Travel is Booming

Most of our clients have traveled within the United States as well as outside our borders. It might have been a relatively short trip by car to Canada, or by air to Mexico, or by ship throughout the Caribbean. Many other clients have gone across the big ponds, east to Europe and Africa or west to Asia and Australia. A few have visited every continent, including Antarctica.

            They’re getting out there, and so are a lot of other folks. Travel is booming, here in the States and worldwide. And when we travel, we spend money, which boosts the local economy. People who travel within the U.S., both American citizens and foreign visitors, spend the most. According to CNN Travel, travel and tourism added $2.36 trillion to the U.S. economy in 2023. That’s a new record, which could very well be broken this year.

            China is the number 2 market worldwide, but lags considerably behind America with “only” $1.3 trillion in travel-related spending last year. Germany, Japan and the United Kingdom round out the top five. France is in sixth place in terms of visitor spending but leads the world in the actual number of visitors.

            It shouldn’t be surprising that Paris is the top destination for tourism in France. The global research company Euromonitor International put together the Top 100 City Destinations Index for 2023, with the French capital at the top of the list. This year, with the Summer Olympics, Paris is once again expected to lead the way. Europe had 7 out of the top 10 cities on the 2023 index; the only non-European cities on the list were Dubai (2), Tokyo (4) and New York (8). Madrid was third, with Amsterdam, Berlin, Rome, Barcelona and London in the top 10.

            There were four newcomers to the Top 100: Washington DC (48), Montreal (68), Santiago (88) and Vilnius (92). Haven’t heard of that last one? Vilnius is the capital of the small Baltic state of Lithuania. The city that led the way in number of actual foreign tourists was Istanbul, followed by London and then Dubai. The cities with the biggest year-to-year growth were Hong Kong (up a whopping 2,495%) and Bangkok (142%), due to being among the last cities to reopen after the Covid-19 pandemic.

            As we’ve mentioned before, “overtourism” is becoming an issue in many cities and countries. Last week, New Zealand tripled its tourist tax. Its International Visitor Conservation and Tourism Levy (IVL) has gone up from US$22 to US$62, effective October 1. Visitors to New Zealand spent $11 billion last year, a huge part of the island nation’s economy, and some folks down there aren’t happy with the IVL increase. A consortium of travel professionals from across New Zealand said the country is already losing tourism business to Canada and the U.K., which have smaller entry fees. Also, New Zealand tourist visas will increase from $131 to $211 at the same time the IVL bump kicks in. Citizens of 60 countries and territories, including the U.S., can get a visa waiver that will allow them to stay for up to 3 months for tourism purposes.

            Another example of “overtourism” having an impact is in Rome. City authorities are considering limiting access to the Trevi Fountain, one of Italy’s most noted landmarks. Rome has always been a very popular destination, but it’s expected to set a new record for visitors in 2025, when it will host a year-long Roman Catholic jubilee that is expected to attract 32 million tourists and pilgrims.

            The draft plan to control access to the fountain includes requiring a prior reservation, with fixed time slots and limited access to the steps. Non-residents would be asked to make a “symbolic” contribution of a euro or two (US$1.20-2.20). The Trevi Fountain has been a tourism draw since its completion in 1762. It’s also been featured in many movies, including the famous scene in Frederico Fellini’s classic La Dolce Vita, when Anita Ekberg wades into the fountain and beckons co-star Marcello Mastroianni to join her.

            If Rome is on your bucket list of destinations, give us a call. We’ll help you get there, and by the way, don’t plan on wading in the Trevi Fountain.