Prepared by the American Hotel & Lodging Association
(All figures are for year-end 2007; Figures for 2008 will be available in Fall 2009)
48,062 properties*
4,476,191 guestrooms
$139.4 billion in sales
$65.52 revenue per available room (RevPAR)
63.1% average occupancy rate
*Based on properties with 15 or more rooms.
In 2007, the lodging industry generated $28 billion in pretax profits. Total industry revenue increased to $139.4 billion in 2007, up from $133.4 billion in 2006.
The average room rate was $103.87 in 2007 – up from $97.78 in 2006. The average room rate was $90.88 in 2005, $86.23 in 2004, $82.52 in 2003, $83.54 in 2002, $88.27 in 2001, $85.89 in 2000, $81.33 in 1999, $78.62 in 1998, and $75.31 in 1997.
Source: Smith Travel Research
In the United States, travel and tourism is among the nation’s largest services export industries, and one of America’s largest employers. In fact, it ranks as one of the top 10 largest industries in 49 states including the District of Columbia. The tourism industry includes a number of interrelated businesses – lodging properties, airlines, restaurants, cruise lines, car rental firms, travel agents, and tour operators, among others.
Tourism’s Effects on our Economy:
Resident and international travelers in the United States spend an average of $2 billion a day, $84.5 million an hour, $1.4 million a minute, and $23,500 a second
Tourism generates $740 billion in sales (excluding spending by international travelers on U.S. airlines).
The tourism industry pays $116 billion in federal, state, and local taxes.
Lodging and Overall Tourism Employment:
- The travel and tourism industry pays $178 billion in travel-related wages and salaries and employs 1.4 million hotel property workers.
- Tourism directly supports more than 7.5 million travel and tourism jobs.
In the 2007-2008 fiscal year, U.S. states planned to spend a projected $868.8 million on development and promotion in the travel and tourism industry. Reporting states averaged increases of 20.4% in budgets from the 2006-2007 fiscal year. The most notable increases include California, with a 137% increase to $58 million, and Texas, with a 109.7% increase to $63.2 million. California and Texas were also ranked among the top three spenders, with budgets set just below Hawaii’s $85.1 million. Hawaii has maintained the highest tourism budget for the past three years. Alaska’s state tourism budget experienced the largest decline, down 19% to $10 million. Texas planned to spend the most on domestic advertising, allocating a $36.6 million budget. Of all reporting states, California ($20.5 million) and Florida ($19.6 million) will spend the most on domestic advertising. The total collective domestic advertising and sales promotion budget was $305.4 million.
Sources: D.K. Shifflet & Associates, Ltd.; Travel Industry Association of America, Bureau of Labor Statistics
By Location Properties* Rooms†
Urban 4,544 699,272
Suburban 16,264 1,609,913
Airport 2,008 282,733
Interstate 6,915 463,078
Resort 3,641 571,254
Small Metro/Town 14,690 849,941
By Rate
Under $30 828 54,865
$30–$44.99 6,934 424,400
$45–$59.99 14,685 925,263
$60–$85 14,507 1,293,645
Over $85 11,108 1,778,018
By Size
Under 75 rooms 27,210 1,159,166
75–149 rooms 15,089 1,595,436
150–299 rooms 4,166 832,957
300–500 rooms 1,089 404,963
Over 500 rooms 508 483,669
*Based on a total of 48,062 properties.
†Based on a total of 4,476,191 guestrooms.
Source: Smith Travel Research
44% traveled for business
56% traveled for leisure
The typical “business room night” stay is by a male (66%), age 35–54 (51%), employed in a professional or managerial position (43%), earning an average yearly household income of $89,600. Typically, these guests travel alone (55%), make reservations (91%), and pay $119 per room night.
The typical “leisure room night stay” is by two adults (53%), ages 35–54 (40%), earning an average yearly household income of $78,800. The typical leisure traveler also travels by auto (78%), makes reservations (86%), and pays $109 per room night.
33% of all business travelers spend one night at a hotel, 26% spend two nights, and 41% spend three or more nights.
Of leisure travelers staying in a hotel, 42% spend one night, 30% spend two nights, and 28% spend three or more nights.
- The United States receives a larger share of world international tourism receipts than any other country in the world. In 2007, spending on travel totaled increased 13% to a record $122 billion, including $97 billion spent at destinations in the U.S. and another $26 billion on passenger fares on U.S. carriers. The U.S. share of world tourism receipts was at the top (11.3%), nearly double that of second-ranked Spain (6.8%).
- In 2007, international1 travelers to the United States increased 10% over 2006, to a record 56.0 million. Overseas2 arrivals in 2007 grew 10% to reach 23.9 million. Canadian arrivals increased by 17% to 17.8 million. Mexican arrivals increased by 1% to reach a record 14.3 million.
- The top 10 countries in terms of U.S. arrivals for 2007 were Canada (17.8 million), Mexico (14.3 million), the United Kingdom (4.5 million), Japan (3.5 million), Germany (1.5 million), France (998,000), South Korea (806,000), Australia (670,000), Brazil (639,000), and Italy (634,000). These 10 countries accounted for 89% of U.S. visitors.
- Country performance was uniformly positive. All top 10 countries except Japan had visitor increases in 2007, and four countries reached record visitation levels (Mexico, South Korea, Australia, and Italy).
- The impact of international travelers on the hotel industry is considerable; international visitors accounted for 22% of all lodging room-nights in 2007. 18.8 million overseas travelers and another nine million Canadians stayed in a hotel/motel during their U.S. visit. The average length of stay for overseas visitors was 7.9 nights, with 1.6 people in the travel party. The main purposes of trips for overseas travelers who stayed in hotels and motels were leisure/recreation/ holiday (53%), and business/convention (35%). These mobile travelers visited 1.6 states while in the country and traveled by taxis and limousines (49%), rented cars (33%), and air (27%).
- The outlook for the remainder of 2008 and beyond is positive due to continued strong GDP growth and favorable exchange rates in our top visitor markets. Through June 2008, arrivals are up 11%.
1 International includes Canada, Mexico, and overseas.
2 Overseas excludes Canada and Mexico.
Source: U.S. Department of Commerce, International Trade Administration, Office of Travel & Tourism Industries; U.S. Department of Commerce, Bureau of Economic Analysis.
------------------------------------------------------------------------------------------------------------
Media interested in more information on these and other hospitality statistics should contact the above sources or media@ahla.com. AH&LA members with questions can contact Membership@ahla.com or InformationCenter@ahla.com.