What is the Travel Effect?

Travel Effect is the feeling you get taking a step away from the busyness of life. Using your earned time off—whether around the house or on a trip—recharges your batteries and lifts the weight off your shoulders. Give it a try. Take a day off and experience the Travel Effect.

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

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    United States

    Travel injects $2.1 trillion into the U.S. economy, which supports 14.9 million American jobs. See the state-by-state impact.

    Alabama
    Spending $8.4 Billion
    Tax Receipts $912.2 Million
    Employment 78,561 Jobs
    PDF Report Download
    Alaska
    Spending $2.4 Billion
    Tax Receipts $357.3 Million
    Employment 27,101 Jobs
    PDF Report Download
    Arizona
    Spending $16.2 Billion
    Tax Receipts $2.4 Billion
    Employment 157,739 Jobs
    PDF Report Download
    Arkansas
    Spending $6.2 Billion
    Tax Receipts $764.8 Million
    Employment 60,390 Jobs
    PDF Report Download
    California
    Spending $110.8 Billion
    Tax Receipts $16.3 Billion
    Employment 875,841 Jobs
    PDF Report Download
    Colorado
    Spending $16.2 Billion
    Tax Receipts $2.8 Billion
    Employment 148,694 Jobs
    PDF Report Download
    Connecticut
    Spending $9.7 Billion
    Tax Receipts $1.5 Billion
    Employment 65,695 Jobs
    PDF Report Download
    Delaware
    Spending $1.7 Billion
    Tax Receipts $230.1 Million
    Employment 15,620 Jobs
    PDF Report Download
    Florida
    Spending $74.8 Billion
    Tax Receipts $11 Billion
    Employment 811,329 Jobs
    PDF Report Download
    Georgia
    Spending $24 Billion
    Tax Receipts $4.6 Billion
    Employment 241,811 Jobs
    PDF Report Download
    Hawaii
    Spending $18.6 Billion
    Tax Receipts $2.8 Billion
    Employment 175,684 Jobs
    PDF Report Download
    Idaho
    Spending $4.1 Billion
    Tax Receipts $532.5 Million
    Employment 25,004 Jobs
    PDF Report Download
    Illinois
    Spending $33.5 Billion
    Tax Receipts $6.1 Billion
    Employment 298,717 Jobs
    PDF Report Download
    Indiana
    Spending $10 Billion
    Tax Receipts $1.4 Billion
    Employment 99,890 Jobs
    PDF Report Download
    Iowa
    Spending $7.8 Billion
    Tax Receipts $869.6 Million
    Employment 66,597 Jobs
    PDF Report Download
    Kansas
    Spending $6.8 Billion
    Tax Receipts $811.3 Million
    Employment 59,494 Jobs
    PDF Report Download
    Kentucky
    Spending $8.1 Billion
    Tax Receipts $1.1 Billion
    Employment 87,313 Jobs
    PDF Report Download
    Louisana
    Spending $10.2 Billion
    Tax Receipts $1.2 Billion
    Employment 104,453 Jobs
    PDF Report Download
    Maine
    Spending $3.3 Billion
    Tax Receipts $384.6 Million
    Employment 31,649 Jobs
    PDF Report Download
    Maryland
    Spending $15 Billion
    Tax Receipts $2.8 Billion
    Employment 119,857 Jobs
    PDF Report Download
    Massachusetts
    Spending $17.7 Billion
    Tax Receipts $2.6 Billion
    Employment 126,312 Jobs
    PDF Report Download
    Michigan
    Spending $16.8 Billion
    Tax Receipts $2.6 Billion
    Employment 144,353 Jobs
    PDF Report Download
    Minnesota
    Spending $12.1 Billion
    Tax Receipts $3.2 Billion
    Employment 138,858 Jobs
    PDF Report Download
    Mississippi
