Xanterra Parks and Resorts.

Trends in the Parks and Tourism Business

The Travel Industry Association placed total U.S. travel expenditures at $679.4 billion for 2006. Total revenues for the global travel industry are difficult to pin down. However, a reasonable estimate would be $2 trillion for 2006, making tourism the largest industry on earth.

Dramatic changes in the tourism industry have occurred in the past several years. The major U.S. airlines are recovering from the staggering losses incurred in the early years after the events of 9/11. The price of gasoline, fuel for cruise ships and jet fuel for aircraft remain a major hindrance to the travel industry. Fuel constitutes about 26 percent of operating expenses for airlines today, compared to 10 percent in 2003. Gasoline costs in the U.S. have tripled in only five years. This not only makes it much more expensive to travel by automobile or to drive cross-country in an RV, it also cuts deeply into discretionary spending for leisure and business travel. This may be one reason why visitation has declined roughly five percent in the last six years at national and state parks.