News Release
Travel and Tourism Satellite Accounts, 3rd quarter 2008
(SEE THE BOX NEXT RELEASE)
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Real spending on travel and tourism (spending adjusted for price changes) turned down sharply in 2008:3, decreasing at an annual rate of 8.1 percentthe largest decline since 2001:4. In 2008:2, real spending grew 2.8 percent (revised). By comparison, real gross domestic product (GDP) declined at an annual rate of 0.5 percent (preliminary) in 2008:3 after growing 2.8 percent in 2008:2.
- Passenger air transportation led the downturndecreasing 20.4 percent in 2008:3 after decreasing 18.7 percent (revised) in 2008:2. Real spending on international flights fell sharply after two quarters of strong demand; spending on domestic flights declined for the fourth consecutive quarter.
- Spending on accommodations turned down, decreasing 3.0 percent in 2008:3 after a strong 19.5 percent increase in 2008:2. Hotel occupancy fell and room rates rose as hotels eliminated discounts intended to boost demand.
- Retail shopping by travelers dropped for only the second time in the past 3 years, decreasing 6.9 percent in 2008:3 after increasing 4.7 percent (revised) in 2008:2.
Travel and tourism prices accelerated overall, increasing 10.6 percent in 2008:3 following a 6.2 percent increase (revised) in 2008:2. Transportation prices acceleratedincreasing 18.4 percent after increasing 14.7 percent. Prices for accommodations turned up, increasing 5.0 percent after decreasing 6.5 percent.
Employment supported directly by tourist spending fell 1.2 percent in 2008:2 (the most recent period for which data are available) (1). The decline was widespread. In 2008:1, employment grew by 1.0 percent (revised). By comparison, overall U.S. employment decreased 0.6 percent in 2008:2 and 0.3 percent in 2008:1.
transportation increased 13.6 percent in 2008:3 after increasing 22.6 percent (revised) in 2008:2. To recover increases in fuel costs, airlines raised fares and reduced flights. Prices for accommodations increased 5.0 percent after falling 6.5 percent. In 2008:2, many hotels offered discounts to boost demand; however, prices rose in 2008:3.
ation services decreased 1.3 percent in 2008:2 after increasing 5.0 percent in 2008:1, marking the first decline after seven consecutive quarters of growth. Employment in accommodations fell 1.4 percent.
Total Tourism-Related Spending. The U.S. production that tourism spending generates not only includes the goods and services that are purchased directly, but also the inputs used to produce these goods and servicesindirect tourism-related spending. In 2008:3, total current-dollar tourism-related spending of $1.4 trillion consisted of $797.8 billion (57 percent) of direct tourism spendinggoods and services sold directly to visitorsand $613.6 billion (43 percent) of indirect tourism-related spendinggoods and services used to produce what visitors buy.
Total Tourism-Related Employment. In 2008:2, total tourism-related employment of 8.6 million consisted of 5.9 million (69 percent) direct tourism jobsjobs where workers produce goods and services sold directly to visitorsand 2.7 million (31 percent) indirect tourism-related jobsjobs where workers produce goods and services used to produce what visitors buy.
1 Employment statistics are based on the Quarterly Census of Employment and Wages from the Bureau of Labor Statistics. Employment statistics for 2008:3 will be available in BEAs Travel and Tourism Satellite Accounts March 19, 2009 press release.
Definitions
Quarterly estimates are seasonally adjusted and expressed at annual rates, unless otherwise specified. Percent changes are calculated from unrounded data and annualized. Real estimates are in chained (2000) dollars. Price indexes are chain-type measures. Growth in overall U.S. employment is calculated using BLS Total nonfarm employment from Current Employment Statistics, www.bls.gov/ces/home.htm#data.
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Next release –Travel and Tourism estimates for fourth quarter 2008 will be released on Thursday, March 19, 2009 at 8:30 a.m. EDT.
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