The Economic Impact of Tourism in Ohio -...
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May 2011 The Economic Impact of Tourism in Ohio
Transcript of The Economic Impact of Tourism in Ohio -...
May 2011
The Economic Impact of Tourism in Ohio
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Key themes for 2010
The Ohio visitor economy rebounded in 2010, recovering about
70% of the losses experienced during the recession
■ Visitor volumes expanded 4.5% in 2010, after a 1.6% decline in
2009
■ Room demand surged. After falling 6.4% in 2009, room demand
grew 6.8% in 2010
■ Per trip spending rose slightly as tourism providers were unable
to fully recoup earlier price cuts
Visitor spending increased 7.4% in 2010 after a 10.1% decline
in 2009
The visitor economy sustained employment of 439,000 FTE
jobs in 2010. After a 3.3% drop in 2009, visitor economy jobs
started to rebound in the latter half of 2010
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Key results
Tourism is a vital component of the Ohio economy
The industry signaled its recovery in 2010 with a 7.4% rise in
visitor spending to $24.7 billion
This spending generated $38.2 billion in total business sales
including indirect and induced impacts
More than 439,000 jobs, with associated income of $10.2
billion, were sustained by visitors to Ohio last year
Approximately 8.7% of all jobs in the state are sustained by
visitor spending (up from 8.6% in 2009)
Tourism in Ohio generated $1.5 billion in state taxes and $1.1
billion in local taxes in 2010
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Growth in tourism sales
Business Day
The tourism industry
rebounded in 2010
with visitor spending
increasing 7.4% and
total sales (including
indirect and induced
impacts) increasing
6.9%
Tourism sales in 2010
made up about 70% of
the 2009 losses
32.0
33.0
34.0
35.0
36.0
37.0
38.0
39.0
40.0
2005 2006 2007 2008 2009 2010
$ B
illi
on
s
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%Total Tourism Sales
% Change
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Visitor spending by sector
Business Day
Food & beverage,
shopping, and
recreation comprise
more than half of
visitor spending in
Ohio
Transportation
(including service
stations) and lodging
sectors comprise the
majority of the
remainder
Retail Trade
15%
Recreation
16%
Other transport
11%
Personal
Services
0%Lodging
10%
Fin, Ins, RE
4%F&B
27%
Gasoline
17%
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Overnight and day markets compared
Overnight visits grew by 4.2% with day visits growing by a similar
4.5% in 2010
With overnight per visitor spending growing 4.4%, total overnight
spending grew 8.8%
2009 2010 % ChangeTotal Visitors 172.45 180.07 4.4%
Overnight 34.69 36.14 4.2%
Day 137.75 143.94 4.5%
Total Spending (million $) 23,031 24,736 7.4%
Overnight 9,468 10,298 8.8%
Day 13,563 14,438 6.4%
Per Visitor Spending 134$ 137$ 2.9%
Overnight 273$ 285$ 4.4%
Day 98$ 100$ 1.9%
Visits and Spend
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Visitor spending by sector
Overnight visitors spent close to $10.0 billion in Ohio in 2010 with
lodging and transportation expenses as the top spending categories
Day visitors spent $14.7 billion with spending for food & beverage as
a top spending category
Category Overnight Day Total
Lodging 2,524.4$ 2,524.4$
2nd home rentals 919.8$ 919.8$
Local transport 2,155.1$ 4,415.3$ 6,570.4$
Food & beverage 1,930.9$ 4,547.0$ 6,477.9$
Shopping 1,083.7$ 2,592.9$ 3,676.6$
Recreation 1,076.1$ 2,882.4$ 3,958.5$
Air transport 608.1$ 608.1$
TOTAL 10,297.9$ 14,437.6$ 24,735.6$
Per Visitor Spending 284.96$ 100.31$ 138.35$
Visitor Spending in 2010
$ million
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Visitor spending by market
Visitors on marketable leisure trips spent close to $11 billion in 2010
Spending is nearly evenly split between day and overnight visitors
Marketable 10,861 Day 14,438
Visiting Friends/Relatives 9,735 Overnight 10,298
Business 4,139
TOTAL 24,736 24,736
Tourism Expenditures in 2010
Purpose Stay
(US$ Million)
9
44%
58%
39%
42%
17%
0%
20%
40%
60%
80%
100%
Purpose Day / Overnight
Pe
rce
nta
ge
dis
trib
utio
n
Visitor spending by market
Marketable
VFR
Business
Day
Overnight
Visitor spending is nearly evenly divided between day and overnight visitors.
