Travel, tourism spending slows

Spending on travel and tourism nationwide slowed in the first quarter of 2015, increasing at an annual rate of 2 percent, according to the U.S. Bureau of Economic Analysis. That was after increasing 4.9 percent in the fourth quarter of 2014.

The leading contributors to the slowdown in the first quarter were in the categories of 'all other transportation-related commodities” and 'food services and drinking places.”

Spending on transportation commodities increased 1.9 percent in the first quarter, after increasing 13.3 percent in the fourth quarter.

Food services also experienced a slowdown in the quarter that ended on March 31, increasing 2 percent after increasing 8.9 percent in the final quarter of 2014. 'Passenger air transportation” turned up, increasing 3.9 percent in the first quarter after decreasing 2.2 percent in the final three months of last year.

Overall growth in prices for travel and tourism goods and services continued to decline in the first quarter of this year, declining 9.1 percent following a decrease of 4.7 percent (revised) in the fourth quarter.

The continued decline was mainly attributable to a large decrease in transportation commodities, which includes gasoline. The category declined 33.4 percent in the first quarter after falling 23.5 percent in the fourth quarter of 2014.

Employment in the travel and tourism industry slowed, increasing 2.3 percent in the first quarter of 2015 compared with a 2.9 percent increase in the fourth quarter. It marked the 20th consecutive quarter of employment growth in the travel and tourism industry.

By comparison, overall U.S. employment increased 2.2 percent in the first quarter after rising 2.5 percent in the fourth quarter.

Food services was the most significant contributor to employment growth, increasing 4 percent in the first quarter.