U.S. COMMERCE SECRETARY SEES SIGNS
OF RECOVERY IN TOURISM INDUSTRY

U.S. Commerce Secretary Don Evans today shared new data showing the travel and tourism industries are on the mend and that international travelers are steadily returning to the United States.

“These second quarter indicators signal that the Administration’s work with the tourism industry to address the sharp decline in travel since September 11 are paying off,” Evans said here today. Evans and U.S. Rep. Ric Keller (8th Dist.) convened a group of travel and tourism industry leaders to discuss the state of the industry a year after the 9/11 attacks. “The recovery of travel and tourism is vital to our economic security, and it has the full attention of the Bush Administration.”

Today’s meeting fell approximately a year later after Evans called together industry leaders to assess the state of travel and tourism in the wake of the 9/11 attacks.

Preliminary second quarter data released by the Commerce Department shows that overall, sales for most travel and tourism industries are nearly on par with the beginning of 2001. The travel and tourism industries are reporting second quarter growth in sales of 1.5 percent following strong growth in the first quarter of 5.6 percent. This growth is led by increases in revenues for lodging and restaurants at 3.8 percent and nearly 1 percent respectively. In fact, on an annualized basis, the travel and tourism industries are growing at a faster rate than GDP.

Evans also noted that although second quarter preliminary reports for overseas arrivals to the U.S. show a 17 percent decline compared to the same period last year, they have held steady this year.

Highlights of International Arrivals for Second Quarter 2002:

· Japan: Japanese travelers are beginning to return the United States. For the second quarter of 2002 visitation was 21 percent below the same quarter in 2001, but this was a significant improvement over the 31 percent level of decline in the first quarter of 2002. Japan has consistently been the top source market for the U.S., but fell to number two after 9/11.
· Brazil: Brazilian travelers showed similar trends, moving from 20 percent lower visitation levels in the second quarter compared to first quarter declines of 31 percent.
· Australia and the Netherlands: These two top source markets are returning to nearly even visitation levels compared to the second quarter of last year (-3% and –5%, respectively).
· South Korea: South Korean travel to the U.S. is on par with the first half of 2001.

To learn more about the 2002 arrivals analysis, go to: http://www.tinet.ita.doc.gov/view/m-2002-I-001/index.html.