This summer, wealthy Americans are expected to once again flock to Europe in droves, splurging on expensive hotels in Paris for the Olympics or along the Mediterranean, scrambling for Taylor Swift concert tickets, and leaving generous tips for restaurant servers. The tourism industry, which accounts for 10% of the European Union’s GDP, will undoubtedly welcome these big-spending visitors.
According to data from the U.S. Census Bureau, currently over one-third of American households have annual incomes exceeding $100,000. And according to the 2023 Global Wealth Report by UBS Group, the United States has around 23 million millionaires, far exceeding China’s 6.2 million. With difficulties for Chinese tourists to return, affluent and generous American tourists are undoubtedly welcomed by Europeans.
The number of Americans traveling to continental Europe this year is set to break records. According to air traffic data from the U.S. International Trade Administration, the number of American citizens traveling to Europe in the first five months of this year has increased by nearly 7% compared to 2023.
As the summer kicks off, the crowds continue to surge. According to airline company reports, the popular destinations for Americans flying from the U.S. to Europe this season are London, Rome, Paris, Athens, and Amsterdam.
Taylor Swift’s “Eras” tour in Europe and the summer Olympics in Paris have provided more reasons for American tourists to travel to Europe. Airlines have responded by adding dozens of direct flights.
Staying in hotels in Paris during the Olympics can be costly. According to Hotels.com, the average room rate during the Olympics is $455 per night. According to market research company AirDNA, short-term rental prices in Paris average $481 per night during this period, and currently only 30% of hotel rooms are still available.
To manage the influx of visitors, major attractions like the Louvre in Paris have implemented daily visitor quotas. Venice is charging a fee of 5 euros (about $5.4) for day-trippers on certain days before July 14, and the Acropolis in Athens now requires visitors to purchase tickets for reserved entry times.
In Spain, the passes to the Alhambra fortress in Granada quickly sold out. Fortunately, the city sells a tourist pass that guarantees access to some of the most popular historical sites and includes public transportation.
Barcelona, Rome, and the Greek island of Santorini are popular cruise ports. They have listed the scheduled arrival times of cruise ships and the number of passengers. Margi Arnold, the owner of Creative Travel Adventures in Denver, suggests that even if you’re not taking a cruise, checking the schedule can help you plan your day to avoid long waits and crowded attractions.
Comparatively, as the Chinese economy continues to weaken, Chinese people are holding onto their wallets. While traveling abroad without visa concerns, they are also seeking cost-effective travel options.
The return of Chinese tourists to the global tourism market is closely watched as their numbers and spending are crucial for the industry’s recovery.
Last year, 87 million Chinese people traveled abroad, a 40% decrease from 2019 before the pandemic. Industry observers note that since the Chinese New Year in February this year, the pace of international travel has slowed down. According to UN tourism data, Chinese tourists’ spending decreased by 24% in 2020 compared to 2019, while American tourists’ spending increased by 14%.
According to airport operator ADP, the number of Chinese tourists traveling to France, the world’s top tourist destination, is only at 28.5% of the 2019 level.
Due to high costs of traveling to Europe and visa difficulties, many Chinese tourists are opting for neighboring Asian countries like Thailand and Japan, where visa-free entry is available and the Japanese yen has depreciated against the yuan.
However, as incidents of Chinese tour groups frequently going missing in Japan have increased, Japan recently tightened entry visa regulations for Chinese tourists.
Travel industry professionals in China point out that just in May and June this year, there have been more than a dozen incidents of tour members going missing, a number that is “unprecedented.”
(This article referenced reporting from Bloomberg)