Far from spelling disaster, the global credit crunch may have a positive impact on the US hospitality and tourism market, as more international travellers are attracted to the country by favourable exchange rates, according to a recent report.
The report, by Ernst & Young’s Global Real Estate Center, says the US is viewed as a prime vacation spot by international tourists as they now get more bang for their buck.
According to the US Department of Commerce, international visitor spending increased 13 percent to US$111.6 billion in the first eleven months of 2007.
Ernst and Young’s hospitality and leisure practice US director Michael Fishbin says tourists are upgrading their accommodation choices as the weakness of the US dollar makes it more affordable.
“The continued weakness of the US dollar is producing multiple beneficial effects on the US hotel market, which is likely to continue for the foreseeable future and which may pull the sector through current recessionary pressures,” Fishbin says.
“As long as this exchange rate bonus exists for non-US travellers, the benefits will be seen at hotels from ski resorts in Vail and Aspen to cruise ports such as San Diego, Seattle and Miami and traditional tourist and business destinations such as New York, Orlando and San Francisco.”
Fishbin also points out US residents are more likely to vacation closer to home, further boosting the domestic hospitality market.
By staff writer