Tourism's Economic Impact

Report Outline
1984 Travel Outlook
Foreign Competition
Tourism in America
Special Focus

1984 Travel Outlook

Forecasts of Rising U.S. Vacation Travel

National tourism week begins May 27, and this year the travel industry is cautiously optimistic that it will have something to celebrate. During the 1981–82 recession, travel and tourism businesses fared better than many parts of the economy, but certain segments of the industry—notably hotels, motels, amusement parks and airlines—were hard hit. The industry as a whole rebounded in 1983, and is predicting that 1984 will be a good year for tourism in the United States.

Two special events should give a boost to the industry this year. More than 11 million people are expected to attend the 1984 Louisiana World Exposition, pumping an estimated $2.4 billion into New Orleans' economy during the fair's five-month run, which begins May 12. Seven million people are expected at the July 28–Aug. 12 Summer Olympic Games in Los Angeles; they should spend between $2 hillion and $4 billion.

“We anticipate that travel is going to go up in both 1984 and 1985,” said Donna Tuttle, who heads the U.S. Travel and Tourism Administration in the Commerce Department. Tuttle predicts a 3 percent industry growth rate, which she attributes to the economic recovery, the World's Fair and the Olympics. Douglas C. Frechtling, director of the privately operated U.S. Travel Data Center, expects “we will see a considerable rise in vacation travel in 1984. As jobs and incomes continue to increase at high rates and prices remain relatively stable, Americans will once again turn to their favorite use of vacation time, travel away from home.”