ULAANBAATAR, Mongolia (AP) — With its reindeer sleigh rides, camel racing and stunning landscapes with room to roam, Mongolia is hoping to woo visitors who are truly looking to get away from it all.
Like most countries, its tourism industry was devastated by the COVID-19 pandemic, and it has launched a “Welcome to MonGOlia” campaign to win people back. The government has added flights and streamlined the visa process, offering visa-free visits for many countries.
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A 40-meter- (130-foot-) tall stainless steel statue of Genghis Khan, a national hero who amassed power to become the leader of the Mongols in the early 13th century is seen on the outskirts of Ulaanbaatar, Mongolia on July 1, 2024. (AP Photo/Ng Han Guan)
Tourists take photos near the 40-meter- (130-foot-) tall stainless steel statue of Genghis Khan, a national hero who amassed power to become the leader of the Mongols in the early 13th century on the outskirts of Ulaanbaatar, Mongolia on July 1, 2024. (AP Photo/Ng Han Guan)
Tourists climb onto the 40-meter- (130-foot-) tall stainless steel statue of Genghis Khan, a national hero who amassed power to become the leader of the Mongols in the early 13th century on the outskirts of Ulaanbaatar, Mongolia on July 1, 2024. (AP Photo/Ng Han Guan)
Gers for tourism are seen at the base of a rock outcrop in Terejl National Park outside Ulaanbaatar, Mongolia on July 3, 2024. (AP Photo/Ng Han Guan)
Tourists visit the Zaisan Memorial, a monument that honors allied Mongolian and Soviet soldiers killed in World War II, in Ulaanbaatar, Mongolia on June 29, 2024.(AP Photo/Ng Han Guan)
Korean tourists visit Sukhbaatar Square in Ulaanbaatar, Mongolia on June 27, 2024. (AP Photo/Ng Han Guan)
Korean tourists visit Sukhbaatar Square in Ulaanbaatar, Mongolia on June 27, 2024. (AP Photo/Ng Han Guan)
A vendor holds up an eagle as the waits for tourists to take photos with near the Terejl National Park outside Ulaanbaatar, Mongolia on July 3, 2024. (AP Photo/Ng Han Guan)
Tourists enjoy horseback riding near the iconic Turtle Rock outcrop at the Terejl National Park outside Ulaanbaatar, Mongolia on July 3, 2024. (AP Photo/Ng Han Guan)
At least 437,000 foreign tourists visited in the first seven months of this year, up 25% over the same period last year, including increasing numbers from Europe, the U.S. and Japan. Visitors from South Korea nearly doubled, thanks in part to the under-four-hour flight.
Despite the gains, Mongolia's government is still short of its goal of 1 million visitors per year from 2023-2025 to the land of Genghis Khan, which encompassed much of Eurasia in its 13th-century heyday and is now a landlocked nation located between Russia and China.
With a population of 3.3 million people, about half of them living in the capital, Ulaanbaatar, there's plenty of open space for the adventure tourist to explore, said Egjimaa Battsooj, who works for a tour company. Its customized itineraries include horseback trips and camping excursions with the possibility of staying in gers, the felt-covered dwellings still used by Mongolia's herders.
There's little chance of running across private property, so few places are off-limits, she said.
“You don't need to open a gate, you don't need to have permission from anyone,” she said, sitting in front of a map of Mongolia with routes marked out with pins and strands of yarn.
“We are kind of like the last truly nomad culture on the whole planet,” she added.
Lonely Planet named Mongolia its top destination in its Best in Travel 2024 report. The pope's visit to Mongolia last year also helped focus attention on the country. Its breakdancers became stars at last year's Asian Games. And some local bands have developed a global following, like The Hu, a folk-metal band that incorporates traditional Mongolian instruments and throat singing with modern rock.
Still, many people know little about Mongolia. American tourist Michael John said he knew some of the history about Genghis Khan and had seen a documentary on eagles used by hunters before deciding to stop in Ulaanbaatar as part of a longer vacation.
“It was a great opportunity to learn more,” the 40-year-old said.
Tourism accounted for 7.2% of Mongolia’s gross domestic product and 7.6% of its employment in 2019 before collapsing due to the COVID-19 pandemic, according to the World Bank. But the organization noted “substantial growth potential” for Mongolia to exploit, with “diverse nature and stunning sceneries" and sports and adventure tourism possibilities.
Mongolia tourism ads focus on those themes, with beautiful views of frozen lakes in winter for skating and fishing, the Northern Lights and events like reindeer sledding and riding, camel racing and hiking.
Munkhjargal Dayan offers rides on two-humped Bactrian camels, traditional archery and the opportunity to have eagles trained for hunting perch on a visitor's arm.
