Travelers cut back on their spending on recreation and entertainment in the first quarter even as they spent more on shopping and lodging, according to estimates released last week by the U.S. Department of Commerce.
Travel and tourism related spending on shopping reached $88.5 billion, up 1.9 percent on an annual basis from the fourth quarter of 2010. By comparison such spending rose at an annual rate of 4.7 percent in the first quarter of 2010.
Spending on travel and tourism related recreation and entertainment, meanwhile, declined at an annual rate of 0.6 percent in the first quarter. That compares to 1.6 percent annual growth rate recorded in the first quarter of 2010. The government estimated such spending reached $77.1 billion in the first quarter. That is the lowest level of first quarter spending since the recession began in December 2007 and 11 percent below first-quarter 2008 levels.
Still, the decline was less severe than spending on transportation, particularly air travel, where spending fell 9.9 percent as travelers reacted to higher airline ticket prices. Spending on lodging, meanwhile, rose 12.9 percent from the fourth quarter as travelers snatched up promotions offered by hotels, motels and resorts that lowered rates in response to rising fuel and travel prices.
By comparison, the government reported Friday that real gross domestic product (GDP) increased at a revised annual rate of 1.9 percent in the first quarter, after increasing 3.1 percent in Q4.
