THEECONOMICIMPACTof San Antonio'sHOSPITALITYINDUSTRY

Sponsored by

Mission Reach Bike Trails

This studywas prepared by

Richard V. Butler, Ph. DMary E. Stefl, Ph. Dprofessors atTrinity University.

Economic Impact 2016 3

2015 Economic Impact

HIGHLIGHTS

Economic Impact of Hospitality Industry

Attracted 34.4 million visitors to SA metro area including 20.9 million overnight visitors.

Economic Impact 20164

The industry provides a large number of both part-time and full-time jobs in dozens of occupations, including culinary, customer service, administration, finance, maintenance, marketing and human resources.

San Antonio has long been a premier meeting destination and is known as a favorite vacation destination among visitors from around the world. These visitors, and the Hospitality Industry they support, produce a number of economic benefits for the city.

Visitor spending impacts virtually every corner of the local economy – sports, food service, transportation, cultural events, healthcare and much more.

The presence of so many visitors helps promote a vibrant and diverse cultural and social atmosphere that is attractive to San Antonio residents and

visitors. Many of the amenities and attractions that locals enjoy on a daily basis are available to them because these attractions are also supported by millions of visitors.

INTRODUCTION

Economic Impact 2016 5

Because visitors bring new dollars to San Antonio, their spending has a multiplier effect. Each dollar of visitor spending generates approximately one additional

dollar of income for San Antonio as the effects of this spending work their way through the local economy.

For the purposes of this report, the Hospitality Industry has been defined to include only those businesses that derive a significant portion of their sales from out-of-town visitors. Whether they come to San Antonio on a vacation, to attend a convention, or for business, these visitors patronize local companies that provide transportation and travel arrangements, lodging, recreational activities, and food and beverage services. Of course, the full economic impact of these businesses also includes their sales to local customers.

The economic impact analysis is based on data obtained from the Texas Workforce Commission (TWC). Following the same methodology used in the previous bi-annual Economic Impact Studies of the Hospitality Industry, the current work is based on TWC’s quarterly wage and employment data aggregated along the lines of business defined by the North American Industrial Classification System (NAICS).

Caryn HasslocherOwner

FRESH HORIZONS CATERING

Caryn became involved in Travel and Tourism while working within the industry with her own business, Fresh Horizons Catering, and with family interests with Frontier Enterprises. She lives and works in City District 1, but manages the Japanese Tea Garden and operates the Jingu House Café located in City District 2. Her catering business, Fresh Horizons, serves every City District in the city!

Bric FraserOwner

PARKING AND MANAGEMENT SERVICES OF SAN ANTONIO

Bric has worked in the Tourism and Travel industry for 15 years. His first hotel job was in 2001 as a valet at the Four Seasons in Scottsdale, Ariz., and he has been in the valet business ever since. He lives in Leon Springs, TX and works in downtown San Antonio in City District 1.

Economic Impact 2016 7

The Hospitality Industry is a vital and expanding part of the San Antonio economy. Each year, tens of millions of visitors come to San Antonio for business or pleasure.

» In 2015, 34.4 million visitors came to the San Antonio metropolitan area. The vast majority of these visitors (29.7 million) came to Bexar County.

» More than half of these (20.9 million overall, 18.2 million in Bexar County) were overnight visitors.

2015 SA-Bexar County SA-Metro*

Overnight Visitors 18.2 20.9

Night Business 3.0 3.6

Night Leisure 15.2 17.3

Day Visitors 11.5 13.5

Day Business 1.8 2.7

Day Leisure 9.7 10.8

TotalVisitors 29.7 34.4

Business 4.8 6.3

Leisure 24.9 28.1Note: Overnight visitors include both paid accommodations and VFR

(Visiting Friends and Family)

*Metro area includes: Bexar, Comal, Atascosa, Guadalupe, KendallMedina, and Wilson counties

2015HOSPITALITY INDUSTRY

Number of Employees by SectorHospitality Industry 2015

Economic Impact 20168

Overall Economic Impact: $13.6 BillionThe Hospitality Industry’s economic impact in 2015 was $13.6 billion. For a variety of technical reasons, this estimate is conservative. The true economic impact is no doubt considerably greater. The Hospitality Industry falls into four sectors:

Annual Payroll: $2.9 BillionThe Hospitality Industry’s annual payroll was $2.9 billion in 2015. It should be noted that these figures reflect only direct wage payments. Total compensation, including benefits and gratuities, would be significantly higher.

