Study indicates Australia remains a top destination for US travellers

Visa today unveiled findings from its Visa US International Travel Outlook which revealed that the U.S. dollar’s decline has not dampened enthusiasm for travel and that Australia is among the top destinations for U.S. travellers.

The survey, which polled U.S. payment cardholders who had traveled outside the U.S. in the past three  years, found that two out of three respondents (63 percent) are equally or more willing to travel overseas  compared with one year ago.

And half said they are likely to take a trip abroad in the next 12 months, although two in three have shortened the distance they are willing to travel. 

Even those respondents not planning to travel internationally in the next year hope to do so at a later date (74 percent). Respondents cited cost of travel (54 percent) and the current state of the economy (49 percent) as deterrents for any short-term planning of overseas travel.  

“Even though Americans aren’t going as far this year, they continue to exhibit a strong willingness to  travel overseas,” said Chris Clark, General Manager of Visa Australia and New Zealand.  “Visa data  shows Australia attracted a healthy share of the U.S. tourism market in the first quarter of 2008 despite  the weaker U.S. dollar and worries about rising prices.”  

According to the 2008 U.S. International Travel Outlook, Canada (46 percent) and Mexico (45 percent)  top the list as the most popular foreign destinations for American travelers this year.

However, one in six respondents stated that they are likely to visit Australia in the next 12 months, indicating the appeal of  experiencing Australian charm and culture, world-class beaches and thriving city nightlife.

In 2007, U.S. travelers spent US$436 million on their Visa-branded cards while visiting Australia, putting them eighth among the top 10 international destinations based on Visa cardholder spending.

During the first quarter of 2008, Australia retained that ranking, with US$119 million in Visa cardholder purchases. 

Between January 1 and December 31, 2007, the top 10 destinations based on tourist spending on U.S.- issued Visa-branded payment cards were: 

1. Canada  – US$2.9 billion

2. Mexico – US$1.8 billion

3. United Kingdom  – US$1.3 billion

4. Italy  – US$1.1 billion

5. France – US$975 million

6. Germany  – US$837 million

7. Puerto Rico – US$741 million

8. Australia  – US$436 million

9. Spain – US$431 million

10. China – US$414 million

As American tourists travel to Australia, the local hotel and tourism sector will benefit most from their visits.

According to the survey, Americans traveling overseas plan to spend the most money on accommodations (60 percent), followed by food (12 percent) and entertainment (12 percent). In 2007, Visa cardholders spent more than US$92 million on lodging and US$28 million at restaurants in Australia.  The average lodging ticket was US$257, while the average transaction amount at restaurants was US$61.

The majority of respondents cited credit and debit cards as their preferred payment methods when  making purchases overseas (73 percent), ahead of cash (18 percent) and traveller’s checks (7 percent).  

Travellers are opting for electronic payment based on its convenience (94 percent), ease of accessing  funds (87 percent) and security (78 percent). 

A Report by The Mole