Real spending on travel and tourism rebounded in the first quarter, but remains far below pre-recession peak at levels last seen in early 2005, the federal government reported.
Spending increased at an annual rate of 3.9% in the first quarter of 2010, following a decrease of 1.5% (revised) in the fourth quarter of 2009. By comparison, real gross domestic product (GDP) increased 3.0% (second estimate) in the first quarter of 2010 after increasing 5.6% in the fourth quarter of 2009.
The figures include a 3.1% increase in recreation and entertainment spending and a 4.5% increase in retail spending by tourists over the fourth quarter of last year, according to the Department of Commerce’s Bureau of Economic Analysis.
Real output for recreation, entertainment and shopping within the tourism sector rose 3.9% to $162.2 billion.
The report shows tourists became more willing to fly in the first quarter despite a rise in airline fares. Spending on passenger air transportation increased 4.5%, despite a 13.3% increase in prices following a 9.8% decline in the fourth quarter. Spending on accommodations, by contrast, rose 11.0% on a 6.4% decline in prices as hotels, motels and resorts lowered room rates. That followed a 7.9% decline in spending on accommodations in the fourth quarter.
The report estimated that prices for tourism related shopping rose 1.8% in the first quarter, or about half the 6.5% pace of the fourth quarter.
Recent reports by ski resort companies indicate spending continued to grow through April and May in the low to middle single digit range.
