Interest in U.S. tourism is plummeting and some of the biggest companies around should be worried.
On Jan. 27, President Trump signed an executive order banning people from seven predominantly Muslim countries from entering the U.S. for 90 days. Flight search demand for 122 foreign countries airfare analysis company Hopper analyzed dropped 17% from January 26 to February 1. Demand returned a bit after the ban was temporarily lifted on February 3, but was still down by more than 10% as of February 10, compared with the first three weeks in January, Hopper said.
The research outfit says Trump's travel ban is to blame.
"[These results] suggests the change is not a simple seasonal effect," Hopper Research said.
Here's a list of the top five companies that stand to lose from a potential drop in tourism this year.
Editor's Pick originally published Feb. 25.
Shares of American Airlines (AAL) , the largest air carrier in the world based on annual revenue, dropped as soon as the travel ban was announced. The Fort Worth, Texas-based company generated $41.2 billion in revenue in 2016, driven by a 10.3% gain in passenger revenue per available seat mile in Latin America, showing that the company thrives on international travel.
Hotel operator Marriott Int.'l (MAR - Get Report) , which boosted its global developmental pipeline to 2,493 properties as of Dec. 31 and said on a recent earnings call that it would be shifting focus to international growth over domestic, will likely see a decline in U.S. bookings if tourism is sparse. In 2016, Bethesda, Md.-based Marriott gained $17.07 billion in revenue.
If foreign tourists are hesitant to travel to U.S. land, they probably will opt not to hop on a U.S. cruise ship. In opposition to the travel ban, Carnival (CCL - Get Report) , which generated $16.4 billion in 2016 revenue with net ticket yields up 5.2% driven by North America and Europe, said it will not sponsor potential future seasons of "The Celebrity Apprentice," of which Trump is an executive producer.
Although there has been a significant decline in foot traffic at department stores, Macy's (M - Get Report) massive Herald Square 2.2 million square-foot building in New York City has historically been a tourist hub. Each year, New York City attracts more than 50 million tourists and Macy's, which saw a 3.5% same-store sales decline in its recent fourth quarter and plans to close 34 stores in the coming few years, could use any help it can get.
Although entertainment giant Walt Disney (DIS - Get Report) , which posted $55.6 billion in revenue in 2016, operates through several business segments including interactive media and consumer products, its parks and resorts are a huge tourist attraction and profit driver. And while the company's parks and resorts saw a 6% rise in revenue in its recent fiscal first quarter, attendance in the U.S. was down 5% and could continue if tourism declines.