Travel and tourism spending on the upswing
June 24, 2010, 10:37 pm
A new report from the Bureau of Economic Analysis finds that Americans have begun spending more money on tourism, which should come as good news to both pilots and airlines.
According to the government agency, travel and tourism spending has increased at an annual rate of 3.9 percent for 2010, after falling by a 1.5 percent margin in 2009. This growth was also noted to be faster than the gross domestic product, which rose 3 percent in the last quarter.
The significant gains in travel come at a time when prices have continued to rise in the sector. According to the report, travel and tourism prices rose 3.5 percent in 2010 and 6.5 percent in 2009.
Another improvement was seen in the area of passenger air transportation, which rose 4.5 percent in 2010 compared to a 9.8 percent drop in 2009. As the economy recovers, the result is likely to be further gains in business as well as leisure travel.
These gains in the tourism industry are benefiting hotels as well as airlines.Prices for accommodation so far this year have fallen 6.4 percent, while traveler accommodations are up 11 percent.
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