International tourism begins to increase again

The number of visitors dropped after terrorist attacks in 2001.
LOS ANGELES TIMES
Spooked at the thought of flying, Irish tourists Glenda Kavanagh and Stephen McCabe had stayed away from the United States since the Sept. 11 terrorist attacks three years ago.
But now they're back, joining others from Japan, Venezuela, Russia, Holland, Canada and elsewhere last week on Rodeo Drive in Beverly Hills, Calif., to snap pictures and gawk in the windows of Gucci, Louis Vuitton and other high-end designers.
"I was anxious about coming before because of what happened with the planes," said Kavanagh, a 25-year-old office worker from Dublin. "But it's probably more safe now, because there's more security. They're looking out now for terrorists."
Kavanagh represents some welcome news: The number of international visitors to the United States is starting to rise again this year after plummeting following the 2001 terrorist attacks and the introduction of stricter security measures.
Increases
During the first six months of this year, the number of visitors increased by 16 percent and the number of visas for visits rose 14 percent, according to U.S. government statistics. International spending in the United States also has increased for the first time since 9/11 and is projected to rise 7 percent to $69.4 billion this year.
Even the numbers of visitors from Middle Eastern countries, which experienced some of the steepest declines, have begun inching up. But their numbers remain far below 2000 levels, and many of their U.S. friends and relatives say Middle Easterners have stopped investing, visiting and studying here because of what they perceive as an unwelcoming atmosphere.
The recent U.S. denial of entry to musician Yusuf Islam, a British citizen formerly known as Cat Stevens, inflamed such sentiment, some Muslims say.
California, which attracts more foreign visitors than any other state except Florida, is reaping the benefits of the turnabout. The number of overseas visitors to California increased 21 percent during the first six months of this year, led by travelers from Japan and Australia.
More spending
According to the Travel Industries Association of America, international spending in California had declined from $15.1 billion in 2000 to $10.2 billion in 2002, while jobs generated by foreign travel and tourism also had decreased.
The increasing numbers of foreign visitors are credited in part to improved federal visa review procedures, less fear among travelers of an imminent terrorist assault, more confidence in airport security and a weaker U.S. dollar, which makes a visit to this country more affordable.
Anxiety over other factors that have discouraged travel, including the Iraq war and a global outbreak of severe acute respiratory syndrome, or SARS, is also fading, travel experts say.
Despite the early signs of improvement in foreign visitor levels, significant concerns remain among business leaders, economists and others about the mounting costs associated with the stepped-up U.S. security and border controls.
Many had fretted that the last three years have cost the United States goodwill and hard cash, evident in declines in tourist spending, foreign investment and, on some campuses, foreign student enrollment.
According to the U.S. Commerce Department, international spending in the United States dropped from $82.4 billion in 2000 to $65.1 billion in 2003. Direct foreign investment plunged from $314 billion in 2000 to $29.7 billion in 2003. And the number of overseas visitors admitted as students dropped by 8.5 percent to 474,920 between 2001 and 2003.
Travelers from Arab and Islamic nations -- particularly those from Saudi Arabia and other Persian Gulf states -- had registered among the steepest declines in visits to the United States.
But the U.S. government's latest statistics show that visitors from Middle Eastern countries are starting to return, registering a 14 percent rise during the first six months of this year over the same period last year. Visitors from Saudi Arabia had declined by 73 percent between 2001 and 2003, for example, but increased by 5.5 percent during the January-to-June period this year.