What is Travel Effect?

A comprehensive, research-driven initiative to change mindsets, shift American culture and motivate American workers to use more of their earned time off.

Effects of Travel on the Economy

  • Government meetings deliver

    New interactive study proves the value of government meetings, which contribute more than $24 billion a year to our economy and support more than 340,000 American jobs.
  • Travel supports small business

    98% of travel industry firms employ 500 people - or fewer.
  • SUPPORTING THE KNOWLEDGE ECONOMY

    Public- and private-sector leaders agree: At meetings sponsored by or attended by government agencies, building knowledge is priority one.
  • HIGH RETURNS AT A FRACTION OF THE COST

    While meetings are critical to both the private and public sectors, government maximizes ROI by keeping costs to less than one-tenth of private sector spending.
    Fact

    Government meetings support more than 340,000 jobs, driving $24.4 billion in economic impact.

    Interactive Map

    Find Out the Economic Impact of the Travel Industry In Your State

    Economic Benefits

    Travel is a major economic driver. In 2011, direct traveler spending was $813 billion, which supported 7.5 million American jobs and generated $124 billion in taxes. That’s $2.2 billion a day, $92.8 million an hour, $1.5 million a minute and $25,778 a second. Click on one of the tabs below to learn more about the travel effect on our nation’s economy.

    • Impact in Perspective

      A new study by Rockport Analytics finds that government spending on meetings totaled $17.9 billion in 2011, the most recent comprehensive data set available. That expenditure resulted in a total economic contribution of more than $24 billion to the U.S. economy — 34 percent beyond associated costs — including a $2.5 billion infusion into state and local governments and support for $14.5 billion in wages via 343,800 U.S. jobs.

      Breaking the data down further, researchers found that the economic impact of government meetings is more than double the costs for meetings travel. Just more than half of meetings spending, $10.9 billion, went to travel expenses, with the balance accounted for by venue, service and operations expenses — costs incurred regardless of location.

      These calculations don’t include immeasurable long-term economic gains realized through private sector delegates engaging with government agencies in meetings. The study indicates that 62 percent of business executives report positive ROI from attending meetings where government employees are present, compared to just 12 percent claiming a negative return.

      And while both government and the private sector benefit from these conferences, the government maximizes its return by more tightly controlling costs. Private-sector spending on meetings totals nearly 13 times government spending and is more than double government outlays on a per-employee basis.

    • Knowledge & Productivity

      While there are many functions to meetings and conferences, including sales and procurement, agency supervisors and business executives agree that most importantly, government meetings build and disseminate critical knowledge.

      In a survey of 258 private sector business owners or executives at the VP level or higher, 74 percent report their companies benefit from knowledge transfer at meetings where government personnel are present, and 43 percent indicate that such meetings provide information not available anywhere else.

      Eighty-four percent of private sector leaders also report that government meetings have a moderate to high impact on generating industry-relevant ideas and insights, while more than 35 percent report these meetings have only a low impact on sales leads and conversions.

      Similarly, among supervisors, more than half point to knowledge transfer, employee development and bridging information gaps as the most essential benefits of government meetings and conferences.

    • Case Studies

      In January 2013, in anticipation of sequestration, the U.S. Defense Department canceled the 2013 Military Health System Conference just weeks before its planned mid-February dates. The conference is typically attended by 3,000+ leaders from the armed services and partner agencies, in part for its low-cost workshops providing required continuing medical education (CME).

      Researchers found that while canceling the event cut government spending by $3.9 million in operations and traveler expenditures, the move actually increases government costs by $813,00 when accounting for $1.2 million in lost revenues and at least $3.6 million for would-be attendees to obtain an equal amount of CME credits through other sources.

      As surprising as that calculus may be, it doesn’t account for the lost value of networking and sharing of best practices in programs implementation and administration. Similarly, the decision by NASA and the U.S. Air Force not to participate in the 2013 National Space Symposium (NSS) has, as expressed by high-level leaders, far-reaching impact difficult to quantify.

