Government says travel spending rose in 1st quarter

WASHINGTON -- Tourism spending rose at an annual rate of 3.9 percent during the first quarter, led by increased spending on hotels and other accommodations, according to a government report issued Tuesday.

The Bureau of Economic Analysis said the increase compared with a 1.5 percent drop during the fourth quarter of 2009.

Prices for travel and tourism rose at annual rates of 3.5 percent during the first quarter and 6.5 percent during the fourth quarter, the BEA said.

Spending on hotels and other accommodations rose at an annual rate of 11 percent in the first quarter, after falling at a rate of 7.9 percent in the fourth quarter. The BEA said accommodations were the largest contributor to the growth in travel and tourism spending.

Passenger air spending rose at an annual rate of 4.5 percent during the first quarter, after falling at a rate of 9.8 percent in the fourth quarter. Prices rose at a rate of 13.3 percent in the first quarter.

Airlines have said they are seeing business travelers return, allowing them to back away from fare sales they had used to fill seats with vacationers during the recession.