IVIS Country Analysis – Italy

ITALY

408,633 Arrivals in the United States

Gain of 2,473 over 2002, 0.6%

11.8% of all Italian Long-Haul Travel

-4.0% over 2002

SUMMARY

Total outbound travel from Italy in 2003 grew 5.8 percent year over year, generating 23.2 million arrivals to destinations worldwide. Long-haul travel from Italy also grew 4.8 percent, reversing a two year decline. Italian travel to the United States also grew, but ever so slightly, 0.6 percent. As a result, the U.S. market share (MSI) also declined 4 percent to 11.8 percent of long-haul travel from Italy, the lowest level this decade.

In 2003, Italy's economy was sluggish. Real GDP grew only 0.5 percent year-over-year. Growth in real private consumption fared better growing 2.2 percent over 2002. Consumer prices increased 2.5 percent, which is the EU targeted inflation ceiling. The Italian unemployment rate fell to 8.8 percent, a low for the decade.

The Italian currency is now the euro. (To maintain a ten-year trend, the MSI online database shows the value of each eurozone country's currency in terms of the country's former local currency. The rate of change, however, is based on the euro after 1998, the year local currencies pegged to the euro.) After appreciating 5.5 percent against the dollar in 2002, the average exchange rate for the euro in 2003 showed appreciation of 19.5 percent over 2002. A stronger currency helps to attract travelers to the U.S., as was the case for Italian arrivals to the U.S. in 2003.

Egypt was once again the number one country destination (22.5%) for Italian long-haul travel in 2003, undoubtedly benefiting from its close proximity to Italy. In second place was the United States (11.8%), followed by Tunisia (11.0%). Interestingly, Cuba has become the next most popular destination for Italians in 2003, but by a distance, with 4.5 percent of the long-haul market. Argentina (3.8%) and Thailand (3.4%) are also popular long-haul destinations for Italian travel. Egypt, Cuba and Argentina all gained market share in 2003, while the U.S., Tunisia and Thailand all lost share.

Source: Global Insight

Africa was by far the most popular regional destination among Italian long-haul travelers in 2003 with 47.4 percent of the long-haul travel market. Asia was second in popularity with 14.7 percent of the Italian long-haul market. The U.S. came in third with 11.8 percent of the Italian long-haul market, followed by the Caribbean with 9.8 percent and South/Central America with 8.3 percent of this market. Africa, the Caribbean and South/Central America all gained market share, while the U.S. and Asia lost share.

Source: Global Insight