Total Employment: 130,796During 2015, the Hospitality Industry provided an average of 130,796 jobs. This represents more than one-eighth of the total number of jobs in the San Antonio metropolitan area. Many of these jobs provide life-long career opportunities and help employees develop skills that translate into many areas of business.

Economic Impact of Hospitality Industry 2015

Restaurants and Catering Lodging

Travel and Transportation

Entertainmentand Recreation

22.5%

Kimberly StraughanEvent ManagerTHE COUNTY LINE AND BARRIBA CANTINA

Kimberly was previously in sales for a wedding magazine and has been a member of the Alamo Area Hospitality Association (AAHA) Board for a few years. When the opportunity arose to move downtown and work for The County Line and Barriba Cantina, she immediately applied. Its been a dream of hers to work as an Event Manager at a restaurant. She lives in City District 9 and works in City District 1.

Liza BarratacheaPresidentSAN ANTONIO HOTEL &LODGING ASSOCIATION

One of Liza's first jobs in high school was wearing green lederhosen, working at the Rack-o-Kats game booth in Spassburg at Fiesta Texas. Her current job is the Executive Director at the San Antonio Hotel & Lodging Association (where lederhosen are not required). She lives in City District 9 and works in City District 2.

In the past ten years, the Hospitality Industry’s economic impact has grown substantially, from $9.3 billion in 2005 to $13.6 billion in 2015. The growth over a 25-year horizon is even more impressive: a more than 300% gain from the $3.3 billion impact the industry had in 1990. What is especially striking is that the industry grew steadily from 2005 to 2015 despite challenging national economic conditions during much of that period.

It is a great advantage for San Antonio to have as one of its major industries one that is so resilient over the business cycle. The number of employees in the industry has also grown, as the graph indicates. Employment increased by more than one-third over the decade, and 114% since 1990.

THE HOSPITALITY INDUSTRY OVER TIME

For technical reasons, the estimates for 2011 and earlier years differ from those presented in earlier studies but represent the most accurate

estimates now available.

1990 1995 2005 2011 2015

$3.0

$1.0

$13.0

$15.0

$5.0

$7.0

$9.0

$11.0

$3.3 $5.1 $9.3 $11.0 $13.6billionbillionbillionbillionbillion

Hospitality Industry’s Economic Impact

1990 1995 2005 2011 2015

61.1 77.7 96.6 130.8112.920K

(Numbers are in thousands of jobs)

120K

140K

40K

60K

80K

100K

Hospitality Industry Employment

Economic Impact 201610

Ellie BumpTour Guide, CTAPROFESSIONAL TOUR GUIDE ASSOCIATION

Ellie became involved in the Tourism and Hospitality industry through a friend who was a tour guide. She so loved history and visiting with people that she took the Professional Tour Guide of San Antonio training and became certified and is also a Certified Tourism Ambassador. Ellie lives in City District 8, but finds something interesting in every City District of the city. "As a tour guide, I work all over."

Lara SmedleySenior Manager of Events & Marketing

VALERO ALAMO BOWL

After college, Lara moved from Denver to intern with the Valero Alamo Bowl, which annually showcases San Antonio to 40,000-plus out-of-town visitors as well as 7 million viewers who watch the game on ESPN. After her internship, she worked in Community Relations for Spurs Sports & Entertainment from 2008-09, then returned to the Alamo Bowl full-time in 2009. She lives and works in City District 1.

