San Antonio Business Journal: Will tariffs put a squeeze on SA’s $22B visitor industry

The San Antonio Business Journal reports on concerns about how tariffs will affect the San Antonio hospiality industry, already struggling in the wake of the Covid-19 pandemic recovery. The article by Scott Bailey, Will tariffs put a squeeze on SA’s $22B visitor industry, features quotes from several San Antonio leaders, including Source Strategies’ Director of Data Operation, Paul Vaughn.

One of San Antonio’s most lucrative industries could take a hit from the economic uncertainty and political backlash tied to new tariffs imposed on Mexico and Canada, some leaders warn. Others are not so sure.

The tariffs took effect on March 4 and directly affected the two countries representing most of Alamo City’s international visitor business. 

U.S. Rep. Joaquin Castro is concerned that the fallout from Mexican tariffs will especially affect San Antonio’s economy.

“It’s destroying our relationship, at least for a while, with Mexico and Canada,” Castro told me. “I think it’s going to take a while to undo this damage.” 

Many local leaders tried to downplay the impact in the hopes that the effects will be negligible, but the Source Strategies team has concerns.

San Antonio can’t afford to lose any tourism business. The city’s hotel occupancy rate fell to 59.4% in the fourth quarter of 2024, according to new data provided by Source Strategies.

When asked about any potential impact from the tariffs, the hotel industry consulting group’s Paul Vaughn said they could deter visitation.

“We do not expect it to be beneficial to the San Antonio lodging industry,” he said.

Read the full article, Will tariffs put a squeeze on SA’s $22B visitor industry, on the San Antonio Business Journal website.