The shift share analysis conducted here is an attempt to forecast the balance of trade between Europe and America in the medium term in order to determine the directions of trade shift between these two growth regions. The study examines tourist arrivals from 1990 to 2003 inclusive into a selection of America and European countries. The analysis showed that over time Europe has experienced a decreasing growth rate in tourist arrivals compared to the America. The allocation effect for Africa, Oceania and the Middle East were positive during 2000-2003 indicating that Europe was increasingly specialized in attracting tourists from these three regions and it had a competitive advantage over America. It is also interesting to note that Europe was increasingly losing ground in attracting more tourists from the Asia since 1995.