WC tourism boom yet to take off in US

Hours before the World Cup kicks off, the tourism boost long expected from football's biggest event has yet to materialise.

The tournament was widely forecast to deliver a major windfall for the US travel industry, which is already grappling with falling international visitor numbers, reports globally reputed news ouitlet Huffington Post.

The flood of fans hotels had hoped for has yet to arrive, forcing many to cut room rates. Flight bookings have fallen, while soaring ticket prices have further weakened demand. Analysts say excitement around the tournament has been more subdued than at previous World Cups.

The sluggish start suggests the traditional World Cup travel model — built on international supporters travelling long distances and spending heavily — is under strain. High costs, visa hurdles and the challenge of attending matches across 16 host cities in three countries have proved a deterrent.

Domestic travellers have not filled the gap.

A group of men play soccer in the park off Venice Beach shortly before the kick-off of World Cup. Photo: Stu Forster/Getty Images

"It is overall a disappointment. There's no other word that I can say," said Vijay Dandapani, chief executive of the Hotel Association of New York City. The association has cut its forecast for World Cup-related hotel revenue by 60% to about $60 million.

FIFA did not immediately respond to a request for comment.

Flight bookings from Europe to most host cities for June and July are down 3.8% year-on-year, according to aviation analytics firm Cirium. Bookings to New York, which will host the July 19 final, have fallen 15.8%.

While FIFA projected that 1.2 million fans would visit New York, Dandapani said local hotels are expecting only about 500,000.

He noted a recent rise in bookings from supporters in the UK and Norway, describing it as a positive sign.

Hotels are still hoping for a late surge in demand after the group stage. However, average bookings across host cities are up just 0.5% from a year earlier, according to CoStar.

Several New York hotels have reduced prices. Dandapani said the New York Hilton Midtown has cut room rates by half to $415 a night compared with prices advertised in December.

A groundsman prepares the pitch at SoFi Stadium before the US-Paraguay match held on Friday. Photo: Matt McNulty/FIFA

Hilton said in April it was seeing strong bookings, while Marriott said many reservations were still expected because later-stage match-ups had yet to be determined.

"Some fans are skipping the World Cup altogether," said Andy Milne, an England supporter and author. "Friends of mine are heading to Ibiza to watch every match on TV for a fraction of the price. Others are going to Las Vegas."

Luxury sports travel company Roadtrips said many affluent fans are waiting for fixtures to become clearer or for their teams to progress before committing to travel plans.

Supporters from more than half of the qualified countries require visas to enter the United States, adding uncertainty and expense.

Ticket pricing has also drawn criticism. FIFA introduced record-high base prices and, for the first time, dynamic pricing, which pushed costs higher as the tournament approached. Unrestricted resale pricing further inflated costs.

According to TicketData, the cheapest tickets in host cities such as New York and Miami are now approaching $1,000.

Dana Lattouf, chief executive of UK ticket distributor Tickitto, said even if prices fall closer to major matches, overseas demand may remain limited because of travel costs and visa requirements.

Short-term rentals have emerged as a rare bright spot. Airbnb said in May that the World Cup was on track to become its biggest event ever. Data from AirDNA showed bookings were rising in cities including Boston and Los Angeles, with hosts increasing prices to capture last-minute demand.

Average booked daily rental rates across host cities stood at $218, while travellers booking now would pay about $335, according to AirDNA.

"There is way more leisure demand in all these cities because of the World Cup. That is unmistakable," said Jamie Lane, chief economist at AirDNA.