Why can't
Trave$
Because travel and tourism is not a single industry producing a single
product, it cannot be measured in its true form by a singular NAICS or SIC
code. Also, it is demand driven (that is consumer purchase driven) and it is
comprised of many service industries, so it does not fit well into the new
NAICS which is still manufacturing- and supply-based in its criteria.
Then how do you measure the significant contribution of travel and tourism
to the U.S. economy?
Through the development of a new economic tool, Satellite Accounts.
What are satellite accounts for travel and tourism?
Travel and Tourism Satellite Accounts (TTSA's) are a relatively new
economic statistical method to measure more accurately the impact of the
travel and tourism industries on the U.S. economy.
The uniqueness of this method is that it is able to link the tourism
p$
of goods and services (DEMAND) to the outputs of the industries that
produce those goods and services (SUPPLY).
They are a new
econom$
complete measure of travel and tourism that is consistent with the method
used to estimate U.S. gross domestic product (GDP), national income and
other national economic measures.
They also allow us to segregate the shares of travel and tourism goods and
services sold to travelers versus those sold to local residents. For example,
they include not only total sales of industries such as airlines and hotels and
lodging, but also the shares of restaurant meals and drugstore sales sold to
travelers.
What's measured in these accounts?
The prototype TTSA's just developed and released
by t$
Economic Analysis measure the purchases by travelers of air fares, lodging,
meals and beverages, shopping, and other travel activities, and links these
expenditures to the industries that produce them.
The TTSA's measure the value added to the
economy, $
contribution the industries provide to the GDP (gross domestic product). In
addition, they provide the ability to compare travel and tourism to other
industries by using the U.S. System of National Accounts, which is the basis
for configuring the GDP.
The prototype TTSA's present five basic tables to clearly show the major
components of tourism in the U.S. economy:
The production of tourism commodities ( that is, the goods and services that are purchased);
The supply and consumption of tourism commodities;
Tourism demand (purchasing) by type of commodity and type of
visitor;
Tourism gross domestic product;
Tourism employment.
The prototype accounts are based on 1992 data, the most recent year for
the
Economic Census. The Economic Census is the primary source that
provides the comprehensive data which form the basis for the travel and
tourism accounts. Such benchmark estimates can form the basis for
estimates for 1993 to 1996, until the results of the 1997 Economic Census
become available.
What can the travel and tourism satellite account do for anyone working in
the industry?
First and foremost, the TTSA's give you a credible national number for the
size of the impact of the travel and tourism industries on the U.S. economy.
You can use this for helping policy makers truly understand the size of your
industry.
You can compare travel and tourism industries to other industries, both
manufacturing and services, to show the importance of travel and tourism
industries and their contributions to the U.S. economy, in terms of
expenditures, value added, employment, and employee compensation.
You can see the relationship among the travel and tourism industries, and
could be used for marketing travel and tourism services.
You can see where you rank in employment, compared to the other travel
and tourism industries measured.
You can see where you are ranked as an industry compared to your other
counterparts in terms of compensation.
You can use the TTSA to underscore the importance of the industry to
potential investors and developers.
You can use this locally for demonstrating the impact of the industry when
the regional and state estimates are configured.
You can see the value of the industry in exports and as a positive
contributor to our trade balance.
What are the next steps for the new prototype TTSA?
Any further developments for the TTSA are totally dependent upon
additional funding. To make this a permanent set of accounts would require
an additional budget allotment of at least $500,000 annually.
With this additional funding, however, the following steps could be
implemented:
Estimates could be developed by U.S. regions and by the
states;
The TTSA's could be updated annually as well as initially
updated to 1997 from the benchmark 1992 data in the prototype
and then updated annually;
The quality of the estimates could be improved by collecting
additional data;
Estimates of investment in tourism industries could be added;
The tourism commodities evaluated could be expanded to
include consumer durables, imputed rents for vacation homes,
and the provision of public facilities used by visitors.
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