released economic impact figures - Department of Tourism

Report
The 2013 Economic Impact
of Tourism in Wisconsin
Presented April 2014
State Overview
Key trends in 2013
 The Wisconsin visitor economy continued to expand in 2013
with a 4.5% increase in direct visitor spending. This follows a
4.8% increase in 2012.
■ Wisconsin reached 100 million visits in 2013.
■ Visitor growth in 2013 was the fastest since 2010 as U.S.
consumers’ pro-travel attitude reached and surpassed prerecession levels.
■ Day visitation expanded in 2013 as gas prices remained stable.
■ Per trip spending also increased as prices rose in key spending
categories and visitors spent more freely.
3
Key findings
 Visitor spending of $10.8 billion generated $17.5 billion in total
business sales in 2013 as tourism dollars flowed through the
Wisconsin economy.
 Tourism activity sustained 185,500 jobs in 2013, both directly
and indirectly.
 These jobs represent 7.8% of total employment in Wisconsin; 1
in every 12.8 jobs in the state is sustained by tourism activity.
 Including indirect and induced impacts, tourism in Wisconsin
generated $1.35 billion in state and local taxes and $1.0 billion in
Federal taxes last year.
 In the absence of the state and local taxes generated by tourism,
each Wisconsin household would need to pay $590 to maintain
the current level of government services.
4
Industry indicators

Visits to Wisconsin destinations grew 3.5% between 2012 and
2013.

Hotel room demand grew 2.7% (source: Smith Travel
Research).

The average daily rate increased by 3.0% in 2013 helping grow
overall hotel room revenue by 5.7% (source: Smith Travel
Research).

State sales tax revenue on lodging properties grew 3.2% in
2013 (source: State Revenue Office).

Tourism-related employment grew on par with overall state
employment growth.
5
Visitor Spending
Overview
 Visitor volume and
spending in Wisconsin
continued to grow in
2013.
Wisconsin Visits and Spending
$
12
 Wisconsin visitor
volumes reached 100
million in 2013.
Visitors spent a total of
$10.8 billion.
11
 Visits grew 3.5% while
spending increased
4.5% in 2013.
6
7
Millions
US$ Billions
102
100
98
10
96
9
94
8
92
7
90
88
2010
2011
Visitor Spending, bls (L)
2012
2013
Person-Stays, mls (R)
Sources: Longwoods International, OTTI, Stats Can, Tourism Economics
Visitor spending
 With transportation
costs moderating,
other categories
supported visitor
spending growth
including F&B and
recreation.
Visitor Spending
Sector
2010
(US$ Million)
2011
2012
2013
$2,380
$958
$388
$2,565
$1,057
$405
$2,671
$1,195
$408
$2,795
$1,244
$407
4.6%
4.1%
-0.3%
Food & bev.
$2,252
$2,447
$2,569
$2,729
6.2%
Retail
$2,066
$2,200
$2,222
$2,272
2.3%
Recreation
$1,155
$1,225
$1,311
$1,393
6.3%
TOTAL
% Change
$9,199
7.9%
$9,899
7.6%
$10,376
4.8%
$10,840
4.5%
4.5%
Tourism Industry Sales & Growth Rate
US$ Billions
11
$
9%
8%
$10.4
11
7%
$9.9
10
10
$10.8
6%
5%
$9.2
4%
9
3%
2%
9
1%
8
0%
2010
Spending (L)
2011
2012
2013
% Change (R)
Sources: Longwoods International, OTTI, Stats Can, Tourism Economics
8
% Change
Lodging
Other Transport
Air
$ Billions
 Wisconsin visitor
spending reached
$10.8 billion in
2013, posting 4.5%
growth.
Visitor spending by sector
 Travelers spent more than
$2.7 billion on food &
beverages and $2.2 billion
in the lodging sector last
year. The retail sector
received nearly $2.3 billion
from visitors.
$ Million, 2013 values shown
3,000
2,729
2012
2013
2,272
2,500
2,182
2,000
1,650
1,500
1,348
1,000
613
500
9
2nd Home
Rental
Recreation
Transportation
Lodging
Retail
Food & bev.
0
 In 2013, visitor spending
increased 6.3% on
recreation & entertainment,
6.2% on food and
beverage, and 4.6% on
lodging.
Visitor spending distribution
 Strong growth in day visits
with increased spending on
recreation pushed the
recreational share of the
traveler dollar to nearly
13%.
Visitor Spending by Sector
Retail
21.0%
Food & bev.
25.2%
Recreation
12.9%
Air
3.8%
Other Transport
11.5%
Lodging
25.8%
Sources: Longwoods International, OTTI, Stats Can, Tourism Economics
10
 The share of the traveler
dollar spent on lodging, the
largest sector, remained
level at 26% in 2013.
 Food & beverage spending
ranks second, capturing a
quarter of visitor spending,
followed by retail at 21%.
Visitor spending trends
 Visitor spending
has grown an
average of 5.6%
annually since
2010.
Wisconsin's Visitor Spending
by Year, Billions of $
$12
$10
$1.2
$1.3
$1.2
$8
$2.2
$2.2
$1.4
$2.3
$2.3
$4
$2.4
 Lodging sales
Food & bev.
have increased
Air
19% from 2010
Other Transport
and are now
Lodging
above their prerecession peak.
Retail
$2.1
$6
Recreation
$2.6
$2.7
$0.4
$1.0
$0.4
$1.1
$0.4
$1.2
$0.4
$1.2
$2.4
$2.6
$2.7
$2.8
2010
2011
2012
2013
$2
$0
Sources: Longwoods International, OTTI, Stats Can, Tourism Economics
11
■Lodging includes
second home
rental
Visitor spending by market segment
 Leisure tourism represents 88% of visitor spending in Wisconsin.
 Overnight visitors spend $7.3 billion in Wisconsin, 67% of the total.
 Day visitor spending added $3.6 billion in 2013.
 Domestic visitors to Wisconsin spent $10.2 billion in 2013, 94% of all
visitor spending.
Visitor Spending in 2013
(US$ Billion)
Purpose
Business
Leisure
Total
Stay
$1.3
$9.5
$10.8
12
Total
$3.6
$7.2
$10.8
Share
Stay
Purpose
Business
Leisure
Day
Overnight
Market
12.0%
88.0%
Day
Overnight
Domestic
Overseas
Canada
$10.2
$0.6
$0.1
Total
$10.8
Market
33.2%
66.8%
Domestic
Overseas
Canada
94.0%
5.3%
0.7%
Visitor spending by market segment
0.7%Canada
5.3% Overseas
100%
90%
Percentage distribution
80%
Overnight
66.8%
70%
60%
Leisure
88.0%
Domestic
94.0%
50%
40%
30%
Day
33.2%
20%
10%
Business
12.0%
0%
Purpose
Stay
Market
Sources: Longwoods International, OTTI, Stats Can, Tourism Economics
13
Seasonality of lodging
Wisconsin Hotel Room Revenue
$ millions

