Inflation-adjusted spending on travel and tourism in the U.S. declined at an annual rate of 5.9% in the first quarter after falling 6.9% in the first quarter, the Commerce Department's Bureau of Economic Analysis said. (In comparison, the overall economy shrank at a 5.7% rate in the first quarter and a 6.3% rate in the fourth.)
The agency's quarterly snapshot on tourism and travel said inflation-adjusted spending on passenger air transportation continued to contract - 5.8% in the first quarter of 2009. That's the sixth consecutive quarterly declines. But spending on international flights rose 10.5% as it did in the previous quarter.
Spending on accommodations posted a larger decrease - 18.6% in the first quarter - than in the fourth quarter, when it fell 10.4%. 'The hotel industry continued to experience declining demand' and 'reduced room rates,' the bureau said. Retail shopping by travelers showed smaller decrease of 1.3% in the first quarter, much milder than the 11.6% decline in the last quarter of 2008.
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Source - WSJ
