PROSPERITY PARTNERSHIP Tourism and Visitor Cluster Strategy Development
Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
November 7, 2008
PROSPERITY PARTNERSHIP REGIONAL ECONOMIC STRATEGY Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
CONTENTS
1.0 Introduction and Overview ........................................................................................................................ 1 2.0 Tourism and Visitor Impact Analyses ....................................................................................................... 1 State-Level Studies............................................................................................................................................................... 1 County-Level Studies .......................................................................................................................................................... 2 3.0 Tourism and Visitor Economic Impact by Sector ................................................................................. 3 Food and Lodging Industries ........................................................................................................................................... 3 Wine Industry ......................................................................................................................................................................... 3 Cruise and Air Travel ........................................................................................................................................................... 4 Arts and Cultural Organizations ....................................................................................................................................... 4 Film and Music Industries ................................................................................................................................................. 5 Gambling ................................................................................................................................................................................. 6 4.0 Tourist and Visitor Profiles ......................................................................................................................... 6 National Studies .................................................................................................................................................................... 6 State Studies .......................................................................................................................................................................... 7 5.0 Strategic and Marketing Plans ................................................................................................................... 8 State-Level Plans................................................................................................................................................................... 8 City/County-Level Plans ..................................................................................................................................................... 8 Attachment A: Bibliography ........................................................................................................................... A-1
1.0
INTRODUCTION AND OVERVIEW
This summary compendium of strategic and economic impact studies was prepared in conjunction with the Prosperity Partnership’s Tourism and Visitor Cluster Strategy Development project. This compendium summarizes 24 economic impact studies, including brochures and reports that have been prepared in recent years by State, regional, and non-profit organizations. The studies demonstrate the significant economic impact that the tourism and visitor industry has in the Puget Sound region. These impacts encompass direct spending as well as indirect impacts through contributions to key regional business sectors such as food and lodging, wine, arts and culture, and music and film. While these analyses cannot be aggregated, taken as a whole the studies tell a compelling story about the positive economic impacts of the tourism and visitor industry and the Initiatives developed to grow that industry further in the Puget Sound region. These studies have been categorized by the commissioning entity and by industry sector in the sections below. A complete list, organized alphabetically, can be found in attachment A.
2.0
TOURISM AND VISITOR IMPACT ANALYSES
State-Level Studies
Washington State County Travel Impacts 1991-2007, Department of Community, Trade, and Economic Development Tourism Office (2008)
This report describes the economic impacts of travel to and through Washington and its 39 counties from 1991 to 2007. Key findings are: • • • • • • • • Total direct travel spending in Washington was $14.8 billion in 2007, a 7.1% increase over 2006 Travel generated 149,800 jobs with earnings of $4.2 billion in 2007, accounting for 3.8% of all jobs in Washington 43% of all visitor spending in Washington State is spent in King County Travel spending accounted for 5.5% of all state sales tax collections in 2007 In King County, there was $7..3 billion in travel spending in 2007 In Kitsap County, there was $258.8 million in travel spending in 2007 In Pierce County, there was $893.1 million in travel spending in 2007 In Snohomish County, there was $894.9 million in travel spending in 2007
Washington State Travel Impacts & Visitor Volume 1991-2007, Washington State Tourism Office (2007)
This report analyzes the impacts of the travel industry by state, region, and county. Comparisons are also made with national averages. The travel industry is identified as “export-oriented” because of the spending by out-of-state visitors. The industry is identified as contributing greatly to tax revenue and job opportunities throughout the state. Key findings are:
Prosperity Partnership Regional Economic Strategy Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
• • • • •
The travel industry has the third highest payroll of export-oriented industries, behind aerospace and software Travel spending sales tax accounted for $975 million in revenue in 2007 Out-of-state visitors generated $250 in tax revenue for each household in Washington In 2007, 149,800 total jobs were created due to travel spending All regions of the state benefit from the travel industry; the counties with the highest percentage of travel-generated jobs were all non-urban areas
County-Level Studies
Market Profile and Economic Impact of Seattle-King County Visitors, Seattle Convention and Visitors Bureau (2008)
This study estimates the economic impact of visitors to King County in 2007, through the use of visitor surveys and King County resident telephone interviews. The purpose of the study was to identify the characteristics and needs of overnight visitors to enable more targeted marketing to this group. Findings included: • • • • • • 9.4 million overnight visitors stayed in King County in 2007 $4.75 billion was spent by overnight visitors An average of $505 was spent per visitor per trip 83% of overnight visitors were domestic travelers, with the largest portion coming from the Western states The majority (85%) of visitors came to King County for pleasure Visitors to hotels stayed 4.2 nights on average, while those staying in the homes of friends or family stayed an average of 8.4 nights
2007 Annual Report, Tacoma Regional Convention & Visitor Bureau
This report describes the efforts of the Tacoma Regional Convention & Visitor Bureau including new marketing strategies and volunteer participation. Key findings are: • • • Travel spending in 2007 was $897.4 million 10,910 were employed in the tourism cluster in 2007 Pierce County tourism generated $18.9 million in local taxes and $48.9 million in state taxes
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Prosperity Partnership Regional Economic Strategy Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
Tourism Industry Cluster Labor Market Survey, Snohomish County Workforce Partnership (2004)
This report documents the survey conducted of tourism firms in Snohomish County. Three hundred of the 894 firms in the County completed the survey in 2004. The report covers the expected growth in employment, hiring practices, and workforce development in the cluster. Key findings are: • • • Approximately 19,350 jobs are provided by the tourism industry in Snohomish County Almost half of the positions are full-time Tourism firms comprise 10% of all businesses in Snohomish County
3.0
TOURISM AND VISITOR ECONOMIC IMPACT BY SECTOR
Food and Lodging Industries
The Washington Restaurant Industry at a Glance, Washington Restaurant Association Brochure (2007)
This brochure provides statistics on the national and state-level contributions of the restaurant industry to the economy. Contributions are measured by job numbers and dollar figures, as well indirect effects. Key points in the document are: • • • • Sales in Washington restaurants totaled $8.8 billion in 2007 Between 2007 and 2017, job growth is expected to be 19.6% For every $1 spent in a Washington restaurant, $1.24 is spent in another industry For every $1 million spent in a restaurant, 38.5 jobs are generated in the state
Wine Industry
Economic Impact of Washington Grapes and Wine, Washington Association of Wine and Grape Growers (2007)
The purpose of this report is to assess the wine industry’s growth in Washington State and its contribution to the state economy. The report provides information on wine tax revenues and jobs generated. Exhibits are also provided which categorize the grape and wine industry contributions into more specific sectors, such as juice, tourism, distributors, and vineyard supplies. Key findings are: • • • Revenue generated by wine tourism in Washington was $238 million in 2006 A total of $68.3 million was paid in wages in 2006 The wine tourism industry generated 1,555 jobs in 2006
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Prosperity Partnership Regional Economic Strategy Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
Cruise and Air Travel
The 2003 Economic Impacts of the Port of Seattle, Port of Seattle (2005)
The Port of Seattle commissioned a report evaluating the economic impacts generated by waterborne activity and airport activity, as well as non-maritime, and non-aviation tenants. While the data for cruise impacts have been updated, the airport data have not. Key airport impacts for 2003 cited are: • • • • • $4.3 billion in annual business revenue $166 million in annual state and local taxes 33,000 direct, indirect, and induced jobs 22,000 jobs at the airport $762 in annual direct wages
Cruise Business Economic Impact, Port of Seattle Website (2008) www.portseattle.org/seaport/cruise/
This page on the Port of Seattle website highlights the economic contributions of the Port’s cruise operations to the Region. Key statistics for 2008 are: • • • • • Estimated 211 vessel calls and 835,000 passengers $274 million in annual business revenue 2,380 in direct, indirect, and induced jobs $8 million in annual state and local taxes $1.7 million flows to the local economy each time a home-ported ship comes home
Arts and Cultural Organizations
A Summary of a 2003 Economic Impact Study of Arts and Heritage Organizations, ArtsFund Brochure (2004)
This document summarizes the findings of the King County, Eastside King County, and Pierce County Economic Impact Studies of the Arts and Cultural Organizations. The Arts are presented as an important component of the local economy, particularly in their ability to draw spending from outside visitors. One fourth of all impacts are said to come from “new money.”
