Travel Ban Could Impact California Tourism

While the new administration has made a lot of changes already, one of the most discussed is the travel ban. The new administration led by President Donald Trump has already proposed two different travel bans, which would temporarily prohibit people from six different Middle Eastern countries to enter the United States. While this issue has been discussed a lot due to its political impact, a recent news (http://www.presstelegram.com/lifestyle/20170326/travel-ban-proposals-making-california-tourism-industry-nervous) article has pointed out that it could have a big impact on the US economy as well.

 

The State of California is the most populated state in the United States and on a standalone basis would have one of the biggest economies in the world. While California has a strong economy in a variety of industries, it does have a big travel industry that relies on people coming in from all over the world. Overall, California brings in more than 17 million business and recreational travelers from all over the world.

 

While many of these travelers come from Europe, Asia, and Australia, there is still a big amount that comes from the Middle East. In fact, California has estimated that it could lose up to one million visitors in just the first three years of the new travel ban. This could have a very notable impact on the travel economy as it could easily eliminate close to $1 billion in travel-related revenue. International travelers tend to spend more money than domestic travelers on hotels, dining, and additional purchases. It has been estimated that the average foreign visitor spends $1400 in the state per visit, compared to $400 for a domestic visitor.

 

The fallout from this lost revenue could be pretty significant in California. Today, more than one million people in California work for hotels, airlines, and other tourism-focused companies. Some of these people even work for companies that target entertaining and hosting people from the banned countries. If the travel ban is ever fully approved and made into law, it could easily lead to a loss of jobs. Furthermore, this will lead to a loss of tax revenue, which could offset the current balanced budget in the state.