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By Stephen Lowrance
Total world personal and business travel and tourism expenditures topped $3.7 trillion in 2007, according to the World Travel & Tourism Council. The United States accounts for about $1.05 trillion of this activity—three times the next largest contributor, which is Japan at $350 billion.
What does this mean to the commercial real estate industry?
- Airlines are operating at high capacities and many are becoming profitable again, despite high fuel costs. The high capacity and profitability is leading to expansion plans including new routes to places like India and China, which in turn has led to huge airport expansion construction projects and new demand for airline operations space
- Hotels around the world are booming with high occupancy levels, rising room rates and lots of new construction; vacation property and time-share sales are very strong
- Las Vegas-style alternatives are sprouting in places like Detroit, Biloxi, Miss. and Sacramento, Calif. as casino and hotel operators realize they can attract new clientele to other destinations and still enjoy the 40 million visitors that hit the Las Vegas Strip every year.
- Ecotourism and medical tourism are big trends that are creating opportunities for development and demand for lodging and other facilities in places like Canada, Mexico and Southeast Asia
Growing up in the Texas panhandle, my family's typical vacation was a six-hour car trip to Santa Fe or Taos, N.M. This year we are celebrating Christmas and New Years in the Philippines. How small will the world seem when my one-year-old daughter is 37?
What travel and tourism trends in your market are creating commercial real estate opportunities? Please email me at slowrance@argussoftware.com, and I will share your thoughts with our readers in a future blog.
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Posted by: Kenny Alex | December 17, 2007 at 08:08 AM