Real spending on travel and tourism rebounded much fast than the overall economy in the second quarter as travel and lodging prices continued climbing, the U.S. Department of Commerce reported.
Spending on all tourism goods and services, including passenger air transportation and traveler accommodations, increased at an annual rate of 3.0% in the second quarter, following an increase of 5.0% (revised) in the first quarter. By comparison, real gross domestic product (GDP) increased 1.6% (second estimate) in the second quarter after increasing 3.7% in the first quarter. Travel and tourism prices increased 2.7% and 4.1% respectively during the two quarters.
Further details from the report include:
- Employment: After eight consecutive quarters of declines, direct tourism-related employment turned up, increasing 2.2% in 2010:2. By comparison, overall U.S. employment increased 2.2% in 2010:2 and increased 0.2% in 2010:1.
- Air Travel: Passenger air transportation spending increased 3.9% in 2010:2 and 4.0% in 2010:1.
- Lodging: Accommodations spending decelerated, increasing 6.1% in 2010:2 after increasing 13.4% in 2010:1.
- Prices: Prices for passenger air transportation continued their strong growth, rising 16.0% in 2010:2. Prices for traveler accommodations showed a sharp upturn, increasing 19.0% in 2010:2 after decreasing 6.4% in 2010:1. Higher occupancy rates created pricing opportunities for hotels.