“We want to show tourists coming from other countries that we have such a way of life in Mongolia," he said, waiting for customers by a giant statue of Genghis Kahn on the outskirts of Ulaanbaatar.
Outside the lively capital, getting around can be difficult in summer as the steppes become waterlogged, and there is limited infrastructure, a shortage of accommodation and a deficit of skilled labor in tourism destinations.
It is also easy for foreigners to get lost, with few signs in English, said Dutch tourist Jasper Koning. Nevertheless, he said he was thoroughly enjoying his trip.
“The weather is super, the scenery is more than super, it's clean, the people are friendly,” he said.
Rising reported from Bangkok.
A 40-meter- (130-foot-) tall stainless steel statue of Genghis Khan, a national hero who amassed power to become the leader of the Mongols in the early 13th century is seen on the outskirts of Ulaanbaatar, Mongolia on July 1, 2024. (AP Photo/Ng Han Guan)
Tourists take photos near the 40-meter- (130-foot-) tall stainless steel statue of Genghis Khan, a national hero who amassed power to become the leader of the Mongols in the early 13th century on the outskirts of Ulaanbaatar, Mongolia on July 1, 2024. (AP Photo/Ng Han Guan)
Tourists climb onto the 40-meter- (130-foot-) tall stainless steel statue of Genghis Khan, a national hero who amassed power to become the leader of the Mongols in the early 13th century on the outskirts of Ulaanbaatar, Mongolia on July 1, 2024. (AP Photo/Ng Han Guan)
Gers for tourism are seen at the base of a rock outcrop in Terejl National Park outside Ulaanbaatar, Mongolia on July 3, 2024. (AP Photo/Ng Han Guan)
Tourists visit the Zaisan Memorial, a monument that honors allied Mongolian and Soviet soldiers killed in World War II, in Ulaanbaatar, Mongolia on June 29, 2024.(AP Photo/Ng Han Guan)
Korean tourists visit Sukhbaatar Square in Ulaanbaatar, Mongolia on June 27, 2024. (AP Photo/Ng Han Guan)
Korean tourists visit Sukhbaatar Square in Ulaanbaatar, Mongolia on June 27, 2024. (AP Photo/Ng Han Guan)
A vendor holds up an eagle as the waits for tourists to take photos with near the Terejl National Park outside Ulaanbaatar, Mongolia on July 3, 2024. (AP Photo/Ng Han Guan)
Tourists enjoy horseback riding near the iconic Turtle Rock outcrop at the Terejl National Park outside Ulaanbaatar, Mongolia on July 3, 2024. (AP Photo/Ng Han Guan)
NEW YORK (AP) — Financial markets around the world are reeling Thursday following President Donald Trump’s latest and most severe volley of tariffs, and the U.S. stock market may be taking the worst of it.
The S&P 500 was down 4% in morning trading, worse than the drops for other major stock markets. The Dow Jones Industrial Average was down 1,520 points, or 3.6%, as of 10:10 a.m. Eastern time, and the Nasdaq composite was 4.0% lower.
Little was spared as fear flared globally about the potentially toxic mix of higher inflation and weakening economic growth that tariffs can create.
Everything from crude oil to Big Tech stocks to the value of the U.S. dollar against other currencies fell. Even gold, which has hit records recently as investors sought something safer to own, pulled lower. Some of the worst hits walloped smaller U.S. companies, and the Russell 2000 index of smaller stocks dropped more than 5% into what’s called a “bear market” after losing more than 20% from its record.
Investors worldwide knew Trump was going to announce a sweeping set of tariffs late Wednesday, and fears surrounding it had already pulled the S&P 500 10% below its all-time high last month. But Trump still managed to surprise them with “the worst case scenario for tariffs,” according to Mary Ann Bartels, chief investment officer at Sanctuary Wealth.
Trump announced a minimum tariff of 10% on imports, with the tax rate running much higher on products from certain countries like China and those from the European Union. It’s “plausible” the tariffs altogether, which would rival levels unseen in roughly a century, could knock down U.S. economic growth by 2 percentage points this year and raise inflation close to 5%, according to UBS.
Such a hit would be so frightening that it “makes one’s rational mind regard the possibility of them sticking as low,” according to Bhanu Baweja and other strategists at UBS.
Wall Street had long assumed Trump would use tariffs merely as a tool for negotiations with other countries, rather than as a long-term policy. But Wednesday’s announcement may suggest Trump sees tariffs more as helping to solve an ideological goal - wresting manufacturing jobs back to the United States, for example - than just an opening bet in a poker game.
