IVIS Country Analysis – Netherlands

THE NETHERLANDS

373,690 Arrivals in the United States

Loss of 10,677 over 2002, -2.8%

19.9% of all Dutch Long-Haul Travel

-1.3% over 2002

SUMMARY

In 2003, total outbound travel from the Netherlands was flat over 2002. Still, Dutch outbound travelers generated 28.4 million arrivals to destinations worldwide. Dutch long-haul travel declined 1.5 percent from the year before. Arrivals to the United States from the Netherlands declined at a slightly faster rate (-2.8%) over 2002. The U.S. market share (MSI) was consequently down 1.3 percent in 2003 over 2002, to its lowest level this decade.

In 2003, economic growth in the Netherlands was negative, likely slowed by the sluggish economies of its European neighbors. Real GDP declined 0.7 percent. As one of the most open trade-oriented countries in the world, the Netherlands was inevitably hurt by the global economic slowdown. Real private consumption was also negative (-0.9%) and the unemployment rate surpassed five percent (5.4%) for the first time this decade. Inflation was only two percent, within the EU target and lower than the year before.

The Dutch 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. Typically, a stronger currency helps to attract travelers to the U.S., but the Netherlands was an exception in 2003.

The United States is the number one country destination for Dutch long-haul travelers, garnering 19.9 percent of the market in 2003. Other top country destinations for long-haul travelers from the Netherlands include Thailand (7.0%), South Africa (5.9%) Indonesia (5.7%), Canada (4.9%), and Brazil (2.9%). All of these country destinations lost market share from Netherlands in 2003 except South Africa, which gained share.

Source: Global Insight

In 2003, Asia was the most popular region for Dutch long-haul travelers with 29.9 percent of the market. The U.S. came in second place with 19.9 percent. Also receiving healthy shares of this market were Africa (18.3%), South/Central America (10.9%) and the Caribbean (8.8%). Africa and the Caribbean both gained share of Dutch long-haul travel in 2003, while the other regions lost share.

Source: Global Insight