The United States was the only major country to experience a decline in international tourism last year. The World Cup was expected to attract many tourists this year, but something went wrong. It turns out that a number of cities are actually experiencing a decline. Perhaps the situation will improve closer to the knockout stages?
The tournament was expected to help overcome the post-pandemic decline in international tourism to the United States. FIFA’s initial forecasts assumed 40% of tournament attendees would be international tourists, but it appears the number of international tourists is slightly lower than expected.
Several factors have converged: the international situation, significant visa delays, and exorbitant hotel prices.
It’s worth noting that the situation is quite uneven across cities. For example, in major cities like New York and Miami, the number of hotel bookings on matchdays is lower than during the same period last year.
However, in Kansas City (for example), there has been a real surge in tourism. All hotel rooms were either fully booked or 80-85 percent occupied. Short-term rental revenue doubled.
We can’t assess the situation objectively. A closer look reveals a clearer picture.
Greedily hoping for windfall profits, some hotels in major cities initially jacked up room rates by as much as 500%. The United States is already quite an expensive destination for travelers from many countries, and such high prices made trips to the matches unaffordable for many. Yes, hotels were forced to lower prices, but it was too late. Business travelers didn’t travel during these days, and football fans didn’t either. Something similar happened in New York.
As for Kansas City’s success, there’s speculation that Lionel Messi was responsible for the “game” (hotel occupancy). The city hosted the match between Argentina and Algeria, and South American fans of Lionel Messi and the Argentina national team filled the hotels. (The role of personality in history and business?)
Let’s not look for failures in this truly great celebration for millions of football fans around the world. We couldn’t come either, but we’re enjoying watching the matches on TV immensely.
The most exciting days of the World Cup are still ahead! It’s believed that in all the host cities, this summer will still be better for hotels and restaurateurs than last year.