Hamilton County, TN. Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, Hamilton County (Chattanooga area)

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1 Hamilton County, TN Hamilton County (Chattanooga area) Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, Steve Morse, Ph.D. Director & Economist Tourism Institute University of Tennessee - Knoxville July 2007

2 Hamilton County, TN Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, Table of Contents Report prepared by: Tourism Institute Department of Retail, Hospitality & Tourism Management Hotel, Restaurant & Tourism Management Program University of Tennessee, Knoxville, Tourism Institute Graduate Research Assistants: Warren Jahn, Eva Smith, Chad Church Administrative Assistant: Judy Loveday Ph: (865) ; Report also available on web site at: With support from: Dr. Bob Rider, Dean College of Education, Health, and Human Sciences Dr. Nancy Fair, Head Department of Retail, Hospitality, and Tourism Management About this report: The purpose of this county level report is to examine the direct business activity in the hotel, restaurant, and travel sectors of the local economy generated from all consumer spending. This report is not an economic impact report of tourist spending and multiplier impacts on jobs and revenues. For a county economic impact report from tourist spending see the publication The Economic Impact of Travel on Tennessee Counties from the Tennessee Department of Tourist Development at Hamilton County employment & number of establishments for Hotel, Restaurant, and Travel industries, 2. Hamilton County ranking of Hotel, Restaurant, and Travel Industry employment to other county industries, 3. Hamilton County tax revenues generated, for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment, & Recreation 4. Hamilton County employment and number of establishments by quarter & year, for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 5. Hamilton County Gross Sales by, for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 6. Chattanooga Metropolitan Airport passenger statistics by month and year, : Departing Passengers from CHA Arriving passengers to CHA 7. Hamilton County Hotel & Lodging performance by month & year - including: Occupancy Rates Average Daily Rates (ADR) Revenue Per Available Room (RevPAR)

3 Importance of the Hotel, Restaurant & Travel Industry to the Hamilton County Economy Hamilton County Employment and Number of Establishments in the Hotel, Restaurant, & Travel Sectors, NAICS Sector/Sub-Sector # of Employees # of Establishments 721 Accommodations 1, Hotel, Motel, and B&B 1, RV Parks and Recreational Camps ND ND 7213 Rooming and Boarding Houses NC NC 722 Food Services and Drinking Places 14, Full-Service Restaurants 6, Limited-Service Eating Places 8, Special Food Services Drinking Places (Alcoholic Beverages) Arts, Entertainment, and Recreation 2, Performing Arts Companies Spectator Sports ND Performing Arts and Sports Promoters ND Agents and Managers for Public Figures NC ND 7115 Independent Artists/Writers/Performers Museums, Parks and Historical Sites Amusement, Gambling & Recreation 1, Air transportation ND Taxi and Limousine Service Charter Bus Industry ND Scenic and Sightseeing Transportation ND Travel Arrangement and Reservation Services Convention and Trade Show Organizers ND 2 Total: Hotel, Restaurant, & Travel Sector 18, Source: TN Dept. of Labor and Workforce Development; U.S. Dept. of Labor, Bureau of Labor Statistics, and Tourism Institute, University of Tennessee Total: Hotel, Restaurant, & Tourism Sector = Summation of North American Industry Classifaction System (NAICS) codes 71, 721, 722, 481, 4853, 4855, 487, 5615, & NC = Not Calculable, the data does not exist or it is zero ND = Not Disclosable

