Tourism Work$ for Jefferson Co.: Economic Impact, Jobs & Taxes ...

Tourism Work$ for Jefferson Co.: Economic Impact, Jobs & Taxes Presented to the Jefferson County Convention & Visitors Bureau

June 28, 2012

Dr. Steve Morse, Economist Dept. of Retail, Hospitality and Tourism Mgt.; University of Tennessee

Knoxville, TN; Ph: (865) 850-9319; Email: [email protected] 1

Dr. Steve Morse, Economist University of Tennessee Knoxville, TN

Dr. Steve Morse Economist

University of Tennessee

Knoxville, TN

June 28, 2012

Presentation Agenda – 3 Topics

Tourist spending generates jobs, paychecks & taxes 1.

Not all tourism jobs are low-skill, low-paying jobs 2.

3. Tourism creates a higher quality of life & attracts businesses for more Econ Development

Presentation Agenda

Tourist spending generates jobs, paychecks & local taxes 1.

2.

3.

Top 10 West Virginia Counties Ranked by Tourist Spending, 2010

1) Jefferson Co. $769.6 million 2) Kanawha Co. $579.8 million (Charleston) 3) Hancock Co. $368.0 million (New Cumberland)

4) Ohio Co. $361.3 million (Wheeling) 5) Greenbrier Co. $181.7 million (Lewisburg) 6) Raleigh Co. $155.6 million (Beckley) 7) Cabell Co. $133.2 million (Huntington)

8) Monongalia Co. $128.8 million (Morgantown)

9) Berkeley Co. $118.8 million (Martinsburg)

10) Harrison Co. $111.1 million (Clarksburg) Source: WV Division of Tourism study prepared by Dean Runyan & Associates “Economic Impact of Travel on West Virginia, 2000-2010” Source: WV Division of Tourism study prepared by Dean Runyan & Associates “Economic Impact of Travel on West Virginia, 2000-2010”

Ten Year Trend of Tourist Spending in Jefferson Co., 2000 – 2010

($ millions, adjusted for Inflation using 2010 constant dollars)

$267.4

$467.8

$658.2

$757.2 $738.6 $735.3 $769.6

$0

$200

$400

$600

$800

$1,000

2000 2002 2004 2006 2008 2009 2010

($ millions) Recession


June 28, 2012



Recessions & Jobs Recovery Time Periods

90

92

94

96

98

100

102

104

0 3 mo

6 9 12 mo

15 18 21 24 mo

27 30 33 36 mo

42 mo

Now

1990 1981 2001

Job Index = 100 Start of Recessions

Number of months since start of recession

Still not recovered 3 years later Source: U.S. Bureau of Labor

Statistics & Brookings Institute

2008 recession

Source: WV Division of Tourism study prepared by Dean Runyan & Associates “Economic Impact of Travel on West Virginia, 2000-2010”

Percent Change in Tourist Spending Jefferson Co., 2000 – 2010,

(adjusted for Inflation using 2010 constant dollars)

0.0%

+ 74.9%

+ 40.7%

+ 15.0%

-2.4% 0.0%

+ 4.6%

-20%

0%

20%

40%

60%

80%

2000 2002 2004 2006 2008 2009 2010

Read as: Tourist spending increased by 40.7 % in 2004 over 2002 spending

Recession


Recession and Tourist Spending: Percent Change in Tourist Spending for WV

Statewide & Jefferson Co., 2008-2010 (adjusted for Inflation using 2010 constant dollars)

-2.4%

0.0%

+ 4.6% + 3.0%

-11.2%

+ 5.2%

-20%

-15%

-10%

-5%

0%

5%

10%

2008 2009 2010

Read as: Tourist spending for 2009 over 2008 for statewide WV decreased by 11.2% while tourist spending for Jefferson Co. was unchanged (0.0%) for the same period.

Recession

WV

WV

WV Jeff

Jeff Jeff

(No change)

Percent change in tourist spending for Rabun Co. & Georgia during

the 2009 recession

Source: Study prepared for the GA Dept. of Economic Development, Tourism Division by the U.S. Travel Association. “2009 Travel Economic Impact on Georgia State, Counties, and Regions.” & Dr. Steve Morse, University of Tennessee

Georgia Rabun Co.

