Retailers hail lifting of travel ban, return of international

On Nov 7, 2021

Pedestrians carrying shopping bags wait to cross a street in the SoHo neighborhood of New York, U.S., on Sunday, Oct. 24, 2021. Consumers are facing dire warnings to get their holiday shopping done early this year, especially if theyre planning to do it online. Bottlenecks in the global supply chain are posing a new challenge to the e-commerce industry, and out-of-stock items represent a growing concern. Photographer: Nina Westervelt/Bloomberg via Getty Images

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As the holiday shopping season picks up, retailers across the country hope to get a lift from another wave of spenders: international tourists who can visit the U.S. once again

Starting Monday, the Biden administration will allow visitors from abroad into the country again. Most foreign travelers from more than 30 countries, including the U.K. and Brazil, have been restricted since early 2020, as Covid-19 cases rose globally. Visitors must be fully vaccinated against Covid and have a negative Covid test within three days before departure. Exemptions apply to travelers under the age of 18, if they have medical reasons preventing them from getting a vaccine, or are traveling from one of 50 countries with low vaccine availability.

For retailers, the policy is a much-awaited change that may help them fill up stores and ring up bigger sales again. At stake are billions of dollars that tourists spend on not only souvenirs, but luxury handbags, high-end makeup, top-shelf liquor and other items they often can’t find at home. Global visitors fueled more than $43.4 billion of shopping in 2019 — or 27% of the total shopping driven by travel and tourism, according to the International Trade Administration.

Yet retail experts and companies say it will take time for tourists to return to the U.S. and spend at post-pandemic levels. Airlines still have fewer flights. Other countries, including China, tightly restrict outbound travel. And pandemic-related logistics, from long lines at the airport to show proof at vaccination to Covid test when returning home, could delay travelers from booking a trip.

“Airlines will tell you that they are seeing a surge in booking. What they don’t quantify is when. Hotels will tell you is they’re seeing an uptick in bookings. What they won’t tell you is when,” said Daniel Binder, a partner for Columbus Consulting who focuses on travel retail. “The ban will lift, and it will take time.”

Binder saw the spending power of international tourists — especially Chinese tourists — up close as a longtime executive at DFS, a luxury goods travel retailer that’s owned by LVMH. He said he also saw the many months it took for global tourists to flock back and spend freely after other challenging periods, including the 9/11 terrorism attacks and the SARS outbreak.

Still, National Retail Federation CEO Matt Shay said there is a feeling of optimism as the ban lifts. He said that as Americans feel comfortable booking trips, dining out and having…