FIFA World Cup hotel bookings below expectations as U.S. tourism concerns rise

The World Cup will come to a close in New Jersey on July 19 -Credit:Adam Gray/Bloomberg via Getty Images

Per the AHLA's findings, despite more than five million World Cup tickets having been sold to date, hotel bookings have failed to keep pace. The association notes that "Forecasts show that domestic travelers are outpacing international travelers – an imbalance that threatens the broader economic impact the World Cup was expected to generate."

Digging deeper through a survey, the report revealed that nearly 80 percent of respondents believe "hotel bookings are tracking below initial forecasts."

This shortfall is attributed to difficulties securing visas to enter the U.S., combined with broader concerns surrounding the current geopolitical climate, both of which are dampening demand from international visitors.

These specific concerns were flagged by nearly 70 percent of those surveyed across the majority of markets, consistently ranking at the top of the driving factors behind the overarching issue.

The survey also highlighted how a "FIFA room block over commitment created an artificial early demand signal that has since unraveled, with roughly half of respondents in host markets reporting material room block releases. Many hotels indicate that early booking signals overstated true demand."

Additionally, it found that only a fortunate few host cities, which already boast a "strong baseline leisure demand or confirmed team base camps," have experienced an uptick in demand that can be considered "meaningful." This is said to represent close to a third of all respondents.

Finally, both statewide and more localized policies have added "last-minute costs for travelers." One such example of these added expenses is gameday transportation price hikes in areas such as New York/New Jersey.

The host city to have underperformed most significantly against expectations so far is Kansas City, followed by San Francisco, Seattle, Philadelphia, Boston, Los Angeles, New York City, Houston, and Dallas. Every one of the aforementioned cities has seen booking sentiment fall below expectations by more than 50 percent, with KC approaching 90 percent.

AHLA's President and CEO, Rosanna Maietta, said, "Hotels across host markets have spent years preparing for the World Cup, and while there is real excitement, the data points to a more nuanced outlook.

Kansas City, home to Arrowhead Stadium, has underperformed the most versus expectations with regard to hotel bookings for the World Cup -Credit:Jamie Squire/Getty Images

"A range of factors have tempered early optimism, though forward indicators show there is still meaningful opportunity ahead. To fully realize that potential, the U.S. and FIFA must ensure a welcoming and seamless experience for international travelers.

"That means avoiding unnecessary cost increases on visas and transportation to and from the games, and discouraging local jurisdictions from adding last-minute tax hikes that hurt the games and consumers. And our message to consumers is clear: now is the time to book your hotel."