MARIA MARTINEZGeneral Manager

MARRIOTT PLAZA SAN ANTONIO

Maria started in the Travel and Tourism while working at the Front Desk for Hampton Inn in Westminster, CO. Within three months, the general manager recruited her as an Assistant GM. She hesitated since she had just started as a Guest Service Agent. However, she took a leap of faith and by 22 was General Manager. She fell in love with the Travel and Tourism industry and has never looked back since. She lives in City District 9 and works in City District 1.

Kent MantleGeneral Manager/ Executive Partner

ELEGANT LIMOUSINE

Kent became involved in the Travel and Tourism Industry for a couple of reasons: He loves our city and what it represents to our state and nation. The transportation industry that his company represents caters to the tourist and convention landscape. He lives in City District 8 and works in City District 1.

$15.2million

$16.2million $79.8

million

$51.1million

$32.3million

The Hospitality Industry is a major contributor of tax and other revenues to local governments.

City of San Antonio:

» Hospitality Industry provided revenues of $195 million in 2015.

» Equivalent to 18.5% of the City’s adopted General Fund expenditure budget of $1.05 billion for the 2014-15 fiscal year.

FINANCIAL CONTRIBUTIONSCITY & LOCAL GOVERNMENT

Economic Impact 2016 13

San Fernando - The Saga

Contribution to City Revenue$195 Million in 2015

Michael FresherPresident & CEO

TOBIN CENTER FOR THE PERFORMING ARTS

Michael's involvement with the entertainment industry began with a position with Madison Square Garden,“The World’s Most Famous Arena.” At MSG he was exposed to the very best and brightest in live event management. He was involved with the progressive management of various performance and event venues and a myriad of event genres, as well as the management of a pro sports team. This helped him to appreciate the impact that Travel and Tourism industry has on the vibrancy of an urban setting. He lives in Fair Oaks Ranch and works in City District 1.

Nicole JuelPublisher

WHERE VISITOR PUBLICATIONS

Nicole has been in the Hospitality and Tourism industry for 15 years in restaurants, cruise ships and, most recently, the advertising world. She is currently the San Antonio publisher for the WHERE visitor publications and represents several Texas magazine titles such as AAA Texas Journey, Texas Highways and the official Texas State Travel Guide. She lives and works in Windcrest.

The City of San Antonio is not the only local government entity that depends on revenues from the Hospitality Industry.

» The Industry pays sales, property and hotel occupancy taxes to other municipalities

» Bexar County collects property and hotel occupancy taxes

» School Districts, the Alamo Community College District, the University Health System and the San Antonio River Authority all levy property taxes paid by Hospitality Industry businesses

» Many of these businesses also collect sales taxes to support VIA Metropolitan Transit and the Advanced Transportation District.

Million in Revenue & Fees to Local Government

» $194.5 Million to City of San Antonio

» $44.5 Million to Bexar County

- $17.1 Million in Hotel Occupancy Tax

- $9.2 Million in Rental Car Tax

- $18.2 Million in Property Tax

» $79.3 Million in Property Tax to School Districts

» $25.6 Million in Property Tax to other taxing entities

» $30.6 Million in VIA and ATD Sales Tax

The government revenues itemized above add up to approximately $375 million. Since this estimate excludes some property, sales and hotel taxes paid by hospitality-related businesses outside the San Antonio city limits, the full contribution of the industry to local government is in fact significantly greater than this estimate.

These revenues help reduce the taxes paid by those who live in the San Antonio metropolitan area. Without the tax payments from the hospitality industry, the city, county and state would either have to reduce services or find additional resources to balance their respective budgets.

San Antonio Botanical Gardens - Future Prickly Pear Pavilion

Economic Impact 201616

VISITOR TAXES IMPROVE THE QUALITY OF LIFE FOR SAN ANTONIO RESIDENTSThe City of San Antonio’s 7% HOT provided $61.6 million in FY15 to support various services that both visitors and San Antonio residents enjoy, including funds dedicated to maintaining and improving convention, sports and entertainment facilities, supporting the efforts of the Convention and Visitors Bureau, for cultural and arts programs, and for historic preservation.

