What is the projected fall in US travel spending for 2020?

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US Travel Spending Projected to Fall Over US$500 Billion in 2020

US travel spending is forecast to decline by more than US$500 billion in 2020, with a full recovery to pre-pandemic levels not anticipated until 2024. This significant downturn reflects a sharp decrease in both business and international travel, leading to substantial job losses within the sector.
Decline in Overall Travel Spending

The US Travel Association projects that total travel spending for 2020 will fall below US$617 billion, a decrease from their earlier July forecast of US$622 billion. This figure represents a substantial drop compared to the US$1.13 trillion spent in 2019. The reduction is largely attributed to the dramatic falloff in business travel, a key component of the industry's revenue.
Impact on Employment

The travel industry has experienced a severe contraction in its workforce, with nearly 40 per cent, or 3.5 million, of direct travel jobs lost. Without further government assistance, an additional 1 million jobs are at risk of disappearing by the end of the year. This precarious employment situation is exacerbated by the ongoing uncertainty surrounding the pandemic's trajectory and the timing of economic recovery.
Reduction in International Visitors

International travel to the United States is expected to see a significant 75 per cent reduction in 2020, resulting in an estimated US$119 billion decline in spending. This decrease is partly due to current travel restrictions that bar most non-US citizens who have recently visited Europe, China, Brazil, and several other countries from entering the United States.
Sector-Specific Impacts

Various segments of the travel industry are experiencing unprecedented challenges. Airlines reported carrying 65 per cent fewer passengers in September compared to the previous year, with travel demand in November remaining down by the same percentage. The US cruise industry has suspended operations through December 31, and major attractions such as Disneyland in California and Broadway in New York continue to face closures or operate at limited capacity. While hotel occupancy in North America saw an increase to 37 per cent in the third quarter, driven by leisure travel, this figure remains significantly below pre-pandemic levels.

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What is the projected fall in US travel spending for 2020?

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