What Happened?
Many cities are investigating new strategies to boost the local tourism industry in an effort to incite economic growth and sustainability.
Economic Impact of Tourism
According to the U.S. Travel Association, tourism generated $2.1 trillion in economic activity last year nationwide, with $887.9 billion spent by domestic and international travelers that generated an additional $2.1 trillion in other industries. Furthermore, tourism was accountable for:
- $133.9 billion in tax revenue for local, state and federal governments
- An average of $2.4 billion daily, $101.4 million an hour and $1.7 million a minute in direct spending
- $222.3 billion in travel exports
- 9 million jobs, 8.1 million directly in the travel industry
- 1 out of every 9 U.S. jobs created directly or indirectly due to travel and tourism
Impact Studies
Researchers at Michigan State University explain the economic success of local tourism depends greatly on supportive policies as well as collaboration with other businesses, governments and residents. The tourism industry comes with its own economic costs associated with government infrastructure, congestion and local business activity.
Therefore, cities will conduct economic impact studies of the local tourism industry to better understand the role of tourism in the region’s economy, and identify any barriers impeding future growth and success. The types of analyses conducted include:
- Economic impact
- Financial impact
- Financial analysis
- Demand analysis
- Cost/Benefit analysis
- Feasibility study
- Environmental impact
No matter the type of analysis conducted, city officials must trace the flow of money from tourism spending to determine the direct, indirect and induced economic effects. From there, city leaders can better determine how new policies or supportive initiatives can improve local tourism.
Polk County
The Polk County Economic Development Office in North Carolina received a $23,200 grant to conduct an 11-month tourism and business growth management project that will gauge the economic impact of local tourism. The goal of the project is to enable the county to survey visitors attending major events in the region to see what tourism is succeeding and where services could be improved, Tyron Daily Bulletin reported.
The North Carolina Department of Commerce, Rural Economic Development Division administered the grant to help the county gather key visitor data. The funding will be used to:
- Purchase tablets
- Pay for student travel
- Purchase software license and surveys
- Website enhancements
- Reception kiosk
The grant will help Polk County establish methods to capture, document, categorize and analyze visitor activities, spending and demands. The technology will be leveraged to collect real-time economic data throughout the public and private sectors surrounding major events. All data gathered will be analyzed and leveraged in future regional planning, Tyron Daily Bulletin reported
Rome
The Greater Rome Convention & Visitors Bureau in Georgia released its 2014 annual report on tourism in Floyd County. The report revealed a 39.23 percent increase in tourism spending throughout the county in the past 10 years, with $129,046,000 spent in Floyd County in 2013 alone. The local tourism industry supported 1,210 jobs in the service and hospitality industries, while generating $4.62 million in state tax revenue and $3.8 million in local tax revenue. Every household in Floyd County received $234.34 in tax relief as an indirect result of local tourism economic activity.
Michigan
In 2014, overall tourism prices in the state of Michigan increased 4.5 percent despite a colder and wetter than normal spring and fall, and total tourism volume was up 1 percent. Michigan State University researchers predict state tourism volume should increase 1.5 percent in 2015 compared to 2014, while tourism spending should jump 2.5 percent and prices grow 3 percent year-over-year, Detroit Free Press reported.
The researchers argue Michigan’s array of low-cost tourism options help sustain the industry despite fluctuations in national economics and the value of the dollar, Detroit Free Press reported.
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