Americans cut back on travel as inflation hits wallets

UNITED STATES: With surging inflation and rising living costs, wallet-busting travel experiences are losing their appeal and areas dependent on tourism have taken a hit.

As America heads into the midterm elections on Tuesday (Nov 8), money is top of mind. A recent survey showed that 44 per cent of voters indicated financial issues such as inflation, the cost of living and the job market as their highest priority.

A separate survey by US investment management firm State Street Global Advisors showed that rising inflation in the preceding year led to more than a third of respondents spending less on vacations or delaying a major purchase due to inflation. The findings were released in August this year. The report, titled “Inflation Impact Survey”, sought to reveal how inflation was influencing Americans’ spending, saving, and investing behaviour.

Among the costs that add up when it comes to big-ticket items like holidays is the cost of gas, which has seen record highs this year in the wake of the Russian invasion of Ukraine.

MOTEL BUSINESS TAKES A HIT

This has affected businesses like the El Vado motel, which sits besides Route 66 - the country’s most famous road after being advertised as the “shortest, best and most scenic route from Chicago through St Louis to Los Angeles".

Despite the location, the motel has not been as popular as it used to be, as evident from its empty carpark.

Built in the 1930s, it recently hit a bumpy patch. The double whammy of rising gas prices and the higher cost of living has kept tourists away.

Last quarter, motel manager Joe Kautz saw a 50 per cent drop in tourism at a time when he has increased wages by 30 per cent and is paying up to 400 per cent more for certain supplies.

“I just feel like the prices are still going to keep going up, and we’re going to have more and more costs, and less and less business. It does seem like a downward trajectory for us at this point in time,” he told CNA.

In the last year, the cost of living has risen to 40-year highs. As that continues to soar, it is unlikely that most Americans will be able to float out of harm’s way.

Analysts believe the US economy could still sink into recession, further grounding holiday plans.

NAVIGATING HIGH COSTS

Further west on Route 66 in the desert lands of southern California, even the one-of-a-kind destination Joshua Tree National Park, famous for its tangled tree limbs, may be losing tourists.

The cost of flying in, renting a car, paying for gas, renting a couple of nights of accommodation and paying for food could amount to thousands of dollars - more than what it used to cost.

The strong US dollar does not help the situation.

Canadians Deb and Ron Jacobson told CNA: “The biggest thing is the exchange rate. Right now, it’s huge. The Canadian dollar’s taken a dump, takes a lot out of our spending power.”

For other vacationers at Joshua Tree National Park, the costs there were comparable to places like Chicago, where prices are similarly high.

Another couple who spoke to CNA said that the volatile price of gas was a worry as they were on a road trip.

With the economy overshadowing plans, the choice for voters will likely revolve around which candidates they think can better navigate the uncertain economic path ahead.

For Mr Ralph Martinez, which party the candidate is from is less important than him getting the economy “back on track”.

However, another potential voter, Mr Manuel Salmeron, said: “Thinking that a politician’s going to be a panacea for everything that ails the country is mistaken.”