Tourism is a year-round
industry in Wisconsin. Its
peak is in the third quarter
with nearly a third of all
rooms rented and around
35% of hotel room revenue.

In 2013, growth was
strongest in the second half
of the year with room
revenue growing over 5% in
Q3 & Q4.
2010
2011
2012
2013
600
500
400
300
200
100
0
Q1
Q2
Q3
Q4
Source: Smith Travel Research
Wisconsin Hotel Rooms and Revenue
Quarterly Share, 2013
40%
Revenue
35%
Rooms
30%
25%
20%
Q1=J,F,M Q2=A,M,J
15%
10%
Q3=J,A,S
5%
0%
Q1
Q2
Source: Smith Travel Research
14
Q3
Q4
Q4=O,N,D
Seasonality of visitor spending


Total visitor spending
Wisconsin Quarterly Visitor Spending
$
Millions
also peaks in the 3rd
4,000
quarter with $3.5 billion 3,500
$3,457
in visitor sales.
3,000
$2,776
In 2013, growth was
strongest in the second
half of the year. Visitor
spending in Q3 grew
more than 5.0% and
6.1% in Q4.
Business
2,500
2012
2013
$2,466
$2,141
2,000
1,500
1,000
500
0
Q1
Q2
Q3
Q4
Source: Tourism Economics
Day
Visitor Spending by Quarter
Wisconsin
2012
2013
% Chn
15
Q1
Q2
Q3
Q4
$2,088.1
$2,672.6
$3,291.2
$2,323.7
$2,141.3
$2,776.0
$3,457.2
$2,465.7
2.55%
3.87%
5.04%
6.11%
Seasonality of visitor spending


