A Boom in Foreign Travel

Vacationers cash in on the dollar's new clout

Many U.S. airlines may be hurting domestically, but on international flights business is beginning to bloom--and boom. Americans are clamoring for tickets to most of their favorite old haunts, especially those in Europe and the Caribbean, along with some new ones as well.

Until a month ago, it seemed as though the summer of 1981 would prove a foreign travel dud. But suddenly the airlines and travel agencies are being flooded with inquiries. In recent weeks, the number of passports issued by the State Department has jumped nearly 14% over the number issued during the same period last year. "There was a very slow start this year, but business has been picking up speed," says Jonathan Linen, head of American Express's travel division. "Now people are flocking to the gates to get out."

International departure terminals at major airports last week were bustling with travelers, including many backpacking students reminiscent of the 1960s. One sure indication that the blue-jeans set was off again: British Airways reported that it is selling stand-by tickets from New York City to London at the rate of 300 a week, nearly double the 160 a week it was selling at this time last year.

Wealthier people are also packing up. "Doctors, lawyers, the well-paid professionals are going everywhere," says Miami Beach Travel Agent Paul Besser. "We're writing more first-class and deluxe trips than ever before."

Behind much of the wanderlust is the strong recovery of the U.S. dollar against most other currencies. So far this year, the U.S. currency has risen 20% against the once proud West German mark, 23% against the battered French franc and 20% against the British pound. Smiled San Francisco Surgeon Roy Carson, boarding a plane to visit relatives in Sweden: "We watched the dollar go down, and now we're watching it come back up again."

Americans traveling abroad this year exhibit a sense of confidence, and not just because of the dollar's new strength. An improving economy and the Reagan Administration's promised tax cuts have helped to foster optimism. "It's only a gut feeling," declared Etta Brackman, who is vacationing in Greece, "but since the hostages came back from Iran I think we have recovered our pride as a nation."

This year's most popular European spots are Scandinavia, West Germany, Austria and France, all countries that were virtually ruled out in recent years by the dollar's weak purchasing power. In addition to the dollar's new might, visitors are also benefiting from a 1981 slowdown in inflation in several European countries. By contrast, high inflation has eroded the allure of last year's tourist meccas, Portugal and Spain, where consumer prices continue to climb steeply.

The most popular destination for Americans jetting abroad remains London, but only because airfares from the U.S. still make it the best jumping-off point for a European tour. Otherwise, most Americans are steering clear of the British capital.

Many London hotels are booked only half-full for next month, a disappointment to the government, which had expected a crush of tourists for the royal wedding on July 29. By hyping the wedding as the tourist draw of a lifetime, Britons may unintentionally have scared off many would-be visitors who wound up worrying about overcrowded pubs and scarce hotel rooms. "The American tourist is intelligent," says British Travel Consultant Verite George. "Why should he come here for a big event and pay double for a hotel room when he can watch it all on TV and come over in September?"

American travelers are snubbing Italy, and with good reason. Twice last week air traffic controllers staged strikes, freezing activity at all the airports for two days. Other strikes by airline, railroad and public transportation employees have sputtered on and off for months, adding to the frustrations of foreign visitors.

Among the more exotic vacation spots favored by Americans this year: Egypt and other parts of Africa. Many better-heeled travelers are jetting off to Europe for a week or so, then making a lengthy side trip to see the pyramids or join a safari. New York's Pisa Bros. travel agency says that demand is higher than ever for tours going to the People's Republic of China.

The dollar's 25% rise against the drachma has boosted tourism in Greece 22%, claims the Greek National Tourist Organization. Many travel agents and hotel owners doubt the official figures, arguing that not only are there fewer tourists but they spend less. Nevertheless, hotels in Athens and on Rhodes, Crete and Corfu, the country's most popular attractions, will all be full this summer.

Many U.S. travel agents think that the real boom in foreign travel will not come until late summer or fall. Right now, says one New York agent, people are deciding to go abroad on the spur of the moment. Some travelers may have been reluctant to plan trips in advance for fear that the dollar would not hold up well. But several airlines, including TWA and Air France, expect a rush of travelers later this year, after the summer tourists return home and start boasting about the bargains they found.

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