Travel and Tourism Spending Grows at More Than Twice the Rate of the U.S. Economy in Q3 2015

Hotel Online is reporting data from from the U.S. Department of Commerce that spending on travel and tourism continued to rise throughout the second quarter of 2015. 

Published By: Hotel Online
Published Date: January, 2016

The U.S. Department of Commerce recently announced that real spending (output) on travel and tourism continued to rise during the third quarter, increasing at an annual rate of 4.3 percent after increasing 8.4 percent in the second quarter of 2015. For perspective, the U.S. economy (gross domestic product) grew 2.1 percent during the third quarter, half the growth exhibited by travel and tourism. This marks the fourth consecutive quarter in which the growth of travel and tourism output has outpaced the growth of the U.S. economy.

“After 22 consecutive quarters of job growth the travel and tourism industry has added more than 1.1 million U.S. jobs that were previously lost during the global economic slowdown,” Under Secretary Selig said. “More than eight million U.S. jobs now depend on the continued success of travel and tourism – an industry that produces nearly $1.6 trillion a year of economic output for the U.S. economy.”

  • Tourism Prices. Prices of travel and tourism goods and services turned down in the third quarter, decreasing 0.3 percent following an increase of 0.5 percent in the second quarter. The downturn was mainly attributable to a downturn in “all other transportation-related commodities,” which includes gasoline, travel arrangements and reservation services, and automotive rental. Prices for “traveler accommodations” turned up in the third quarter, partially offsetting the downturn in prices for “all other transportation-related commodities.”
  • Tourism Employment. Employment growth in the travel and tourism industries accelerated, increasing 2.2 percent in the third quarter of 2015 after increasing 1.6 percent in the second quarter. In comparison, overall U.S. employment increased 1.8 percent in the third quarter after increasing 1.7 percent in the second quarter. “Food services and drinking places” was the most significant contributor to employment growth, adding 14.6 thousand employees, followed by “air transportation” which added 4.5 thousand employees.

To read the entire article on Hotel Online, click here