The U.S. Federal Reserve in its latest report on U.S. economic conditions
pointed to "signs of strength" in the tourism sector in several of
its districts during the reporting period spanning early April to late May.
In the Boston district, the Fed reported 2
percent year-over-year increases in hotel revenues and occupancy, and a 1.5
percent uptick in restaurants revenues, all attributable at least partly to
"strong domestic and foreign business travel."
Reports from airline contacts in the Dallas
district were "mixed," according to the Fed, with some indicating
increased demand during the reporting period and others noting flat demand
owing partly to reduced travel activity within the government sector.
"Outlooks were fairly strong for the near term, but contacts are less
optimistic about demand in the longer-term due to sluggish economic growth and
fiscal uncertainties," according to the report.
For the Atlanta district's hospitality sector, "sequestration has
not significantly deterred travel bookings." Occupancy, average daily rate
and revenue per room all "showed strong increases across the district from
the same period last year." The district continued to experience "healthy"
incoming international travel, with some contacts reporting that demand had
"exceeded expectations."
The Fed noted that advanced bookings suggest a generally
"optimistic" outlook for summer travel. For the San
Francisco district, however, there was "some concern that the flow of
international visitors could taper off in coming months due to potential
weakness in the global economy."
"Overall economic activity increased at a modest to moderate pace
since the previous report" across all districts except Dallas, which
showed "strong" growth, the Fed reported. It cited expansion in the
manufacturing sector and for a "wide variety of business services," a
"measured pace" of increased hiring and "slight to moderate gains
in consumer spending." At the same time, the energy sector experienced
"flat" overall activity while the mining sector "was down."
Tourism activity in
New York was "fairly robust since the previous report," with the
hotel business holding steady "at a strong level in April and picked up in
early May; occupancy rates have been roughly on par with a year ago, with room
rates up 2 percent to 4 percent."