It is expected that the new definitions of President Trump will have a major impact on the American hotel industry and perhaps on occupancy prices if they increase the price of the room.
Everything from linen and textiles imported from China, to the wood from Canada and a avocado breakfast buffet from Mexico, will be hit as Trump’s tariff cover a wide range of basic commodities important for hotels and construction operations and suitable for them.
High costs and low demand
With high costs on imported consumer products from all over the world due to the new global tariffs, appreciation spending – especially on travel and dining outside – will decrease. This means that as the hotel remains in the United States, it becomes more expensive to cover operating costs, the demand for these hotels is likely to decrease.
Truist Securities said that this is the slowdown in the hotel/travel industry, as what they call “Trump’s stagnation” can create a stagnation environment that can have a clear impact on the hotel sector.
Delay in construction
Another concern is the potential delay in hotel construction and renovations. The hotel industry feeds expansion, and the customs tariff will throw a key in the new building pipeline.
“Everything that is concrete is coming from Mexico and all that is in the wood of Canada will now be more expensive, which leads to a pressure pressure on the number of hotels that have been renewed,” said the National Hospitality January director,
Among the largest brands of hotels – Marriott, Hayat and Hilton – the new construction represents about 70 percent of the total annual openings. Bird said they expect the definitions and higher development costs negatively affect the new construction signatures and start locally for the hotel brands. They expect projects to end in development already but can delay the openings.
Michael Pelizario, RW Baired’s great research analyst, in response to the definitions of “Liberation Day” in Trump on Thursday, April 3, that internationally exported materials usually represent between 15 % and 20 % of the total development of the development project, and most of them are imported from China and Vietnam.
“Everything else is equal, the cost of building a hotel can range from 5 percent to 10 percent now (in addition to the 20 percent tariff that was already present for the goods exported by China),” he wrote.
Negative feelings
Meanwhile, a more urgent concern for hotel owners in the United States is modest and negative feelings towards the country that reduces international travel to the United States.
Boston and CEO Martha Sheridan NBC Boston told that although the effects of customs tariffs on the tourism sector still have to be seen, they are more concerned about the perception of the United States at the present time, and whether this trade war affects their relations with people around the world.
She said, “We do not know what will happen for the travel industry.” “We have to make sure that international relations are in the forefront and the center. We are trying to reform those on the National Front.”
American hotels along the Canadian border are already witnessing declines with a lesser number of Canadians crossing to the United States after Trump announced heavy trade definitions in the country in February.
According to data from the British Columbia Ministry of Transport and the Ministry of Transport in Washington State, the border crossings between Canada and Washington’s state. He decreased by half. The Vancouver Sun newspaper reported that the crossings fell from 216,000 in March 2024 to 121,000 cars last month.