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Notes to myself, possibly of interest to others.
-- Bill Northlich

Friday, April 8, 2011

Rosenberg - Us Tourism Boom

Everyone is so enamored with the U.S. manufacturing theme but in fact, there is another major theme (a positive one too) that is taking hold, which is currently receiving little attention. We are talking about tourism, and it’s not just about the U.S. dollar either, although it helps to have it trade softer to make those vacations that much cheaper for foreigners. The key is what’s happening and what is likely to happen as incomes grow and middle-income classes expand in places like China and India with billion-plus populations...

As incomes there continue to grow and the basic necessities are filled, what happens next in this development phase will be cyclical services. And part of that is travel. And tourism is one thing the United States does very well. So as the chart below illustrates, if there is already a boom in the U.S.A., it is inbound foreign travel — so one key for future investing will be to monitor where wealthy Asians like to eat, shop, and visit ... from New York, to Aspen, to Carmel.

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