On March 23th the Trump administration signed a memorandum in which they announced tariffs on certain Chinese products. The consequences were immediately felt as the value of the Yuan decreased by 7.5% against the USD.
Tourism is the largest category of US services exported to China, and it did not remain untouched. Whether it is because of the lower buying power or because geopolitical tensions always affect Chinese travel, bookings from China to the US are down. At the end of the year, Chinese bookings to the US are even down by 9.6%, compared to the same period last year. On the other hand, Chinese outbound bookings worldwide are ahead by 5.5%.
What will the decrease in tourism mean financially? The United Nations World Tourism Organisation (UNWTO) puts total spending by Chinese tourists abroad at USD 258 billion in 2017. The World Travel & Tourism Council (WTTC) reports that the value of tourism to the US from international visitors amounted to USD 200.7 billion in 2017, 8.6% of total exports.