Basic Tourism Units and Concepts Visitor, Purpose of Trip and Usual Environment Paul V. Kern Section Chief Services Branch paul.kern@bea.gov UNWTO/UNSD Madrid July 17-20 2006 Topics Data sources and methodology used to estimate the Travel and Tourism Satellite Accounts (TTSAs) BEA interpretation of core concepts: visitor, purpose and environment, using available data www.bea.gov 2 Data constraint The United States does not collect information specifically for estimating TTSAs We have sources that provide information on travel and tourism, and adjust these data for use in the TTSAs www.bea.gov 3 Data sources for the U.S. TTSAs Input-Output Accounts (BEA) Personal Consumption Expenditures (BEA) In-Flight Survey (ITA) Consumer Expenditure Survey (BLS) Private data (travel research firm) Employment data (BLS) www.bea.gov 4 Data sources for the U.S. TTSAs The U.S. TTSAs are extensions of the U.S. Input-Output (I-O) Accounts I-O accounts provide production and consumption data by item An item is a detailed commodity Can tell us how much is spent on movies but cannot tell us how many movie-goers are tourists www.bea.gov 5 Data sources for the U.S. TTSAs Personal Consumption Expenditures (PCE) from BEA Allows the most recent I-O data (2004) to be brought forward to 2006 Provides price indexes to calculate constant-price TTSAs www.bea.gov 6 Data sources for the U.S. TTSAs In-Flight Survey from ITA Provides information on international travelers to and from the United States About 80,000 surveys each year Allows separation of U.S. vs. non-U.S. international travelers www.bea.gov 7 Data sources for the U.S. TTSAs Consumer Expenditure Survey (CEX) from BLS General purpose household survey used to weight the Consumer Price Index (CPI) components Questions on travel are at the end of the survey www.bea.gov 8 Data sources for the U.S. TTSAs CEX from BLS Because of these limitations we adjust the CEX data by using a three year moving average of the detailed components This is our primary source to estimate the percent of a commodity’s supply that is sold to tourists www.bea.gov 9 Data sources for the U.S. TTSAs Private data (travel research firm) Provides expenditures Transportation by mode Hotel Meals Other Provides ratios to break aggregates into Leisure travelers Business travelers Government travelers www.bea.gov 10 Concepts Do these data allow us to produce TTSAs that are consistent with the UNWTO “Recommended Methodological Framework”? www.bea.gov 11 Concepts Visitor is a person who travels outside of their usual environment for pleasure or business We exclude those who will be compensated at this new location and students and medical tourists Fully consistent with UNWTO? We cannot differentiate inbound visitors (leisure, business or government) with the current data www.bea.gov 12 Concepts UNWTO recommends the following classifications for purpose www.bea.gov Leisure, recreation and holidays Visiting friends and relatives Business and professional Health treatment Religion, pilgrimages Other 13 Concepts We measure three types of visitors by their purpose for travel Leisure Business Government Fully consistent with UNWTO? We cannot differentiate among categories of inbound visitors (leisure, business or government) and outbound visitors can be divided into leisure and business only www.bea.gov 14 Concepts UNWTO states National statistical organizations may wish to establish the boundaries of the usual environment in statistical terms by referring to distances traveled, frequency of visits or the formal boundaries of localities or territories www.bea.gov 15 Concepts For the BEA, the usual environment is the area of normal, everyday activities within 50-75 miles of home CEX (BLS) uses 75 miles, or overnight of any distance Private data uses 50 miles, or overnight of any distance Fully consistent with UNWTO? It is not possible to reconcile the two sources www.bea.gov 16 Results Billions of chained (2000) dollars Chart 1. Real Tourism Output and Tourism Employment, Q2002:I - Q2006:I Thousands of employees 600 5,700 580 5,650 560 5,600 540 5,550 520 5,500 500 5,450 480 5,400 460 5,350 440 5,300 Q2002:I Q2002:III Q2003:I Q2003:III Real tourism output Q2004:I Q2004:III Q2005:I Q2005:III Q2006:I Tourism employment U.S. Bureau of Economic Analysis www.bea.gov 17 Results Chart 2. Quarterly Growth in Real Tourism Output, Q2005:I - Q2006:I 20.0 15.0 Percent 10.0 5.0 0.0 -5.0 -10.0 Q2005:I Q2005:II All tourism goods and services Q2005:III Passenger air transportation Q2005:IV Q2006:I Traveler accommodations U.S. Bureau of Economic Analysis www.bea.gov 18 Conclusions BEA has done a good job of bridging the UNWTO concepts and goals to the existing data on travel and tourism in the United States These accounts are improving and we have additions and refinements under review or in development www.bea.gov 19 Q&A BEA TTSAs http://www.bea.gov/bea/dn2/home/ tourism.htm paul.kern@bea.gov www.bea.gov 20