Something interesting is happening: Americans are staying home this summer & not roaming around Europe. Did you know that 29.1 million Americans visited Europe in 2019 & that's more than Chinese + Russian + Canadian tourists combined.

The current account deficit less negative?

American tourists are different than Chinese tourists in terms of their spending behavior: tend to like to spend money on bodily comfort such as higher quality hotels + buying souvenir that reflect local culture + they tip very generously. Chinese tourists buy goods (LVMH etc).

Chinese tourists are key for European luxury companies but it's the Americans that are most key for things like:

Hotels, restaurants (they love to eat well & esp drink well & tip generously) & buying things like local arts & crafts. This summer'll be less loud for Europe but...

More Americans are staying home so that's very good for all the domestic travels in the US & trends like boating & driving & also domestic tourism & people are now buying up second homes or even moving out of cities to get homes that improve the quality of life as WFH permanent..

Btw, Americans are not as inwardly driven as you think: 42% of them have passports & that's a huge surge from 3% in 1989.

Meaning, roughly 9% of Americans went to Europe last summer. Can you believe that? I'm floored by the statistics!

29.1! That's a big number. Basically half the population of Italy in terms of American influx in the summer. Obviously this has helped by the rise of the USD/EUR. Anyway, Americans staying home. Good for towns that are touristy in the USA (family lives near the beach in SD)

Btw, 29.1 millions is greater than the ENTIRE POPULATION OF AUSTRALIA of 25 millions !!!

When I say Americans are staying home I mean Europe has banned Americans.

That is fine by me as I don't intend on quarantining myself after I arrive in HK anyway but I think it will be positive for the US in terms of domestic tourism rising as people can't go to Europe!