how important is tourism to rhode island? 2006 tourism satellite account blackstone valley data...
TRANSCRIPT
How Important is Tourism to Rhode Island? 2006 Tourism Satellite Account
Blackstone Valley Data
Kenneth McGillExecutive Managing DirectorTravel & Tourism [email protected]
Copyright © 2007 Global Insight, Inc. 2
• Quick Introduction to Global Insight
• What is Tourism Satellite Accounting?
• 2006 Rhode Island Tourism Results
• What Do Visitors Mean to RI?
Agenda
How Important is Tourism to Rhode Island?
Copyright © 2007 Global Insight, Inc. 3
Tourism Economic Impact Project Feasibility Studies Performance Benchmarking
Global Insight
• Premier country intelligence, economic analysis & forecasting, and consulting organization globally
• Most comprehensive coverage of countries, regions, and industries available from any single source
• Common analytical framework and a consistent set of assumptions
• Broad range of capabilities include: Strategic and Tactical Planning Tools Market Risk Assessment Tourism Forecasts
• Global Insight consistently has the best track record among commercial forecasters. See www.globalinsight.com/accolades
Copyright © 2007 Global Insight, Inc. 4
Global Insight by the numbers…
Over 4,000 clients worldwide…
• 2,800+ -Corporate, Financial, and Commercial
• 37 -US States, 118 -Cities/Local Govt, 70 Federal Government agencies
• 35 Foreign Central Banks, 23 International Statistical agencies, plus IMF, World Bank, IADB, EC, OECD, UN, SABIC, CEIC…
• 100+ Trade, Professional, Non-profit Organizations
Global Insight’s 2006 Turnover was $97million (65% N.A., 35% Intnl)
with an operating margin of just over 9%
We have 640 employees housed in 25 offices in 14 countries
Global Insight is over 40 years young
Copyright © 2007 Global Insight, Inc. 5
Travel and Tourism Practice
• Visitation & Spending ForecastsVisitation & Spending Forecasts –by category and by country, region, state, or U.S. city. Market size, growth, and share.
• Market Feasibility & Investment FacilitationMarket Feasibility & Investment Facilitation market analysis & research, demand/supply review, policy evaluation, development cost analysis.
• Destination Impact & Concession SupportDestination Impact & Concession Support economic impact of the construction and operations of individual facilities –resort, convention center, entertainment venue, event…
• Tourism Economic Impact & Tourism Satellite AccountingTourism Economic Impact & Tourism Satellite Accounting conforming to the UN/WTO standards. What does travel & tourism contribute in jobs, wages, spending, and taxes to a national or local economy?
• Tourism Policy AnalysisTourism Policy Analysis travel & tourism policy evaluation and rationalization.
Copyright © 2007 Global Insight, Inc. 6
TSA | Transportation Security Administration | US Department of ...
Tourette Syndrome Association TSA Home Page…
Texas Society of Anesthesiologists
Turtle Survival Alliance
Columbia University - Turkish Student Association
TSA : Telecommunication Society Of Australia
Trust for the Study of Adolescence
Tarheel Swimming Association
The Thinking Skills Assessment Home Page
TSA - the snowboard asylum online, uk snowboard shops full of ...
Toronto School of Art
What is a Tourism Satellite Account (TSA)?
Copyright © 2007 Global Insight, Inc. 7
Tourism Satellite Accounting
• The Tourism Satellite Account is the international (UN/WTO, OECD) standard for measuring the contribution of tourism to an economy
• Measuring the industry “tourism” is difficult: tourism industry is not measured in standard economic accounting
systems. Most industries are accounted via the supply-side: firms are
categorized into NAICS codes and asked about jobs, revenues, costs.
But tourism is a demand-side activity: the focus is on what the traveler buys before and during a trip. As a result, tourism touches many industries
• 4Cs: Credibility, Comprehensiveness, Comparability, Consistency
7
Copyright © 2007 Global Insight, Inc. 10
Benefits of a TSA
10
Are we spending enough on tourism promotion and infrastructure?Are we spending enough on tourism promotion and infrastructure? Compares government support of the tourism sector with government revenue generated by tourism.