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Prosperity Partnership Regional Economic Strategy Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
An Economic Impact Study of Arts and Cultural Organizations in King County, ArtsFund (2003)
This study was conducted in the same manner as the summary report for the entirety of King County. In all, 216 non-profit cultural organizations were included. Key findings are: • • The “new money” impacts for King County as a whole were 16% of organizational income, $208 million in sales, 4,700 jobs, $91 million in labor income, and $8 million in tax revenues The employment impacts have increased by 52% since a similar1997 study was conducted
An Economic Impact Study of Arts and Cultural Organizations in Eastside King County, ArtsFund (2003)
The report provides an assessment of the contribution of arts organizations to the Eastside King County economy. A survey was conducted of patrons of 35 non-profit cultural organizations, including heritage organizations. Aggregate impacts are provided along with a breakout of “new money” contributions. “New money” is defined as spending by people from outside of the Eastside or King County. The cultural organizations are credited with attracting these new patrons to King County. • The study found that 12% of cultural organizations’ income, $8 million in sales, $3.7 million in labor income, 421 jobs, and $800,000 in tax revenues are attributed to these visitors. These contributions are double those estimated in a similar 1999 study
An Economic Impact Study of Arts and Cultural Organizations in Pierce County, ArtsFund (2003)
The study evaluated 50 non-profit cultural organizations for Pierce County’s economic impact assessment. Key findings are: • • • The “new money” organization income contribution was 35%, with $30 million in sales 1,300 jobs were created, which translated into $13 million in labor income “New money” contributed $1.5 million in tax revenues
Film and Music Industries
The Economic Impact of Seattle’s Music Industry, City of Seattle (2004)
This report summarizes wages and revenues in the music industry. Key findings are: • • • The industry provided $650 million in direct economic contributions and $1.3 billion in total economic contribution The music industry supported 8,700 jobs in Seattle In 2002, $197.3 million of direct economic output was in the form of wages to local workers
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Prosperity Partnership Regional Economic Strategy Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
The Economic Impacts of Film & Video Productions on Seattle, City of Seattle (2003)
This report summarizes wages and revenues in the film and vdeo industry. Key Findings are: • • • $207 million in direct economic contributions and $471 million total economic contribution in 2001 In 2001, film and video production created 2,255 direct jobs in Seattle and a total of 4,991 jobs $63 million of direct output was in the form of wages to local workers
Gambling
Gambling Tax Report, Washington State Gambling Commission (2004)
This report examines the history of the tax structure for gambling in Washington and compares activities and tax incomes in Washington to other comparable states. Key findings are: • • • • • • Gambling taxes, on average, did not make up more than 1.2% of total revenues for cities in 2002 Punchboard/Pull-Tab taxes totaled $15.5 million in 2003 Card Room taxes totaled $26.9 million in 2003 Bingo taxes totaled $1.4 million in 2003 Raffle taxes totaled $0.02 million in 2003 Video Lottery, Casino, and Slot Machine taxes totaled $97.4 million in 2003
Untaxed and Lightly Regulated, Washington Research Council (2002)
This report examines gaming revenues and the loss of tax revenue from activities and purchases completed in Indian Tribal Land. Key findings are: • • In 2001, it is estimated that Washington State lost $107.2 million in tax revenues from illegitimate Indian sales, Military Sales, and Casual Smuggling In 2002, Tribal Casinos accounted for 45% of net gambling receipts in Washington
4.0
TOURIST AND VISITOR PROFILES
National Studies
Overseas Visitation Estimates for U.S. States, Cities, and Census Regions: 2007, Manufacturing and Services, International Trade Administration, Office of Travel and Tourism Industries (2008)
This report provides exhibits for the top 16 states, 19 cities, and 10 regions to be visited by international travelers in 2007. The tables show the number of visitors, as well as the destinations’ market share and the
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Prosperity Partnership Regional Economic Strategy Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
change from the previous year. New York is ranked as the #1 state, with a majority of those visitors headed for New York City. Other key findings are: • • Washington is ranked at #14 with 1.9% of the market share or 454 visitors, up from 2006, which saw 390 visitors Seattle is the 17 most popular destination city and receives a majority of the international visitors to Washington. A total of 406 visitors were projected to visit Seattle out of the 454 destined for Washington.
th
State Studies
Overseas Travel to Washington State 2006, Department of Community, Trade and Economic Development Tourism Office (2007)
Data for this report was collected from the voluntary In-Flight Survey of International Air Travelers distributed from the International Trade Association and compared against the estimates of international travelers from the Department of Homeland Security. The report assesses the number of visitors to Washington based on country of origin, trip purpose, and trip activities. Key findings are: • • • In 2006, 1.8% of all overseas arrivals came to Washington 54% were leisure travelers, while 41% were business travelers Shopping and dining were the most popular activities for both visitor groups
Canadian Travel to Washington State 2006, Washington State Department of Community, Trade, and Economic Development Tourism Office (2007)
The study examines the number of Canadian visitors to Washington in comparison to previous years and to other states. The report also analyzes the amount of money spent by Canadian visitors, and the length, purpose, and accommodation during their stay. The study also displays travelers by age, size of party, and type of accommodation, and examines Washington’s market share of Canadian travelers and exchange rates. Key findings are: • • • • 94% of Canadian travelers in Washington come from British Columbia, most arrive by automobile The most common purpose for traveling to Washington is pleasure and recreation at 61%, followed by visiting family and friends at 23% 25% of Canadian travelers stay overnight in Washington, for an average of 2.9 nights $321 million was spent by Canadians on overnight trips and $194 million was spent on day trips.
