Written by Staff Writer
(CNN) — The strong dollar is costing the US tourism industry $9 billion in lost sales every year and costing 14 million jobs, according to a new study conducted by Oxford Economics.
The study shows the loss of international tourism revenue in 2016 was $186 billion, out of which $80 billion was incurred because of the strong dollar.
The future is different: the study projects that the “Fares Paid for Travel Services” category in the Oxford Economics North America Consumer Sentiment index will increase over the next three years by an average of 6.5%.
American tourists are likely to notice that their dollar is worth a lot more than their European counterparts, as the Oxford Economics consumer research shows the US economic growth and the continued weakness of the pound will influence how much US visitors will pay for hotel stays and car rental.
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Japan, which is experiencing a 50% drop in the value of the dollar against the yen, is expected to gain about 600,000 tourists per year, and that number is expected to rise to 1.4 million by 2022.
Germany is also expected to enjoy “fairly benign” changes, with a 5% rise in demand by 2022.
However, the report predicts the fastest rising trend of visitors — among the top 25 countries by GDP per capita — will be from India, where the $1,000 increase in purchasing power will boost the market by 12%. India is likely to see even higher growth rates than India, with a surge of 14% over the next five years.
Globally, Oxford Economics found the US will see the biggest increase in total foreign tourist arrivals from 2019 through to 2022: five million new arrivals or a 5.3% increase.