Graduation season is wrapping up, and summer vacation season is beginning, rites of passage enjoyed by Americans and visitors alike. Foreign tourists flock to America’s beaches, parks and cities, and students travel from all over the world to study in our world-class universities. But data suggests this summer may bring fewer of both.
Tourists and students account for roughly 80 percent of total non-immigrant visas issued by the U.S. each year. They spur demand for goods and services, which pads economic growth and helps to power the tourism industry and higher education system.
International tourism directly contributed more than $200 billion to the U.S. economy in 2017, and international students contributed close to $40 billion. These also count as services exports, improving our trade balance with the world.
Yet evidence suggests that fewer overseas travelers are choosing to come to America, which poses a threat not only to these industries, but to economic growth writ large. Specifically, since a 2015 peak, issuance of B visas—for both business purposes and pleasure—have fallen by as much as 15 percent by one government count.
Meanwhile, the number of international students opting to study in the United States also fell. During the 2017-18 academic year, American colleges and universities saw a drop in international enrollment for the first time in over a decade. A 4 percent slump hit undergraduate and graduate programs alike, translating into 32,000 fewer international students than the previous year.
Several factors are to blame. For one, the U.S. dollar has strengthened over the past few years, which hurts the purchasing power of foreign visitors and might give vacationers pause.
Though the United States has long had an arcane visa and visa waiver system, the Trump administration has increased barriers to entry for foreign guests.
The infamous travel ban, along with administrative changes to the visa vetting process, mean several countries are now seeing fewer visas approved.
What’s more, the Trump administration has ramped up airport security procedures some guests might view as invasive. And it last year proposed to eliminate BRAND USA, a federal initiative housed in the U.S. Commerce Department that seeks to promote tourism and explain the visa process to prospective visitors.
Other changes may make students wary of studying in the United States.
Under one proposal, students would be required to re-apply for a new visa every year instead of once at their initial time of enrollment.
The administration also recently decided it would crack down on students who may fall temporarily out of status after dropping classes or transferring schools and on those who overstay their visas.
Future students may face fewer opportunities for employment in the United States. One proposed change would cut work permits for J-1 exchange visitors, while another would affect students with F-1 Student and M-1 Vocational Student visas by increasing oversight into a program that allows them to work in the U.S. for a set period after graduation.
These parallel declines in international students and tourists could stifle our economy. According to one analysis of Commerce Department data, the decline in tourism during 2017 affected 40,000 jobs and came with a $4.6 billion spending drop.
Foreign tourists and students also generate demand for goods and services, which spurs economic growth and increases national wealth.
Ultimately, Americans should recognize these enormous benefits and embrace these people for the value-add they deliver.