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Prosperity Partnership Regional Economic Strategy Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
5.0
STRATEGIC AND MARKETING PLANS
State-Level Plans
Washington State Tourism Marketing Plan 2009/2010, Washington State Tourism Commission (2008)
This plan examines the characteristics of visitors to Washington State and outlines goals and strategies around marketing to these populations. Trends in population, type of trip, length of trip, and method of trip planning (i.e. internet) are also analyzed. Key findings are: • • Washington’s visitor spending has increased by 32% from 2001 to 2006 Overnight travelers staying in hotels/motels contribute almost half of all spending in the tourism industry
Washington State Tourism Commission Strategic Plan 2008-2014, Washington State Tourism Commission (2008)
This plan examines the current state of the tourism industry in Washington and provides goal areas for future development of the industry. Tourism is an important part of the Washington State economy, and the Commission was established to analyze and encourage the growth of the sector. Key findings are: • • $14.8 billion is spent by visitors in Washington, and increases in spending have been well above the national average Over half of the 52 million visitors to Washington State in 2006 were “day trippers”— a goal was identified around transitioning these day trips into overnight stays
City/County-Level Plans
Destination Marketing Plan, Seattle Convention and Visitors Bureau (2008)
This report outlines the success of Seattle and King County as tourist destinations and stresses the importance of continuing to market the amenities and attractions available. The plan enumerates the economic contributions of visitors and visitor characteristics, and concludes that the number of visitors is growing, increasing the demand for hotels, transit, entertainment, and convention capacity. Other key points are: • • In 2006, visitors generated $419 million in tax revenue Meals, shopping, and lodging made up the majority of visitor expenditures.
Tourism Action Plan, Kitsap 20/20, Kitsap Economic Development Alliance (2007)
This plan outlines the actions necessary to increase visits to the Kitsap Peninsula. These actions include: • • Enhancing and creating new attractions Increasing marketing research and the number of conferences held in Kitsap 8
Prosperity Partnership Regional Economic Strategy Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
Attachment A
BIBLIOGRAPHY
• • • • • • • • • • • • • • • • • • • The 2003 Economic Impacts of the Port of Seattle, Port of Seattle (2005) The 2007 Annual Report, Tacoma Regional Convention and Visitors Bureau (2007) Canadian Travel to Washington State 2006, Washington State Department of Community, Trade, and Economic Development Tourism Office (2007) Cruise Business Economic Impact, Port of Seattle Website (2008) Destination Marketing Plan, Seattle Convention and Visitors Bureau (2008) The Economic Impact of Seattle’s Music Industry, City of Seattle (2004) The Economic Impacts of Film & Video Productions on Seattle, City of Seattle (2003) An Economic Impact Study of Arts and Cultural Organizations in Eastside King County, ArtsFund (2003) An Economic Impact Study of Arts and Cultural Organizations in King County, ArtsFund (2003) An Economic Impact Study of Arts and Cultural Organizations in Pierce County, ArtsFund (2003) Economic Impact of Washington Grapes and Wine, Washington Association of Wine and Grape Growers (2007) Gambling Tax Report, Washington State Gambling Commission (2004) Market Profile and Economic Impact of Seattle-King County Visitors, Seattle Convention and Visitors Bureau (2008) Overseas Travel to Washington State 2006, Department of Community, Trade, and Economic Development Tourism Office (2007) Overseas Visitation Estimates for U.S. States, Cities, and Census Regions: 2007, Manufacturing and Services, International Trade Administration, Office of Travel and Tourism Industries (2008) A Summary of a 2003 Economic Impact Study of Arts and Heritage Organizations, ArtsFund Brochure (2004) Untaxed and Lightly Regulated, Washington Research Council (2002) Tourism Industry Cluster Labor Market Survey, Snohomish County Workforce Partnership (2004) Tourism Action Plan, Kitsap 20/20, Kitsap Economic Development Alliance (2007)
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Prosperity Partnership Regional Economic Strategy Summary of Tourism and Visitor Cluster Economic Impact Studies and Strategic Plans
• • • • •
Washington State County Travel Impacts 1991-2007, Department of Community, Trade, and Economic Development Tourism Office (2008) Washington Restaurant Industry: At a Glance, Washington Restaurant Association Brochure (2007) Washington State Travel Impacts & Visitor Volume 1991-2007, Washington State Tourism Office (2007) Washington State Tourism Commission Strategic Plan 2008-2014, Washington State Tourism Commission (2008) Washington State Tourism Marketing Plan 2009/2010, Washington State Tourism Commission (2008)
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