- 7.7%

- 3.2%

Avg. annual growth in tourist spending during the 10 year period,

2000 - 2010

Jefferson County

+ 18.8%

+ 3.7%

West Virginia Statewide

(adjusted for inflation)


Read as: The average annual percent growth in tourism spending for the ten year period between 2000 and 2010 for Jefferson Co. was 18.8% growth per year, while the statewide West Virginia growth rate for tourist spending was 3.7% for the same period

How have Jefferson Co., Employment Trends Changed From 2001 to 2011?

Industry (% of all jobs) 2001 2011

Tourism & Hospitality (Lodging, food

service, entertainment, gaming, recreation, arts) 25.1% 35.0%

Retail Trade 21.9% 16.9%

Manufacturing 15.5% 7.8%

Health Care & Social Asst. 8.7% 10.0%

Construction 5.8% 3.9%

Finance & Insurance 3.7% 2.8% Source: U.S. Dept. of Commerce, Bureau of Labor Statistics

More than 1 out of 3 workers (or 35%) in Jefferson County work in the hospitality and tourism industry

35% work in hospitality and tourism Source: U.S. Dept. of Labor, Bureau of Labor Statistics


June 28, 2012



In summary: Tourism works for Jefferson County in 2010

Tourist Spending

Jobs Created

Worker Paychecks

State Taxes

Local County Taxes

$769.6 million

7,170 jobs

$172.6 million

$198.6 million

$12.6 million


On an average day in

Jefferson Co., tourists

spent …

$234,863

daily in

Transportation (including air,

car/truck, taxi, gas, rentals)

Source: Study prepared for the West Virginia Department of Tourism “Economic Impact of Travel on West Virginia, 2010” by Dean Runyan Associates, Portland, Oregon; & Dr. Steve

Morse, University of Tennessee

On an average day

in Jefferson Co.,

tourists spent …

$475,005

daily in

Restaurants (including drinking

places) Source: Study prepared for the West Virginia Department of Tourism “Economic Impact of Travel on West Virginia, 2010” by Dean Runyan Associates, Portland,

Oregon; & Dr. Steve Morse, University of Tennessee

On an average day

in Jefferson Co.,

tourists spent …

$97,640 daily on

Hotels & Lodging

(including motels, campgrounds, vacation homes & condos,

bed & breakfasts) Source: Study prepared for the West Virginia Department of Tourism “Economic Impact of Travel on West Virginia, 2010” by Dean Runyan Associates, Portland,

Oregon; & Dr. Steve Morse, University of Tennessee

The Inn at Charles Town

On an average day

in Jefferson Co.,

tourists spent …

$250,697

daily on

Retail Trade (including gifts, clothes,

souvenirs, incidental retail) Source: Study prepared for the West Virginia Department of Tourism “Economic Impact of Travel on West Virginia, 2010” by Dean Runyan Associates, Portland, Oregon; & Dr. Steve


On an average day

in Jefferson Co.,

tourists spent …

$47,500 daily on

Entertainment & Recreation

(including parks, museums, historical sites, amusements, performing arts & shows, golf, fishing, water sports,

spectator sports, theme parks) Source: Study prepared for the West Virginia Department of Tourism “Economic Impact of Travel on West Virginia, 2010” by Dean Runyan Associates, Portland, Oregon; & Dr. Steve



June 28, 2012





spent …

$92,362

daily in

Food Stores Source: Study prepared for the West Virginia Department of Tourism “Economic Impact of Travel on West Virginia, 2010” by Dean Runyan Associates, Portland, Oregon; & Dr. Steve




spent …

$910,426

daily on

Gaming Source: Study prepared for the West Virginia Department of Tourism “Economic Impact of Travel on West Virginia, 2010” by Dean Runyan Associates, Portland, Oregon; & Dr. Steve


