U.S. Luxury Retailers Struggle Following Trump's Travel Ban

President Donald Trump’s travel ban coupled with claims that foreigners are having trouble getting through customs has dampened the image of the U.S. as a tourist-friendly country, and some experts project tourists may stay away as a result.

Tourism Economics initially projected a boost in foreign travel to the U.S. this year, but more recently those projections have flipped; now the company expects up to 6.3 million lost visitors, Fortune reports. Those losses could represent $10.8B in spending that many luxury retailers desperately need.

Many luxury U.S. retailers rely on foreigners for a significant chunk of their sales, such as Tiffany & Co.’s Fifth Avenue New York flagship, where 40% of sales go to foreigners. A drop-off in international travel to the U.S. is the last thing these retailers need, especially considering the strengthening of the dollar is already making shopping in the states less attractive.

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