Real spending on travel and tourism-related recreation and entertainment grew 3.7 percent in the first quarter in marked improvement over a year earlier, when such spending fell 2.8 percent, the Bureau of Economic Analysis of the U.S. Department of Commerce reported.
The government’s quarterly snapshot showed real spending on travel and tourism increased at an annual rate of 3.4 percent in the first quarter on top of a 4.4 percent (revised) in the fourth quarter of 2011. By comparison, growth in real gross domestic product (GDP) increased 1.9 percent (second estimate) in the first quarter after increasing 3.0 percent in the fourth quarter.
It was the 11th consecutive increase in real quarterly spending on travel and tourism following nine consecutive quarterly declines from 2007 through 2009.
The increase in real spending on tourism primarily reflected increases in traveler accommodations and in food services and drinking places. Real spending on passenger air transportation decelerated, increasing 1.8 percent in the first quarter of 2012 after increasing 3.2 percent in the fourth quarter of 2011.
Real spending on traveler accommodations also decelerated, increasing 4.8 percent in the first quarter after increasing 7.4 percent in the fourth quarter. Business spending on traveler accommodations increased while leisure spending remained flat.
Employment in the travel and tourism industries increased 2.6 percent after increasing 1.4 percent in the fourth quarter of 2011. All industries saw increases in employment, but the largest growth was in recreation and entertainment, where employed increased 4.3 percent after increasing 0.9 percent in the fourth quarter.
