How does the US travel ban effect the world economy
President Donald Trump already causing havoc in the world.
Trump’s executive order suspending the entry of refugees for citizens of seven Muslim countries into the United States has officially started on Friday.
These countries are; Syria, Iraq, Iran, Libya, Somalia, Sudan and Yemen.
The White House describes the decision as a prevention towards terror attacks on US soil with an immediate action before it becomes too late. Protests have started nationwide over the immigration ban.
People who were planning to travel right after the ban were not allowed to board their planes or pass through the customs to enter the United States.
Although, when Trump has mentioned the 9/11, it brought up this question in mind: ‘’The 19 plane hijackers were from Saudi Arabia, Lebanon, Egypt and Saudi Arabia; which are in fact not included on the ban list.
The immigration ban would doubtlessly have serious national security and political consequences. US economy will be affected negatively; especially in tourism and education.
Tourism and Travel being the second largest source of income in the U.S. Economy.
In 2015, 77.5 million international visitors traveled to the U.S. They spent over $246.2 billion on U.S. goods and services.
11% of the total U.S. exports according to the Department of Commerce. In addition, those international visitors have supported 1.1 million American jobs.
14% of total travel and tourism-related jobs.
Trump’s order to restrict people from entering the United States will have negative impact on the economies of associations reliant on tourism, moving on to federal, state and local budgets through decreased tax revenues. Depending on the reactions of other countries, it could still have broader repercussion for travel, trade as well as investment in the United States.
An estimation of $14 billion to $30 billion of loss is expected as an aftermath of Muslim travel ban per annum.
The loss of jobs can rise up to 50,600 to 132,000.
There are millions of students from those banned countries studying and planning to study in the United States. With this ban, it is estimated of a loss of spending on education to be about 15% of the total foreign student spending; total of $4.6 billion.