Travel Economic Impact Model
The U.S. Travel Association’s Travel Economic Impact Model (TEIM) exclusively measures the impact of travel on the U.S. economy at the national, state and local level including travel-generated spending, employment, payroll income and tax receipts annually.
Travel spending, the core of the TEIM, is primarily estimated through the cost-factor method, which combines travel activities with associated costs. Other methods involve the relationship of travel to overall household spending, and the travel intensity of associated goods and services used domestically. The travel spending measured by TEIM includes a variety of categories including lodging, food, retail, public transportation, auto transportation, and amusement/recreation. TEIM estimates include:
• Consumer survey, conducted by the U.S. Travel Association as well as other reputable organizations;
• Travel industry data;
• Economic and business statistics from government sources; and
• Travel statistics provided by destinations.
Travel-generated employment and payroll is estimated by multiplying calculated travel expenditures to the employment/sales ratio of each travel-related industry using official governmental statistics (U.S. Departments of Commerce and Labor) at the national, state and local level.
Travel-generated tax revenues for federal, state and local governments are estimated by applying tax rates and fees to appropriate travel expenditures and payroll income estimated by the TEIM.