If Trump follows through on his tariffs, stock prices may need to fall much more than 10% from their all-time high in order to reflect the global recession that could follow, along with the hit to profits that U.S. companies could take. The S&P 500 is now down about 11% from its record set in February.
“Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade,” said Sean Sun, portfolio manager at Thornburg Investment management, though he sees Trump’s announcement on Wednesday as more of an opening move than an endpoint for policy.
One wild card is that the Federal Reserve could cut interest rates in order to support the economy. That’s what it had been doing late last year before pausing in 2025. Lower interest rates help by making it easier for U.S. companies and households to borrow and spend.
Yields on Treasurys tumbled in part on rising expectations for coming cuts to rates, along with general fear about the health of the U.S. economy. The yield on the 10-year Treasury fell to 4.01% from 4.20% late Wednesday and from roughly 4.80% in January. That’s a huge move for the bond market.
The Fed may have less freedom to move than it would like, though. While lower rates can goose the economy, they can also push upward on inflation. And worries are already worsening about inflation because of tariffs, with U.S. households in particular bracing for sharp increases. The Fed has no good tool to fix what’s called “stagflation,” where the economy stagnates and inflation stays high.
The economy at the moment is still growing, of course. A report on Thursday said fewer U.S. workers applied for unemployment benefits last week in the latest signal that the job market remains OK overall. Economist had been expecting to see an uptick in joblessness, and the job market has been the linchpin keeping the economy out of recession.
A separate report said activity for U.S. transportation, finance and other businesses in the services industry grew last month. But the growth was weaker than expected, and businesses gave a mixed picture of how they see conditions playing out.
One business told the survey by the Institute for Supply Management that its restaurant sales and traffic have improved, for example. But another said tariffs on wood imported from Canada and the “resulting delays have caused havoc with the supply chain and deliveries.” A third in the construction industry said it's “starting to see effect of aluminum tariff. These costs will be passed on to customers.”
Worries about possible stagflation knocked down stocks across industries, leading to drops for four out of every five stocks that make up the S&P 500.
Best Buy fell 16.1% because the electronics that it sells are made all over the world. United Airlines lost 12.7% because customers worried about the global economy may not fly as much for business or feel comfortable enough to take vacations. Target tumbled 11.4% amid worries that its customers, already squeezed by still-high inflation, may be under even more stress.
In stock markets abroad, indexes fell sharply worldwide. France’s CAC 40 dropped 3%, and Germany’s DAX lost 2.3% in Europe.
Japan’s Nikkei 225 dropped 2.8%, Hong Kong’s Hang Seng lost 1.5% and South Korea’s Kospi dropped 0.8%.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Joseph D'Arrigo works on the floor at the New York Stock Exchange in New York, Thursday, April 3, 2025. (AP Photo/Seth Wenig)
Mike Pistillo Jr., center, works with other traders on the floor at the New York Stock Exchange in New York, Thursday, April 3, 2025. (AP Photo/Seth Wenig)
A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won, top right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, April 4, 2025. (AP Photo/Ahn Young-joon)
Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, April 3, 2025. (AP Photo/Ahn Young-joon)
People walk past an electronic stock board showing Japan's stock prices at a securities firm Thursday, April 3, 2025 in Tokyo.(AP Photo/Shuji Kajiyama)
People walk past an electronic stock board showing the day's early loss of Japan's Nikkei 225 index at a securities firm Thursday, April 3, 2025 in Tokyo.(AP Photo/Shuji Kajiyama)
People walk past an electronic stock board showing the day's early loss of Japan's Nikkei 225 index at a securities firm Thursday, April 3, 2025 in Tokyo.(AP Photo/Shuji Kajiyama)
U.S. President Donald Trump is seen on a screen as currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, April 3, 2025. (AP Photo/Ahn Young-joon)
U.S. President Donald Trump is seen on a screen as a currency trader works at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, April 3, 2025. (AP Photo/Ahn Young-joon)
People look at an electronic stock board showing the day's early loss of Japan's Nikkei 225 index at a securities firm Thursday, April 3, 2025 in Tokyo.(AP Photo/Shuji Kajiyama)
An electronic stock board shows the day's early loss of Japan's Nikkei 225 index at a securities firm Thursday, April 3, 2025 in Tokyo.(AP Photo/Shuji Kajiyama)
People walk past an electronic stock board showing the day's early loss of Japan's Nikkei 225 index at a securities firm Thursday, April 3, 2025 in Tokyo.(AP Photo/Shuji Kajiyama)
The exterior of the New York Stock Exchange is seen shortly after the close of the market, Wednesday, April 2, 2025. (AP Photo/Patrick Sison)
Wall Street signs are displayed outside the New York Stock Exchange in New York, Wednesday, April 2, 2025. (AP Photo/Seth Wenig)
