The tourism-related trade gap shows the present strength of the U.S. economy, but is also a long-term vulnerability
Aug 2, 2024
More Americans, particularly wealthier ones, are heading to Europe for vacations, outpacing the number of Europeans visiting the U.S. This has led to the largest tourism-related trade gap in over 20 years, highlighting both the strength of the U.S. economy and a potential long-term risk.
Key takeaways
- Last year, 7 million more Americans visited Europe than vice versa, the biggest gap since 2012. The average traveling household earned $154,000, up from $139,000 in 2019;
- Europe’s response is mixed: while the influx boosts local economies, it’s also driving up costs. For instance, hotel rates in Italy rose 42% from 2019 to May;
- In Madrid, long-term rental prices fell 15% in the first quarter, while short-term tourist rentals jumped over 50%.
Get the full story at El Pais
