Americans’ travel bug for Europe is too much of a good thing
The tourism-related trade gap shows the present strength of the U.S. economy, but is also a long-term vulnerability
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