Tourism spending
has grown in every
quarter since 2011.
Growth did hit a slow
patch in the second
half of 2012 and first
part of 2013 before
rebounding in the 2nd
half of 2013.
Business
Wisconsin Tourism Spending Growth
Y-o-Y Growth Rates by Quarter
12%
10%
8%
6%
4%
2%
0%
Q1
Day
Q2
Q3
Q4
2011
Source: Tourism Economics
16
$
Q1
Q2
Q3
2012
Q4
Q1
Q2
Q3
2013
Q4
State Tourism Impacts
How visitor spending generates impact
•
Travelers create direct economic value within a discrete group of sectors (e.g. recreation,
transportation). This supports a relative proportion of jobs, wages, and taxes within each
sector.
•
Each directly affected sector also purchases goods and services as inputs (e.g. food
wholesalers, utilities) into production. These impacts are called indirect impacts.
•
18
Lastly, the induced impact is
generated when employees
whose incomes are generated
either directly or indirectly by
tourism, spend those incomes
in the local economy.
Tourism sales by industry
Tourism Sales
(US$ Million)
Direct
Agriculture, Fishing, Mining
Construction and Utilities
Manufacturing
Wholesale Trade
Air Transport
406.6
Other Transport
432.7
Retail Trade
2,272.4
Gasoline Stations
811.1
Communications
Finance, Insurance and Real Estate
612.6
Business Services
66.7
Education and Health Care
Recreation and Entertainment
1,143.2
Lodging
2,182.3
Food & Beverage
2,728.9
Personal Services
181.2
Government
TOTAL
10,837.9
Growth Rate
4.5%
* Direct sales include cost of goods sold for retail sectors
19
Indirect
32.5
283.1
459.1
97.5
4.4
162.7
15.2
1.2
241.3
698.5
710.5
5.6
57.8
2.6
121.9
117.1
117.4
3,128.3
4.4%
Induced
25.0
106.2
242.6
146.7
7.2
66.6
280.1
18.5
118.5
1,126.7
222.0
687.9
37.8
2.2
226.9
168.0
66.3
3,549.3
4.3%
Total
57.5
389.3
701.7
244.2
418.3
662.1
2,567.7
830.8
359.8
2,437.7
999.2
693.5
1,238.9
2,187.0
3,077.8
466.3
183.7
17,515.5
4.4%
Tourism sales by industry
 All business
sectors of the
Wisconsin
economy benefit
from tourism
activity directly
and/or indirectly.
Tourism Sales by Industry
$ million
3,500
Direct
3,000
Indirect
2,500
Induced
2,000
1,500
20
1,000
500
Air Transport
Personal Serv.
Other Transp
Education
Manu
Gas
Bus. Services
Recreation
Lodging
FIRE
Retail Trade
0
F&B
 Sectors that serve
the tourism
industry, like
business services,
gain as suppliers
to a diverse
tourism industry.
Total tourism employment
Tourism Economy Employment
Direct
Agriculture, Fishing, Mining
Construction and Utilities
Manufacturing
Wholesale Trade
Air Transport
Other Transport
Retail Trade
Gasoline Stations
Communications
Finance, Insurance and Real Estate
Business Services
Education and Health Care
Recreation and Entertainment
Lodging
Food & Beverage
Personal Services
Government
TOTAL
Growth Rate

21
1,788
2,166
15,395
1,609
3,484
455
23,806
32,563
47,864
2,353
131,484
0.8%
Indirect
345
965
1,283
614
16
1,466
228
20
1,013
4,187
8,020
83
1,247
44
2,472
1,323
917
24,244
1.1%
Induced
244
327
536
924
26
603
4,293
296
421
4,080
2,613
7,093
891
38
4,612
2,410
362
29,767
1.2%
Total
589
1,292
1,820
1,538
1,830
4,236
19,917
1,925
1,433
11,750
11,088
7,176
25,944
32,644
54,948
6,086
1,279
185,495
0.9%
The tourism sector directly and indirectly supported 185,495 jobs, or 7.8% of all
employment in Wisconsin last year.
Total tourism employment
22
Thousands
60
Direct
50
Indirect
40
Induced
30
Significant indirect and induced benefits
20
10
Manu
Air Transport
Gas
Other Transp
Personal Serv.
Education
Bus. Services
FIRE
Retail Trade
Recreation
0
Lodging
 Secondary
benefits are
realized across
the entire
economy through
the supply chain
and incomes as
they are spent.
Tourism Employment by Industry
F&B
 Tourism is an
employment
intensive industry
with particularly
high job creation
in the restaurant,
hotel, and
recreation sectors.
Tourism employment intensity

