Improving visa application processes, reducing time spent at airport security, investing in infrastructure as well as in the workforce are strategies which experts at the NYU International Hospitality Investment Conference (NYUIHIIC) stressed would help increase US tourism competitiveness post-pandemic.
Post-pandemic recovery
Despite being a laggard in terms of post-pandemic recovery, international inbound travel into the US presents a significant growth opportunity due to the longer stays and higher spending habits of international travellers. In 2023, international travellers contributed $115 billion to US travel spending and while the country remains a popular tourist destination, at the end of last year, inbound tourism was at 84 per cent of pre-pandemic levels.
“We are lagging in terms of a full recovery,” said Fred Dixon, President and CEO of NYC & Company at the session titled International Inbound Demand: The Size of the Prize, noting positively though that the numbers are picking up steam, with international traffic expected to recover significantly this year.
However, this recovery could be hindered by myriad challenges.
“One of the key challenges in the entire infrastructure is capacity, whether it's federal resources, personnel wise, terminal access and size, air carrier routes and so forth,” noted Kevin MacAleenan, Pangiam, former head of Department of Homeland Security.
Separately, the prohibitive visa application process continues to inhibit tourism, with security processes at the airport also making it more challenging for visitors.
Technology and AI
However, technology could serve as a way to provide a seamless and secure arrival experience for travellers following advancements in biometric entry-exit systems.
“We’re looking at what opportunities there are to bring in new technology and innovate. What we're seeing from international leaders in this space is really comprehensive use of biometrics. Facial recognition has emerged as the key technology in this space. We need to provide ubiquitous access to that for the international arrivals process; that changes the flow and allows for higher capacity arrivals,” MacAleenan said.
He added that AI could also aid the security process by helping to analyse bags in advance, determine whether there are any threats and make a decision without the traveller having to go through arduous processes.
Collaboration
Geoff Freeman, chief executive officer of the U.S. Travel Association also pointed out the critical need for coordination and leadership in order to increase the US’s share of global travellers.
“We don't have the national level of coordination that countries like China and Canada have. We have the Department of Homeland Security, Department of Commerce etch somehow involved with travel but we lack that leadership to put in place a strategy once and for all to really increase that share. Other countries are running a very coordinated effort to make themselves more competitive. We have these loose ends all over the place without that type of national leadership,” he said.
Labour
“Another area of focus is a significant shortage of workers – we’re still down about 200,000 jobs,” added Kevin Carey, president & CEO of the American Hotel and Lodging Association (AHLA)
Freeman noted that moving forward as the World Cup draws closer, it’s imperative that all 11 markets which are going to support the World Cup as host locations in the US have the workforce to support the upcoming demand.
Government policy
Looking ahead, the panellists stressed that work needs to be done to ensure the presence of responsible public policies that attract investment and allow for growth over time to meet demand, both on a short term and a long-term basis.
They added that the industry also needs to have a strong voice to make sure that government’s steps in relation to the visa application process aren’t excessively intrusive in a way that negatively impacts the industry’s growth.
With the right approaches, the U.S hospitality sector can capitalize on the lucrative international travel market. Working to improve the guest experience and also influencing policy changes to facilitate easier access for international travellers will be significantly beneficial and ensure the U.S remains competitive on the global stage.