Tourism as Trade
By Alexandra Scherrer
In recent weeks, tariffs, trade disputes, and supply chains have dominated international economic discussions. However, one key aspect of international economic exchange continues to fly under the radar: Tourism.
When non-EU residents spend money within the Union, they effectively import EU services. This spending is recorded in the balance of payments as part of the export of services, making tourism an economic driver widely regarded as a cornerstone for economic development, creating jobs, revitalising regions, and sustaining small businesses.
EU citizens, especially as tourists, are also powerful global consumers. In the last months, geopolitical and cultural tensions have prompted a wave of informal travel boycotts: Germany, the UK, Denmark, Finland, and Portugal have issued travel warnings for the United States, while appeals to avoid visiting the U.S. have gained traction in both Europe and Canada.
These decisions are not just personal—they have economic consequences. When EU citizens choose not to vacation abroad, they redirect spending that would otherwise contribute to foreign economies. In this case, U.S. tourism revenues are directly affected by a deteriorating public sentiment and political discord. In 2023, Travel and tourism to the US accounted for 22% of the country’s services exports, generating $2.3 trillion and supporting 9.5 million jobs. It is the single largest service export for the U.S., underlining its strategic economic value. This demonstrates the influence of tourism, not only as an economic force but as a reflection of international relations.
Tourism to the EU is equally impactful. Many regional economies—especially in southern Europe—rely on inbound travel as a primary source of income, and businesses depend on the continuous flow of international visitors. When travel surges, so do revenues; when it slows, the effects ripple throughout the service sector.
The COVID-19 pandemic was a sharp reminder of this dependency. In 2020, participation in tourism among EU residents dropped to 52%. It was only by 2023 that the rate rebounded to pre-pandemic levels, reaching 65%. The rebound in 2024 was especially robust, driven largely by intra-regional travel, with Germany, France, Italy, and the Netherlands leading the recovery.
Despite this progress, not all Member States have benefited equally. The Baltic nations—Latvia, Estonia, and Lithuania—continue to lag behind in post-COVID tourism recovery due to regional instability through the ongoing Russian war in Ukraine. Latvia, in particular, saw a 34% drop in post-pandemic tourism, revealing a continuing vulnerability of EU tourism to conflicts.
Tourism promotes cultural understanding, mutual appreciation, and international goodwill—elements that no trade agreement or economic sanction can replicate. But it is also an economic engine, a tool of diplomacy, and a powerful component of the EU’s global trade identity. If tourism is trade, then it deserves a place at the centre of the EU’s economic and diplomatic strategies. At a time when relationships with global partners are being tested, tourism should not be seen merely as a seasonal concern or a soft cultural endeavour, but as a major export sector worthy of investment, protection, and policy coordination.
