The U.S. Travel, Tourism, and Hospitality Industry

The travel and tourism industry in the United States generated more than $1.3 trillion in economic output in 2010, supported 7.7 million U.S. jobs and accounted for 7 percent of all U.S. exports. One out of every 17 Americans works, either directly or indirectly, in a travel and tourism related industry. In  2010, revenues from U.S. travel and tourism represented 2.8 percent of gross domestic product.

While the majority of activity in the industry is domestic, expenditures by international visitors to the United States generated $134 billion in annual sales and a nearly $32 billion trade surplus in 2010.  The U.S. Department of Commerce projects international travel to the United States will grow by 5-7 percent annually through 2015.  The U.S. Travel Association predicts that domestic travel will increase by 2 percent annually through 2013.

The U.S. leads the world in international travel and tourism exports, and travel and tourism is the top services export in the United States, accounting for 25 percent of all U.S. services exports.  

Industry Subsectors

Of the 24 subsectors that make-up the travel and tourism industry, four sectors -- Food Services, Air Travel, Accommodations, and Recreation and Attractions -- account for 60 percent of industry sales.

Food Services: The largest subsector, food services accounts for 16 percent of travel industry sales. The National Restaurant Association predicts 3.6 percent growth for the restaurant industry in 2010. 

Air Travel: The second-largest subsector, air travel accounts for 16 percent of travel industry sales. Airlines continuously seek ways to increase revenues by offering access to new markets as they work to reduce costs and fuel consumption by grounding inefficient aircraft and scaling back unprofitable routes.

Accommodations: This subsector accounts for 16 percent of total travel industry sales. Accommodations benefited from international overseas traveler growth of 13 percent in 2010. 

Recreation and Attractions: This subsector accounts for 11 percent of total travel industry sales. However, recreational visits at U.S. national parks declined by one percent in 2010.

Federal Resources

Travel Promotion Act of 2009 (TPA): This Act established the Corporation for Travel Promotion, creating a new public-private partnership in travel and tourism. The alliance between the U.S. government and the U.S. travel and tourism industry enhances the distribution of information on U.S. entry policies and promotes leisure, business and scholarly travel in and to the United States. Oxford Economics estimates that the travel promotion program undertaken by the Corporation for Travel Promotion established under the Travel Promotion Act will generate $4 billion in new visitor spending and 40,000 new U.S. jobs.