News Release

EMBARGOED UNTIL RELEASE AT 8:30 A.M. EST, MONDAY, DECEMBER 19, 2005
BEA 05-55

Tourism Satellite Accounts, Third Quarter 2005



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Technical: Peter Kuhbach:
(202) 606-9543
 
BEA 05-55
  Bradlee Herauf: 606-9978    
Media: Ralph Stewart: 606-9690    
E-mail inquiries: industrysatellites@bea.gov    

TOTAL TOURISM-RELATED SALES GREW 5.1 PERCENT IN THIRD QUARTER 2005

Total Tourism-Related Employment Up 1.7 Percent in Second Quarter

Total sales of tourism-related goods and services grew at a seasonally adjusted annual rate of 5.1 percent in the third quarter of 2005 to $1.041 trillion, according to preliminary estimates of the U.S. Bureau of Economic Analysis. Approximately one-half of this growth in sales value is attributable to higher gasoline prices. In the second quarter of 2005, total tourism-related sales grew 10.1 percent (revised).

Chart 1: Total Tourism-Related Sales, Q 2001 quarter 1 - Q 2005 quarter 3

Total tourism-related employment grew at 1.7 percent (seasonally adjusted at an annual rate) in the second quarter of 2005, the most recent quarter for which data are available. In the first quarter of 2005, total tourism-related employment grew 1.5 percent (revised).

Chart 2: Total Tourism Related Employment, Q 2001 quarter 1 - Q 2005 quarter 2

Direct Tourism Sales

In the third quarter of 2005, total tourism-related sales consisted of $596.0 billion of direct tourism sales – sales of goods and services sold directly to visitors, and $444.7 billion of indirect tourism sales – sales of the goods and services used to produce what visitors buy. Growth in direct tourism sales was led by a 16.8 percent increase in ‘all other transportation-related goods and services’, and most of this growth was due to a very large increase in the price of gasoline. (Retail purchases of gasoline by travelers are included in BEA’s estimates of tourism-related sales.) Sales of ‘shopping’ (purchases of souvenirs and other merchandise by travelers), ‘food services and drinking places’, and ‘traveler accommodations’ all made more modest contributions, growing at rates of 6.5 percent, 3.7 percent, and 2.7 percent, respectively. As airlines have been raising prices throughout the year, tourists finally cut back air travel in the third quarter of 2005, resulting in a 2.7 percent decrease of ‘passenger air transportation.’

Chart 3: Percent Changes in Direct Tourism Sales of Tourism Goods and Services 2005 quarter 3

Direct Tourism Employment

In the second quarter of 2005, direct tourism-related employment grew 1.9 percent, with growth in the ‘food and beverage services’, ‘traveler accommodations’, and ‘recreation and entertainment’ industry groups of 2.7 percent, 2.3 percent, and 2.1 percent, respectively. In contrast, employment in the ‘air transportation services’ industry group continued to drift lower, declining 0.5 percent during the period. In the first quarter of 2005, direct tourism-related employment grew at 1.6 percent (revised).

Chart 4: Percent Changes in Direct Tourism Employment, 2005 quarter 2

These estimates are from the Travel and Tourism Satellite Accounts, which are supported by funding from the Office of Travel and Tourism Industries, International Trade Administration, U.S. Department of Commerce. The estimates of direct tourism output were derived from the annual input-output (I-O) accounts for 2003 and quarterly estimates of personal consumption expenditures from the NIPAs. The estimates of direct tourism employment were derived from the annual I-O accounts for 2003 and from the Quarterly Censusof Employment and Wages from the Bureau of Labor Statistics.

BEA’s estimates of tourism-related sales include figures for both “direct” and “indirect” sales. Direct tourism-related sales comprise all output consumed directly by visitors (e.g., traveler accommodations, passenger air transportation, souvenirs); indirect tourism-related sales comprise all output used as inputs in the process of producing direct tourism-related output (e.g., toiletries for hotel guests, the various ingredients used to make the meals served airline passengers, and the plastic used to produce souvenir key chains). Indirect sales were estimated using commodity-by-commodity output multipliers from the Current Industry Analysis Division.

