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Economic Tourism Report

Economic Impact of the Motorcoach Tour and Travel Industry

The Motorcoach Tour and Travel Industry Creates Jobs in America

United States companies that provide motorcoach services to intercity travelers and group tours are a critical part of the country's economy. Motorcoach operators, along with the companies that supply services and materials to them, provide well paying jobs in America and pay significant amounts in tax to local, state and federal governments.

Economic Impact of Motorcoach Based Travel in the United States

 

Direct

Supplier

Induced

Total

Jobs (FTE)

             608,200

            147,400

             301,200

           1,056,800

Wages

$19,010,656,500

$ 7,808,208,800

$13,768,603,500

$ 40,587,468,800

Economic Impact

$42,281,666,900

$24,527,578,500

$45,858,287,600

$112,667,533,000

The Motorcoach Industry is a Crucial Part of America's Economy

Companies in the United States that provide motorcoach services to tourists, travelers and commuters employ as many as 127,600 people in the country. In addition, companies that supply services to motorcoach passengers, such as hotels, restaurants and entertainment venues employ as many as 480,600 additional people in the United States. [1]

These are good jobs, paying an average of $31,260 in wages and benefits. And today, every job is important In fact, in the United States the unemployment rate has reached 9.3 percent. This means that there are already 14,740,100 people trying to find jobs in the country, and collecting unemployment benefits. [2]

The Economic Benefit of The Motorcoach Tour and Travel Industry is Felt Throughout the Country

Not only does the motorcoach travel industry create good jobs in the United States, but the industry also contributes to the economy as a whole. In 2009, about 147,400 people worked for firms that supplied goods and services to companies working with motorcoach passengers. These include a wide range of companies from wholesalers, to accountants, to fueling stations. All told, nearly $ 112.7 billion in total economic activity in the United States can be attributed to the motorcoach tour and travel industry.

 In addition to providing good paying jobs for thousands of workers in the United States motorcoaches are the most fuel-and-carbon-efficient mode of passenger transportation. Motorcoach travel averages 206 passenger miles per gallon compared to commuter rail at 92, transit bus at 31, personal automobiles at 27 and hybrid cars at 46 passenger miles per gallon.

Motorcoach travel also alleviates congestion on local roads, city streets and major arteries by removing cars from travel lanes; adds productivity to the workforce, and reduces pavement wear. In America, motorcoach travel saves 44.2 million gallons of fuel, 63 million hours of wasted time and $1.2 billion annually. [3]

Motorcoaches bring millions of tourists who support local economies, and provide efficient, flexible and cost effective transportation, linking commuters to employment, and airports and rail stations to the surface transportation network. Motorcoaches provide the only form of public intercity transportation to millions of rural residents. This is all accomplished by an industry of small businesses with little to no taxpayer subsidies.

 The Country Also Benefits from the Taxes Paid by the Industry

Taxes Generated in the United States

 

Tax Impact

Federal Taxes

$ 9,001,064,160

State Taxes

$ 7,498,049,137

Total Taxes

$16,499,113,297

Not only does the motorcoach travel and tourism industry create jobs, it also generates substantial revenues for state and local governments. In the United States, industry and its employees pay over $7,498 million in taxes including property, income, and sales based levies. [4]

[1] John Dunham and Associates, New York, July 2009.
[2] The Bureau of Labor Statistics. Available on-line at: www.bls.gov/lau/home.htm. Data for 40705.
[3] Schrank, David and Tim Lomax,
Mobility Benefits from Motorcoach Service , Texas Transportation Institute, December 2009.
[4] op cit, John Dunham and Associates.

The United States of America

Direct Economic Impact

 

Jobs

Wages

Output

Motorcoaches

127,604

$ 6,917,463,334

$10,063,008,106

Hotel/Lodging

  97,220

$ 3,473,645,568

$10,150,608,896

Eating and Drinking Places

143,210

$ 2,834,358,272

$ 8,117,321,728

Entertainment and Amusement

231,263

$5,555,061,248

$12,030,355,456

Retail

    8,910

$    230,128,128

$  1,920,372,736

Total

608,207

$19,010,656,550

$42,281,666,922

 

Supplier Impact

 

Jobs

Wages

Output

Agriculture

4,737

$    78,357,566

$    543,900,784

Construction

2,464

$  142,969,800

$    271,954,352

Manufacturing

11,116

$   734,864,325

$ 4,848,437,558

Trans & Comm

18,459

$1,440,413,200

$ 5,118,592,416

Wholesale

4,191

$   316,445,696

$    838,082,560

Retail

1,573

$     46,816,504

$    112,170,384

Fire

23,429

$1,314,330,016

$ 4,571,256,000

Bus & Per. Svc

49,266

$2,475,203,011

$5,293,323,382

T&E

26,199

$   753,942,361

$ 1,687,897,824

Government

5,322

$   395,164,880

$    761,167,024

Other

655

$   109,701,400

$    480,796,172

Total

147,408

$7,808,208,758

$24,527,578,456

 

Induced Economic Impact

 

Jobs

Wages

Output

Agriculture

6,965

$    130,655,610

$   782,430,296

Construction

2,945

$    152,877,416

$   314,583,056

Manufacturing

16,286

$ 1,194,581,690

$ 8,527,160,590

Trans & Comm

16,779

$ 1,257,826,480

$ 4,800,684,352

Wholesale

10,037

$    757,796,864

$ 2,006,966,272

Retail

50,136

$ 1,481,616,256

$ 3,594,978.560

Fire

42,307

$ 2,621,065,664

$12,147,619,008

Bus & Per Svc

110,776

$ 4,822,560,592

$ 9,507,226,272

T&E

38,848

$    884,928,552

$ 2,620,377,544

Government

4,061

$    296,841,984

$    755,341,504

Other

2,024

$    167,852,405

$    800,920,096

Total

30,165

$13,768,603,513

$45,858,287,550

 

 

 

Jobs

Wages

Output

Total Economic Impact

1,056,780

$40,587,468,821

$112,667,532,928

 

Source: John Dunham and Associates, Inc. New York, New York 2009 and ABA Foundation

 

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P.O. Box 466
Williamsburg, VA 23187

 
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Fax (757) 253-1050

grouptours@oleta.com
 

 

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