End of the “Travel Ban”: Economy hopes for boost for US business

Medium-sized companies in particular are delighted to have been able to travel to the USA again as of today. They hope for new business in the world’s largest economy.

Not only the big airlines like Lufthansa take a deep breath. As of today, you can once again fly passengers across the Atlantic, thus serving one of the most important long-haul markets. German companies are also very relieved that the United States has opened up. “This will bring business travel back to normal,” says Ulrich Ackermann, Head of Foreign Trade at the Association of German Machine and Plant Manufacturers (VDMA). “Assembling machines and systems, visiting subsidiaries, participating in trade fairs and congresses or even taking over an American company – in the meantime, if at all, this has only been possible with great effort.”

Contact with business partners

According to the industry association VDMA, this was a problem in particular for medium-sized companies. “Especially small and medium-sized companies that do not have their own structures in the form of subsidiaries or production facilities in the USA depend on the fact that they can travel to the USA from here in order to maintain their contacts with business partners and to find new business partners “, says Ackermann. This is possible again as of today – at least for passengers who have been double-vaccinated and tested. One downer, according to the VDMA, is that those who have recovered have so far been left out.

The pent-up demand of companies traveling back to the US for their business is enormous. The German Chamber of Commerce and Industry (DIHK) assumes that, due to the entry ban, exports and investments in the double-digit billions were lost in 2020 alone. A part of it could be made up again this year.

DIHK foreign trade chief Volker Treier believes that business relations with the United States will now flourish again. “A number of German industrial companies are looking at the USA again and want to invest and build employment there,” says Treier. “And that includes making travel easier to enable people to move around. You have to be there in the USA to open up this large and growing market.”

Long-haul flights are likely to remain below pre-crisis levels for longer

Airlines such as Lufthansa also have great hopes that the opening of the important transatlantic route will further stimulate business. But industry analyst Patrick Schuchter from the cooperative asset manager Union Investment is dampening the euphoria. “The recovery in the long-haul business will be a bit long in coming, especially because many business customers will not fly with them immediately or fewer flights will be booked in the future due to CO2 guidelines in the companies. All of this will mean that long-haul flights will still be available remain below pre-crisis levels for several years. “

In addition, even if the important US market is now open again to a large number of passengers – China remains almost inaccessible for Europeans. And according to the DIHK survey – in addition to rising prices and delivery bottlenecks – the travel restrictions are currently still the greatest concern for companies.