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Background Information on Tourism Satellite Accounts

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Background Information on Tourism Satellite Accounts

Over the past several years, the Bureau of Economic Analysis (BEA) has developed several sets of extensions to the U.S. input-output (I-O) accounts known as satellite accounts. These accounts are rearrangements of information from the national economic accounts and other sources for the purpose of more completely analyzing specific economic activities. The Travel and Tourism Satellite Accounts (TTSA’s) were developed and are maintained with the support of the Commerce Department’s International Trade Administration. Because tourism data are not separately identified in the national accounts, the TTSA’s are particularly useful for assessing the impact of events such as September 11, 2001. The TTSA’s provide estimates of tourism-related output by commodity (goods and services) and tourism-related employment by industry.

Current-Dollar Output by Commodity

Table A. provides estimates of direct and indirect (current-dollar) tourism-related output of tourism commodities in 2006. Direct tourism output represents all output consumed directly by visitors. Visitors are defined as people whose travel for pleasure or business takes them 50 miles or more away from home, or outside of their usual environment. Indirect tourism-related output includes all output used as inputs in the process of producing direct tourism output. Table A. shows that the direct tourism output of $700.4 billion in 2006 resulted in total direct and indirect output of $1.2 trillion.

Commodity Examples

Traveler accommodations.  Direct tourism output of traveler accommodations in 2006 were $122.6 billion.  Each dollar of direct tourism output required indirect output of $0.54, or $66.2 billion, resulting in a combined $188.8 billion in direct and indirect tourism-related output.  The largest indirect output included purchases of real estate services, financial services, and utilities.

Passenger air transportation. Direct tourism output of passenger air transportation in 2006 was $104.4 billion. Each dollar of direct tourism output required indirect output of $0.70, or $73.0 billion, resulting in a combined $176.8 billion in direct and indirect tourism-related output. The largest indirect output included purchases of petroleum products, food services, and other transportation equipment manufacturing.

Employment by Industry

Table B. provides estimates of direct and indirect tourism-related employment by the tourism industry for 2006. Direct tourism employment includes all jobs where the workers are engaged in the production of direct tourism output. Indirect tourism-related employment includes all jobs where the workers are engaged in the production of indirect tourism-related output. Table B. shows that direct tourism employment in 2006 was 5.8 million employees. This level of direct employment required an additional 2.7 million employees in other industries for the production of indirect tourism-related output.

Industry Examples

Traveler accommodations. Direct tourism employment in the traveler accommodations industry in 2006 consisted of 1.373 million employees. This level of direct tourism employment required indirect employment of 315 thousand, resulting in combined direct and indirect tourism-related employment of 1.687 million.

Air transportation services. Direct tourism employment in the air transportation services industry in 2006 consisted of 449 thousand employees. This level of direct tourism employment required indirect employment of 347 thousand, resulting in combined direct and indirect tourism-related employment of 796 thousand.