4 Ranking of Hotel, Restaurant & Travel Industries by Employment Relative to Other Industries, County Industry Rank Hamilton Co. Rank of Industries by Percent Employment Compared to Tennessee, Industry Hamilton County Tennessee Statewide 1 Trade, Transportation, and Utilities 27.99% 24.44% 2 Education and Health Services 16.31% 20.82% 3 Manufacturing 13.00% 16.00% 4 Professional and Business Services 12.26% 12.15% 5 Hotel, Restaurant, and Travel 9.70% 10.78% 6 Financial Activities 8.33% 5.60% 7 Construction 4.99% 5.00% 8 Other Services 2.81% 2.79% 9 Information 1.30% 1.96% 10 Natural Resources and Mining 0.06% 0.39% 11 Unclassified 0.01% 0.07% Source: TN Dept. of Labor and Workforce Development; U.S. Dept. of Labor, Bureau of Labor Statistics, and Tourism Institute, University of Tennessee NC = Not Calculable, the data does not exist or it is zero ND = Not Disclosable

5 County Tax Revenues Generated, Hotel & Lodging, Restaurant, & Arts, Entertainment & Recreation HAMILTON COUNTY, TN County Tax Revenues Generated, Hotel & Lodging, Restaurant, & Arts, Entertainment, Recreation County Taxes Generated Industry County Tax Rate 2004 Restaurant & Drinking 2.25% 11,397,304 11,993,980 Hotel & Lodging - Sales Tax 2.25% 2,404,409 2,611,399 Hotel Occupancy Tax 4.00% 4,274,504 4,642,487 Arts, Entertainment, & Recreation 2.25% 855, ,800 Total County Taxes Generated $18,931,903 $20,127,666 Source: TN Dept. of Labor and Workforce Development, TN Dept. of Revenue, and Tourism Institute, University of Tennessee

6 Restaurant & Drinking Establishments Employment & Number of Establishments, Restaurant & Drinking Establishments, by Qtr., Restaurant & Drinking Establishments, Number of Employees, by Qtr., st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. Average # of Employees 15,600 15,400 15,200 15,000 14,800 14,600 14,400 14,200 14,000 15,170 15,133 14,745 14,667 14,586 14,673 14,609 15,003 14,576 14,135 14,139 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr Source: TN Dept. of Labor & Workforce Development; U.S. Dept. of Labor, Bureau of Labor Statistics; Tourism Institute, University of Tennessee Restaurant & Drinking Establishments, Average # of Employees 15,000 14,750 14,500 14,250 14,000 13,750 Restaurant & Drinking Establishments, Number of Employees, ,741 14,544 14, ,

7 Hotel & Lodging Employment & Number of Establishments, Hotel & Lodging Establishments, by Qtr., Hotel & Lodging Establishments, Number of Employees, by Qtr., , Average # of Employees 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,444 1,557 1,716 1,532 1,589 1,666 1,718 1,662 1,721 1,916 1, st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr ,300 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr Source: TN Dept. of Labor & Workforce Development; U.S. Dept. of Labor, Bureau of Labor Statistics; Tourism Institute, University of Tennessee Hotel & Lodging Establishments, Hotel & Lodging, Number of Employees, ,700 1, Average # of Employees 1,650 1,625 1,600 1,575 1,550 1,525 1,522 1,573 1, ,

8 Arts, Entertainment, & Recreation Employment & Number of Establishments, Arts, Entertainment & Recreation Establishments, by Qtr., Arts, Entertainment & Recreation, Number of Employees, by Qtr., , st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr ,400 2,300 2,200 2,100 2,000 1,900 1,800 1,700 1,600 1,500 1,556 1,997 2,109 1,732 1,723 2,217 2,341 2,033 1,864 2,296 2,351 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr Source: TN Dept. of Labor & Workforce Development; U.S. Dept. of Labor, Bureau of Labor Statistics; Tourism Institute, University of Tennessee Arts, Entertainment & Recreation Establishments, Arts, Entertainment & Recreation, Number of Employees, , Average # of Employees 2,150 2,100 2,050 2,000 1,950 1,900 1,850 1,824 1,848 2, ,

