Weak economies may ground international shoppers

NEW YORK — Overseas shoppers who once arrived in the U.S. with empty suitcases to take back their holiday loot may decide to stay home this year amid high-priced airline tickets, unfavorable exchange rates and lingering economic woes.

Consumers in the U.S. are already holding the line on spending, spooked by grim economic news, Wall Street’s financial crisis and rising layoffs. As the economic malaise makes its way around the globe, it’s less likely that tourists who gave U.S. retailers a boost in the past will decide to shop overseas again.

“In places like the U.K., France, Spain and Germany, people there are much more hesitant for the outlook in their own countries, so they’re probably much less likely to take a vacation in the U.S.,” said Adam Weissenberg, vice chairman of tourism, hospitality and leisure for consulting firm Deloitte & Touche USA. “The rest of the world was doing OK through the summer, but October was just dismal.”

The stronger dollar may also have travelers thinking twice about traveling thousands of miles for the holidays. After sliding for years, the dollar is gaining strength, making purchases in the U.S. less of a bargain than before.

Airline tickets have also become more expensive. Passenger traffic on the world’s airlines during September fell 2.9 percent from a year ago, marking the first decline in five years, according to the International Air Transport Association.

“I don’t think there will be the same level of travel as last year,” Weissenberg said. “People will probably take vacations closer to home.”

In previous years, international visitors have flocked to metropolitan areas like Chicago, Los Angeles and New York — looking to catch a glimpse of retail landmarks like Tiffany’s and Macy’s.

But this year, several retailers are already looking toward the holiday season with trepidation, expecting fewer tourists to walk through their doors.

Macy’s Inc. Chief Financial Officer Karen Hoguet told analysts earlier this month that tourism slowed in the second half of the third quarter in New York, the location of its famous Herald Square store.

“I suspect it has to do with tourism, but I can’t tell you that definitively,” Hoguet said.

Some retailers are using targeted marketing to attract international tourists who know they want to travel and are searching for bargains. Minnesota’s Mall of America has its own tourism department that works with tour operators and visitor bureaus to encourage visits, and some mall employees visit countries to promote additional traffic.