MAGA’s mega challenge

Weekly Updates

The balance sheet of hosting a “mega event” like the Olympics are simple—they lose money. However, hosting a mega event does generate intense global publicity for the host nation. This can attract new tourists. It may help attract foreign direct investment. While no company is going to locate to a country based on a sporting event, media focus puts an economy onto investment shortlists.
Media mega events can be double-edged. Positive coverage can attract tourists and investment, but negative coverage can do lasting damage. As social media drives the world into an ever deeper fixation with image, spin matters.
US President Trump’s first hundred days has been a media mega event. International media focus on the US has been significant (albeit perhaps skewed to financial media). The result of this coverage to date has tilted to the negative. Travel to the United States has fallen sharply, for both current trips and booked future visits. Opinion polls suggest declining international approval of the US.
Tourism does matter—including domestic tourism the sector added around 3% to US GDP, five times the contribution of the auto sector. Tourism also matters as a wider signal of the global attention the US is attracting, which has economic consequences.