Visitors to US spending $265m less a month
By Kevin Rozario |
International visitors to the US were spending nearly $265m less a month in 2015 compared to 2014 as the US dollar continued to rise against foreign currencies, making the US a less attractive place to shop (see end chart for currency comparisons).
The US Department of Commerce recently announced that international visitors spent an estimated $18.2bn on travel to, and tourism-related activities within, the United States during the month of October.
This marked the seventh month this year in which monthly travel and tourism-related exports were lower than the previous year (see chart below) and does not augur well for duty free and travel retail sales.
The monthly falls look to be related to the weakening of currencies, with the euro and Brazilian real being particularly affected, as the end chart shows.
Previously, passenger fares exports (what international visitors spend to get to the US) were pulling down total tourism-related exports – largely a function of declining fuel prices and thus lower fares – but now lower-than-average travel receipts (what international visitors spend while in the US) have turned downward, too, says the department.
OCTOBER NUMBERS
Purchases of travel and tourism-related goods and services by international visitors to the US totalled $11.1bn during October, a decrease of -0.1%) when compared to the same period in 2014. These goods and services include food, lodging, recreation, gifts, entertainment, local transportation in the US, and other items incidental to foreign travel. These travel receipts accounted for 61% of total US travel and tourism exports during October 2015.
Passenger fare receipts – or fares received by US carriers from international visitors totalled $3.2bn for the month, a decrease of nearly -12% when compared to October 2014. These receipts accounted for 18% of total US travel and tourism exports during October.
Year-to-date international visitor spending totalled $181bn (January through October 2015), a decrease of -1% when compared to same period last year. Conversely, US residents have spent $129.4bn travelling abroad in the year to October, an increase of more than +7%.
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