Many more Americans have US passports than a few years ago, enabling them to travel internationally and spend their dollars at tourist destinations. In 2024, approximately 51% of Americans held a US passport compared to 17% in 2000. A sudden surge in passport applications was caused by the Western Hemisphere Travel Initiative, which required Americans to carry passports when traveling to neighboring countries. Higher passport ownership is a possible cause for increasing tourist spending by Americans in Europe although the appreciation of the US dollar is also a contributing factor. For instance, Americans’ duty-free spending in continental Europe rose about 20% in 2024. Looking ahead, the number of Americans with a US passport is expected to continue rising as international tourism increases in popularity although the current immigration policies of the US government will probably have a dampening effect.
Source: US Department of State, World Bank, Morgan Stanley, February 2025.