Real spending (output) on travel and tourism turned up in the first quarter of 2017, increasing at an annual rate of 0.4 percent after decreasing 2.7 percent (revised) in the fourth quarter of 2016, according to new statistics released by the Bureau of Economic Analysis. In contrast, real gross domestic product (GDP) for the nation decelerated, increasing 1.2 percent in the first quarter (second estimate) after increasing 2.1 percent in the fourth quarter of 2016.
The leading contributors to the upturn in real spending were traveler accommodations and passenger air transportation. Traveler accommodations turned up, increasing 5.3 percent after decreasing 5.9 percent (revised) in the fourth quarter of 2016. The upturn also reflects a smaller decline in passenger air transportation, which decreased 6.0 percent in the first quarter after declining 14.4 percent (revised) in the fourth quarter.
Tourism Prices. Prices for travel and tourism goods and services decelerated in the first quarter of 2017, increasing 3.2 percent following an increase of 9.4 percent (revised) in the fourth quarter of 2016. The deceleration was attributable to prices for traveler accommodations, all other transportation-related goods and services, and passenger air transportation.
- Prices for traveler accommodations turned down, decreasing 2.1 percent after increasing 10.6 percent (revised) in the fourth quarter of 2016.
- Prices for all other transportation-related goods and services, which includes gasoline, increased 7.0 percent in the first quarter after increasing 16.8 percent (revised) in the previous quarter.
- Prices for passenger air transportation decelerated, increasing 6.3 percent in the first quarter after increasing 17.8 percent (revised).
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