travel means jobs 2012

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T R AV E L M E A N S J O B S n U . . T C I T I n

C nT nT

Executive Summary

Background: Te Economic Impact of ravel

Te Direct Impact o ravel

Additional ravel Impact

ravel is a Strong Investment

ravels Widespread Impact

ravel Jobs: A Gateway to Opportunity

Getting the Unemployed Back to Work Now

A icket to a Promising Career

Jobs Tat Will Stay in America

Te Jobs of the Future: ravel Leads the Road to Recovery

Job Growth

Small Business Growth

Export Growth

ake Action

Endnotes

2012 U. . Travel ssociatio

The U.S. T av l Asso at on is the atio al, o -pro t orga izatio represe ti g all co po e ts of thetravel i dustry that ge erates $1.9 trillio i eco o ic output a d supports 14.1 illio erica jo s.U. . Travels issio is to i crease travel to a d withi the U ited tates. isit www.ust av l.o g .
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2 T R AV E L M E A N S J O B S n U . . T C I T I n

Te travel industry has a ar broader economic ootprintthan many realize. More than just transportation andlodging, travelers generate spending at restaurants,museums, parks and other destinations while vacationing,studying abroad or traveling on business. Engaging withtravelers worldwide, the industry welcomes visitors globally and turns iconic American attractions and destinations into

thriving exports.Te historical, current and uture impact o travel on American jobs is explained through three contributing characteristics: the industrys geographic breadth, thedistinct nature and makeup o travel jobs, and thetremendous opportunity or continued expansionand growth.

First, the size and signi cance o the travel job market:

n Direct spending on travel supports . million American jobs seven percent o total private-sectoremployment.

n ravelers spending is ampli ed through a ripplee ect: as travel workers spend their paychecks inother sectors o the economy, and vendors andsuppliers receive contracts rom hotels and rental carbusinesses, which injects $ . trillion into the U.S.economy and supports . million American jobs.

x CUTI Umm

A t a time when elected o fcials aresearching or solutions to sluggishgrowth, unemployment, globalization,and continued economic challenges, ananswer lies in travel. Travel plays a critical rolein the nations economy. As an indispensablesource o American jobs, the travel industryhas served not only as a ticket to opportunity

during tough economic times, but with theright support in place, it can lead a path touture prosperity.

ravel JobsBy The NUmBerS

(all data 2011, unless otherwise indicated)

14.4 million: total numbero American jobs supportedby travel

1 in 8: American jobs(private sector) supportedby travel

1.1 million: American jobs directly supportedby travel exports

#6: where travelranks in terms o totalU.S. employment

48: number o states where

travel is a top ten employer(2010)

29%: pace that travel jobshave been created asterthan the rest o the economy(March 2010July 2012)

1 in 7: ratio o projectedgrowth o travel jobs(3.3 million) to total U.S.

job growth by 2020

44 of 50: number o stateswhere small businessesin travel employ a higherpercentage o workers thanthe private sector (2007)

33: number o overseasvisitors that create oneAmerican job


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3T R AV E L M E A N S J O B S n U . . T C I T I n

Next, travel has been critical or millionso American workers during these tougheconomic times:

n Te industry disproportionately puts to work Americans unemployed due to therecession younger workers and those without higher education.

n ravel jobs provide the exibility toenhance skills through higher educationand career development.

n ravel jobs cannot be outsourced; while other jobs have been shippedoverseas, jobs tied to national parks,iconic cities and beauti ul shorelinescan no more be outsourced than theattractions themselves.

Tourism is the number one service that we export. Number one.

And that means jobs. P I nT b Ck b m

Also, travel is blazing the path toward a brightereconomic uture:

A study by McKinsey Global Institute predictsas many as one in seven new jobs over the nextdecade will come rom travel.

n ravel represents Americas largest exportindustry. Tose exports directly support

. million American jobs, which will only continue to rise as the U.S. attracts new visitors rom rapidly emerging marketsaround the world.

o boost travel requires investment and support. At a time o job shortages and budget de cits,encouraging more travel would serve as a massive stimulus at no cost to taxpayers. For the American economy, there is no better deal thantravel, and no aster path to recovery.


