Effect of Opening U.S. Borders on the Economy
As of Monday, November 8, citizens from 33 different countries can become tourists in the United States. The new countries receiving access are mainly from Europe as well as Canada and Mexico.
While exciting, this sentiment is largely superficial. Millions around the world are still reluctant to come to the United States because of the Delta variant, and even for the millions that will be tourists, businesses will likely take years to recover from the pandemic (Pohle, 2021).
A majority of tourists will be required to show both a vaccination card and a negative Covid test. This is one obstacle for many who are reluctant to get vaccinated. Some see it as a problem for traveling, but the federal government instituted the vaccine requirement to prevent the spread of the Delta variant from international tourists. Nonetheless, the government is expecting a surge of tourists to come to tour around the country’s popular destinations, such as New York, Chicago, Los Angeles, San Francisco, Washington D.C., and Orlando (Pohle, 2021).
In some industries, especially major tourist attractions, the opening of borders is a promising sign. For example, the Empire State Building is expecting a major boost in revenue from the inclusion of its most popular customer segment, international tourists.
Increased tourism is also likely to spark a boost in other industries such as restaurants and hospitality in major urban centers.
Despite the positive implications of opening borders to international travel, initial results have been less optimistic. In addition to the spread of the Delta variant, early signs show the vaccine requirement has reduced the number of international tourists willing to travel abroad to the United States. Stemming from the vaccination requirement, it can be implied that the tourist numbers are not going to be as high as before the pandemic. Furthermore, because of the significant labor shortage, fewer businesses overall are equipped to provide goods and services to visitors (Resendiz, 2021).
In the end, it seems likely that tourism is going to provide a strong boost for the economy and could increase overall GDP. This increase could be significant when compared to 2020, but it would not be surprising to see that numbers are well below pre-pandemic measures (Khanno-Youngs and Cochrane, 2021).
Overall, there are major questions yet to be answered about the economic and social effects of increased tourism in the United States from the opening of borders. Will tourism provide an exceptional spark to the economy, or will the factors such as the labor shortage and the unwillingness of many international travelers to come to the U.S. weigh on expected growth? The answers to these questions remain to be seen, and it may take years to know the full fallout of this new chapter in post-pandemic life in the United States.
Edited by: Jackson Pentz
Works Cited
Kanno-Youngs, Z., & Cochrane, E. (2021, October 12). The U.S. will reopen its land borders for fully vaccinated travelers. https://www.nytimes.com/2021/10/12/us/politics/us-canada-mexico-borders-open.html
Pohle, A. (2021, November 12). U.S. Borders Are Again Open to International Travelers. Here’s What It Means for Tourist Hubs. https://www.wsj.com/articles/us-travel-foreign-travel-tourists-new-york-11636664941
Resendiz, J. (2021, September 14). Study: Worker shortages, border travel restrictions slowing recovery. https://www.borderreport.com/hot-topics/trade/study-worker-shortages-border-travel-restrictions-slowing-recovery/