BEA’s estimates of tourism-related employment measure both “direct” and “indirect” employment. Direct tourism-related employment comprises all jobs where the workers are engaged in the production of direct tourism-related output (e.g., hotel staff, airline pilots, and souvenir sellers); indirect tourism-related employment comprises all jobs where the workers are engaged in the production of indirect tourism-related output (e.g., employees of companies that produce toiletries for hotel guests, the various ingredients used to make the meals served airline passengers, and the plastic used to produce souvenir key chains). Indirect employment was estimated using industry-by-industry employment multipliers from the Regional Economic Analysis Division. Employment data are available five to six months after the end of the reference quarter.

Next release – Travel and Tourism estimates for fourth quarter 2005 will be released on Monday, March 20, 2006 at 8:30 a.m. EST.

BEA’s national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA’s Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.

Table 1.  Percent Change in Direct Tourism Sales of Tourism Goods and Services, Q2001:I - Q2005:III
[Percent change from preceding period]
                                               
Tourism Goods and Services Group   Seasonally adjusted at annual rates
2001 2002 2003 2004 Q2001:I Q2001:II Q2001:III Q2001:IV Q2002:I Q2002:II Q2002:III Q2002:IV Q2003:I Q2003:II Q2003:III Q2003:IV Q2004:I Q2004:II Q2004:III Q2004:IV Q2005:I Q2005:II Q2005:III
Traveler accommodations -7.8 -0.1 0.8 9.4 -5.0 -12.9 -26.0 -21.7 38.7 14.2 -8.9 -3.5 -0.7 1.4 12.4 4.1 12.2 14.3 5.4 10.5 13.8 11.6 2.7
Passenger air transportation -13.2 -5.3 4.6 7.1 -15.0 -4.6 -43.4 -48.2 73.6 14.5 -16.8 18.3 2.6 -7.5 28.0 7.8 9.8 5.7 -6.0 5.2 17.3 20.6 -2.7
All other transportation-related goods and services -0.4 -1.3 3.8 5.3 7.7 0.8 -17.7 -19.7 11.5 15.1 -2.8 4.1 12.7 -8.9 9.7 0.9 9.6 10.7 -3.4 9.9 7.4 13.8 16.8
Gasoline 7.0 -8.4 10.3 18.4 -4.2 5.8 -27.6 -39.9 -17.7 63.1 1.3 3.4 59.3 -31.1 18.1 -10.5 52.2 53.8 -9.9 34.9 11.1 37.6 71.2
Food services and drinking places 0.9 5.0 4.4 8.8 5.1 -5.4 6.2 4.3 10.7 4.4 2.0 2.0 1.5 7.7 8.6 10.0 11.7 5.4 6.9 10.0 6.5 7.0 3.7
Recreation and entertainment 2.1 6.2 4.5 7.1 7.2 -2.7 -5.9 1.4 16.8 7.6 7.2 8.7 -4.2 8.4 4.3 8.8 12.9 1.9 5.6 2.4 8.3 0.2 -0.1
Shopping -5.9 0.1 4.1 6.8 -16.2 -6.5 -5.2 -1.6 4.7 0.7 -0.4 4.8 4.9 1.6 11.8 4.2 9.3 5.7 5.3 7.3 6.1 6.6 6.5
                                               
All tourism goods and services -4.5 0.4 3.7 7.4 -3.6 -5.2 -18.1 -16.9 23.4 9.6 -3.9 5.4 3.3 -0.4 12.4 5.7 10.8 7.5 1.9 7.8 9.8 10.3 4.8
                                               
 
Table 2.  Direct Tourism Sales of Tourism Goods and Services, Q2001:I - Q2005:III
[Millions of dollars]
                                               
