Virginia Travel Expenditures: Analysis of Industry Sectors in 2010
In 2010, domestic travelers in Virginia spent $18.9 billion on transportation, lodging, food services, entertainment, retail trade, and more. The largest spending category was food service, with travelers investing $5.4 billion. Auto transportation saw a significant increase of 15.2%, reaching nearly $4.1 billion. Lodging spending reached $3.7 billion, while public transportation expenses totaled around $2.6 billion.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Presented by Judy Hare Winslow Director of Tourism, Smithfield & Isle of Wight Convention & Visitors Bureau
Domestic Travel Expenditures in Virginia by Industry Sector - 2010 Public Transportation 13.7% Auto Transportation 21.6% Lodging 19.4% Foodservice 28.4% Entertainment & Recreation 7.4% General Retail Trade 9.4%
Travel Expenditures In 2010, domestic travelers spent $18.9 billion on transportation, lodging, food, amusement and recreation, as well as retail shopping in Virginia. This represents a 6.7 percent increase from 2009.
FOOD SERVICE Domestic travelers spent $5.4 billion on food services (including restaurants and other eating and drinking places as well as grocery stores) during their travel in Virginia in 2010, up 3.9 percent over 2009. This is the largest spending category among the six categories included in this report, accounting for 28.4 percent of total domestic travel spending in Virginia.
AUTO TRANSPORTATION Domestic traveler spending on auto transportation increased 15.2 percent to nearly $4.1 billion. The sizable increase in spending on auto transportation partially reflected a dramatic rise of gasoline prices. Automobile transportation expenditures include costs of operating an automobile, truck, camper, or other recreational vehicle on a trip, such as gasoline, oil, tires, and repairs; costs of renting an automobile or other motor vehicle; and a portion of the costs (travel-related) of owning an automobile, truck, camper, or other recreational vehicle, such as insurance, license fees, tax, and depreciation.
LODGING The lodging industry includes hotels and motels, B&Bs, campgrounds and trailer parks, vacation homes and other types of lodging. Spending by domestic travelers on lodging reached $3.7 billion during 2010, up 4.4 percent from 2009. Spending on lodging accounted for 19.4 percent of total domestic travel spending within the state.
PUBLIC TRANSPORTATION Spending on public transportation, which includes air, bus, rail, boat/ship transportation, and taxicab or limousine service between airports and central cities, totaled nearly $2.6 billion, up 7.4 percent from 2009.
The most impressive contribution that travel and tourism makes to the Virginia economy is the number of jobs it supports. These jobs include a large number of executive and managerial positions, as well as service-oriented occupations. In 2010, Virginia s travel industry continued to be the fifth largest employer among all non-farm industry sectors in Virginia
During 2010, domestic travel in Virginia directly supported 203,700 jobs, including full-time and seasonal/part-time positions in the state. On average, every $92,735 spent by domestic travelers in Virginia directly supported one job.
The 203,700 jobs generated by domestic travel in Virginia comprised 5.6 percent of the state s total non-farm employment during 2010. Without these jobs generated by domestic travel, Virginia s 2010 unemployment rate of 6.9 percent would have been 4.9 percentage points higher, or the equivalent of 11.8 percent of the labor force.
The foodservice sector, which includes restaurants and other eating and drinking places, provided more jobs than any other travel-related industry. During 2010, domestic traveler spending on this sector generated 78,100 jobs, accounting for 38.4 percent of the state total. The labor-intensiveness of these businesses and the large proportion of travel expenditures spent on foodservice contribute to the importance of this sector.
Domestic travel supported 39,300 jobs in the lodging industry in Virginia during 2010, representing 19.3 percent of the state total.
Entertainment and recreation provided another 38,500 travel-generated jobs for Virginia residents during 2010.
Domestic Travel-Generated Employment in Virginia by Industry Sector - 2010 Public Transportation 11.2% Auto Transportation 4.0% Lodging 19.3% Foodservice 38.4% Entertainment & Recreation 18.9% General Retail Trade 6.9% Travel Planning 1.4%
Top Six Non-farm Industries by Employment in Virginia, 2010 Rank 1 Industry Name Professional, Scientific, and Technical Services Employment 382,096 2 Health Care and Social Assistance 373,540 3 Retail Trade** 368,038 4 Manufacturing 229,867 5 Travel*** 203,734 6 Administrative 191,922
TRAVEL-GENERATED TAX REVENUES Travel tax receipts include federal, state and local tax revenues attributable to travel spending in Virginia. Travel- generated tax revenue is a significant economic benefit, as governments use these funds to support the travel infrastructure and help support a variety of public programs.
