As wholesale inflation smashed through 11% for March 2022, the tourism industry is bracing for a shift in where their tourist dollars are coming from.
From the sandy beaches of the Gulf Coast in Alabama and Florida to amusement parks like Six Flags and even state and national parks, higher gas prices are likely to affect how many people travel considerable distances to visit their favorite tourist stop.
According to The Seattle Times, 59% of Americans plan to stick to domestic locations for vacations in 2022. Thirty-two percent, however, are planning ‘bucket list’ trips that they likely weren’t able to take during the worst of COVID-19.
Driving Isn’t the Only Concern
As gas prices continue to run high, jet fuel and airline gasoline have become necessary costs that airlines aren’t looking to pay, especially without pushing that cost onto customers.
The Fed Weighs Raising Interest Rates
Dow Jones reports (via The New York Post) that the Fed revised its outlook just before the Bureau of Labor Statistics planned to release its annual consumer price index, a key indicator of inflation.
So far, the Bureau of Labor Statistics all prices index is up 7.9% as of the end of February, making it the largest increase year-over-year since January 1982, certainly not a good indicator for the Biden Administration.
Six Months to Bounce Back
Whether or not it’ll be enough to keep tourist stops like the Gulf Coast, Cancun, Mexico, and the Caribbean thriving remain to be seen as June, July, and August roll closer.
And if inflation continues to rise past the six months President Biden planned to tap America’s oil reserve, he’ll have to use other tactics to keep costs from rising further to stop hyperinflation from setting in.