The Air Transport Association announced that passenger revenue plunged 21% in July relative to the same month last year. This was the ninth month in a row that the industry has had to contend with what has been a brutal market for a perpetually beleaguered business.

The number of passengers hopping on flights fell 4% from July 2008 to July 2009, and the revenue situation wasn't helped by a decline of 18% in the average price a passenger paid to fly one mile.

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.

How can exports not rebound? Last year ended on a sour note after posting record results, and 2009 is by all accounts likely to be ugly. The tourism and travel industry is expected to shed more than 200,000 jobs this year. Fortunately, there's a light at the end of the tunnel. The U.S. Department of Commerce expects international visits to the United States to come back in 2010 – after its first forecasted year of decline (i.e., 2009) since 2003.

This year, international travel to the United States is expected to fall 8%. The following year, however, U.S. travel exports are expected to gain 5%, with 5% annual increases through the end of 2013. We'll come out ahead in all this, but it's going to take some time.

Will the influx of foreign visitors over the next four years be enough to turn the travel industry in the United States around? It's too soon to tell right now, and much will depend on the contributions made by domestic routes. Needless to say, even this glimmer of hope must be welcome to investors committed to the airline and hotel sectors.

I read an interesting article on tax rebates and vacation spending. A lot of theories are floating around concerning the exact stimulative effect President Bush's $168 billion program will have on the ailing economy. If the article I read is correct, then the vacation industry may be a big beneficiary.

An expert on the tourism sector, economist Steve Morse of the University of Tennessee, suggests that timing is the key here. Since the rebate monies will be flowing at the same time as Americans start to plan and go on their vacations, Morse believes that economic activities related to enjoying time off will see a tangible boost. In fact, he further states that vacations are something that people might not necessarily deny themselves, even in times of recession. He points out that people might tend to take on a bit of debt to fund vacations since they see it as a "right of life," as he puts it.

I see the logic, especially the "right of life" issue. Not only are vacations important to everyone, but they are sort of comparable to toys at Christmas -- know how they say that people won't stop giving toys to their children even during hard times? Well, vacations are like toys for adults (and if the adults have children, as many do, then vacations are like toys for adults and children). And adults will not cease gifting themselves during the summertime.