Although gasoline prices remain over $3 gallon across the United States, with the 4th of July holiday just ahead, the U.S. Tourism Industry is poised for continued growth in 2007 as Americans are expected to take a record number of trips during the busy summer vacation season which will continue through Labor Day. According to a Gallup Poll released on May 30, about half of Americans (52.0 percent) plan to take a vacation this summer.

In a report on the U.S. Tourism Industry released by IBISWorld, Americans are expected to take 1,254.6 million domestic person trips in 2007, a 2.3 percent increase over the previous year. Domestic person trips are defined when one person takes a trip 50 miles or more, one way, away from home or including one or more nights away from home. The average number of nights spent in the U.S. per vacation trip this year is expected to decline slightly to 16.1 nights.

IBISWorld estimates that, in constant 2006 prices, the U.S. Tourism Industry will generate $1,188 billion in revenue in 2007, which represents a real growth rate of 2.0 percent. This is compared to the annual growth rate of 3.5 percent for the previous five years. The travel industry will contribute an estimated $341.5 billion to the U.S. economy in 2007, which represents 2.5 percent of total GDP.

"Despite high gas prices and concerns associated with a slowing economy, the summer vacation period appears to be on track to contribute another year of growth for the U.S. Tourism Industry," said Harvey Jones, senior vice president, IBISWorld, recognized as one of the nation's most respected independent publishers of business intelligence research on more than 700 industries, 8000-plus company profiles, and risk rating reports on virtually every industry.

Looking ahead, IBISWorld projects real revenue growth for the U.S. Tourism Industry will be at an average annual rate of 2.3 percent between now and 2011. During this period, real industry value added will increase at an average annual rate of 1.6 percent, which the IBISWorld report notes will be lower than the expected national GDP growth rate of 2.8 percent (average annual rate until 2011).

The regional distribution of the tourism industry is impacted by the geographic location of the U.S. population, particularly for vacationers who embark on day trips or shorter vacations closer to home. Even so, remote regions of the country command a share of the market due to the location of National Parks, special attractions, as well as lower costs for accommodations in destinations located far from large commercial centers.

Over the next five years, IBISWorld expects the Tourism Industry will be impacted by a number of trends. Following are among the trends identified in the new Tourism Industry report:

- Continued fragmentation of the accommodation industry, as travelers shift their preferences over time more towards serviced apartments and other smaller, more hospitable styles;

- Increasing aging of the population may increase demand for newer forms of purpose-built, long-stay and comfortable, but not expensive, accommodation, as well as new RV parks, in major tourist regions; and

- Far fewer travel agents, particularly independent ones, as the on-line travel information, booking and payment revolution becomes the norm for the majority of travelers.