Tourism Goods and Services Group   Seasonally adjusted at annual rates
2001 2002 2003 2004 Q2001:I Q2001:II Q2001:III Q2001:IV Q2002:I Q2002:II Q2002:III Q2002:IV Q2003:I Q2003:II Q2003:III Q2003:IV Q2004:I Q2004:II Q2004:III Q2004:IV Q2005:I Q2005:II Q2005:III
Traveler accommodations 81,246.4 81,126.4 81,781.9 89,451.3 87,720.8 84,744.5 78,596.7 73,923.5 80,226.3 82,930.9 81,030.9 80,317.5 80,168.2 80,449.3 82,840.6 83,669.3 86,103.2 89,026.9 90,197.9 92,477.2 95,515.0 98,182.8 98,840.0
Passenger air transportation 87,259.4 82,631.4 86,395.3 92,535.3 97,702.5 96,552.1 83,732.6 71,050.2 81,555.4 84,361.5 80,574.9 84,033.7 84,569.9 82,927.0 88,210.3 89,873.8 91,990.5 93,282.6 91,844.3 93,023.9 96,817.8 101,464.5 100,770.6
All other transportation-related goods and services 101,470.0 100,125.1 103,934.8 109,395.6 105,162.0 105,375.2 100,355.5 94,987.2 97,607.8 101,099.2 100,392.9 101,400.4 104,477.5 102,077.4 104,468.6 104,715.5 107,150.2 109,907.0 108,957.9 111,567.4 113,579.2 117,298.2 121,931.8
Gasoline 17,459.2 15,996.5 17,644.0 20,894.1 18,507.5 18,772.4 17,313.6 15,243.3 14,518.6 16,406.2 16,461.1 16,600.1 18,650.2 16,989.6 17,711.0 17,225.3 19,133.1 21,307.6 20,761.9 22,373.9 22,970.1 24,880.0 28,458.3
Food services and drinking places 83,730.3 87,943.6 91,804.5 99,909.6 83,742.2 82,596.9 83,843.4 84,738.6 86,910.1 87,853.2 88,284.0 88,727.3 89,049.3 90,712.6 92,611.5 94,844.4 97,507.7 98,790.2 100,457.7 102,883.0 104,510.6 106,297.6 107,277.9
Recreation and entertainment 60,591.6 64,336.4 67,216.4 71,955.8 61,310.9 60,899.1 59,976.1 60,180.2 62,567.9 63,727.9 64,838.4 66,211.5 65,505.8 66,837.3 67,541.3 68,981.1 71,108.6 71,439.9 72,426.3 72,848.6 74,314.6 74,348.6 74,330.6
Shopping 77,794.3 77,891.8 81,090.1 86,634.3 79,376.8 78,061.4 77,023.4 76,715.4 77,598.1 77,742.7 77,660.1 78,566.6 79,504.8 79,828.4 82,091.4 82,936.0 84,805.2 85,983.8 87,095.9 88,652.4 89,970.3 91,418.5 92,861.0
                                               
All tourism goods and services 492,091.8 494,054.7 512,222.8 549,882.1 515,015.1 508,229.2 483,527.8 461,595.2 486,465.5 497,715.3 492,781.1 499,257.0 503,275.5 502,832.1 517,763.7 525,020.2 538,665.5 548,430.3 550,980.0 561,452.5 574,707.6 589,010.1 596,011.9
                                               
 
Table 3.  Total Tourism-Related Sales of Tourism Goods and Services, Q2001:I - Q2005:III
[Millions of dollars]
                                               
Tourism Goods and Services Group   Seasonally adjusted at annual rates
2001 2002 2003 2004 Q2001:I Q2001:II Q2001:III Q2001:IV Q2002:I Q2002:II Q2002:III Q2002:IV Q2003:I Q2003:II Q2003:III Q2003:IV Q2004:I Q2004:II Q2004:III Q2004:IV Q2005:I Q2005:II Q2005:III
Traveler accommodations 124,008.5 123,825.4 124,825.8 136,531.9 133,890.6 129,347.7 119,964.3 112,831.4 122,451.5 126,579.7 123,679.6 122,590.7 122,362.9 122,792.0 126,441.9 127,706.7 131,421.7 135,884.2 137,671.4 141,150.4 145,787.1 149,859.0 150,862.2
Passenger air transportation 144,686.2 137,012.4 143,253.3 153,434.3 162,002.1 160,094.6 138,838.4 117,809.5 135,228.3 139,881.1 133,602.5 139,337.6 140,226.7 137,502.6 146,262.9 149,021.2 152,531.0 154,673.3 152,288.5 154,244.4 160,535.2 168,239.9 167,089.3
All other transportation-related goods and services 171,642.7 169,179.6 175,675.0 185,395.8 177,916.5 178,464.4 169,885.8 160,304.3 164,809.3 170,866.3 169,618.0 171,424.7 176,757.2 172,374.8 176,603.9 176,964.0 181,392.1 186,340.3 184,600.0 189,251.0 192,793.5 199,248.7 207,412.2
Gasoline 31,807.4 29,142.7 32,144.2 38,065.2 33,717.3 34,199.8 31,542.1 27,770.5 26,450.2 29,889.2 29,989.2 30,242.3 33,977.3 30,952.0 32,266.1 31,381.4 34,857.0 38,818.5 37,824.4 40,761.2 41,847.4 45,326.8 51,845.8
Food services and drinking places 156,458.2 164,331.3 171,545.6 186,690.9 156,480.4 154,340.4 156,669.7 158,342.4 162,400.1 164,162.2 164,967.2 165,795.7 166,397.4 169,505.5 173,053.6 177,226.0 182,202.6 184,599.1 187,715.1 192,246.9 195,288.2 198,627.4 200,459.3
Recreation and entertainment 99,661.9 105,870.8 110,612.8 118,342.6 100,855.0 100,149.7 98,636.6 99,006.3 102,945.2 104,866.5 106,665.1 109,006.4 107,809.4 109,976.7 111,153.1 113,512.2 116,966.9 117,522.1 119,106.7 119,774.6 122,191.2 122,134.6 122,199.3
Shopping 161,384.8 161,587.3 168,222.2 179,723.6 164,667.7 161,939.1 159,785.7 159,146.7 160,977.8 161,277.8 161,106.4 162,987.1 164,933.3 165,604.7 170,299.2 172,051.5 175,929.1 178,374.1 180,681.2 183,910.1 186,644.2 189,648.3 192,640.9
                                               
