The United States has witnessed an unprecedented surge in international tourist spending, injecting substantial energy into the American economy. Data from the National Travel and Tourism Office (NTTO) released recently revealed that international visitors spent a staggering $17.3 billion on American soil in April 2023. This figure represents an impressive growth of almost 26 per cent compared to April 2022, marking 25 continuous months of year-on-year gains.
Simultaneously, American travellers spent a record $17.2 billion abroad, ensuring a balance of trade surplus of $83 million for April. This positive upturn reverses a seven-month travel and tourism trade deficit streak for the U.S3.
Further analysis of revised Bureau of Economic Analysis (BEA)4 data reveals a more encompassing picture. From January through April 2023, international visitors spent approximately $67.2 billion on American travel and tourism-related goods and services5, a 45 per cent increase compared to 2022. The daily injection of almost $560 million into the U.S. economy further underlines the magnitude of the travel and tourism industry’s contribution.
The spending composition offers a detailed insight into the figures. International tourists spent $9.7 billion in April 2023 on travel and tourism-related goods and services within the U.S., representing a 35 per cent growth from April 2022’s $7.2 billion.
These expenditures encompassed various sectors: food, lodging, entertainment, local transportation, recreation, gifts, and other incidental expenses. Travel receipts constituted 56 per cent of U.S. travel and tourism exports in April 2023, underscoring their crucial role in the industry’s economic contribution.
Moreover, U.S. carriers received $3.1 billion from international visitors in passenger fare receipts in April 2023, a 31 per cent rise from the previous year. These receipts, representing foreign residents’ spending on international flights provided by U.S. air carriers, accounted for 18 per cent of total U.S. travel and tourism exports in April 2023.
Expenditures on medical and education-related tourism, along with all spending by the border, seasonal, and other short-term workers, reached $4.6 billion in April 2023, an increase of 8 per cent from the previous year. These sectors, which accounted for 26 per cent of total U.S. travel and tourism exports in April 2023, underline the diversity of the American tourism market.
In conclusion, the surge in international spending in the U.S. testifies to the rejuvenated allure of American destinations and the resilience of the U.S. travel and tourism industry in the global market.
Written by: Matthew Thomas
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