Tighter border regulations are deterring European tourists from visiting the United States, according to Tui, Europe’s largest package holiday operator. Sebastian Ebel, Tui’s chief executive, highlighted a “significant decline” in travel to the US, attributing it to various factors, including the “atmosphere” and interactions with border control.
Instead, European tourists are opting for destinations like Canada and other long-haul locations in Africa and Asia. Ebel’s comments come amid reports of European and other foreign nationals with valid US visas facing increased scrutiny, including interrogation, detainment, and deportation. Recent incidents involve a British tourist, three Germans, a Canadian, and an Australian, all of whom were detained and subsequently deported.
Impact of US Immigration Policies
The current US administration’s immigration policies are also under scrutiny. Plans to impose bonds of up to $15,000 for certain tourism and business visas, along with a proposed $250 “visa integrity fee,” have raised concerns. Ebel remarked, “I expect that the impact will be seen, and this policy will change. Will it change in three months, will it change in three years? I have no idea.”
Tui’s report of declining US travel aligns with broader tourism trends. Recent figures indicate a sharp decrease in overall tourism to the US, with the industry potentially losing billions of dollars this year due to government actions. According to the US Travel Association, travel from Canada and Mexico has decreased by 20% compared to last year.
European Travel Preferences
Ebel downplayed the impact on Tui, noting that the US market is “not of essence for us. It’s a nice long-haul business, good margins, but it’s not in the order of magnitude, not a big thing.” He emphasized that customers prefer destinations offering “seamless travel” and advocated for easier travel between the UK and the EU.
Currently, British visitors can use e-gates but still require passport stamps due to Brexit restrictions. Ebel expressed his desire for seamless travel akin to what he experiences as a German traveling to Spain or Greece, stating, “It’s not seamless, and that’s not good for the UK, and it’s not good for Europe either.”
Travel Trends and Economic Implications
Tui also reported a 2% drop in summer bookings due to conflicts in the Middle East. However, ticket prices have risen by 3%, helping to offset increased costs. Additionally, the summer heatwaves across Europe and high temperatures in regions like southwest France, Croatia, Italy, and Spain are prompting more travelers to book trips during the “shoulder season”—March to May and September to October—rather than the peak summer months.
This shift provides a “good outlook” for Tui, as the trend of traveling outside the traditional school summer holidays enhances the company’s resilience. Following strong demand for its hotels and cruises, Tui raised its full-year profit guidance, with shares climbing over 6%.
Tui reported an underlying pre-tax profit of €321 million (£277 million) between April and June, surpassing analysts’ forecasts and marking a 38% increase from the same period last year, benefiting from the late timing of Easter.
Looking Ahead
As the travel industry navigates these challenges, the focus remains on adapting to changing consumer preferences and geopolitical dynamics. The evolving landscape of international travel underscores the need for policies that facilitate rather than hinder tourism, ensuring economic stability and growth for all stakeholders involved.