      As the premier annual gathering of more than 9,000 stakeholders in the global space industry, NSS plays a critical role in diplomacy, solving industry challenges, knowledge sharing and more, bringing together leaders in the public and private sectors from roughly 30 nations.

      Experts surveyed on the government pullout indicated that not only will agencies now need to spend as much or more on transient travel throughout the year — replacing meetings that would have taken place at NSS — the U.S. absence from the conference undermines related commercial productivity and jeopardizes the United States’ position in the international space community.

    The economic impact of the travel industry

    Filter Options:

    United States

    Travel injects $2 trillion into the U.S. economy, which supports 14.6 million American jobs. See the state-by-state impact.

    Alabama
    Spending $8.2 Billion
    Tax Receipts $906.7 Million
    Employment 76,674 Jobs
    PDF Report Download
    Alaska
    Spending $2.2 Billion
    Tax Receipts $352.4 Million
    Employment 25,888 Jobs
    PDF Report Download
    Arizona
    Spending $15.9 Billion
    Tax Receipts $2.4 Billion
    Employment 151,446 Jobs
    PDF Report Download
    Arkansas
    Spending $6 Billion
    Tax Receipts $754.9 Million
    Employment 58,920 Jobs
    PDF Report Download
    California
    Spending $105.3 Billion
    Tax Receipts $15.5 Billion
    Employment 836,919 Jobs
    PDF Report Download
    Colorado
    Spending $15.6 Billion
    Tax Receipts $2.7 Billion
    Employment 141,920 Jobs
    PDF Report Download
    Connecticut
    Spending $9.6 Billion
    Tax Receipts $1.5 Billion
    Employment 62,966 Jobs
    PDF Report Download
    Delaware
    Spending $1.7 Billion
    Tax Receipts $225.7 Million
    Employment 15,120 Jobs
    PDF Report Download
    Florida
    Spending $71.5 Billion
    Tax Receipts $10.6 Billion
    Employment 758,683 Jobs
    PDF Report Download
    Georgia
    Spending $22.7 Billion
    Tax Receipts $4.5 Billion
    Employment 238,433 Jobs
    PDF Report Download
    Hawaii
    Spending $17 Billion
    Tax Receipts $2.5 Billion
    Employment 160,785 Jobs
    PDF Report Download
    Idaho
    Spending $3.9 Billion
    Tax Receipts $516.1 Million
    Employment 23,872 Jobs
    PDF Report Download
    Illinois
    Spending $31.7 Billion
    Tax Receipts $5.7 Billion
    Employment 291,987 Jobs
    PDF Report Download
    Indiana
    Spending $9.6 Billion
    Tax Receipts $1.3 Billion
    Employment 96,033 Jobs
    PDF Report Download
    Iowa
    Spending $7.4 Billion
    Tax Receipts $827.1 Million
    Employment 65,246 Jobs
    PDF Report Download
    Kansas
    Spending $6.3 Billion
    Tax Receipts $768 Million
    Employment 56,474 Jobs
    PDF Report Download
    Kentucky
    Spending $7.9 Billion
    Tax Receipts $1.1 Billion
    Employment 84,454 Jobs
    PDF Report Download
    Louisana
    Spending $9.9 Billion
    Tax Receipts $1.2 Billion
    Employment 102,845 Jobs
    PDF Report Download
    Maine
    Spending $3.2 Billion
    Tax Receipts $381.5 Million
    Employment 30,571 Jobs
    PDF Report Download
    Maryland
    Spending $14.5 Billion
    Tax Receipts $2.8 Billion
    Employment 115,117 Jobs
    PDF Report Download
    Massachusetts
    Spending $16.9 Billion
    Tax Receipts $2.5 Billion
    Employment 124,682 Jobs
    PDF Report Download
    Michigan
    Spending $16.2 Billion
    Tax Receipts $2.5 Billion
    Employment 139,592 Jobs
