US travel getting $10 billion rebate windfall
Where is the $10 billion in US federal tax rebates going to be spent? One answer: travel.
Ten percent of Americans said they plan on using their federal tax rebate to travel, according to a study commissioned by travel insurance vendor Access America.
“With a stimulus package valued at about $105 billion, the survey results suggest more than $10 billion could be directed into travel and tourism as early as this summer,” said Mark Cipolletti, vice president for Access America.
The same study, however, showed that 57% of respondents will spend their money on basic necessities, which mitigates the intent of the rebate to boost overall consumer spending.
“These results reflect the schizophrenic nature of the economy, with many Americans needing the cash for day-to-day needs while others viewing the infusion as a windfall that they can use to treat themselves,†said Mr Cipoletti. He added:
“When you consider that almost one in 10 Americans plan to use their rebate to take a trip, the news is particularly encouraging for the travel industry.â€
The survey found that among households making $50,000 or more in annual income, 11% plan to use the rebate on travel. Among households making $25,000 to $50,000 in annual income, 10% indicated they would travel with the extra money.
The survey was the result of a series of phone interviews conducted between March 3 and 6 by Ipsos Public Affairs.
Report by David Wilkening
David
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