Whether it be a trip to a five-star hotel out-of-town or a hot ticket to a baseball game, consumer spending on leisure precisely gauges public desire for the arts and entertainment. Not only does expenditures on leisure, especially tourism, drive commerce, leisure spending also guarantees economic activity outside of the regular business cycle. It only works.
Consumer Confidence:
In regards to consumer confidence, leisure spending works as an instrument for measuring the health of the economy. Workers who can afford to take a day off for leisure maintain a proper balance between work and domestic life.
There are cities that are dedicated to improving tourism in respective areas. As a matter of fact, cities like Atlanta, Minneapolis, and San Francisco report an expansion in tourism after winning major sporting events. The Beige Book cites those three areas as trendy favorites.
The Economy:
Although the U.S. economy thrives on the health of its working-class citizens, the economy suffers when workers can't afford a day off. Quality of life declines.
Reports on leisure spending show that in the Atlanta area alone, tourism creates more than 200,000 jobs. Professional and collegiate sports support the Hospitality industry in the city. Many of the jobs created by tourism come from sporting events.
Issues:
With the minimum wage increase in place, will workers increase spending on leisure? Will employers also increase vacation periods in the future? Is the Hospitality industry willing to cut back?
SOURCES:
-http://www.bloomberg.com/news/2013-12-04/u-s-federal-reserve-beige-book-
atlanta-district-text-.html
-http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201312.htm
KEYWORDS:
consumer confidence; leisure; economy
Explore the forces behind the U.S. dollar.
No comments:
Post a Comment