Lack of high-spending US travelers will prolong economic recovery of dependent EU destinations, says GlobalData
US tourist expenditure in Europe is expected to decline from US$116.1bn in 2019 to US$63.2bn in 2020, showcasing a 45.5% drop. As infection rates across the US surge, this invaluable source market is still a long way from recovery, which will only make matters worse for EU destinations that are major beneficiaries from US tourism, says GlobalData, a leading data and analytics company.
"What will be especially frustrating for Italy's tourism sector and wider economy is that US travelers spend significantly more per day compared to other valuable source markets. In 2019, the average international daily spend of a US tourist was US$194, which put the US in the global top 20 in terms of average daily international expenditure.
"This frequent and high-spending source market is even more important for the less economically developed and more tourism-reliant South of Italy. Many US tourists travel to the major islands of Sardinia and Sicily - where the local gastronomy acts as a significant pull factor. The lack of US tourism will no doubt extend the economic recovery of these islands. However, the ban on US travel is completely warranted. COVID-19 wreaked havoc in Italy and a second spike caused by international visitation will only peg the nation further back in its recovery process."
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