In 2010, total tax revenue generated by domestic travel in Virginia reached nearly $2.6 billion, up 3.6 percent from 2009. On average, each travel dollar spent by domestic travelers in Virginia produced 13.5 cents in tax receipts for federal, state and local governments in 2010.
Local governments in Virginia directly benefited from domestic travel as well. During 2010, domestic travel spending generated $533.1 million in local sales and property tax revenue for municipal governments, 20.9 percent of total travel-generated tax revenue in the state. Each domestic travel dollar produced 2.8 cents for local tax coffers.
Travelers in Virginia produce secondary impacts over and above direct travel spending previously detailed. These secondary impacts arise from indirect and induced spending. Indirect impact occurs as travel industry business operators, such as restaurants, purchase food, beverages and other goods, and services, such as electricity and building maintenance, from local suppliers. These purchases generate additional output or sales indirectly. Induced impact occurs as a result of employees of businesses, and their suppliers, spending part of their earnings in the area. This spending itself generates sales additional to the indirect impact.
Something to see and/or experience Somewhere to eat Somewhere to stay Something to buy
The whole COMMUNITY must be developed as a tourist attraction. Understanding the MARKET and its potential is critical to TOURISM development. The most likely PROSPECTS for enterprise development are at the LOCAL LEVEL. ENTREPRENEURS become true prospects when INVESTORS&DEVELOPERS are added.
First time entrepreneurs and those opening new markets are high-risk PROSPECTS. NETWORKING with business suppliers and allies outside the community is smart. NOT-FOR-PROFIT enterprises or attractions can be prospects just like any other. PUBLIC/PRIVATE PARTNERSHIPS put communities into PROSPECT DEVELOPMENT.
Successful marketing campaigns build upon themselves year after year. An investment in your tourism marketing arm with dedicated funding is an investment in your own future- Remember the ROI! Make sure you have a Chief Marketing Officer to achieve the greatest results and align dollars to support individual marketing initiatives. Brand everything you do consistently.
Develop a local TOURISM DEVELOPMENT GRANT PROGRAM. To create the complete tourism experience, maximize visitation and average length of stays, product development is essential! SUPPORTnew tax law legislation to fix the On-line Travel Companies siphoning of state and local taxes. DO NOT SUPPORT the OTC s Federal preemption legislation that would prevent taxing authorities ability to collect taxes from these companies
Direct Hotel Booking Third Party Intermediary Wholesale Booking
Dolphins vs. Whales Theory Greg Fairchild, Professor of the Darden School of Business at UVA. Dolphins may not be bigger than whales but when it comes to economic revitalization, they may be better!
When towns or counties lose major businesses, leaders often try to recruit another big industry to take its place. = Whale Hunting! Communities might be healthier if they successfully lure groups of smaller companies. = Dolphin Breeding!
WHALE HUNTING. Hunting whales is the all-out effort to win a big contract with a big company that is going to employ lots of folks but a big plant can pit communities against each other to drive incentives that they want to benefit their company.
WHAT HAPPENS WHEN THE WHALE LEAVES?
DOLPHIN BREEDING.. Dolphins are smaller, they move in pods, they re intelligent, and they communicate with each other in a coordinated way. Dolphins = Tourism Are YOU building an infrastructure for your dolphins?
Dolphin Breeding Yields An investment in the growth of your local economy REMEMBER .slow and steady wins the race! An investment in jobs that cannot be outsourced abroad The American Dream can still be realized in the Tourism Industry! An investment in your culture and heritage A reason for your children to come home after college!
Tourism product development is setting up and getting ready to ring a cash register with new dollars brought into a community by visitors.
In order to be successful in the tourism business you must provide visitors: Something to see and/or experience Somewhere to eat Somewhere to stay Something to buy
Key Recommendations Find your tourism niche and have a dedicated staff person or department Dedicated Funding for Tourism Develop a Tourism Grant Program Be aware of the OTC tax issue and participate in preserving YOUR tax revenue!
Tourism IS Economic Development! Breed dolphins at the same time you are whale hunting Presented by Judy Hare Winslow Director of Tourism, Smithfield & Isle of Wight Convention & Visitors Bureau