In addition, the Bexar County Venue Tax and Car Rental Tax has supported the following community improvements:

» $125 Million San Antonio River Improvements » $80 Million Amateur Sports Facilities » $100 Million Community Arenas and Grounds » $110 Million Cultural Arts / The Tobin Center

HOTEL OCCUPANCYTAX RATE & ALLOCATION

15%History &Preservation

15%Arts

36%ConventionFacilities*

34%CVB

2%Convention

Center

6%State

7%City

1.75%County

Hotel Occupancy Tax(HOT) Rate (16.75%)

*Department supported includes Alamodome and Convention Center

Hotel Occupancy Tax Rate & Allocation

Allocation of(HOT) Rate to City (7%)

FY2015

Rudy SaenzCustomer Relations Associate ACE MART RESTAURANT SUPPLY

In 2012, Rudy became a CRA for Ace Mart Restaurant Supply. This role allows him to visit with many of our local restaurants, hotels and city attractions. During his visits, he was able to see how the equipment and supplies assisted in ensuring that visitors to this great city had an awesome experience. During his daily travels, he has the opportunity to communicate with many of the tourists. With more than 25 years in the restaurant industry, it’s great to see how the city takes pride in providing an excellent, friendly, fun time to all of our visitors and locals alike. He lives in City District 2 and works in City District 1.

Sammie GuajardoMarketing ManagerDAVE & BUSTER’S RIVERCENTER

Sammie started getting more involved with the hospitality and tourism industry after being hired by Dave & Buster’s in 2014. Now that she works at the Rivercenter location, she gets to be in the heart of downtown working closely with various organizations and companies to make sure San Antonio continues to be one of the best cities for Travel and Tourism. She lives in City District 7 and works in City District 1.

Shanna SmithChief of Staff

VISIT SAN ANTONIO

Shanna started in the Travel and Tourism industry through a marketing internship at a Children's Museum in Abilene, Texas during her senior year of college. After interning, her eyes were opened to all of the opportunities within this industry. Upon graduating, she jump-started her career as Director of Communications at the Abilene CVB, and took the next step as Director of Communications and Marketing for the City of Granbury. She had the perfect opportunity to relocate to San Antonio and was hired as Visit San Antonio’s Partner Communications Manager before being promoted to her current position. She has nearly nine years in the hospitality industry and is extremely passionate about advocating for its work, the people and the overall impact it has on San Antonio. She lives in City District 10 and works in City District 1.

INFORMATION SOURCESThe information for the estimates presented here is derived from the Texas Workforce Commission’s Covered Employment and Wages database. The data is aggregated by the TWC into the lines of business defined by the North American Industrial Classification System (NAICS) coding framework. It represents essentially a 100% sample of all the businesses with employees in each NAICS subcode.

The specific subcodes included in this study cover both the visitor and related industry segments in great detail.

Details of the methodology used to create the estimates reported in this study may be found at SATravelsForward.com

Economic Impact StudyFunded by

Hospitality Economic Impact Task Force

Casandra Matej, Visit San Antonio

Justin Holley, ABH Hospitality Management

Liza Barratachea, SA Hotel Lodging Association

Marco Barros, San Antonio Tourism Council

Linda Winchester, San Antonio Tourism Council

Mary Stefl, Trinity University

Richard Butler, Trinity University

Steve DeLaHaya, Visit San Antonio

Javier Tamez, Visit San Antonio

Shanna Smith, Visit San Antonio

Audrey Rodriguez, Visit San Antonio

For additional copies of this studyContact Linda Winchester atLinda@SanAntonioTourism.comor visit these websites for a PDF copy of the report.

sahla.orgPartners.VisitSanAntonio.comSanAntonioTourism.comSaChamber.org

San Antonio Area Tourism Council110 Broadway, Suite 360 | San Antonio, TX 78205 | 210.886.9991

The San Antonio Hotel & Lodging Association119 Heiman Suite 300 | San Antonio, TX 78205