Marketable trips led the purpose category with 42% of all visitor spending.
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2010 domestic visitor summary
Ohio hosted 178.8 million
domestic visitors in 2010, a
4.5% increase from 2009
Day trips represent just over
80% of all visitors with 143.9
million person trips
Ohio hosted 34.8 million
overnight visitors last year
Source: Longwoods International
Visitors to Ohio(Millions)
OVERNIGHT
34.8
DAY
143.9
Total Visitors:
178.8 million
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Domestic visitor spending
■ Ohio hosted 34.8 million
overnight visitors last
year, around 20% of all
visitors
■ Domestic overnight
visitors spent over $10.2
billion in Ohio in 2010 for
a spending share of 39%
■ Day visitors spent $14.4
billion in Ohio in 2010
Overnight,
34.8
Overnight,
$9,092.6
Day,
$14,437.6 Day,
143.9
0%
20%
40%
60%
80%
100%
Person Trips Visitor Spending
Domestic Visitor Spending vs. Person-Trips
Source : Tourism Economics, Longwoods International
All values in millions
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Tourism sales
Business Day
Direct* Indirect Induced Total 2010 direct
sales growth
Agriculture, Fishing, Mining - 184.1 66.5 250.7
Construction and Utilities - 432.2 174.0 606.2
Manufacturing - 1,563.7 712.3 2,276.0
Wholesale Trade - 52.1 37.8 89.9
Air Transport 608.1 10.5 9.5 628.1 4.3%
Other Transport 2,582.2 437.6 183.8 3,203.6 13.1%
Retail Trade 3,676.6 208.6 831.8 4,717.0 4.4%
Gasoline Stations 3,988.1 14.3 52.2 4,054.6 16.2%
Communications - 443.5 189.0 632.5
Finance, Insurance and Real Estate 919.8 1,283.8 866.2 3,069.9 -0.5%
Business Services - 1,742.3 492.1 2,234.4
Education and Health Care - 5.7 1,201.7 1,207.4
Recreation and Entertainment 3,958.5 109.8 93.9 4,162.2 6.2%
Lodging 2,524.4 41.4 33.4 2,599.2 6.3%
Food & Beverage 6,477.9 112.6 316.9 6,907.5 4.8%
Personal Services - 169.8 286.8 456.7
Government - 174.1 967.5 1,141.6
TOTAL 24,735.6 6,986.2 6,515.6 38,237.3 6.9%
% change 7.4% 6.2% 5.9% 6.9%
* Direct sales includes cost of goods for retail sectors
Tourism Sales (Output)
(US$ Million)
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Tourism sales
Business Day
* Direct includes cost of retail goods
0
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3,000
4,000
5,000
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Induced
Indirect
Direct*
Tourism Sales by Industry$ million
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How visitor spending generates impact
• Lastly, the induced impact is
generated when employees
whose incomes are generated
either directly or indirectly by
tourism, spend those incomes
in the state economy.
• Travelers create direct economic value within a discreet group of sectors (e.g. recreation,
transportation). This supports a relative proportion of jobs, wages, taxes, and GDP 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.
