Breed dolphins at the same time you are whale hunting Presented by Judy Hare Winslow Director of Tourism Smithfield amp Isle of Wight Convention amp Visitors Bureau Domestic Travel Expenditures in Virginia by Industry Sector 2010 ID: 808173
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Slide1
Tourism ISEconomic 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
Slide2Domestic Travel Expenditures in Virginia by Industry Sector - 2010Public Transportation 13.7% Auto Transportation 21.6% Lodging 19.4% Foodservice 28.4% Entertainment & Recreation 7.4%
General Retail Trade 9.4%
Slide3Travel ExpendituresIn 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.
Slide4FOOD SERVICEDomestic 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.
Slide5AUTO TRANSPORTATIONDomestic 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.
Slide6LODGINGThe 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.
Slide7PUBLIC TRANSPORTATIONSpending 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.
Slide8TRAVEL-GENERATED EMPLOYMENT 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
Slide9During 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.
Slide10The 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.
Slide11The 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.
Slide12Domestic travel supported 39,300 jobs in the lodging industry in Virginia during 2010, representing 19.3 percent of the state total.
Slide13Entertainment and recreation provided another 38,500 travel-generated jobs for Virginia residents during 2010.
Slide14Domestic Travel-Generated Employment in Virginia by Industry Sector - 2010Public 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%
Slide15Top Six Non-farm Industries by Employment in Virginia, 2010
Rank Industry Name Employment
1 Professional, Scientific, and Technical Services 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
Slide16TRAVEL-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.
Slide17In 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.
Slide18Local 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.
Slide19Travelers 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.
Slide20Slide21Tourism = NEW MONEY!
Slide22Something to see
and/or experience
Somewhere to eat
Somewhere to stay
Something to buy
Slide23The 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.
Slide24First 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
.
Slide25Successful 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.
Slide26Develop a local
Tourism Development Grant program
.
To create the complete tourism experience,
maximize visitation and average length of stays,
product development is essential!
Support
new 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
Slide27Direct Hotel Booking
Third Party Intermediary
Wholesale Booking
Slide28Tourism ISEconomic
Development!
Slide29Dolphins vs. Whales TheoryGreg 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!”
Slide30Tourism isBIG BUSINESS…& Small Business!
Slide31When 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!
Slide32WHALE 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.
Slide33WHAT HAPPENS WHEN THE WHALE LEAVES?
Slide34DOLPHIN 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?
Slide35Dolphin Breeding Yields…An investment in the growth of your local economyREMEMBER….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!
Slide36Tourism creates animmediate & provenRETURN ON
INVESTMENT
Slide37Tourism can playa leading role inEconomic Recovery
more
quickly
than
any other industry.
Slide38Tourism = NEW MONEY!
Tourism product development is setting up and getting ready to ring a cash register with new dollars brought into a community by visitors.
Slide39In 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
Slide40Key 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!
Slide41Tourism 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