    Spending $6.1 Billion
    Tax Receipts $956.6 Million
    Employment 84,920 Jobs
    PDF Report Download
    Missouri
    Spending $12.6 Billion
    Tax Receipts $1.8 Billion
    Employment 120,772 Jobs
    PDF Report Download
    Montana
    Spending $3.9 Billion
    Tax Receipts $354.3 Million
    Employment 30,760 Jobs
    PDF Report Download
    Nebraska
    Spending $4.4 Billion
    Tax Receipts $612.3 Million
    Employment 44,275 Jobs
    PDF Report Download
    Nevada
    Spending $30.9 Billion
    Tax Receipts $4.2 Billion
    Employment 311,101 Jobs
    PDF Report Download
    New Hampshire
    Spending $3.7 Billion
    Tax Receipts $311.6 Million
    Employment 23,888 Jobs
    PDF Report Download
    New Jersey
    Spending $19.9 Billion
    Tax Receipts $3.3 Billion
    Employment 202,973 Jobs
    PDF Report Download
    New Mexico
    Spending $6.6 Billion
    Tax Receipts $816.1 Million
    Employment 57,778 Jobs
    PDF Report Download
    New York
    Spending $60 Billion
    Tax Receipts $11.4 Billion
    Employment 449,734 Jobs
    PDF Report Download
    North Carolina
    Spending $20.1 Billion
    Tax Receipts $3 Billion
    Employment 201,892 Jobs
    PDF Report Download
    North Dakota
    Spending $3 Billion
    Tax Receipts $457.6 Million
    Employment 26,779 Jobs
    PDF Report Download
    Ohio
    Spending $17.1 Billion
    Tax Receipts $2.6 Billion
    Employment 173,437 Jobs
    PDF Report Download
    Oklahoma
    Spending $7.3 Billion
    Tax Receipts $1.1 Billion
    Employment 80,003 Jobs
    PDF Report Download
    Oregon
    Spending $9.2 Billion
    Tax Receipts $1.2 Billion
    Employment 80,407 Jobs
    PDF Report Download
    Pennsylvania
    Spending $23.2 Billion
    Tax Receipts $3.3 Billion
    Employment 218,731 Jobs
    PDF Report Download
    Rhode Island
    Spending $1.8 Billion
    Tax Receipts $233.2 Million
    Employment 14,610 Jobs
    PDF Report Download
    South Carolina
    Spending $11.8 Billion
    Tax Receipts $1.7 Billion
    Employment 118,117 Jobs
    PDF Report Download
    South Dakota
    Spending $2.7 Billion
    Tax Receipts $286.4 Million
    Employment 26,521 Jobs
    PDF Report Download
    Tennessee
    Spending $16.2 Billion
    Tax Receipts $2.6 Billion
    Employment 146,189 Jobs
    PDF Report Download
    Texas
    Spending $58.4 Billion
    Tax Receipts $9.1 Billion
    Employment 588,683 Jobs
    PDF Report Download
    Utah
    Spending $7.3 Billion
    Tax Receipts $1.1 Billion
    Employment 74,310 Jobs
    PDF Report Download
    Vermont
    Spending $2.2 Billion
    Tax Receipts $258.3 Million
    Employment 20,134 Jobs
    PDF Report Download
    Virginia
    Spending $21.7 Billion
    Tax Receipts $2.8 Billion
    Employment 215,150 Jobs
    PDF Report Download
    Washington, DC
    Spending $9.4 Billion
    Tax Receipts $1.4 Billion
    Employment 66,000 Jobs
    PDF Report Download
    West Virginia
    Spending $2.9 Billion
    Tax Receipts $364 Million
    Employment 28,503 Jobs
    PDF Report Download
    Wisconsin
    Spending $10 Billion
    Tax Receipts $1.5 Billion
    Employment 110,499 Jobs
    PDF Report Download
    Wyoming
    Spending $3 Billion
    Tax Receipts $300.9 Million
    Employment 30,176 Jobs
    PDF Report Download
    Fact

    More than 10% of workers skip time off because of the work that will pile up.