The tourism industry is a significant contributor to the economy of the United States. It is a major source of revenue for many businesses and provides employment opportunities for millions of Americans. In this article, we will explore how much the tourism industry is worth in the US and what factors contribute to its growth.
What is the Tourism Industry?
Before we dive into the numbers, let’s first define what we mean by the tourism industry. The tourism industry includes all businesses and activities that cater to tourists or visitors from other countries or states. This can include hotels, restaurants, transportation services, tour operators, and attractions such as museums or theme parks.
The Value of Tourism in the US
According to a report by the US Travel Association, the travel and tourism industry generated $1.1 trillion in economic output in 2019, which is equivalent to 2.9% of the country’s gross domestic product (GDP). This includes both domestic and international travel spending.
In addition to economic output, the travel and tourism industry also directly supported 9 million jobs in 2019. This makes it one of the largest employers in the country.
Domestic vs International Tourism
Domestic tourism refers to travel within a person’s own country while international tourism refers to travel outside their home country. In 2019, domestic travel spending accounted for 79% of all travel expenditures within the US while international visitors accounted for 21%.
Top States for Tourism
Not surprisingly, some states benefit more from tourism than others due to their natural beauty or popular attractions. According to a report by Oxford Economics, California was the top state for domestic visitor spending in 2018 with $132 billion followed by Florida with $86 billion and New York with $67 billion.
When it comes to international visitor spending, however, New York takes the top spot with $15.3 billion in 2018 followed by California with $11.8 billion and Florida with $6.2 billion.
Factors Affecting Tourism Growth
The tourism industry is heavily influenced by a variety of factors such as the overall state of the economy, travel regulations, natural disasters, and political stability. For example, the COVID-19 pandemic has had a significant impact on the tourism industry worldwide due to travel restrictions and safety concerns.
However, despite these challenges, the US Travel Association predicts that domestic leisure travel will recover to pre-pandemic levels by 2022 and international inbound travel will recover by 2024.
Conclusion
In conclusion, the tourism industry is a vital part of the US economy generating trillions of dollars in economic output and providing millions of jobs. While it has faced challenges due to various factors such as COVID-19, it remains a resilient industry that is expected to recover in the coming years.