The $100bn cost of making tourists get visas

"Tough on migration" can't help but meaning "tough on tourism".

There's a lot written about the extent to which restrictions on immigration hurt the UK economy. People settling in Britain and working is a good thing: someone else has paid for their education and upbringing, and we reap all the rewards. When we stop that happening, we hurt our economy.

On top of that, overly restrictive limitations on migration have spillover effects. The most obvious one is that caps on international student numbers – who are, bizarrely, counted as migrants in national statistics – severely limits the ability of our university sector to export its services. That sector punches well above its weight internationally; if we can't even make policy which lets it compete, what hope have our smaller industries?

But other spillover effects are less discussed. One of the possible wounds of our closed-borders policy could be on tourism. A new study, highlighted by Alex Tabarrok at Marginal Revolution, looking at the effects of visa restrictions in India, finds that particularly onerous requirements can lead to a 70 per cent reduction in inbound travel.

The authors take those findings, and apply them to the case of the US. Although they caution that "extreme counterfactuals…should always be judged cautiously", the estimates are nothing short of stunning:

What would happen if the United States opened up tourist travel to all comers without requiring visas? … We calculate a 112% increase in total inbound travel. In 2010, the U.S. recorded 59,791,000 inbound visitors who spent an estimated total of $109,975,000,000 (approximately $2000 per visitor) according to World Bank data. Increasing these figures by 112% yields an additional 67 million visitors and $123 billion in spending.

That's around one per cent of US GDP a year from tourism alone; and it still doesn't take account of the extra disincentive effect of immigration checks. British people, for instance, don't require a visa to travel to the US, but the unpleasant, borderline-abusive reputation of border guards in the country may well have a deterrent effect of its own.

Tourism restrictions have to get stronger the harsher limits on legal migration are, to prevent people entering the country through back routes, so liberalisation in both areas would have to proceed hand-in-hand. But if it did, the possible gains seem to get higher every day.

The US Embassy. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland