Economic Impact Analysis of President Obama's Tourism Plan

“it is free of opportunity costs and tourism spending generates a net growth to the US economy.”

The president is specifically targeting countries that have a growing middle class with this policy, such as China and Brazil. “Considering that China and Brazil contributed a combined total of 7.5% of the total inbound tourism in 2009, the United States has a big opportunity to capitalize on a larger share of this market,” said Chief Executive Officer and Chief Economist, Fred Treyz.

The REMI PI^± economic model shows that an increase in total leisurely inbound tourism by 20% would generate approximately 101,000 new jobs and about $5.5 billion in additional gross domestic product within the first year of the policy implementation.

Specifically, a 20% increase in tourism from China would result in creating about 15,200 new jobs and $867 million in GDP. Additionally, an increase of 20% in Brazilian tourism would result in creating about 3,300 new jobs and about $188 million in GDP.

REMI analysis also indicated that the economic effects of the policy change would be primarily concentrated in the service, transportation and food preparation industries – directly related to the needs of foreign tourists.

“The economic spur from foreign tourism doesn’t take away business from American companies,” said Treyz, “it is free of opportunity costs and tourism spending generates a net growth to the US economy.”

About Regional Economic Models, Inc.

REMI, Regional Economic Models, Inc., is a leading provider of economic models and policy analysis at the civic, state, regional, national, and global level. Since 1980, REMI has enabled its users to answer the “What If?” questions involving economic development, demography, energy, the environment, transportation, taxation, forecasting, and regional planning. REMI models see use in all levels of government, academia, and in public utilities, all of which utilize their model to create realistic, year-by-year estimates of the total effects of public policy initiatives on the economy and population. REMI models are custom-built for regional analysis, based on geography and level of detail, and they incorporate numerous analytical methodologies.

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