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INduSTRy2011

EMpLOyMENT

Health Care a d Social Assista ce 16,643

Retail Trade* 13,640

Ma u acturi 11,733

Pro essio al, Scie tifc, a d Tech ical Ser ices 7,691

Admi istrati e Support, Waste Ma a eme t, Remediatio Ser ices* 7,564

T T T 7,512Accommodatio a d Food Ser ices* 7,351

Fi a ce a d I sura ce 5,752

Wholesale Trade 5,529

Co structio 5,504

Other Ser ices (except Public Admi istratio ) 5,342

Tra sportatio a d Warehousi * 3,342

Educatio al Ser ices 3,241

I ormatio 2,659

Ma a eme t o Compa ies a d E terprises 1,915

Real Estate a d Re tal a d Leasi * 1,865

A riculture 1,147

Mi i 735

Arts, E tertai me t, a d Recreatio * 634

Utilities 555

ToTa l U.S. Pr ivaTe-SecTor emPloymenT 108,165


The DirecT impAcT f TrA e

F ew Americans realize that travel is a major economic driver.In 2011, direct traveler spending was $813 billion, whichsupported 7.5 million American jobs seven percent o thecountrys total private-sector employment. Travel creates jobs intransportation, hotels, restaurants, retail, entertainment and manyother sectors. Travel ranks sixth in total U.S. employment; only fveo the 20 major industries employ more people than travel, andtravel jobs continue to grow.

*Employment attributed to travel excluded SoUrce: U.S. Tra el Associatio

BAckgROuNd:

Te Economic Impact o ravel

ADDiTi NA TrA e impAcT

ravel supports jobs in several ways becauseevery dollar spent by a traveler ripples throughmultiple layers o the nations economy. Beyonddirect spending, travel also has two otherimpacts indirect and induced. Te indirect

impact arises when the direct recipients o travel dollars, such as restaurants and hotels,pay third-party vendors or services andproducts. Te bene ts ow down the supply chain all the way to local arms, which grow

ruits and vegetables, and to utilities, whichgenerate electricity.

At the same time, an induced impact occurs when people whose jobs depend on travelspend the money they earn in other parts o the economy. ogether, indirect and induced

impacts amount to an added $ . trillioneconomic output, which supports an additional

. million jobs.

Combined with direct spending by thosetaking trips, travels ull impact on the U.S.economy is an impressive $ . trillion, whichsupports . million American jobs one inevery eight.


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MAn UFAC TURIng DATA PROCESSIng

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I CT J b ITI n J b

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TrA e iS ASTr N iN eSTmeNT

Economic development authorities areconstantly pursuing investments that bolsterthe local economy or their communities. While investments in manu acturing or high-tech industries appear to be highly attractive,their local economic impact is limited.

Investing in travel-related business, such as a convention center, hotel or other attraction,drives visitation that generates additionalspending in communities outside o the business

alone. Comparing the overall employmentimpact o the operations o our di erentinvestment projects shows that while all new business investments provide positive economicbene ts to local communities, other industriesdo not possess the same ripple e ect as travel.

Assuming each new acility employs the samenumber o direct workers ( ), a study

ound that an investment in a travel business

T av l indust e lo ntrank ng W t n Stat s

SoUrce: U.S. Tra el Associatio

e lo nt e ts oe ono D v lo nt

NUmBer f emp yeeS

SoUrce: Tourism Eco omics

TrA e S WiDeSpreAD impAcT

It is a common misconception that states with well-known attractions dominate travelindustry employment, but the reality is notso limited. More than almost any otherindustry, the bene ts o travel extend toevery state, reaching large cities and smalltowns alike. In act, in states, travelis a top ten employer and employs morethan , workers in states.Notsurprisingly, the most populated states tendto employ the highest number o travel workers, but many smaller states boast a highpercentage o travel jobs in terms o totalprivate-sector employment.

(hotel or attraction) supports more total jobsthan a manu acturing or a data processing acility,

because travel-related businesses attract spending rom outside o the local community that bene ts

area residents.


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ravel Jobs:eTTiN The UNemp yeD BAc T W r N W

In the wake o the 2008 fnancial crisis, travel jobs have servedas a li eline or Americans who have su ered the worst e ectso the economic downturn. Unemployment has hit two groupso Americans especially hard: young adults and workers withouthigher education. The unemployment rate or workers witheither a high school degree or less education remains twice ashigh as the rate or workers with at least a bachelors degree. As o June 2012, these two groups accounted or 85 percent othe 12.7 million unemployed Americans.

A gATEwAy TO OppORTuNITy


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While urthering education remains thepathway to uture growth and innovation,

Americas economy must continue providing opportunity or workers with ewer years onthe job and ewer years in school. No industry has done more to meet this responsibility thantravel. During a tough economy, travel hasprovided good jobs or those who need themmost. Consider the ollowing statistics:

n Workers under years old account ornearly one-quarter o the travel industry but only percent o other sectors o the economy.

n Workers without a college degreerepresent percent o total employmentin travel but only about percent inother sectors.

