A strong economy is boosting domestic travel, but
international inbound travel is not on pace with global travel growth,
according to the U.S. Travel Association.
Travel to and within the U.S. grew 3.4% year over year in
May, marking the industry's 101st straight month of growth. However, the
association warned that "mounting trade tensions work against America's
pursuit of an increased share in the global travel market."
U.S Travel's Travel Trends Index found that
near-historic highs in consumer confidence will push the domestic travel market
to increase by about 2.5% in the next six months, and that although leisure
travel led the domestic market in May, business optimism could lead business
travel to outpace leisure in the near term, with the sector on an upward
trajectory this year.
"This is solid evidence that businesses are optimistic
in the current economic environment and are buoyed by the recent tax
legislation," said U.S. Travel senior vice president for research David
Huether.
However, although international inbound travel is expected
to grow about 3% through the fall, U.S. Travel economists are concerned that
rising trade tensions and higher oil prices may hinder inbound arrivals, even
as global travel is predicted to reach record highs.
U.S. Travel says that despite modest increases in arrivals
from some key markets, sluggish inbound travel growth will see the U.S. fall
behind markets like China, France, Germany and the U.K., whose share of the
global travel market continues to increase.
"Amid these positive signs, missed opportunities and
storm clouds exist," Huether said. "We urge officials to foster
policies and messaging in the race to be globally competitive."