IVIS Country Analysis – Sweden

SWEDEN

211,386 Arrivals in the United States

Gain of 7230 over 2002, 3.5%

17.5% of all Swedish Long-Haul Travel

1.7% over 2002

SUMMARY

Total outbound travel from Sweden declined two percent in 2003, but still generated 7.2 million arrivals to destinations worldwide. Long-haul travel from Sweden increased 1.8 percent in 2003 over 2002. Swedish arrivals to the United States also increased 3.5 percent in 2003 over 2002. As a result, the U.S. gained 1.7 percent in market share of long-haul travel from Sweden, and the market share indicator (MSI) rose to 17.5 percent. Despite the increase in U.S. market share, this is still the second lowest level for the MSI this decade. The U.S. had been steadily losing its market share of Swedish long-haul travelers for the past decade. Hopefully, 2003 ended that trend.

In 2003, Sweden's real GDP grew only 1.5 percent over 2002. Real private consumption grew only 1.8 percent during the same time period. This is the third year of sluggish economic growth for Sweden. Reduced demand from the U.S. information technology industry and decreased exports have been blamed for the slow rate of growth. After having enjoyed a declining unemployment rate for five consecutive years, the Swedish unemployment rate rose to 4.9 percent. Consumer prices increased only 2.0 percent in 2002, below the European Union target of 2.5 percent.

Although Sweden is a member state of the European Union, it is not part of the single currency. The krona is still the Swedish currency. The krona appreciated against the dollar in 2003 by 19.9 percent in 2003, likely carried by the strength of the European currency, the euro. Also, the U.S. dollar has been overvalued for several years, so many other currencies besides the euro appreciated against the dollar in 2003. The growth of the krona probably encouraged travel to the U.S. from Sweden in 2003 in spite of the sluggish Swedish economy.

Egypt was the most popular country destination for long-haul travel from Sweden in 2003 with 17.7 percent of the long-haul market. Thailand, which had been the most popular long-haul country destination in 2002, became second in 2003 with 17 percent of the market. The United States was third with 17.5 percent. Kenya was a distant fourth with 3.4 percent and Brazil earned 2.7 percent of Sweden's long-haul market in 2003. The U.S., Egypt, and Kenya all gained market share in 2003, while Thailand and Brazil lost share.

Source: Global Insight

With nearly one third of the market (34.0%) Asia was by far the most popular regional destination for long-haul travel from Sweden in 2003. Africa came in second with more than one quarter of the market (28.2%), followed by the U.S. as a region with a long-haul market share of 17.5 percent. South/Central America earned a long-haul market share of 4.9 percent and the Caribbean earned 3.8 percent. The U.S., Africa, and the Caribbean gained share in 2003, while the other regions lost share.

Source: Global Insight