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Friday, February 3, 2023

The strength of the dollar against the euro is reactivating tourism from the USA to Spain

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The appreciation of the dollar is having a calming effect on the recovery of tourism from the USA to Spain. On July 12, the euro reached parity with the dollar, a level not seen since 2002. One of the consequences of the weakness of the euro is that travel from countries in the dollar area is becoming cheaper. If an American tourist earned €830 per $1,000 last summer, two weeks ago the figure rose to €1,000, an annual increase of 20.4%, while yesterday it had fallen to 980, or 18.1%.

A purchasing power gain that is directly related to the search for flights and the increase in bookings. Data from consulting firm Mabrian shows the strong link between a strong dollar and searches for flights to Spain. From April, the date when the greenback’s strength against the euro began to consolidate, through last week, searches for flights from the US to a Spanish destination have increased six-fold, coinciding with the euro’s fall towards parity with the dollar. “Right now, European hotels should advertise heavily to US travelers and consider exchange rates when considering where to direct their marketing,” he says. Carlos Cendrá, Marketing and Sales Director of Mabrianwho will speak on this topic at the third edition of the Forward_MAD Congress on Luxury Tourism, to be held in Madrid from October 5th to 7th.

shopping tourism

The recovery of the US as a source market for tourists is crucial as it is the most important market outside of the European Union. In 2019, U.S. tourism hit record highs with 3.3 million travelers spending €6.774 billion, according to a recent report by Mastercard. As a long-haul destination, the average cost per tourist is over 2,000 euros, which doubles and even triples the spending of tourists from major emission destinations such as Great Britain, Germany or France. The latest data from Oxford Economics, based on data from the World Tourism Council’s International Monetary Fund, expects spending in the local market to return to pre-pandemic levels this year, while spending in international markets will not Will return to 2019 numbers at least in two years.

This reactivation was already being felt before the summer, as reserved seats on US-Spain flights reached 1.4 million seats, 80.8% of pre-pandemic levels, and now it may be accelerating with violence since the last cheap study This was indicated by the flight comparison WayAway, which was carried out last week Half of the respondents were now more willing to travel to Europe because of the appreciation of the dollar and that the area that could benefit the most would be shopping tourism.

The opening of new flight connections between the USA and Spain will certainly contribute to this. The latest report on travel trends to USA from Turespaña This brings the number of routes between the two countries to 22, just two fewer than in 2019. Among the latest to be included are the new Iberia routes with Dallas and Washington, and those operated by United Airlines from Newark to Palma de Mallorca and Tenerife stands out.

eco fuel

One of the big innovations of the Washington and Dallas routes is that they will use biofuels. On June 1, the Iberia A330-200 aircraft that inaugurated the Washington-Madrid route made airline history as the first long-haul flight to run on biofuel entirely made in Spain. The fuel is made by Repsol from materials unfit for human consumption, essentially waste, and is blended at 2% with kerosene. This new fuel will also be used on the route to Dallas.

The intensive use of this biofuel, which is also used by planes on the route between Madrid and San Francisco, will force Repsol to invest 200 million in the Cartagena refinerywith the aim of being able to produce around 250,000 tons of biofuel per year as early as the first half of 2023. An initial investment that is accompanied in a second phase the payout of another 103 million in Bilbao focused on synthetic fuels.

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Source elpais.com

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