Te message is clear: expanding travel meansexpanding work opportunity or those in need.

A Tic eT T Apr miSiN cAreer

Te travel industry provides a large numbero young Americans with their very rst job.From hotels and restaurants to transportationor retail, the industry serves as a gateway to the working world or those without prior work experience or a specialized degree. Tese jobsprovide the kind o on-the-job training that workers could never learn in the classroom butneed to advance in their careers.

Simultaneously, travel provides Americans withan opportunity to enhance their skills outsideo their everyday jobs. ravel jobs can provide workers with the exibility needed to seek higher education, attend career developmentcourses or pursue other training programs.

One-third o all part-time employees urtherintheir education, work in leisure and hospitality.

= 100,000 people

O the . million Americans working parttime or non-economic reasons, . million

about one in ve do so or academicgrowth and training. O those . million workers, . million work in the leisureand hospitality sector, which represent thelargest component o the travel industry. Tatmeans an incredible one-third o all part-timeemployees attending school or other careerdevelopment courses work in elds related totravel. Career development is the main reason workers choose to work part time in leisureand hospitality, with percent o them citing

school/training as the reason or working part time in the industry.

5.6 illio wor ers


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Millions o Americans have seen their jobsthreatened by low-cost workers in other countries.Unlike jobs in actories or call centers, Americantravel jobs cannot be shipped overseas. Jobs tiedto national parks, iconic cities and beauti ulshorelines can no more be outsourced than theattractions themselves.

As a result, the travel industry has not su eredthe ate o other prominent industries. For

example, rms outsourcing business activitiesto companies abroad in the in ormationsector account or percent o total industry sales, percent in manu acturing and percent in nance and insurance. By contrast,

rms outsourcing jobs abroad in the largestcomponent o the travel industry leisure andhospitality account or a mere . percent o industry sales.

J BS ThAT Wi STAy iN AmericA

American travel jobs cannot be shipped overseas


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BUSInESSSERvICES HEALTHCARE

LEISURE &HOSPITALITy COnSTRUCTIOn

FInAnCIALSERvICES MAnUFACTURIng


n Since the employment recovery began inMarch o , the travel industry hascreated , new jobs and has created jobs at a pace that has been percent

aster than the rest o the economy. n Between the end o to mid- ,

travel had already recovered percento the jobs lost during the Great

Recession, compared to just percent inmanu acturing; percent in the nancialsector; and three percent in construction.

n Between January and June ,travel was a net job creator in o the

months. n By , travel employment reached a

record high in terms o payroll, hitting $ billion.

In states during the last decade, the travelsector added jobs aster than the rest o theeconomy. As a result, travels share o overallemployment increased between and .

Given these numbers, it should come asno surprise that travel is blazing the trailtoward recovery. According to a recentstudy by McKinsey Global Institute, travel-related industries are playing a critical role increating the jobs needed to lower Americas

Te Jobs o the Future:J B r WTh

T he Great Recession in icted damage on almost every sectoro the American economy, including travel. Travel, however,has bounced back rom the downturn ar more quicklythan almost any other industry. Simply put, while other sectors othe economy have atlined, the travel industry has taken o . Thestatistics speak or themselves:

TRAVEL LEAdS ThE ROAd TO REcOVERy

unemployment rate. Te report estimates thatduring this decade, America could add as many as . million jobs enough to restore ullemployment to the economy. One in every seveno these jobs up to . million could come

rom the travel-driven hospitality and leisureindustries. While American consumers willprovide the bulk o spending, to reach the high- job growth scenario, the United States needsto retake lost ground in global tourism, thereport concludes.

SoUrce: An Economy That Works: Job Creation and Americas Fu ture,McKi se global I stitute, 2011

e lo nt owt p oj t ons, 20102020emp ymeNT r WTh iN mi i NS


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SmA BUSiNeSS r WTh

As America continues on the road torecovery, small businesses will serve as oneo the most power ul engines o economicgrowth. According to the U.S. SmallBusiness Administration, small businessesemploy about hal o the nations private-sector employees, create more than hal o non arm private-sector GDP and generated

percent o the net new jobs between and . Such small businesses representa disproportionately large share o thetravel industry.

Supporting more than . million workers,small businesses employ more than hal ( %)o the total work orce in the travel industry. By contrast, small businesses employed lessthan hal ( %) o the work orce in the resto the private sector. Small businesses in thetravel industry employ a higher percentage o workers than the rest o the private sector in

o the states.

