Page 8 - TFWA World Exhibition and Conference 2025

INSIDER

Economic and geopolitical factors continue to pose important risks to
travel

UN Tourism reports that its September but would remain well above the pre- travel confidence.
survey of the Panel of Tourism Experts and pandemic value of 3.1% and significantly Lower consumer confidence was
the UN Tourism Confidence Index point to above overall inflation (4.3%). ranked as the third main factor affecting
high transport and accommodation costs According to the Panel, tourists will tourism in the September 2025 survey,
as well as other economic factors as the continue to seek value for money, but could while geopolitical risks (aside from
top two challenges impacting international also travel closer to home, make shorter ongoing conflicts) ranked fourth.
tourism in 2025. trips or spend less, in response to elevated The increase in trade tariffs (5th) and
Tourism inflation is expected to prices. travel requirements (6th) were also major
ease from 8.0% in 2024 to 6.8% in 2025 Uncertainty derived from economic concerns expressed by the Panel of Experts.
(projections using tourism inflation proxy) and geopolitical tensions can also weigh on

Tourism and travel spending to U.S. continue to fall

Data recently released by the National Asia totaled 2.8 million passengers, up Examining the decline more closely,
Travel and Tourism Office (NTTO) show 4.5% over July 2024, but was still down by purchases of travel and tourism-related
that in July 2025 overseas visitation to the 18.2% compared to July 2019. goods and services by international visitors
United States was down 3.1% year-over- traveling in the United States totaled
year. Total non-U.S. citizen air passenger Spending $11.3 billion during July 2025 (compared
arrivals to the United States from foreign The decline in tourism arrivals to the to $11.6 billion in July 2024), a decrease
countries totaled 5.3 million in July 2025, U.S. is reflected in lower visitor spend as of nearly 3% when compared to the
down 4.9% compared to July 2024. well. previous year. These goods and services
U.S. citizen air passenger departures NTTO reports that while international include food, lodging, recreation, gifts,
from the United States to foreign countries visitors spent more than $20.6 billion on entertainment, local transportation in the
continue to increase however, reaching 8.1 travel to, and tourism-related activities United States, and other items incidental to
million in July 2025, up 5.5% from July within, the United States during the month foreign travel.
2024, and exceeding the July 2019 volume of July, this represented a decrease of Higher air fares seem to have made up
by 24.9%. nearly 1% compared to July 2024. some of the decline in spending. Passenger
Americans, on the other hand, spent fare receipts -- expenditures by foreign
World Region Highlights nearly $21.6 billion traveling abroad during residents on international flights provided
While some major source markets July, yielding a $942 million balance by U.S. air carriers -- totaled $3.2 billion in
showed increases in inbound tourism to the of trade deficit (exports minus imports) July 2025 (compared to nearly $3.1 billion
U.S., others show significant declines. for travel and tourism-related goods and in the previous year), up by 4% when
Total air passenger travel from the services. compared to July 2024.
number one source of inbound tourism,
Mexico, reached 3.9 million passengers ASUR enters U.S. market with deal to acquire
in July, up by +2.2% yoy. Canada, still
number two in tourism arrivals, reached 3 URW’s airport retail concessions
million, down -7.4% yoy. Tourism arrivals
from the #3 source market, the UK, were Grupo Aeroportuario del Sureste, John F. Kennedy International Airport.
2.2 million, also down -0.9%. Rounding (ASUR) and Unibail-Rodamco-Westfield The acquisition, which will be
out the top five source markets, the (URW) wholly-owned subsidiary Westfield operated by ASUR’s subsidiary ASUR
Dominican Republic reached 1.2 million Development, Inc have entered into a US Commercial Airports, LLC, represents
arrivals in July, up +4.4% yoy, while purchase agreement to acquire all of the ASUR’s strategic expansion into the U.S.
tourism arrivals from Germany totaled 1.2 issued and outstanding equity interest of airport retail concessions market.
million, but was down by -0.9% yoy. URW Airports, LLC for an enterprise value The closing of the transaction, which
Looking at the international regional of US$295 million. is expected to occur during the second half
air travel to/from the United States, NTTO The acquired business manages select of 2025, is subject to customary conditions
reports that: commercial programs at U.S. airports, precedent, it was announced at the end of
Europe totaled 8.7 million passengers, including Terminals 1, 2, 3, 6, and Tom July.
up 2.7% over July 2024, and up 5.6% Bradley International Terminal and Tom ASUR is funding the transaction
compared to July 2019. Bradley International Terminal West at Los with cash on hand and has secured debt
South/Central America/Caribbean Angeles International Airport, Terminal 5 financing from JPMorgan Chase Bank,
totaled 6.6 million, up 2.8% over July at Chicago O’Hare International Airport, N.A. to maintain liquidity.
2024, and up 18.2% compared to July and Terminals 8 and New Terminal One at
2019.

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