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Global

Trump Travel Policies Carry $1.3B Price Tag for 2017

By Michael B. Baker / 19 May 2017 / Contact Reporter
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Travel bans, stringent laptop regulations and other political turmoil will cost the U.S. more than $1.3 billion in travel-related revenue this year, according to the Global Business Travel Association.

GBTA based that estimate on Airlines Reporting Corp. first-quarter ticketing data and its own economic research, executive director Mike McCormick said. It includes $250 million in spending from business travelers from the Middle East and Europe, and it could translate to an even bigger impact should companies shift more meetings and events away from the U.S. to countries with more favorable travel policies, he said. "It is not unprecedented for the negative perception around government policy to result in real economic losses," according to McCormick. "Before the controversial HB2 'bathroom bill' in North Carolina was repealed, an [Associated Press] analysis projected the law would cost the state more than $3.76 billion in lost business over a dozen years."

Those losses translate into 4,200 lost jobs and a $300 million hit to U.S. GDP, he added. Europe, meanwhile, stands to lose more than $250 million in airfare and the Middle East more than $80 million, according to the analysis. "This devastating economic impact could take years to recover from," McCormick said.


This devastating economic impact could take years to recover from."

GBTA's Mike McCormick

As President Donald Trump's administration continues to fight for his so-called travel ban in court, the travel industry also awaits an expected announcement regarding the expansion of a ban on certain electronics aboard inbound international flights to the U.S. Already in effect for flights from 10 airports in the Middle East and North Africa, reports indicate the Department of Homeland Security is considering expanding it to flights from Europe or perhaps even globally. This week, DHS Deputy Secretary Elaine Duke met in Brussels with European Commission Transport Commissioner Violeta Bulc and with Migration, Home Affairs and Citizenship Commissioner Dimitris Avramopoulos to discuss the bans. The two administrations will meet in Washington, D.C., next week to continue that discussion, according to a joint statement by DHS and the European Commission.

GBTA and other business travel trade organizations have warned that an expanded electronics ban would be devastating for corporate travelers.

German business travel organization VDR director general Hans-Ingo Biehl said had such a ban been in effect last year, it would have cost German business travelers $162 million in lost productivity, based on an estimated 720,000 business trips to the U.S. in 2016.

"Economies around the world, including the U.S., are set up to lose—big time," Association of Corporate Travel Executives executive director Greeley Koch said in a message to members on Thursday. "The ban will severely hamper travel to the U.S. and elsewhere, and it hits us where it hurts the most: lost productivity for businesses and major disruptions to the airline, hotel and ground transportation industries."

All of that could combine further to drive business travel away from the U.S., McCormick said. "While … there is no doubt that the electronics ban is based on a clear security threat, it is the cumulative impact of anti-travel policies that leave the perception to many that the United States is closed for business," he said. "It goes without saying that GBTA strongly supports all efforts to keep our skies safe, but we encourage [the Transportation Security Administration] to pursue alternative options to effectively reduce the risk of terrorism."

—Additional reporting by Amon Cohen

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