Rising foreign spending on U.S. travel in August a sign of economic recovery

10-10-24

In August 2024, international travelers spent $21.5 billion on tourism-related goods and services in the United States, marking a significant and continued increase in tourism's contribution to the U.S. economy. These data reflect a positive trend toward recovery in the tourism sector following the challenges caused by the COVID-19 pandemic, which for months crippled much of the global travel industry.

This billion-dollar spending, reported by the U.S. National Travel and Tourism Office (NTTO), covered a wide range of products and services, primarily focused on passenger transportation, lodging, food and entertainment. Of the $21.5 billion, approximately $13.7 billion went to the more traditional tourism sectors of lodging, dining, shopping, cultural events and leisure, all of which are critical to local economies.

Some $7.8 billion was spent on air transportation, especially international airfare for foreign visitors to and from the United States. Air travel has been one of the most benefited sectors, as with the lifting of travel restrictions and increased demand, airlines are seeing their revenues steadily increase.

International tourism has proven to be a key component in the U.S. economic recovery. Since entry restrictions were lifted and quarantine policies were relaxed, the flow of travelers has steadily increased, contributing to the revitalization of the country's major tourist cities, such as New York, Los Angeles, Miami and Las Vegas. These cities, known for attracting large numbers of international tourists, are benefiting greatly from the increase in the number of visitors.

However, the impact is not homogeneous. Some destinations and regions, especially those that rely on visitors from countries still facing travel restrictions or low vaccination rates, continue to experience a slower recovery. Despite this, the overall growth in spending is a clear indicator that international tourism is approaching pre-pandemic levels.

Several factors have influenced this increase in spending by foreign travelers. First, the weakness of the dollar against other currencies has made travel to the United States more attractive to international tourists, who can take advantage of their increased purchasing power. Also, the revival of major sporting events, international conferences and cultural festivals has boosted leisure and business travel.

Another key factor has been the growing confidence in the health measures implemented by the government and companies in the tourism sector. The use of public health technologies, such as rapid testing and vaccination passports, has reduced barriers to travel, making it easier for more people to feel safe when visiting the United States.

As the world continues to adjust to the new normal, the outlook for U.S. tourism is optimistic. Projections indicate that foreign tourist spending could continue to increase during the final months of 2024, especially with the start of the vacation season and large-scale sporting events, such as the FIFA Club World Cup, attracting more travelers.

In addition, the U.S. government is working on policies to further facilitate tourism, such as streamlining visa processes and implementing marketing initiatives that promote the country as a safe and attractive destination. These measures, combined with a global economic context that favors consumption in high-value destinations such as the United States, are signs that the growth trend will continue.