eNews 2009

US Travel and Tourism – a Snapshot

The travel and tourism industry is expected to generate $650 billion of economic activity in 2006.
The US travel industry:
- creates jobs and careers;
- fulfillsimportantsocialpolicygoalssuchasmovingpeoplefromwelfaretowork; o contributes more than $105 billion in tax revenue for local, state and federal
- governments; and
- creates a travel trade surplus to offset the nation’s worsening balance of payments deficit.
The travel industry enjoys a significant presence in all 50 states and 435 congressional districts.

US share of international travel has fallen 36 percent since 1992 – from a high of 9.4 percent to the current 6.1 percent.
Had the US maintained its share of the world travel market, 27 million more travelers would have visited the US in 2005. This represents not only an economic loss, but a diplomatic loss as well.
The cumulative cost since 1992 is an estimated $286 billion in economic growth and millions of jobs.
Compared to 10 years ago, the US international tourism balance of trade has declined nearly 72 percent – from $26.3 billion in 1996 to $7.4 billion in 2005.

International travel to the US, which reached its peak in 2000 with 51.2 million visitors, hit its low in 2003 with only 41.2 million visitors.
In 2006, the United States is projected to return to – and possibly surpass – the pre-9/11 international arrivals.
While this statistic may sound encouraging, the US has failed to capture any of the nearly 20 percent increase of worldwide travel since 2000. In addition, much of the increase in international visitation can largely be attributed to Canadian travel, a market now threatened by the challenges surrounded the upcoming implementation of the Western Hemisphere Travel Initiative (WHTI).
Overseas travel to the US has dropped by 17 percent since 2000.

Sources: US Department of Commerce OTTI and Travel Industry Association data