International Visitor Spend Is Breaking Records
International visitors to the United States spent a record $16.9 billion in February, a figure that’s not only an increase of 64 percent compared to the same month in 2022, but also represents the twenty-third consecutive month of year-over-year gains.
The data, just released by the National Travel and Tourism Office (NTTO), also shows that Americans spent a record $17.4 billion traveling abroad during February 2023. That’s up from the $15.8 billion Americans spent abroad in January.
The difference between the spending of international visitors in the U.S. and that of U.S. travelers abroad amounts to a trade deficit of more than $480 billion for the month of February. The deficit figure is noteworthy because prior to July 2021, the U.S. had never recorded a monthly trade deficit for travel and tourism. Since then, however, the U.S. has recorded deficits for 10 of the past 20 months, or 50 percent of the time.
Separate data, from the Bureau of Economic Analysis, shows that international visitors spent about $32.3 billion on U.S. travel and tourism-related goods and services from January 2023 through the end of February. That’s an increase of 67.4 percent, compared to the same time frame last year.
The Bureau of Economic Analysis report also shows that international visitors have injected an average of $547 million every day into the U.S. economy over the course of January and February
Additional data highlights from the new NTTO report include:
Purchase of travel and tourism-related goods and services by international visitors traveling in the United States totaled $9.5 billion just for February 2023. That’s a whopping 97 increase from the $4.8 billion in spending recorded for the same month in 2022. The goods and services measured by the spending report include such things as food, lodging, recreation, gifts, entertainment, and local transportation
Travel receipts accounted for 56 percent of total U.S. travel and tourism exports in February 2023
Fares received by U.S. carriers from international visitors totaled $3.1 billion in February 2023. That’s double the amount of one year earlier, when the figure recorded was $1.6 billion. This figure is based on money spent by foreign residents on international flights provided by U.S. air carriers
Passenger fare receipts account for 18 percent of the total U.S. travel and tourism exports in 2023.
The U.S. Travel Association meanwhile, recently announced plans to address what it views as the current challenges and deterrents to help America remain competitive as an international destination in a growing world tourism market.
As more and more countries facilitate international travel and gain larger shares of global travel, the organization found that while interest in traveling to the U.S. has improved, visa wait times remain high, sometimes taking as long as a year to complete.
Data from the recent State of International Traveler survey found that 49 percent of international tourists originating in non-Visa Waiver Program countries cited visa issues as a barrier to visiting the U.S., with wait times, a cumbersome process and visa fees being the biggest challenges.
Another 78 percent of travelers in non-visa waiver countries cited the “ease of obtaining a visa” as important and 40 percent cited it as a very important factor.