O the countrys more than , leisure

and hospitality establishments, percent or more than , are considered smallbusinesses and , o them have ewerthan employees.

Tese small businesses are spread acrossthe country. Comparing major industry sectors, the leisure and hospitality industriesrank rst, second or third in states or totalnumber o small businesses, ourth or th in

states plus the District o Columbia, andsixth or better in all states.

Supporting more than 3.9 millionworkers, small businesses employ more than hal o the total work orce in the travel industry.


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1.2m

1.0m

0.8m

0.6m

0.4m

0.2m

0TRAvEL

InDUSTRyTRAnSPORTATIOn

EqUIPMEnTMACHInERy COMPUTERS

AnD ELECTROnICPRODUCTS

METAL PRODUCTS CHEMICALS FOOD PRODUCTS PLASTICS AnD RUBBER PRODUCTS


SoUrce: U.S. Tra el a d U.S. Departme t o Commerce, 2008

exp rT r WTh

One o the keys to creating more American jobs iscreating more American exports. rade supportsthe new and higher-paying jobs that the U.S.needs to grow and prosper. According to

gures, rom the Ofce o the United States radeRepresentative, , jobs were supported by every $ billion o goods and services exported.For this reason, in , President Barack Obama set a goal o doubling exports by .

In essence, America is its own greatest export.

While many think o an export as an automobile,a piece o machinery or a computer chip thatis made in the U.S. and shipped abroad, travelexports occur when international travelers visitthe U.S. and purchase goods and services in America during their trip. Every dollar thatinternational travelers spend while visiting this

country is an export. Since , travel hasranked as Americas largest export industry,ahead o other major exports such as machinery,chemicals, business services and agriculture.In , it accounted or $ billion in exports, which represented . percent o total U.S.exports in goods and services.

With recent concern over Americas widening trade gap, it is important to note that travelhas been one o the ew industries that has

consistently posted a trade surplus with Americasmajor trading partners. In act, the travel industry has generated trade surpluses every year since

. Between and , travels tradesurplus grew more than ve- old to $ billion,even as the countrys overall trade de cit orgoods declined percent to $ billion.

e o t-Su o t d A an JobsiN mi i NS


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electronics sector combined. Because the travelindustry is labor-intensive, even a small increasein travel exports can lead to a large increase in thetotal number o jobs. While travel export growth

rom to closely mirrored the growtho overall exports, export-related jobs in the travelindustry grew aster than other sectors.

During this period o high unemployment, thesegures should erase any doubts over whether

overseas travel can serve as the job stimulusthat the U.S. desperately needs. On average

last year, overseas travelers spent $ , pervisit at American hotels, shops and restaurants.For every additional students, sightseers,business executives and other overseas visitors

While exports are a strong engine o job creationacross the American economy, they are especially power ul in the travel industry. Export-supported jobs account or one out o every seven employeesin the travel industry. By comparison, according to the Commerce Department, export-supported jobs accounted or only . percent o totalU.S. employment in . In other words, a worker in the travel industry is twice as likely tohave an export-supported job as a worker in theoverall economy.

As o last year, travel exports supported . million American travel jobs. In act, travel producedmore export-supported jobs than transportationequipment, machinery and the computer and

A single Boeing 747 airplane, carrying 467 visitors to the U.S.brings the spending power to support 14 American jobs.


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Every 33 overseas traveler creates one new American job.

who come to this country, Americas economy gains one new job. Tat means a singleBoeing airplane, carrying visitors tothe U.S. brings the spending power to support

American jobs.

During the past decade, the U.S. has not takenull advantage o a global travel boom that has

occurred as people rom emerging marketstake to the skies and seas in record numbers. While global long-haul travel grew percent

rom to , overseas travel to the U.S.

during the same time rose just two percent. As a result, the U.S. share o global long-haultravel declined. Simply recapturing this lostshare would create . million new jobs or American workers by .

With the long-haul travel market expected togrow another percent between and

, the U.S. must position itsel to bene t. A public-private partnership called BrandUSA has launched the rst-ever nationally coordinated marketing plan to attract morevisitors to America. Now the ederal government

must continue doing its part to make it easieror travelers to come to the U.S. by improving

visa processing and expanding the Visa WaiverProgram or quali ed countries.


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ake ActionR esearch all points to the same conclusion: travel means jobs. In terms o overall impact, travel already supports14.4 million jobs, but can do so much more. At a timeo low growth, travel o ers the stimulus that the Americaneconomy needs. At a time o high unemployment, travel o ers

jobs or workers in need o opportunity. At a time o risinginternational competition, travel o ers jobs rich in exports

and resistant to outsourcing. In short, travel will be Americasindispensable growth industry in the years ahead.