On an average day in Jefferson Co., tourists spending generates…

$544,142 daily in West Virginia State tax revenues

Source: Study prepared for the West Virginia Department of Tourism “Economic Impact of Travel on West Virginia, 2010” by Dean Runyan Associates, Portland, Oregon; & Dr. Steve Morse, University of Tennessee


$34,523 daily in local Jefferson Co. taxes

Source: Study prepared for the West Virginia Department of Tourism “Economic Impact of Travel on West Virginia, 2010” by Dean Runyan Associates, Portland, Oregon; & Dr. Steve Morse, University of Tennessee


$472,877 daily in worker

paychecks

Source: Study prepared for the West Virginia Department of Tourism “Economic Impact of Travel on West Virginia, 2010 by Dean Runyan Associates, Portland, Oregon; & Dr. Steve Morse, University of Tennessee

• Tourists are considered “Temporary Tax Payers” paying taxes when they visit and spend money in an area, thus relieving county residents of some tax obligation

• Each of the 21,608 households in Jefferson Co. pay $9,775 less in State and local taxes as a result of taxes generated by tourist spending

Tourism Tax Relief for Jefferson Co.



June 28, 2012



Each of the 21,608 Jefferson Co. Households would pay

$9,775 more in taxes

In other words, if it were not for State & local taxes generated by tourism …


$$9,775 in Tourism Tax Relief for Each Household in Jefferson County

9,775.00

June 25, 2012

Jefferson County

Presentation Agenda

1.

Not all tourism jobs are low-skill, low-paying jobs 2.

3.

INDÚSTRIA DE VIAGEM & TURISMO

Hospitalidade, recreação, catering,

diversão, transporte, e outros

serviços relacionados

ECONOMIA DE VIAGEM &

TURISMO

Impressão, publicação, energia,

serviços financeiros,

fornecimento de equipamento,

alimentos, segurança,

administração, construção

civil, construção naval,

fornecimento de bebidas,

ferro/aço, fabricação de

aeronaves, madeira,

mineração, produtos químicos,

têxteis, combustíveis, plásticos,

serviços de saneamento, flores,

decorações , produtos

metálicos, computadores,

arquitetos, desenvolvimento de

resorts, atacadistas, serviços de

lavanderia, informática.

Tourism jobs are like an Iceberg

Tip of the Iceberg: Front-line jobs in restaurants, hotels,

transportation

Under the Surface: Professional Business

Support Jobs in

Advertising, Finance,

Legal, Management Tourism &

Hospital Jobs

Tourism jobs are sustainable because unlike some jobs … Tourism jobs will never be

exported to another country

Presentation Agenda

1.

2.

3. Tourism creates a higher quality of life & attracts businesses for more Econ Development


June 28, 2012



Tomorrow’s High Quality Workforce:

Tomorrows “Creative Class”

of workers

Who are the new creative class of workers?

Technology Professionals Arts & Culture Experts Managerial & Analytical Education & Training Professionals

Some future workers will be able to work from nearly ….. Anywhere

Measures of “Quality of Life” attracting next generation of innovators & entrepreneurs

Last 30 years Quality of Life

Low Home Prices

Good Schools

Low Tax Rates

Low Crime Rate

Available Transp

Next 30 years Quality of Life

Diverse Cultures

Natural Resources

Sense of Community Open Space &

Greenways

Local Unique Flavor

+ Plus

+ Plus

+ Plus

The next generation of creative class workers and entrepreneurs are attracted

to locations that offer: (the same characteristics that make a great tourism destination)

35

Music Arts History & Heritage

Nature & Outdoors

Shopping Agri-

tourism

Food Attractions & Gaming

Sports & Recreation

Today’s Visitor

could be ….

Tomorrow’s Business Investor

In Charles Town, Harpers Ferry, Shepherdstown, or Bolivar …


June 28, 2012



Tourism Econ Dev

Main Message - Perfect Fit: Tourism and Economic Development

For Jefferson Co.

Thank You for Inviting me!

Steve Morse, Ph.D. Economist

University of Tennessee Ph: (865) 850-9319

Email: [email protected]

mailto:[email protected]

Tourism Work$ for Jefferson Co.: Economic Impact, Jobs & Taxes ...

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