Spread the love

Post Views: 28

In a positive sign for the U.S. travel and tourism industry, international visitors spent more than $14.7 billion on travel and tourism-related activities in the United States in January 2023, according to data released by the National Travel and Tourism Office (NTTO). This represents an increase of nearly 64 percent compared to the same period in 2022 and marks the twenty-second consecutive month of year-over-year gains.

While the data is encouraging, it’s important to note that the pandemic has severely impacted the travel industry, and the growth in spending still falls short of pre-pandemic levels. For instance, in January 2019, international visitors spent $11.5 billion in the U.S., which is nearly 23 percent higher than the current figures.

Additionally, Americans spent more than $15.8 billion travelling abroad, which is more than any single month prior to the pandemic. This resulted in a balance of trade deficit of nearly $1.1 billion for the month, marking the third time in the past six months that travel and tourism ran a monthly trade deficit.

Preliminary data released by the Bureau of Economic Analysis further reveals that international visitors spent more than $164.5 billion on U.S. travel and tourism-related goods and services in 2022, nearly doubling the amount spent in 2021. On average, international visitors injected nearly $451 million a day into the U.S. economy last year.

Composition of Monthly Spending

The data also shed light on the composition of monthly spending by international visitors on travel exports. The breakdown is as follows:

Travel Spending

Purchases of travel and tourism-related goods and services by international visitors travelling in the United States totalled $7.9 billion in January 2023, compared to $3.7 billion in January 2022. This represents an increase of 114 percent year-over-year. These goods and services include food, lodging, recreation, gifts, entertainment, local transportation in the United States, and other items incidental to foreign travel. Travel receipts accounted for 54 percent of total U.S. travel and tourism exports in January 2023.

Passenger Fare Receipts

Fares received by U.S. carriers from international visitors totalled $2.6 billion in January 2023, compared to $1.5 billion in January 2022, representing an increase of 75 percent year-over-year. These receipts are expenditures by foreign residents on international flights of U.S. air carriers. Passenger fare receipts accounted for 18 percent of total U.S. travel and tourism exports in January 2023.

Medical/Education/Short-Term Worker Spending

Expenditures for educational and health-related tourism, along with all expenditures by border, seasonal, and other short-term workers in the United States, totalled $4.2 billion in January 2023, compared to $3.8 billion in January 2022, representing an increase of nearly 11 percent year-over-year. Medical tourism, education, and short-term worker expenditures accounted for 29 percent of total U.S. travel and tourism exports in January 2023.

The Future of Travel and Tourism

The travel and tourism industry has been one of the most severely impacted industries by the COVID-19 pandemic, with many businesses struggling to survive. The recent data released by the NTTO provides a glimmer of hope, but the industry still faces significant challenges.

For instance, the spread of the Omicron variant has resulted in travel restrictions and cancellations, which could impact the industry’s recovery. Moreover, with many businesses still operating at reduced capacity, the industry’s ability to accommodate increased demand remains a concern.

Nevertheless, the data highlights the importance of travel to the US economy.