    PDF Report Download
    Minnesota
    Spending $11.7 Billion
    Tax Receipts $3.2 Billion
    Employment 135,261 Jobs
    PDF Report Download
    Mississippi
    Spending $5.8 Billion
    Tax Receipts $948.5 Million
    Employment 83,241 Jobs
    PDF Report Download
    Missouri
    Spending $12.2 Billion
    Tax Receipts $1.8 Billion
    Employment 117,456 Jobs
    PDF Report Download
    Montana
    Spending $3.7 Billion
    Tax Receipts $341.3 Million
    Employment 29,166 Jobs
    PDF Report Download
    Nebraska
    Spending $4.2 Billion
    Tax Receipts $593.4 Million
    Employment 42,418 Jobs
    PDF Report Download
    Nevada
    Spending $29.6 Billion
    Tax Receipts $4.2 Billion
    Employment 304,782 Jobs
    PDF Report Download
    New Hampshire
    Spending $3.7 Billion
    Tax Receipts $320 Million
    Employment 23,286 Jobs
    PDF Report Download
    New Jersey
    Spending $19.3 Billion
    Tax Receipts $3.3 Billion
    Employment 196,149 Jobs
    PDF Report Download
    New Mexico
    Spending $6.4 Billion
    Tax Receipts $805.7 Million
    Employment 55,764 Jobs
    PDF Report Download
    New York
    Spending $56.9 Billion
    Tax Receipts $10.9 Billion
    Employment 430,740 Jobs
    PDF Report Download
    North Carolina
    Spending $19 Billion
    Tax Receipts $2.9 Billion
    Employment 196,080 Jobs
    PDF Report Download
    North Dakota
    Spending $2.6 Billion
    Tax Receipts $415.1 Million
    Employment 24,640 Jobs
    PDF Report Download
    Ohio
    Spending $16.2 Billion
    Tax Receipts $2.5 Billion
    Employment 164,667 Jobs
    PDF Report Download
    Oklahoma
    Spending $6.9 Billion
    Tax Receipts $1.1 Billion
    Employment 78,366 Jobs
    PDF Report Download
    Oregon
    Spending $8.8 Billion
    Tax Receipts $1.2 Billion
    Employment 77,855 Jobs
    PDF Report Download
    Pennsylvania
    Spending $22.8 Billion
    Tax Receipts $3.3 Billion
    Employment 208,320 Jobs
    PDF Report Download
    Rhode Island
    Spending $1.8 Billion
    Tax Receipts $230.9 Million
    Employment 13,803 Jobs
    PDF Report Download
    South Carolina
    Spending $11.4 Billion
    Tax Receipts $1.6 Billion
    Employment 117,346 Jobs
    PDF Report Download
    South Dakota
    Spending $2.6 Billion
    Tax Receipts $281.8 Million
    Employment 26,034 Jobs
    PDF Report Download
    Tennessee
    Spending $15.3 Billion
    Tax Receipts $2.5 Billion
    Employment 143,832 Jobs
    PDF Report Download
    Texas
    Spending $55.1 Billion
    Tax Receipts $8.8 Billion
    Employment 555,913 Jobs
    PDF Report Download
    Utah
    Spending $7 Billion
    Tax Receipts $1.1 Billion
    Employment 71,418 Jobs
    PDF Report Download
    Vermont
    Spending $2.1 Billion
    Tax Receipts $251.8 Million
    Employment 19,439 Jobs
    PDF Report Download
    Virginia
    Spending $20.9 Billion
    Tax Receipts $2.7 Billion
    Employment 211,875 Jobs
    PDF Report Download
    Washington, DC
    Spending $9.3 Billion
    Tax Receipts $1.4 Billion
    Employment 63,492 Jobs
    PDF Report Download
    West Virginia
    Spending $2.8 Billion
    Tax Receipts $357.2 Million
    Employment 27,712 Jobs
    PDF Report Download
    Wisconsin
    Spending $10.2 Billion
    Tax Receipts $1.6 Billion
    Employment 108,698 Jobs
    PDF Report Download
    Wyoming
    Spending $2.9 Billion
    Tax Receipts $296.6 Million
    Employment 28,867 Jobs
    PDF Report Download
    Fact

    More than 40% of U.S. workers leave vacation days unused each year.