All tourism goods and services 857,842.3 861,806.7 894,134.8 960,119.2 895,812.4 884,335.9 843,780.5 807,440.6 848,812.2 867,633.6 859,638.9 871,142.2 878,486.9 877,756.2 903,814.4 916,481.6 940,443.4 957,393.0 962,062.8 980,577.5 1,003,239.4 1,027,757.9 1,040,663.2
Percent change at annual rates -4.4 0.5 3.8 7.4 -3.9 -5.0 -17.1 -16.1 22.1 9.2 -3.6 5.5 3.4 -0.3 12.4 5.7 10.9 7.4 2.0 7.9 9.6 10.1 5.1
                                               
 
Table 4.  Percent Change in Direct Tourism Employment, Q2001:I - Q2005:II  
[Percent change from preceding period]  
                                               
Tourism Industry Group   Seasonally adjusted at annual rates  
2001 2002 2003 2004 Q2001:I Q2001:II Q2001:III Q2001:IV Q2002:I Q2002:II Q2002:III Q2002:IV Q2003:I Q2003:II Q2003:III Q2003:IV Q2004:I Q2004:II Q2004:III Q2004:IV Q2005:I Q2005:II  
Traveler accommodations -2.6 -3.4 -0.8 1.1 -3.1 -4.6 -4.0 -16.7 0.5 4.4 -0.7 -1.3 0.0 -4.9 0.4 2.5 1.3 1.3 1.8 1.9 1.4 2.3  
Air transportation services -0.7 -8.5 -3.8 -0.9 1.0 -2.4 -3.9 -23.3 -15.4 5.3 1.0 -1.7 -4.7 -10.0 -5.9 -1.0 2.7 1.6 -2.3 0.9 -0.8 -0.5  
All other transportation-related industries -0.4 -5.8 -5.8 -1.7 6.0 -0.5 -3.6 -15.5 -3.9 -2.7 -3.6 -5.1 -8.4 -7.6 -5.5 -0.7 -2.3 0.6 0.5 0.4 0.0 1.4  
Food and beverage services -0.8 2.5 -0.3 2.5 -2.8 -0.6 0.2 1.0 6.0 3.8 1.3 0.2 -3.9 -0.5 1.9 2.7 3.5 2.0 3.1 3.2 3.4 2.7  
Recreation and entertainment 1.9 -0.3 -0.9 2.4 -2.3 0.6 2.4 5.2 -8.5 3.0 1.2 -0.4 -4.1 -1.1 0.3 0.8 5.9 2.4 1.4 3.4 0.9 2.1  
Shopping (Retailers) -4.4 -3.7 -3.0 -0.2 -4.5 -6.6 -6.0 -5.2 -2.1 -2.1 -2.9 -3.5 -4.9 -2.8 -1.2 0.3 -0.1 0.8 -0.2 0.1 1.7 0.5  
All other industries -1.9 -2.4 -0.7 1.3 -2.7 -3.3 -3.0 -1.7 -6.2 0.9 -0.2 -0.3 -1.3 -1.3 -1.0 0.6 2.3 2.2 1.7 2.6 2.1 2.0  
                                               
