News Release
Sales of U.S. Tourism Industries: Second Quarter 2002
Results from BEA's Travel and Tourism Satellite Accounts
Sales of U.S. Tourism Industries
Second Quarter 2002
Results from BEA's Travel and Tourism Satellite Accounts
Note.-- This analysis was prepared by Peter Kuhbach in the Industry Economics Division and will be updated quarterly.
Second-quarter 2002 Results
Continued growth in the sales of hotel and lodging places was largely responsible for the second consecutive quarterly increase in U.S. tourism sales, which grew 2.1 percent in the second quarter of 2002, an 8.6-percent increase at an annual rate. U.S. tourism sales grew 5.7 percent in the first quarter of 2002, a 24.8 percent increase at an annual rate. Current-dollar gross domestic product increased at an annual rate of 2.5 percent in the second quarter of 2002, after increasing 6.5 percent in the first quarter of 2002.
Direct tourism sales increased from $375.5 billion (seasonally adjusted annual rate) to $383.3 billion, and indirect sales in other industries that supply tourism industries increased from $324.0 billion to $330.9 billion. Total direct and indirect sales increased from $699.5 billion to $714.2 billion. Sales of the two largest tourism industries grew for a second consecutive quarter, with direct sales of hotels and lodging places increasing 3.8 percent to $113.2 billion, and direct sales of air transportation growing 1.3 percent to $94.2 billion. Direct sales of the third largest tourism industry, eating and drinking places, grew for a fourth consecutive quarter, increasing 0.6 percent to $62.2 billion. Other tourism industries that experienced a significant growth in sales include automotive rental and leasing, which increased 3.3 percent to $23.7 billion, and the three entertainment-related tourism industriesBBamusement and recreation services, motion pictures and other entertainment, and professional sports clubs and promotersBBwhich grew at a collective rate of 2.7 percent to $27.1 billion.
Background
Over the past several years, the Bureau of Economic Analysis (BEA) has developed several sets of extensions to the U.S. input-output (I-O) accounts known as satellite accounts. These accounts are rearrangements of information from the national economic accounts and other sources for the purpose of more completely analyzing specific economic activities. The most recently developed extension--the Travel and Tourism Satellite Accounts (TTSA's)--was supported by the Commerce Department=s International Trade Administration. Because tourism data are not separately identified in the national accounts, the TTSA's are particularly useful for assessing the impact of the events of September 11, 2001. The TTSA=s can be used to provide a baseline for travel and tourism expenditures before September 11, 2001 and how such expenditures may have changed afterwards.
Tables A through D provide estimates of the total sales and the tourism-related sales of tourism industries during the second quarter of 2002. Tourism industries are those identified in BEA=s TTSA=s as industries whose primary products are typically purchased by out-of-town visitors. Tourism-related sales represent the portion of an industry=s total sales typically purchased by visitors. Visitors are people whose travel for pleasure or business takes them 50 miles or more away from home, or outside of their usual environment. For each tourism industry, table A presents total sales and the portion of those that are tourism-related sales in billions of dollars at an annual rate. Total sales of tourism industries were nearly $2.1 trillion, whereas tourism-related sales by these industries were $383.3 billion. Tourism-related sales vary considerably as a percentage of total industry sales, ranging from 80 percent for hotels and lodging places to 3 percent for railroads and related services. These percentages were obtained from BEA's 1997 TTSA's.
Tables B through D extend the analysis by providing both the direct and indirect sales for tourism industries. When an industry is affected by external events, not only its direct sales but the sales of its supplying industries are also affected. Therefore, the full impact consists of gains or losses of both direct and indirect sales. For example, table B shows that the direct total sales of hotels and lodging places were $141.5 billion, and the indirect sales by other industries were $111.8 billion, for a total of $253.3 billion in combined direct and indirect sales. Indirect sales in other industries represent purchases needed by hotels to run their business. For all tourism industries combined, total direct and indirect sales amounted to $3.7 trillion. Table C presents the same information for tourism-related sales. Direct tourism sales of $383.3 billion resulted in total direct and indirect sales of $714.2 billion. More than 70 percent of these sales were attributable to three tourism industries: hotels and lodging places, eating and drinking places, and air transportation. Table D shows, for each dollar of direct tourism-related sales, the indirect and total sales that are generated. For hotels, each dollar of direct tourism-related sales required $0.79 of sales by (purchases from) supplying industries, resulting in total sales of $1.79.
Industry Examples
Hotels. Total sales for the second quarter of 2002 were $141.5 billion (annual rate), of which $113.2 billion were tourism-related (table A). The direct total sales required purchases of $111.8 billion from other industries, resulting in total direct and indirect sales of $253.3 billion (table B). Direct tourism sales of $113.2 billion led to purchases from other industries of $89.4 billion, resulting in a combined $202.7 billion in total direct and indirect tourism-related sales (table C). Each dollar of sales by the hotel industry required $1.79 in total sales directly and indirectly throughout the economy, including the sales by hotels (table D). The largest purchases by hotels from other industries included maintenance and repair construction work, electricity, and various financial and business services.
Air transportation. Total sales for the second quarter of 2002 were $124.0 billion (annual rate), of which $94.2 billion were tourism-related (table A). The direct total sales required purchases of $110.3 billion from other industries, resulting in total direct and indirect sales of $234.3 billion (table B). Direct tourism sales of $94.2 billion led to purchases from other industries of $83.8 billion, resulting in a combined $178.1 billion in total direct and indirect tourism-related sales (table C). Each dollar of sales by the airline industry required $1.89 in total sales directly and indirectly throughout the economy, including the sales by airlines (table D). The largest purchases by airlines from other industries included refined petroleum products, aircraft repair parts, and the services of freight forwarders and travel agents.
Note on Procedures
Total industry sales were estimated by extrapolating BEA gross output estimates for tourism industries for 2000 using data on personal consumption expenditures from BEA's September 27, 2002 "final" estimates of GDP for the second quarter of 2002 and, in the case of air transportation, the most current airline passenger revenue data from the Bureau of Transportation Statistics. Tourism-related sales as a percentage of total industry sales were obtained from the 1997 travel and tourism satellite accounts. Direct and indirect total sales and tourism-related sales were estimated using the industry-by-industry total requirements coefficients from the 1997 annual I-O accounts. Because the sales estimates include intermediate (business-to-business) sales, they are not directly comparable to the gross domestic product estimates that exclude intermediate sales and include only sales to "final users."
Last updated: February 7, 2003