Tourism spending, defined as goods and service purchased directly by tourists or produced by companies that support tourism, increased throughout the first half of the year. A strong first quarter was followed by a weaker second quarter as spending decreased to a total of $1.4 trillion spent in the U.S. between April and June, reports the Bureau of Economic Analysis.
This was 2.8 percent less than the amount spent in the first three months of the year due to fewer tourists flying and fewer hotel rooms booked. The deceleration of spending was also impacted by a drop in gasoline prices that decreased all related transportation costs.
However, as transportation services became cheaper, room rates rose by as much as 43 percent in some regions. The percentage of money spent on accommodations remained relatively stable between the first and second quarter due to this rate jump that covered the loss of profit resulting from fewer guests.
The Bureau of Economic Analysis had no forecasts for spending in the second half of the year.