Which are our best economic development targets and are candidate-Which are our best economic development targets and are candidate-requested concessions worth it?requested concessions worth it? Allows policy-makers to compare the size & growth of tourism to other industrial sectors.
What is the ROI of public tourism investment?What is the ROI of public tourism investment? Enables analysts to assess long-term health of the tourism sector vis-a-vis capital investment and govt. support.
How can we benchmark ourselves against our destination How can we benchmark ourselves against our destination competition?competition? Provides an accepted international standard for benchmarking.
How can we communicate the full value of tourism to policy makers, How can we communicate the full value of tourism to policy makers, businesses, and citizens?businesses, and citizens? Quantifies how other industries benefit from tourism.
Copyright © 2007 Global Insight, Inc
Copyright © 2007 Global Insight, Inc. 11
TSA and Tourism Economic Impact Client Examples
Tourism Satellite AccountTourism Satellite Account
RHODE ISLAND Israel New Jersey Dubai Bahamas Abu Dhabi Kansas North Dakota Guam North Carolina Alaska South Carolina Delaware Virginia Utah
Economic ImpactEconomic Impact Idaho Pennsylvania Indiana Maryland
City Tourism ImpactCity Tourism Impact• Dallas• Boston• Arlington, TX• Sacramento• Baltimore• Philadelphia• Orlando• Washington, DC• NYC• Camden & SNJ
• Tulsa• St. Louis• Kansas City• Battle Creek, MI• Durham, NC• Savannah• Pittsburgh• Austin• Indianapolis
Copyright © 2007 Global Insight, Inc. 12
RI TSA: Definitions• Visitor:Visitor: GT 50 miles, non-commuting or overnight stays• Resident Tourism: Resident Tourism: Only outbound purchases made in advance of a trip
are included. No resident usage of RI tourism assets.*
• Tourism Spending:Tourism Spending: A TSA concept, includes all spending by all constituents on travel made in the jurisdiction (RI)
• Visitor Spending: Visitor Spending: Spending in the jurisdiction by visitors (accommodations, food & beverage, shopping, transportation, entertainment, other)
• Total Economic Impact: “GDP” definition…spending less value of supply chain purchases made elsewhere. The amount truly retained in jurisdiction.
• Import Leakages:Import Leakages: The value of supply chain purchases made outside of the jurisdiction.
• DirectDirect Spending/Jobs/Wages/Taxes: Spending/Jobs/Wages/Taxes: Industries that “touch” the visitor (e.g. hotels, restaurants, museums,…)
• IndirectIndirect Spending/Jobs/Wages/Taxes: Spending/Jobs/Wages/Taxes: Industries that supply those that touch the visitor
• Induced Induced Spending/Jobs/Wages/Taxes:Spending/Jobs/Wages/Taxes: Workers of industries that touch or supply will spend wages locally
Copyright © 2007 Global Insight, Inc. 13
Travel & Tourism Economy
T&T Industry and Economy
Travel & Tourism EconomyThe flow-through effect of travel demand across the economy
The TSA provides both a narrow & a broad understanding of the Tourism “Industry”
Travel & Tourism IndustryThe direct effect of travel demand
Copyright © 2007 Global Insight, Inc. 14
Sources of Tourism Expenditures
• Visitor Spending – Expenditures by visitors who have come from greater
than 50 miles or stayed overnight
• Business Travel – Businesses’ spending within the state economy on travel
• Resident Outbound – Resident spending preparing for an out-of-state trip
• Government Spending – Tourism Office Budgets, transportation functions
related to tourism, publicly funded attractions and funding for security in tourism-
intensive areas
• Investment – Construction of hotels, attractions, tourism infrastructure,
operating and transportation equipment
• International – Spending of international visitors within the state
• Under 50Mile Visitors – Spending by residents or non-residents who have
come from under 50 miles. No commuters or local utilization. Not included in TSA
definition.
