Travel and Tourism in the United States

David LangdonSenior Policy Advisor for Economics and Statistics

U.S. Department of Commerce

March 20, 2014

Summary

1. Overview of travel and tourism and the U.S. economy

2. Policy recommendations3. Economic conditions abroad4. U.S. economy: recent developments and

headwinds

U.S. Travel and Tourism in 2012

• Generated $1.5 trillion in economic output– Grew 5.4 percent in 2012, compared with 3.4

percent growth in nominal GDP• 2.8 percent of GDP• Generated 7.8 million jobs – 5.6 million direct; 2.2 million indirect

• Growth of foreign visitors especially important– 1.2 million jobs supported by international travelers

International Visitors

International Visitors

• International visitors spent a record-breaking $181 billion on U.S. travel and tourism related goods and services in 2013

• This accounts for more than 26 percent of all U.S. services exports and nearly 8 percent of total exports

• Goal is to reach 100 million international visitors by 2021

Economic Conditions Affect Travel and Tourism

• International visitors– Exchange rates– Increased incomes of foreigners– Uncertainty (can vary by country)

• Domestic travelers – U.S. businesses still healing– Stock markets up– Uncertainty down

3. Foreign growth and exchange rates

Foreign growth and exchange rates

Foreign growth and exchange rates

U.S. Economy

• Where are the bright spots?– Employment growth rebounding– Energy prices– Less uncertainty

• What’s holding us back? – Weather?– Government– Foreign events

U.S. Economy

U.S. Economy

Source: Wall Street Journal, Haver Analytics

U.S. Economy

Source: Haver Analytics, Bureau of Economic Analysis

U.S. Economy