Despite a net increase of 1.6% in U.S. exports in May 2009, services exports fell 0.4% with travel and tourism exports off a whopping 3% month-over-month. According to data from the U.S. Department of Commerce, spending related to travel from other countries to the United States fell to $9.5 billion for the month – down 22% year-over-year.
The global travel market continues to feel the squeeze from an ongoing recession, as travel discounts and cheaper fares have been insufficient to counteract sluggish consumer spending. Recreational travel just isn't a priority these days, and businesses are curtailing travel budgets as they try to shore up their resources and spend prudently.
In May, people outside the United States spent $2.1 billion on flights (and other forms of travel to the country) and $7.5 billion on other tourism and travel goods and services. The month's 22% year-over-year plunge made May the seventh month in a row in which U.S. travel exports fell. The trend has gained momentum since November 2008's 4% decline.
- December: -2%
- January: -5%
- February: -9%
- March: -19%
- April: -15%
- May: -22%
For the first five months of 2009, the U.S. travel and tourism industry accounted for $50.1 billion, a decline of more than 14% ($8.2 billion) relative to the same period in 2008. The industry has generated a trade surplus of $8.3 billion so far this year - $3.2 less favorable than January to May 2008. Before November 208, the travel industry in the United States had sustained more than 60 months of positive growth in a row.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
Reader Comments (Page 1 of 1)
7-23-2009 @ 2:56PM
John said...
Are they talking about the Illegal Aliens Tours from Mexice???