US tourism market to increase at a CAGR of 2.9%

Press Release   •   Aug 07, 2012 17:15 BST

The US tourism market is anticipated to increase at a compound annual growth rate (CAGR) of 2.9% through 2017, to reach a total market value of $1.6 trillion.

Having experienced a difficult year in 2009, when revenue declined 4.1% as travel demand plummeted in response to a drop in consumers' disposable income; the tourism industry slowly began its recovery in 2010 and 2011.

Over the five years to 2012, it was estimated that revenue grew at an annualised rate of 0.8%, with an expected growth rate of 4% between 2011 and 2012, and revenue set to reach $1.4 trillion.

The state of the economy and other travel-related trends are driving growth and contraction within the US tourism market.

Furthermore, an influx of international visitors from South America and East Asia is anticipated due to rising household incomes in those regions and their emerging middle class's propensity to travel internationally.

In 2009, the US had 54.9 million arrivals, 23.8 million of which were from overseas. The number of arrivals is calculated to have increased to 55.8 million in 2010 and 58 million in 2011. In 2012, arrivals numbers are forecast to reach 60.4 million and to rise to 70.6 million by 2016.

The most significant change, however, will be the continued shift away from brick and mortar tourism providers toward online tourism operators. Between 2012 and 2017, the number of industry firms is expected to grow at a muted annualized rate of 0.7% to 351,564.

For more information on the US tourism market, see the latest research: US Tourism Market Report

Follow us on Twitter @CandMResearch issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.