Real spending on travel and tourism slowed in the third quarter of 2012, increasing at an annual rate of 0.6 percent after increasing 2.2 percent in the second quarter, the Department of Commerce's Bureau of Economic Analysis (BEA) reports.
By comparison, growth in real gross domestic product (GDP) increased 2.7 percent in the third quarter of 2012 after increasing 1.3 percent in the second quarter, BEA says.
The leading contributors to the increase in the third quarter were “traveler accommodations” and “recreation and entertainment,”categories which increased 5.3 percent and 7.9 percent, respectively. Partially offsetting these increases was a 6.2 percent decline in “all other transportation-related commodities," BEA said.
The slowdown in real spending on travel and tourism was more than accounted for by a downturn in “all other transportation-related commodities,” reflecting downturns in “motor vehicle fuel,” “travel arrangement and reservation services,” and “automotive rental and leasing.” BEA said this downturn was partially offset by an upturn in “passenger air transportation” and an acceleration in “recreation and entertainment.”
Overall growth in prices for travel and tourism goods and services turned down in the third quarter of 2012, decreasing 0.9 percent following a 1.1 percent (revised) increase in the second quarter. The third quarter downturn reflected downturns in “traveler accommodations” prices and in “passenger air transportation” prices, for both domestic and international flights.
Employment in the travel and tourism industries increased 1.3 percent in the third quarter of 2012 after increasing 1.1 percent (revised) in the second quarter. By comparison, overall U.S. employment increased 1.2 percent in the third quarter after increasing 1.0 percent in the second quarter, BEA said.
In the third quarter of 2012, total current-dollar tourism-related spending was $1.4 trillion and consisted of $858.5 billion (60 percent) of direct tourism spending — goods and services sold directly to visitors — and $584.6 billion (40 percent) of indirect tourism-related spending — goods and services used to produce what visitors purchase.
Total tourism-related employment was 7.7 million jobs in the third quarter of 2012 and consisted of 5.5 million (71 percent) direct tourism jobs — jobs where workers produce goods and services sold directly to visitors — and 2.2 million (29 percent) indirect tourism-related jobs — jobs where workers produce goods and services used to produce what visitors purchase.
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