9 Restaurant & Drinking, Hotel & Lodging, & Arts, Entertainment, & Recreation Gross Sales by, Restaurant & Drinking, Gross Sales, Hotel & Lodging, Gross Sales, Gross Sales ($ Millions) Gross Sales ($ Millions) Source: TN Dept. of Revenue; Tourism Institute, University of Tennessee Gross Sales ($ Millions) Arts, Entertainment & Recreation, Gross Sales, Gross Sales Reports Definitions Gross Sales: the total amount of money received in sales by a business in a specified period of time before any deductions for costs, raw materials, taxation or other costs of production. Restaurants & Drinking Places: retail establishments selling prepared food and drinks for consumption on the premises including full-service restaurants, limitedservice restaurants, caterers, and lunch counters. Also includes establishments selling beverage alcohol, in-plant food contractors as well as leased eating and drinking concessions in hotels, sports arenas, and other amusement places. Hotels & Lodging: establishments engaged in providing lodging services including hotels, motels, bed and breakfast inns, RV parks and recreational camps, and rooming and boarding houses. Arts, Entertainment & Recreation: establishments primarily engaged in amusement, recreation, entertainment services. Includes spectator sports, performing arts companies, museums, art and museums places, parks and historical sites. Data Source: Tennessee Department of Revenue

10 Chattanooga Metropolitan Airport Departing and Arriving Passengers Departing Passengers - Chattanooga Metropolitan Airport, by, Departing Passengers - Chattanooga Metropolitan Airport, by, , ,000 24,000 Enplaned Passengers 23,000 22,000 21,000 20,000 19,000 18,000 17, Enplaned Passengers 260, , , , , ,064 (Jan-Nov) 16, ,000 15,000 17,950 17,749 21,928 20,295 23,439 22,371 20,258 19,937 20,516 22,770 22,851 18,213 19,278 22,985 23,030 24,440 24,227 21,649 20,859 20,343 22,674 20,622 20, ,846 17,435 19,838 20,101 22,306 22,186 21,570 19,522 19,309 22,182 21,132 22, , Source: Chattanooga Metropolitan Airport; Tourism Institute, University of Tennessee Arriving Passengers - Chattanooga Metropolitan Airport, by, Arriving Passengers - Chattanooga Metropolitan Airport, by, , ,000 24,000 Deplaned Passengers 23,000 22,000 21,000 20,000 19,000 18,000 17,000 16, Deplaned Passengers 260, , , , , , ,211 (Jan-Nov) 15,000 17,466 18,429 21,591 20,019 22,088 21,916 20,219 19,596 19,725 22,036 22,126 17,444 18,518 22,851 22,650 23,149 23,244 21,262 20,768 19,617 22,055 20,209 19, ,998 16,817 20,125 19,505 21,121 21,649 21,290 19,822 18,542 22,487 20,591 21, ,

11 Hamilton County Hotel & Lodging Occupancy Percentages & Percent Change by, - Hotel & Lodging Occupancy Percentages by, (Hamilton County) Percentage (%) Chattanooga Hotel & Lodging Occupancy Percent Change from Same, - (Hamilton County) Zip Codes Included in Hamilton County Hotel & Lodging Data: Percent Change (%) Source: Smith Travel Research, Hendersonville, TN

12 Hamilton County Hotel & Lodging Average Daily Rate (ADR) & Percent Change by, - Hotel & Lodging Average Daily Rate (ADR) by, (Hamilton County) Average Daily Rate ($) Chattanooga Hotel & Lodging Average Daily Rate (ADR) Percent Change from Same, - (Hamilton County) Zip Codes Included in Hamilton County Hotel & Lodging Data: Percent Change (%) Source: Smith Travel Research, Hendersonville, TN

13 Hamilton County Hotel & Lodging Revenue Per Available Room (RevPAR) & Percent Change by, - Hotel & Lodging Revenue Per Available Room (RevPAR) by, (Hamilton County) Revenue Per Available Room ($) Percent Change (%) Hotel & Lodging Revenue Per Available Room (RevPAR) Percent Change from Same, - (Hamilton County) Chattanooga Zip Codes Included in Hamilton County Hotel & Lodging Data: Source: Smith Travel Research, Hendersonville, TN

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