While there are significant events on the horizon that should boost the travel fortunes for the U.S. — specifically the FIFA World Cup and the America's 250th anniversary celebration — hotel industry leaders worry the country isn't doing what it should to capitalize on that opportunity.
Speaking during the "Boardroom XXV: Confronting Change" session at the 25th annual Americas Lodging Investment Summit, Marriott International President and CEO Tony Capuano said his company is currently trying to convince government officials to be more welcoming to international travelers.
The FIFA World Cup "should be terrific, but [we're] simultaneously engaging in every level of government and saying, 'We've got to make the world feel welcome coming to the U.S.' There may not be a more significant global sports event that draws the world and the eyes of the world, and when you have visitors asking legitimate questions about what their experience will be coming through customs and immigration, whether ... there will be a new entry fee, all of these sorts of things, those are big impediments to optimizing what should be a home-run opportunity for the lodging industry."
Elie Maalouf, CEO of IHG Hotels & Resorts, agreed that "the friction of travel [is] way, way too high, still."
He noted this can be interpreted two ways. From an optimist's perspective, it's heartening to see how much live events like the World Cup and the Olympics drive interest in travel.
"One of the benefits of our industry is we're in the business of live experiences," he said. "As long as we keep providing that great experience for our guests [that means] good returns for owners. We're in the business of live experiences, and that's not being disintermediated."
But he also believes it's noteworthy that travel and tourism still aren't priorities for U.S. officials.
"I just think we're blessed with so much domestic wealth that we just kind of take it for granted," he said. "Other countries feel like they don't have either the natural resources or the geopolitical advantages that we have — or the industries that we have in technology or finance — and so they value it more. It's not a reason not to value it. I think it's complacency, but because of other agenda items, it's hard to break through. We can't stop trying because it's just so much upside, and it's to the benefit, not just of U.S. Treasury but of individual hotel operators and mom-and-pop and families and restaurant owners. It's to the benefit of the local population."
Capuano said it's noteworthy that the U.S. is in the stark minority of countries that doesn't have a cabinet-level official devoted to tourism, despite it contributing significantly to gross domestic product and employment.
He said so many decision makers in this country still simply don't understand the value and importance of travel.
"There's a massive opportunity just laying there waiting for us, but we've got to strengthen the partnership between the public and private sector, and we've got to raise awareness, which is shockingly low, about the compounding effect of travel and tourism on the nation," he said,
Maalouf pointed out that on a global scale, the U.S. is simply not getting the share of international travelers it should based on its size and cultural prominence.
"Last year, the U.S. welcomed 68 million, let's call it 70 million international inbound, down 6% year over year, and we've talked about the reasons for that," he said. "But actually the trend has been downwards since 2019. Last week, I was in Bangkok, Thailand, for a few days on business after spending a week in India. Bangkok alone is the most visited city in the world with 36 million visitors in one city. I don't know what the U.S. should be welcoming [in terms of] international visitors, but it's certainly more than 70 million, right? We have many, many Bangkoks, and we have many, many destinations and a great country with so much to explore."
He noted that should be put into context of how valuable international traveler spend is relative to other forms of driving the economy.
"International visitors come, spend and leave and don't put a burden on our infrastructure or our social services," he said.
Rosanna Maietta, president and CEO of the American Hotel & Lodging Association, agreed, noting it's frustrating how hard it is to get that point across to politicians.
"We've been working so closely with the U.S. Travel Association to make sure that we are talking about the economic impact of tourism," she said. "It's free money. Foreigners spend more money here than domestic travelers. And so it's almost shocking that we as a country still don't have a focus of a cabinet-level position there."
Capuano said that he's hopeful a presidential administration that is hyper focused on trade deficits can look at the numbers and realize this is an area of opportunity.
"You point out [to politicians] the fact that a decade ago, the U.S. enjoyed a travel surplus of ... $50 billion and in 2025 it will be more like a $70 billion deficit, and you get these wide-eyed stares, as if we're not aware," he said.
Mit Shah, founder and CEO of Noble Investment Group, said he's hopeful for more stability in 2026, since travel and tourism often sees an outsized impact from uncertainty. In addition to rules impacted traveler flow, he said certainty tax policy is also "very, very valuable."
"I think anytime that things are uncertain, you see what happens in the marketplace," he said. "It's just people don't know what the rules are, and it's Armageddon. You can't put a stake in the ground around what you're going to do unless you just believe [you know what's] going to take place."