Los Angeles, CA (PRWEB) June 15, 2012
After a disappointing 2009, when revenue declined 4.1% as travel demand plummeted in response to a drop in consumers' disposable income, the Tourism industry began its recovery in 2010 and 2011. Over the five years to 2012, IBISWorld estimates that the Tourism industry's revenue will grow at an annualized rate of 0.8%. From 2011 to 2012, says IBISWorld industry analyst Nima Samadi, “Revenue is expected to grow 4.0% to $1.4 trillion.”
The state of the economy and other travel-related trends drive growth and contraction for tourism. In 2010 and 2011, domestic travel increased 1.9% and 2.4%, respectively. In addition, international arrivals increased 8.7% in 2010 and 5.7% in 2011. As the effects of the recession continue to subside, demand for the Tourism industry is expected to continue to grow due to increased travel demand and higher travel rates. The picture was dramatically different during the recession. In 2009, the decline of the domestic economy and the heightened unemployment rate forced people to become more selective with their spending. Unemployment topped 10.0% in 2009, leading consumer spending to decline 1.9% in the year. “As people cut down on spending across the board,” says Samadi, “they became less likely to spend money on nonessential travel.” Falling business revenue and profit also led to far fewer business trips. Domestic travel declined 5.1% over 2009, pushing industry demand and revenue down, and inbound travel rates also plummeted, with 5.2% fewer people visiting the United States than in 2008.
Over the five-year period to 2017, industry revenue is forecast to increase at a moderate pace. An influx of international visitors from South America and East Asia is anticipated due to rising household incomes in those regions and their emerging middle class's propensity to travel internationally. The most significant change, however, will be the continued shift away from brick and mortar tourism providers toward online tourism operators. Between 2012 and 2017, the number of industry firms is expected to grow little, which will be largely due to the number of brick and mortar firms exiting the industry, partly offsetting the growth in new industry entrants. The Tourism industry includes a number of firms across various other industries that facilitate travel and related activities, including major players United Continental Holdings Inc., Marriott International Inc. and American Express Company. For more information, visit IBISWorld’s Tourism in the US industry report page.
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IBISWorld industry Report Key Topics
Tourism is defined broadly to include visitors whose primary travel purposes are business, convention or conference travel, government business, and the more familiar tourism for leisure, holiday or to visit friends and relatives. Major industries that benefit from tourism expenditure include domestic and international air transportation, accommodation services, food services, drinking places, automotive rental and travel arrangers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.