Tourism is a significant part of several industries – 92% of lodging, 34% of
recreation, and 22% of food & beverage employment is directly supported by
tourism spending.
Tourism Employment Intensity by Industry
Lodging
92.2%
Recreation
34.4%
Food & bev.
22.4%
Retail
4.1%
Total
3.7%
0%
23
20%
40%
60%
80%
100%
Tourism personal income
Tourism Labor Income (Compensation)
(US$ Million)
Direct
Agriculture, Fishing, Mining
Construction and Utilities
Manufacturing
Wholesale Trade
Air Transport
Other Transport
Retail Trade
Gasoline Stations
Communications
Finance, Insurance and Real Estate
Business Services
Education and Health Care
Recreation and Entertainment
Lodging
Food & Beverage
Personal Services
Government
TOTAL
Pch Change
24
84.0
107.7
332.6
40.4
61.9
21.6
403.8
631.8
767.7
79.3
2,530.9
2.6%
Indirect
4.4
76.3
74.0
42.5
0.7
70.4
6.3
0.5
54.4
141.8
370.2
3.1
22.7
0.7
38.7
57.2
69.2
1,032.9
4.0%
Induced
3.9
27.3
31.3
64.0
1.2
27.7
114.3
7.3
24.7
142.5
120.7
377.0
14.5
0.6
81.3
71.0
24.7
1,133.9
3.9%
Total
8.3
103.6
105.2
106.5
85.9
205.8
453.2
48.2
79.1
346.2
512.5
380.0
441.0
633.1
887.7
207.5
93.9
4,697.7
3.2%
Tourism personal income
25
1,000
900
800
700
600
500
400
300
200
100
0
Direct
Indirect
Induced
Construction
Manu
Wholesale Tr.
Other Transp
Personal Serv.
FIRE
Education
Recreation
Retail Trade
Bus. Services
Significant indirect and induced benefits
Lodging
 Business services
and the FIRE
(finance, insurance
and real estate)
sectors depend on
tourism activity as
suppliers to tourism
companies and their
employees.
Tourism Labor Income by Industry
$ million
F&B
 Substantial
employment in F&B
and recreation
supports significant
labor income in
those industries.
Tourism tax generation
Traveler Generated Taxes
Tax Type
Federal Taxes Subtotal
Corporate
Indirect Business
Personal Income
Social Security
State and Local Taxes Subtotal
Corporate
Personal Income
Sales
Bed
Property
Excise and Fees
State Unemployment
TOTAL
26
2010
(US$ Million)
2011
2012
2013
917.6
950.9
983.6
1,017.9
81.9
104.8
212.6
518.2
87.4
112.0
218.6
532.9
91.5
117.2
225.4
549.5
95.6
122.4
232.7
567.2
1,202.1
1,270.8
1,313.3
1,349.5
113.2
101.9
425.3
72.7
370.9
108.5
9.6
120.9
104.8
453.1
77.3
391.7
113.0
9.9
126.6
108.1
473.4
80.9
397.8
116.4
10.2
132.2
111.6
490.4
84.6
400.4
119.9
10.5
2,119.6
2,221.7
2,296.9
2,367.4
 Taxes of $2.4 billion were
directly and indirectly
generated by tourism in
2013.
 State and local taxes
alone tallied $1.35 billion.
 Each household in
Wisconsin would need to
be taxed an additional
$590 per year to replace
the tourism taxes received
by state and local
governments.
Tourism tax generation – state & local government
Traveler Generated Taxes - State and
Local Government Revenues
Tax Type
State Tax Subtotal
Corporate
Personal Income
Sales
Lodging
Property
Excise and Fees
State Unemployment
Local Tax Subtotal
Corporate
Personal Income
Sales
Lodging
Property
Excise and Fees
State Unemployment
27
(US$ Million)
2012
2013
707.0
732.9
126.6
108.1
438.0
0.0
0.0
24.2
10.2
132.2
111.6
453.7
0.0
0.0
25.0
10.5
606.3
617.7
0.0
0.0
35.4
80.9
397.8
92.2
0.0
0.0
0.0
36.7
85.6
400.4
95.0
0.0
 Of the $1.35 billion collected
by state and local
governments from traveler
activity, $733 million (54%)
accrued to state
government.
 Local government revenues
from visitor activity grew to
$618 million.
 Property tax revenue, along
with local excise and fees
and lodging taxes, comprise
the major revenue streams
for local governments.
Methodology and Background
Why quantify the tourism economy?
 By monitoring tourism’s economic impact, policy makers
can make informed decisions regarding the funding and
prioritization of tourism development.
 It can also carefully monitor its successes and future
needs.
 In order to do this, tourism must be measured in the
same categories as other economic sectors – i.e. tax
generation, employment, wages, and gross domestic
product.
29
Why is this a challenge?
 Most economic sectors such as financial services,
insurance, or construction are easily defined within a