To realize the ull potential or growth, leaders o the public and privatesector must act decisively to enact travel- riendly policies:

W nn ng tco t t on

oint nat onalT av l s.

While international travel is booming, Americas share o this lucrative markethas been at. By streamlining the U.S.visa process and adding more deserving countries to the Visa Waiver Program, the

ederal government can send a message totravelers rom around the world: America is open or business.

inv st ngn T av l

p o ot on.

Public and private-sector leadersneed to continue working together tomake Brand USA, Americas rst-evernationally coordinated marketing entity,a success. State and local governmentscan strengthen this national e ort by continuing to invest in proven travelpromotion programs.


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These actions will get America moving again. Thestakes could not be higher: more travel means moreexports, more small businesses, more spending andmost importantly, more American jobs that cannot beoutsourced. Travel is a critical vehicle steering Americaon the road to recovery, with smart leadership, and itcan drive our uture prosperity.

Su o t nge onoD v lo ntt oug T av l.

As one o Americas largest and astest-growing employers, travel can serve as thecatalyst or achieving Americas economicgoals o stronger, more sustainable growthand ull employment.

i ov ngt A T av le n .

Improving security at Americas airportsand reducing the burden on travelers,since the one-size- ts-all security system

implemented post- / , has the potentialto create an additional $ billion intraveler spending, which would support

, American jobs.

Bu ld ngWo ld-classin ast u tuto Su o tWo ld-class

D st nat ons.

A world-class travel destination must havea rst-class in rastructure system, andthat requires new investment in airportsand highways.


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To view detailed charts including data tables or 50 states and additional tables, visit www.ustravel.org/jobs


21 Frequently Asked Questions: Advocacy: the voice o smallbusiness in government,Small Business Administration,

January .22 Statistics o U.S. Businesses,U.S. Census Bureau, .23 Ibid.24 Ibid.25 Ibid.26 Exports Support American Jobs,International rade

Administration, April .27 Remarks by the President in State o the Union Address,

Te White House, January , .http://www.whitehouse. gov/the-press-ofce/remarks-president-state-union-address

28

U.S. ravel Association29 Bureau o Economic Analysis, .30 Ibid.31 International rade Administration.32 U.S. ravel Association and U.S. Department o Commerce.33 U.S. Department o Commerce.34 U.S. ravel Association.35 Ibid.36 Ready or akeo : A Plan to Create . Million U.S. Jobs by

Welcoming Millions o Internat ional ravelers,U.S. ravel Association, .http://www.smartervisapolicy.org

37 Ibid.38 Ox ord Economics.39 Te White House.40 A Better Way,U.S. ravel Association, .

http://www.ustravel.org/betterway

d otes

1 Remarks by the President Unveiling a Strategy to HelpBoost ravel and ourism,Te White House, January ,

.http://www.whitehouse.gov/the-press-ofce/2012/01/19/ remarks-president-unveiling-strategy-help-boost-travel-and-tourism

2 U.S. ravel Association.3 Ibid.4 Ibid.5 Comparative Economic Impacts o New Investments,

ourism Economics, August .6 Ibid.7 U.S. ravel Association.8

U.S. Department o Labor Bureau o Labor Statistics(BLS).9 Ibid.10 Ibid.11 Te Quality o ourism Jobs, Economic Policy Institute,

March .12 Ibid.13 BLS, .14 U.S. Census Bureau, .15 U.S. ravel Association.16 Ibid.17 Ibid.18 Ibid.19

Ibid.20 An economy that works: Job creation and Americas uture,

McKinsey Global Institute, June .
http://www.whitehouse.gov/the-press-office/2012/01/19/remarks-president-unveiling-strategy-help-boost-travel-and-tourismhttp://www.whitehouse.gov/the-press-office/2012/01/19/remarks-president-unveiling-strategy-help-boost-travel-and-tourismhttp://www.whitehouse.gov/the-press-office/2012/01/19/remarks-president-unveiling-strategy-help-boost-travel-and-tourismhttp://www.whitehouse.gov/the-press-office/2012/01/19/remarks-president-unveiling-strategy-help-boost-travel-and-tourismhttp://www.whitehouse.gov/the-press-office/2012/01/19/remarks-president-unveiling-strategy-help-boost-travel-and-tourismhttp://www.whitehouse.gov/the-press-office/2012/01/19/remarks-president-unveiling-strategy-help-boost-travel-and-tourism


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