by Calculated Risk on 3/19/2009 09:11:00 PM

From the WSJ: Travel Spending Sinks Sharply

Spending on travel and tourism declined last year for the first time since the Sept. 11, 2001, terrorist attacks, the Commerce Department said Thursday, as Americans canceled vacations, a strong dollar kept foreigners away and businesses slashed travel budgets.

Spending fell at a 22% annualized rate in the October through December quarter, compared with the prior three-month period. The decline was the sharpest since the government's quarterly records began in 2001, topping the 19% drop after the terrorist attacks that year.

As a result, the trillion-dollar industry -- a major employer in the U.S. -- is reeling ...

More cliff diving ... and more bad news for the hotel industry.