Luxury Hotels Are Taking A Hit In The Wake Of Trump’s Travel Ban
President Donald Trump’s travel ban is deterring some of the world’s biggest spenders from visiting the U.S., and their absence is crippling the luxury hotel industry.
Travel to the U.S. from North Africa and the Middle East is down 20%, and Marriott International CEO Arne Sorenson said his company experienced up to a 30% drop in visitors from those regions in February, the New York Post reports. A Marriott spokeswoman said travelers from those regions make up less than 1% of the company’s bookings but can account for up to 10% of revenue in certain luxury hotels, like the Lotte New York Palace.
Sorenson is among the first hotel executives to openly criticize the ban, but experts said many other luxury hotel executives are worried about its continued impact.
The president’s travel ban is not only hurting luxury hotels; luxury retailers are also struggling with the prospect of losing up to 6.3 million visitors this year. Many luxury retailers rely on foreigners for a sizable chunk of their sales, including Tiffany & Co.’s Fifth Avenue New York flagship, where 40% of sales go to foreigners.