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COVID-19

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

Jasmine Garsd Jul 1, 2020
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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
Heard on:
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
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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

Millions of Americans are unemployed, but businesses say they are having trouble hiring. Why?

This economic crisis is unusual compared to traditional recessions, according to Daniel Zhao, senior economist with Glassdoor. “Many workers are still sitting out of the labor force because of health concerns or child care needs, and that makes it tough to find workers regardless of what you’re doing with wages or benefits,” Zhao said. “An extra dollar an hour isn’t going to make a cashier with preexisting conditions feel that it’s safe to return to work.” This can be seen in the restaurant industry: Some workers have quit or are reluctant to apply because of COVID-19 concerns, low pay, meager benefits and the stress that comes with a fast-paced, demanding job. Restaurants have been willing to offer signing bonuses and temporary wage increases. One McDonald’s is even paying people $50 just to interview.

Could waiving patents increase the global supply of COVID-19 vaccines?

India and South Africa have introduced a proposal to temporarily suspend patents on COVID-19 vaccines. Backers of the plan say it would increase the supply of vaccines around the world by allowing more countries to produce them. Skeptics say it’s not that simple. There’s now enough supply in the U.S that any adult who wants a shot should be able to get one soon. That reality is years away for most other countries. More than 100 countries have backed the proposal to temporarily waive COVID-19 vaccine patents. The U.S isn’t one of them, but the White House has said it’s considering the idea.

Can businesses deny you entry if you don’t have a vaccine passport?

As more Americans get vaccinated against COVID-19 and the economy begins reopening, some businesses are requiring proof of vaccination to enter their premises. The concept of a vaccine passport has raised ethical questions about data privacy and potential discrimination against the unvaccinated. However, legal experts say businesses have the right to deny entrance to those who can’t show proof.

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