term.”
She predicted the travel industry would “pick up steam” in late 2006.
The numbers of international visitors from Canada and Mexico have returned to pre-9/11 levels, according to the TIA. But overseas travel to the US is 17% less than in 2000.
“We expected, with the US so much on sale due to the exchange rates, that we’d be doing much better than we are,” Ms Cook said.
But the US image in key travel markets has dwindled, she added.
However, total international visits are expected to return to pre-9/11 levels for the first time next year.
Report by David Wilkening
David
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