The U.S. Dept. of Commerce is taking a close look at the role travel and tourism plays in the economy, specifically regarding tourism-related spending and employment. Commerce statistics show that real spending on travel and tourism decreased at an annual rate of 1 percent in the third quarter of 2011 after increasing 3.2 percent in the second quarter.
By comparison, growth in real gross domestic product (GDP) increased 2 percent in the third quarter after increasing 1.3 percent in the second quarter. The decrease in real spending on tourism primarily reflected decreases in total transportation and in traveler accommodations. Overall growth in prices for travel and tourism goods and services remained high, increasing 5.2 percent in the third quarter of 2011 following a 7.4 percent increase in the second quarter. The growth in prices for travel and tourism goods and services reflected increases in prices for traveler accommodations and for total transportation.
Direct tourism-related employment increased 1.5 percent in the third quarter of 2011 after increasing 2.5 percent in the second quarter. By comparison, overall U.S. employment increased 0.9 percent in the third quarter after increasing 1.4 percent in the second quarter. Real spending on passenger air transportation declined 3.3 percent in the third quarter of 2011 after increasing 5 percent in the second quarter. Airlines cut capacity (reducing available flights) and increased prices to cover rising fuel costs. Real spending on traveler accommodations decreased 0.5 percent in the third quarter after decreasing 0.4 percent in the second quarter.
Prices for passenger air transportation continued to grow, increasing 3.2 percent in the third quarter after increasing 7.6 percent in the second quarter. Airlines increased fares, especially on international routes, in the third quarter to cover the increased costs of fuel. Prices for traveler accommodations also grew, increasing 11.9 percent in the third quarter of 2011 after increasing 16.7 percent in the second quarter.
Direct employment in the travel and tourism industries increased 1.5 percent in the third quarter of 2011. All industries saw increases in employment with traveler accommodations experiencing the largest growth at 3.4 percent.
Total tourism-related spending in the U.S. includes the goods and services that are purchased directly by visitors and the inputs used to produce these goods and services. In the third quarter of 2011, total current-dollar tourism-related spending was $1.2 trillion and consisted of $813.2 billion (68 percent) of direct tourism spending — goods and services sold directly to visitors — and $387.7 billion (32 percent) of indirect tourism-related spending — goods and services used to produce what visitors buy.
Total tourism-related employment was 7.6 million in the third quarter of 2011 and consisted of 5.4 million (71 percent) direct tourism jobs — jobs where workers produce goods and services sold directly to visitors — and 2.2 million (29 percent) indirect tourism-related jobs — jobs where workers produce goods and services used to produce what visitors buy.