The Trump administration enacted a travel ban that prohibited immigration from seven Muslim-majority nations, but it was blocked in federal courts. However, a second ban came into effect enacting many of the same functions as its predecessor; it prohibited immigration from six predominantly Muslim nations, though it exempts those with valid US visas or are legal, permanent residents of the United States. While this updated set of regulations offers slightly more leniency than its predecessor, this particular ban still has a worrying potential impact on preventing businesses from functioning at the speed to which they are accustomed.
It won’t be as easy to recruit foreign talent
Any industry that employs a large percentage of foreign talent could find itself at a loss for workers. It may also make it difficult for international business, blocking those from the aforementioned nations from coming to the United States or causing American citizens to fear that they will not be allowed back in. The travel ban implications have already been noticeable with Emirates reducing flights to the United States in April in response to the ban, and Forbes citing a 30 percent decrease in travel to the United States from the Middle East and forecasted a loss of $1 billion solely from that response.
For the industries that rely on foreign talent and have a higher concentration of international workers - such as technology, medicine, engineering, architecture, and transportation - this travel ban could create a heavy loss in access to talent. With such a decrease, many companies will likely be in a frenzy to replace lost workers. The time and money it will take to replace their lost workers, compounded onto the decrease in revenue that their decrease in production will create, could create a number of problems for these industries.
Additionally, a survey from the Global Business Travel Association found that nearly 50 percent of business travel managers surveyed were planning to reduce meetings and conferences in the United States. And, many U.S. citizens with connections to the blocked nations are hesitant to travel to the identified banned countries, as they could find themselves unable to return. And, some international partnerships may falter as experts are forecasting a reverse retaliation from the “banned” nations preventing travel from the United States to those nations.
Even a short interruption in employee availability and international movement can create extensive losses and issues for your business. Contact your HUB broker today to learn more about the available coverage to protect your business from losing staff and to quickly rebuild it if staff numbers are affected.
Companies whose business models rely on large events or frequent international travel should set aside time to review whether these threats could impact their business operations. If so, consider reviewing insurance options that meet any unique risks. In addition:
- Create a communications plan for traveling staff.
- Increase corporate review of travel document requirements and support.
- Prepare for limitations on business travel and delays in getting visas.
- Prepare for increased costs for travel to certain locations.
- Review any loss of potential customers.
- Plan for any potential stops in travel where the traveler would be unable to depart, gets delayed or is detained at ports of entry.
- Review any potential event or meeting cancellations.
- Plan for the electronics ban and how to address with travelers.
- Many business travelers do not check luggage. Having to check their electronics will increase costs, reduce productivity and increase the potential for damage, lost or stolen electronics.