country’s national accounts statistics.
 Tourism is not so easily measured because it is not a
single industry. It is a demand-side activity which affects
multiple sectors to various degrees.
 Tourism spans nearly a dozen sectors including lodging,
recreation, retail, real estate, air passenger transport, food
& beverage, car rental, taxi services, travel agents…
30
Methods and data sources
•
Domestic visitor expenditure estimates are provided by Longwoods International’s
representative survey of US travelers. These are broken out by sectors (lodging,
transport at destination, food & beverage, retail, and recreation), by purpose
(business and leisure), and by length of stay (day and overnight).
•
Tourism Economics then adjusts these levels of spending based on a range of
known measures of tourism activity:
31
•
Overseas visitor spending (source: OTTI, TE)
•
Canada visitor spending (source: Statistics Canada, TE)
•
Bed tax receipts
•
Spending on air travel which accrues to all airports and locally-based airlines
•
Gasoline purchases by visitors (source: TE calculation)
•
Smith Travel Research data on hotel revenues
•
Industry data on employment, wages, GDP, and sales (source: BEA, BLS,
Census)
Methods and data sources
•
An IMPLAN model was compiled for the State of Wisconsin. This traces
the flow of visitor-related expenditures through the local economy and
their effects on employment, wages, and taxes. IMPLAN also quantifies
the indirect (supplier) and induced (income) impacts of tourism.
•
All results are benchmarked and cross-checked and adjusted based on
the following:
•
32
•
US Bureau of Labor Statistics and Bureau of Economic Analysis
(employment and wages by industry)
•
US Census (business sales by industry)
The source of the employment and wage data is the Regional Economic
Information System (REIS), Bureau of Economic Analysis, U.S.
Department of Commerce. All employment rankings are based on Bureau
of Labor Statistics (ES202/QCEW) data.
Selected recent economic impact clients
Associations / Companies
Center for Exhibition Industry
Research (Economic Impact
of Visa Restrictions)
DMAI (Event Impact
Calculator for 80 CVBs)
US Travel Association (Impact
of travel promotion)
InterContinental Hotels
States
California
Georgia
Maryland
New York
North Carolina
Ohio
Pennsylvania
Wisconsin
Cities
Baltimore, MD
Columbus, OH
Kansas City, MO
London, United Kingdom
New York City
Omaha, NE
Orlando, FL
Philadelphia, PA
Pittsburgh, PA
Rockford, IL
Countries / Provinces
Bahamas
Bermuda
Cayman Islands
Dubai
Ontario Canada
St. Lucia
United Kingdom
33
About Tourism Economics

Tourism Economics, headquartered in Philadelphia, is an Oxford Economics
company dedicated to providing high value, robust, and relevant analyses of the
tourism sector that reflects the dynamics of local and global economies. By
combining quantitative methods with industry knowledge, Tourism Economics
designs custom market strategies, project feasibility analysis, tourism forecasting
models, tourism policy analysis, and economic impact studies.

Our staff have worked with over 100 destinations to quantify the economic value
of tourism, forecast demand, guide strategy, or evaluate tourism policies.

Oxford Economics is one of the world’s leading providers of economic analysis,
forecasts and consulting advice. Founded in 1981 as a joint venture with Oxford
University’s business college, Oxford Economics is founded on a reputation for
high quality, quantitative analysis and evidence-based advice. For this, it draws
on its own staff of 40 highly-experienced professional economists; a dedicated
data analysis team; global modeling tools; close links with Oxford University, and
a range of partner institutions in Europe, the US and in the United Nations
Project Link.

For more information: info@tourismeconomics.com.
34
For more information:
Adam Sacks, President
adam@tourismeconomics.com
Christopher Pike, Senior Economist
cpike@tourismeconomics.com
35

similar documents