COVID-19

As summer begins, ban on U.S. travel to EU nations is an economic blow

Jasmine Garsd Jul 1, 2020
Heard on: Marketplace Morning Report
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EU nations will not open their borders to U.S. travelers. What does that mean for the American travel industry? Kenzo Tribouillard/AFP via Getty Images
COVID-19

As summer begins, ban on U.S. travel to EU nations is an economic blow

Jasmine Garsd Jul 1, 2020
EU nations will not open their borders to U.S. travelers. What does that mean for the American travel industry? Kenzo Tribouillard/AFP via Getty Images
HTML EMBED:
COPY

On Wednesday, after months of lockdown, European nations will start opening their borders to travelers, from a list of countries they judge to have COVID-19 under control.

The U.S. is not on that list.

So, what does that mean for the American travel industry?

Last year, in the month of June alone, the international trade administration says, more than 2 million Americans traveled to Europe.

This year the ban will be a huge economic blow to Europe, and to the U.S. travel industry.

“The transatlantic market is one of the most profitable for the airlines. The European and American airlines have all entered into joint venture agreements, where they share revenue,” said Scott Mayerowitz with the travel website The Points Guy.

And it’s not just airlines. Mayerowitz said travel agents, workers who clean airplanes, airport suitcase handlers and more will all be affected.

Travel analyst David Tarsh predicts some U.S. travelers will now seek domestic adventures.

“So many will be jumping into their cars, and they’ll be driving somewhere,” Tarsh said.

The EU ban will be revised every two weeks. But COVID-19 cases in the U.S. are still on the rise.

COVID-19 Economy FAQs

With a slow vaccine rollout so far, how has the government changed its approach?

On Tuesday, Jan. 12, Health and Human Services Secretary Alex Azar announced changes to how the federal government is distributing vaccine doses. The CDC has expanded coronavirus vaccine eligibility to everyone 65 and older, along with people with conditions that might raise their risks of complications from COVID-19. The new approach also looks to reward those states that are the most efficient by giving them more doses, but critics say that won’t address underlying problems some states are having with vaccine rollout.

What kind of help can small businesses get right now?

A new round of Paycheck Protection Program loans recently became available for pandemic-ravaged businesses. These loans don’t have to be paid back if rules are met. Right now, loans are open for first-time applicants. And the application has to go through community banking organizations — no big banks, for now, at least. This rollout is designed to help business owners who couldn’t get a PPP loan before.

What does the hiring situation in the U.S. look like as we enter the new year?

New data on job openings and postings provide a glimpse of what to expect in the job market in the coming weeks and months. This time of year typically sees a spike in hiring and job-search activity, says Jill Chapman with Insperity, a recruiting services firm. But that kind of optimistic planning for the future isn’t really the vibe these days. Job postings have been lagging on the job search site Indeed. Listings were down about 11% in December compared to a year earlier.

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