Page 8 - IAADFS Summit 2023 Special Edition

INSIDER

Total 2022 international arrivals to the U.S. still trail 2019 volume

Total international visitor arrivals to visitors, had the largest percentage increase The largest number of international
the United States in calendar year 2022 of 1084.7% YOY. visitor arrivals in December was from
totaled 50,869,685, an increase of 128.3% Central America reported the smallest Canada (1,370,912), Mexico (1,162,746),
from 2021, reported the National Travel percentage increase in 2022 with 1,191,561 the United Kingdom (315,610), Brazil
and Tourism Office (NTTO) of the U.S. arrivals representing an increase of just (150,616) and France (121,284).
Department of Commerce. Despite the +0.9% YOY. Combined, these top five source markets
healthy gains, the volume is still only 64% of New York reported the largest volume accounted for 62.2% of total international
the total international visitor arrivals in 2019. of visitor arrivals as a port of entry for arrivals.
Overseas visitor arrivals reached 2022 (4,450,767). Miami was second Of the top 20 tourist generating
23,952,957, an increase of 161.1% from (3,815,420), followed by Los Angeles countries to the U.S., Colombia (with
2021. (2,071,421). 99,472 visitors), and Costa Rica (with
All world regions reported an increase For the month of December, 34,559) were the only countries that
in visitor volume to the United States international arrivals to the U.S. were up reported a decrease in visitor volume in
from 2021. The largest source region was +46% over December 2021, representing December 2022 compared to December
Western Europe with 10,341,306 visitors nearly 73% of the pre-COVID visitor 2021, with a -23.3%, and a -11.8%
(+509.2% YOY). Oceania, with 798,444 volume.

NRF: U.S. 2023 retail sales to grow between 4% and 6%

In another indication that the The 2023 forecast is above the pre- unemployment rate is likely to exceed
economic recovery is moving forward, pandemic, average annual retail sales 4% before next year.
U.S. retail sales are projected to grow growth rate of 3.6%. NRF Chief Economist Jack
between 4% and 6% in 2023, according Non-store and online sales, which Kleinhenz noted that aggregate
to the National Retail Federation’s annual are included in the total figure, are economic activity has held up well,
forecast, released at the end of March. expected to grow between 10% and 12% despite restrictive monetary policy
In total, NRF projects that retail year over year to a range of $1.41 trillion that is working purposefully to curb
sales in the U.S. will reach between to $1.43 trillion. While many consumers inflation. He also acknowledged that
$5.13 trillion and $5.23 trillion this year. continue to utilize the conveniences recent developments in the financial
“In just the last three years, the retail offered by online shopping, much of that markets and banking sector as well as
industry has experienced growth that growth is driven by multichannel sales, some unresolved public policy issues
would normally take almost a decade by where the physical store still plays an complicate the outlook.
pre-pandemic standards,” NRF President important component in the fulfillment “While it is still too early to know
and CEO Matthew Shay said. “While we process. As the role of brick-and-mortar the full effects of the banking industry
expect growth to moderate in the year stores has evolved in recent years, they turmoil, consumer spending is looking
ahead, it will remain positive as retail remain the primary point of purchase for quite good for the first quarter of 2023,”
sales stabilize to more historical levels. consumers, accounting for approximately Kleinhenz said. “While we expect
Retailers are prepared to serve consumers 70% of total retail sales. consumers to maintain spending, a softer
in the current economic environment by NRF projects full-year GDP growth and likely uneven pace is projected for
offering a range of products at affordable of around 1%, reflecting a slower the balance of the year.”
prices with great shopping experiences.” economic pace and half of the 2.1% As the leading authority and voice
NRF’s annual sales forecast was increase from 2022. Inflation is on the for the retail industry in the U.S., NRF
announced during the third annual way down but will remain between 3% provides data on retail sales each month
State of Retail & the Consumer virtual and 3.5% for all goods and services for and also forecasts annual retail sales
conversation, where retail executives the year. and spending for key periods such as the
from major brands, prominent economists Although the labor market has holiday season each year.
and consumer experts discussed the remained resilient, the trade organization NRF’s calculation of retail sales
health of American consumers and the anticipates job growth to decelerate in the excludes automobile dealers, gasoline
retail industry. coming months in lockstep with slower stations and restaurants to focus on core
The 2023 figure compares with 7% economic activity and the prospect retail.
annual growth to $4.9 trillion in 2022. of restrictive credit conditions. The

Summit of the Americas April 2023 8