"Travel is a major export for the United States. While exports are often thought of as physical products that are shipped abroad, such as crude oil or cars, they also include services produced domestically and consumed by foreigners. For instance, a French national's five-night stay at a hotel in New York is considered a service export, since it brings money into the country from a non-resident."
"A trade deficit occurs when a country imports more goods and services than it exports. When it comes to travel, that means when Americans are spending more money on travel abroad than international visitors are spending in the United States. Historically, the industry has produced a trade surplus, meaning that foreigners spent more visiting the United States than Americans spent abroad on travel."
The United States is shifting from a historical travel trade surplus to a large deficit, with a projected near-$70 billion shortfall in 2025 as international visitors pull back. A travel trade deficit occurs when residents' spending abroad on travel exceeds foreign visitors' spending domestically. Travel functions as a service export when non-residents spend on lodging and activities, bringing money into the country. Inbound travel declines have been driven primarily by a sharp drop in Canadian visitors while Americans continue to travel abroad more. The country ran at a $50 billion travel trade deficit in April, reversing a $3.5 billion 2022 surplus.
Read at Business Insider
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