Travel and tourism spending up in the first quarter of 2013

Real spending on travel and tourism accelerated in the first quarter of 2013, increasing at an annual rate of 6.8 percent after increasing 2.1 percent in the fourth quarter of 2012, the U.S. Bureau of Economic Analysis said Monday.

By comparison, growth in the real gross domestic product (GDP) increased 2.4 percent in the first quarter after increasing 0.4 percent in the fourth quarter.

The bureau said the leading contributors to the acceleration in the first quarter were “passenger air transportation,” and “all other transportation-related commodities,” such as automotive rentals.

“Passenger air transportation” turned up, increasing 19.0 percent in the first quarter after decreasing 2.7 percent, reflecting a “notable upturn” in “international passenger air transportation” and an “acceleration in domestic passenger air transportation,” said the report.

Partially offsetting these upturns was slower growth in “food services and drinking places” and “traveler accommodations,” which increased 2.0 percent and 4.9 percent, respectively, in the first quarter, after increasing 8.5 percent and 9.5 percent respectively.

Overall growth in prices for travel and tourism goods and services slowed in the first quarter of 2013, increasing 0.3 percent following a 2.4 percent increase in the fourth quarter.

Employment in the travel and tourism industries increased 2.3 percent in the first quarter of 2013 after increasing 2.1 percent in the fourth quarter of 2012.

By comparison, overall U.S. employment increased 1.9 percent in the first quarter after increasing 1.6 percent in the fourth quarter.

Real spending on “passenger air transportation” also grew, increasing 19.0 percent in the first quarter of 2013 after decreasing 2.7 percent in the fourth quarter of 2012.

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Source: Howard Pankratz (2013). Travel and tourism spending up in the first quarter of 2013, The Denver Post?http://www.denverpost.com/breakingnews/ci_23526998/travel-and-tourism-spending-up-first-quarter-2013?source=rss published Jun 24, 2013. Viewed Jun 25, 2013.