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Tourism employment
Business Day
More than 439,000 Ohio jobs were sustained by tourism in 2010
8.7% (1 in 11 jobs) of total wage and salary employment in Ohio is
sustained by tourism
Direct Indirect Induced Total 2010 direct
growth
Agriculture, Fishing, Mining - 2,427 845 3,272
Construction and Utilities - 1,692 350 2,042
Manufacturing - 3,946 1,643 5,589
Wholesale Trade - 301 219 520
Air Transport 2,923 44 39 3,006 -0.7%
Other Transport 29,645 4,183 1,554 35,382 2.1%
Retail Trade 43,610 3,171 12,693 59,475 0.1%
Gasoline Stations 11,914 187 681 12,781 0.3%
Communications - 2,058 709 2,767
Finance, Insurance and Real Estate 6,981 8,611 5,120 20,711 0.0%
Business Services - 16,892 5,181 22,073
Education and Health Care - 91 15,193 15,284
Recreation and Entertainment 59,843 3,046 1,862 64,750 0.3%
Lodging 36,876 610 477 37,963 0.0%
Food & Beverage 135,173 2,345 6,594 144,113 0.3%
Personal Services - 2,337 5,565 7,902
Government - 924 520 1,444
TOTAL 326,964 52,866 59,243 439,073 0.5%
% change 0.4% 0.8% 0.8% 0.5%
Tourism Employment
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Ranking tourism employment
Direct tourism
employment
326,924
Day Tourism is the 4th largest private sector employer in Ohio
Source for comparison: US Bureau of Labor Statistics
* Accommodation & Food Service and Retail Trade are reported NET of tourism employment
Rank Industry 2010
1 Health Care and Social Assistance 730,400
2 Manufacturing 619,700
3 Retail Trade 506,090
4 Administrative and Support 277,100
5 Financial Activities 274,100
6 Accommodation & Food Service 240,951
7 Professional, Scientific, and Technical Services 237,700
8 Wholesale Trade 216,100
9 Other Serivces 211,000
10 Construction 167,600
Ohio Employment
*
*
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Employment contribution
Business Day
0% 20% 40% 60% 80% 100%
Air Transport
Retail Trade
Recreation and
Entertainment
Lodging
Food & Beverage
Total Economy
Tourism Employment Share of Key Industries
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Tourism wages
Business Day
Tourism generated personal income of $10.2 billion
in 2010, increasing 1.9% since 2009
Direct Indirect Induced Total 2010 direct
growth
Agriculture, Fishing, Mining - 29.1 12.6 41.7
Construction and Utilities - 119.9 41.7 161.7
Manufacturing - 211.8 96.3 308.2
Wholesale Trade - 18.9 13.8 32.7
Air Transport 188.2 3.1 2.8 194.1 0.4%
Other Transport 784.6 199.1 73.0 1,056.7 4.2%
Retail Trade 813.4 80.6 322.1 1,216.2 2.3%
Gasoline Stations 258.3 4.3 15.6 278.1 2.6%
Communications - 108.4 39.7 148.1
Finance, Insurance and Real Estate 153.5 289.9 211.9 655.3 0.0%
Business Services - 725.5 216.5 942.1
Education and Health Care - 2.8 605.6 608.4
Recreation and Entertainment 1,235.4 46.4 36.9 1,318.6 2.6%
Lodging 862.1 14.1 10.9 887.0 2.9%
Food & Beverage 1,988.6 33.7 95.0 2,117.4 2.5%
Personal Services - 63.6 116.5 180.1
Government - 48.6 26.1 74.7
TOTAL 6,284.0 1,999.9 1,937.2 10,221.0 1.9%
% change 2.6% 0.8% 0.8% 1.9%
Tourism Income (Compensation)
(US$ Million)
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Tourism tax generation
Business Day
The tourism industry
generated over $5
billion in taxes and
fees in 2010
Tourism generated
$2.6 billion in state and
local taxes.
■ $1.5 billion in state
taxes
■ $1.1 billion in local
taxes
Total 2010
growth
Federal Taxes 2,488.5 3.2%
Corporate 440.6
Indirect Business 223.8
Personal Income 765.5
Social Security 1,058.6
State Taxes 1,522.1 4.4%
Corporate 375.2
Personal Income 309.7
Sales 712.7
State Social Security 56.0
Excise and Fees 68.5
Local Taxes 1,069.3 3.1%
Personal Income 31.0
Sales 129.6
Property 702.3
Admissions 23.5
Lodging 120.5
Other Taxes and Fees 62.4
TOTAL 5,079.9 3.5%
Tourism-Generated Taxes
(US$ Million)
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• 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 adds several categories of spending to these figures:
• Overseas visitor spending (source: OTTI, TE)
• 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
• Lodging tax receipts
• All results are benchmarked and cross-checked against US Bureau of Labor Statistics and the Bureau of Economic Analysis data on wages and employment
Methods and data sources
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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: [email protected].
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For more information:
Adam Sacks, Managing Director
Christopher Pike, Senior Economist
