Tourism is a crucial contributor to the economy of many countries, including the United States. It encompasses a wide range of activities, including transportation, lodging, food and beverage services, recreation and entertainment, and travel agencies. In this article, we will delve into the question of what percentage of US GDP is tourism.
What is GDP?
Gross Domestic Product (GDP) is the total value of goods and services produced within a country’s borders in a given year. It is one of the most important indicators of economic growth and development.
How is tourism measured?
Tourism is measured by its direct contribution to GDP. This includes all expenditures by tourists within a country’s borders, such as hotel stays, restaurant meals, transportation costs, and admission fees to tourist attractions. Indirect contributions to GDP include activities that support tourism, such as construction of hotels and airports.
What percentage of US GDP is tourism?
According to the Bureau of Economic Analysis (BEA), tourism made up 7.6% of US GDP in 2019. This amounted to roughly $1.8 trillion in total spending by both domestic and international tourists.
Domestic vs International Tourism
Domestic tourism refers to travel within one’s own country for leisure or business purposes. It accounted for approximately 80% of total tourism spending in the US in 2019. International tourism refers to travel by foreign visitors to a country for leisure or business purposes. It accounted for approximately 20% of total tourism spending in the US in 2019.
Top Tourism Industries
The top industries that contribute directly to US tourism GDP are accommodation (lodging), food services (restaurants), air transportation (flights), and recreation and entertainment (amusement parks, museums). These industries also create jobs for millions of Americans.
Conclusion
Tourism is a significant contributor to the US economy, accounting for 7.6% of GDP in 2019. It encompasses a wide range of industries and activities, both directly and indirectly. As a key driver of economic growth and job creation, the tourism industry is worth paying attention to.