Tourism is a significant contributor to the US economy, and it accounts for a substantial portion of the country’s gross domestic product (GDP). According to the US Travel Association, travel and tourism generated $1.9 trillion in economic output and supported 9.2 million jobs in the United States in 2019. In this article, we’ll explore how much of the US economy is driven by tourism.
What is Tourism?
Before we dive into the numbers, let’s define what we mean by tourism. Tourism refers to all activities that visitors engage in while traveling to a destination that is outside their usual environment for less than one year for leisure, business, or other purposes.
How is Tourism Measured?
The World Tourism Organization (UNWTO) defines international tourist arrivals as “the number of people who travel to a country that is different from their usual residence and stay there for less than 12 months.” In contrast, domestic tourism refers to residents of a country traveling within their own borders.
Tourism’s Contribution to the US Economy
In 2019, travel and tourism directly contributed $710 billion to the US GDP. When you include indirect contributions, such as supply chain spending and government spending on tourism-related infrastructure, the total contribution jumps up to $1.9 trillion.
International Tourism
International tourism plays a significant role in contributing to the US economy. In 2019, international travelers spent $256 billion on goods and services within the United States, accounting for nearly 10% of all US exports. International tourists also support numerous jobs in industries such as hospitality, transportation, entertainment, and retail.
Domestic Tourism
Domestic tourism is equally essential in driving economic growth within the United States. In 2019 alone, Americans took over 2.3 billion domestic trips, spending over $972 billion. This spending supported millions of jobs in the hospitality and tourism industries.
The Impact of COVID-19 on Tourism
The COVID-19 pandemic has had a significant impact on the tourism industry in the United States. In 2020, international arrivals to the US fell by 76%, and domestic travel fell by 45%. The loss of tourism revenue has resulted in job losses across various industries, particularly in hospitality, food service, and entertainment.
Conclusion
Tourism plays a substantial role in driving economic growth within the United States. It is responsible for generating billions of dollars in revenue and supporting millions of jobs across various industries. However, the COVID-19 pandemic has highlighted how vulnerable this sector is to global crises and underlined the importance of investing in resilience measures to ensure that tourism can continue to drive economic growth for years to come.