All tourism industries -1.3 -2.2 -1.8 1.0 -1.6 -2.3 -2.3 -8.6 -1.7 2.5 -0.3 -1.4 -3.6 -3.7 -0.7 1.4 2.1 1.5 1.4 2.1 1.6 1.9  
                                               
 
Table 5.  Direct Tourism Employment, Q2001:I - Q2005:II  
[Thousands of employees]  
                                               
Tourism Industry Group   Seasonally adjusted at annual rates  
2001 2002 2003 2004 Q2001:I Q2001:II Q2001:III Q2001:IV Q2002:I Q2002:II Q2002:III Q2002:IV Q2003:I Q2003:II Q2003:III Q2003:IV Q2004:I Q2004:II Q2004:III Q2004:IV Q2005:I Q2005:II  
Traveler accommodations       1,370       1,323       1,313       1,327       1,405       1,388       1,374       1,313       1,315       1,329       1,327       1,322       1,322       1,306       1,307       1,316       1,320       1,324       1,330       1,336       1,341       1,348  
Air transportation services          595          545          524          519          611          607          601          562          539          546          548          545          539          525          517          516          519          521          518          519          518          518  
All other transportation-related industries          700          660          621          611          711          710          704          675          668          664          658          649          635          623          614          613          609          610          611          612          612          614  
Food and beverage services       1,595       1,635       1,631       1,672       1,595       1,593       1,593       1,597       1,621       1,636       1,641       1,642       1,625       1,624       1,631       1,642       1,656       1,664       1,677       1,690       1,704       1,716  
Recreation and entertainment          597          596          590          604          593          594          597          605          591          596          598          597          591          589          590          591          599          603          605          610          612          615  
Shopping (Retailers)          567          546          529          528          580          570          562          554          551          548          544          539          533          529          527          528          527          528          528          528          531          531  
All other industries          201          196          195          197          203          201          200          199          196          196          196          196          195          195          194          194          196          197          197          199          200          201  
                                               
All tourism industries       5,624       5,500       5,402       5,459       5,697       5,664       5,631       5,505       5,481       5,515       5,511       5,491       5,440       5,389       5,380       5,399       5,427       5,447       5,466       5,494       5,517       5,542  
                                               
 
Table 6.  Total Tourism-Related Employment, Q2001:I - Q2005:II
[Thousands of employees]
                                             
Tourism Industry Group   Seasonally adjusted at annual rates
2001 2002 2003 2004 Q2001:I Q2001:II Q2001:III Q2001:IV Q2002:I Q2002:II Q2002:III Q2002:IV Q2003:I Q2003:II Q2003:III Q2003:IV Q2004:I Q2004:II Q2004:III Q2004:IV Q2005:I Q2005:II
Traveler accommodations       1,686       1,628       1,616       1,634       1,729       1,709       1,692       1,616       1,618       1,636       1,633       1,627       1,627       1,607       1,609       1,619       1,624       1,629       1,637       1,644       1,650       1,659
Air transportation services       1,054          965          928          920       1,082       1,075       1,065          996          955          968          970          966          954          930          916          913          919          923          918          920          918          917
All other transportation-related industries       1,208       1,141       1,085       1,071       1,226       1,226       1,215       1,166       1,154       1,146       1,138       1,126       1,107       1,087       1,073       1,072       1,067       1,070       1,073       1,075       1,076       1,081
Food and beverage services       2,132       2,186       2,180       2,236       2,133       2,130       2,131       2,136       2,167       2,188       2,195       2,195       2,174       2,171       2,181       2,196       2,215       2,225       2,242       2,260       2,279       2,295
Recreation and entertainment          878          877          870          890          872          873          878          890          870          878          881          880          871          869          869          871          883          888          891          897          899          904
Shopping (Retailers)          968          927          896          889          997          976          957          942          937          931          924          916          905          896          892          890          889          890          888          887          889          889
All other industries          343          336          333          337          346          344          341          340          335          336          336          336          334          333          332          332          334          336          337          339          341          343
                                             
All tourism industries       8,270       8,060       7,907       7,975       8,384       8,331       8,278       8,087       8,037       8,082       8,076       8,047       7,972       7,893       7,871       7,893       7,931       7,961       7,985       8,023       8,052       8,087
Percent change at annual rate -1.5 -2.5 -1.9 0.9 -1.9 -2.5 -2.6 -8.9 -2.5 2.3 -0.3 -1.4 -3.6 -3.9 -1.1 1.1 2.0 1.5 1.2 1.9 1.5 1.7
                                             
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