Copyright © 2007 Global Insight, Inc. 15
2006 Rhode Island TourismRegional Analysis
Copyright © 2007 Global Insight, Inc. 16
Regional Distribution of Tourism
Blackstone Valley• Burrillville• Central Falls• Cumberland• Glocester• Lincoln• North Smithfield• Pawtucket• Smithfield• Woonsocket
Providence • Providence
Warwick • Warwick
Block Island• Block Island
Balance of State• Cranston• Foster• Johnston• North Providence• Scituate• West Warwick
Rhode Island is divided into eight regions in the analysis: Newport County
• Little Compton• Middletown• Newport• Portsmouth• Tiverton• Jamestown
South County • Charlestown• Coventry• East Greenwich• Exeter• Hopkinton• Narragansett• North Kingstown• Richmond• South Kingstown• Westerly• West Greenwich
East Bay• Barrington• Bristol• East Providence• Warren
Copyright © 2007 Global Insight, Inc. 18
Regional Distribution of Tourism (TSA) Plus Under 50mile Visitors
$(000)Accomodation
sEntertainmen
tFood Retail
Transportation
Grand Total
Share of State
2006 $16,369 $396,818 $245,766 $57,712 $65,134 $781,79
8 15.5%
2005 $16,262 $388,077 $235,046 $61,185 $64,661 $765,23
1 15.3%
2004 $16,338 $363,146 $225,829 $66,573 $65,952 $737,83
8 14.8%
Blackstone Valley
Copyright © 2007 Global Insight, Inc. 19
Regional Distribution of Tourism (TSA)
$(000)Accomodation
sEntertainmen
tFood Retail
Transportation
Grand Total
Share of State
2006 $16,369 $169,619 $109,923 $31,686 $65,765 $393,36
3 11.8%
2005 $16,262 $165,026 $105,632 $33,322 $65,343 $385,58
5 11.6%
2004 $16,338 $154,447 $101,347 $39,706 $65,846 $377,68
3 11.2%
Blackstone Valley
Copyright © 2007 Global Insight, Inc. 20
Regional Share of Statewide Tourism (TSA) Plus Under 50mile Visitors
Regional Share of State Expenditures by Category
Accomodations Entertainment Food Retail Transportation Total
2006 2.5% 32.7% 15.5% 6.3% 9.7% 15.5%2005 2.5% 32.6% 15.4% 6.3% 9.7% 15.3%2004 2.5% 32.4% 15.3% 6.3% 9.8% 14.8%
State 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Accomodation data includes seasonal second home rentals, which creates significant differences in share
from state room tax data.
Accomodation data includes seasonal second home rentals, which creates significant differences in share
from state room tax data.
Blackstone Valley
Copyright © 2007 Global Insight, Inc. 21
Regional Share of Statewide Tourism (TSA)
Expenditure Category Share of Regional Tourism Spending
Accomodations Entertainment Food Retail Transportation Total
2006 2.5% 22.6% 14.5% 6.0% 10.1% 11.8%2005 2.5% 22.5% 14.3% 6.0% 10.1% 11.6%2004 2.5% 22.4% 14.2% 6.0% 10.1% 11.2%
State 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Accomodation data includes seasonal second home rentals, which creates significant differences in share
from state room tax data.
Accomodation data includes seasonal second home rentals, which creates significant differences in share
from state room tax data.
Blackstone Valley
Copyright © 2007 Global Insight, Inc. 22
Regional Share of Statewide Tourism (TSA) Plus Under 50mile Visitors
Regional Share of State Visitors
Share of Expenditures Share of VisitationTotal Visitors
(000)Blackstone Valley
15.5% 18.0% 3,148.3
State 100.0% 100.0% 17,461.4
Biggest variances from spending shares are in regions where there is a dominant category, such as
accomodations or high transportation revenue.
Biggest variances from spending shares are in regions where there is a dominant category, such as
accomodations or high transportation revenue.
Copyright © 2007 Global Insight, Inc. 23
Regional Share of Statewide Tourism Visitation
Regional Share of State Visitors
Share of Expenditures Share of VisitationTotal Visitors
(000)Blackstone Valley
11.8% 12.8% 1,014.7
State 100.0% 100.0% 7,995.9
