Tourism is a significant contributor to the United States economy, generating billions of dollars every year. According to the US Travel Association, the travel and tourism industry was responsible for generating $1.1 trillion in economic output in 2019, which accounted for 2.9% of the country’s gross domestic product (GDP). This shows that tourism is a vital sector that contributes significantly to the overall growth and development of the US economy.
The Importance of Tourism
Tourism is an essential industry in the United States for several reasons. First, it creates jobs for millions of Americans, both directly and indirectly.
The industry employs people in various sectors such as hospitality, transportation, entertainment, and retail sectors. In 2019 alone, the travel and tourism industry provided employment for 9.2 million people.
Secondly, tourism generates significant revenue for local businesses and governments. When tourists visit a particular destination, they spend money on various goods and services such as food, accommodation, transportation, souvenirs, and attractions. This spending helps support local economies by providing revenue for businesses and generating tax revenue for local governments.
Tourism’s Contribution to GDP
As stated earlier, tourism accounted for 2.9% of GDP in 2019. This percentage has been increasing steadily over the years due to the growth of international travel to the United States. In fact, international visitors’ spending accounted for approximately one-third (33%) of all travel expenditures in 2019.
Additionally, domestic travel also played a significant role in driving tourism’s contribution to GDP with Americans spending more on leisure trips than ever before. In total domestic travelers spent $972 billion on leisure activities – including lodging – alone in 2018.
- In summary:
- Travel and Tourism generated $1.1 trillion in economic output in 2019
- Tourism accounted for 2.9% of the country’s gross domestic product (GDP)
- The travel industry provided employment for 9.2 million people in 2019
- International visitors’ spending accounted for approximately one-third (33%) of all travel expenditures in 2019
- Domestic travelers spent $972 billion on leisure activities in 2018
The Future of Tourism in the US
The COVID-19 pandemic has had a significant impact on the US travel and tourism industry, causing a decline in both international and domestic tourism. However, with the rollout of vaccines and the easing of restrictions, the industry is gradually recovering.
As Americans begin to feel more comfortable traveling again, it’s expected that domestic tourism will recover faster than international tourism. This is because many people are still hesitant to travel internationally due to various restrictions and safety concerns.
In conclusion, tourism is a vital industry that contributes significantly to the US economy. It creates jobs, generates revenue for local businesses and governments, and accounts for a significant percentage of GDP. While COVID-19 has had a significant impact on the sector, there is hope that it will recover as vaccination rates increase and restrictions ease up.