New Mexico Tourism Department Quarterly Report

Transcription

1 New Mexico Tourism Department Quarterly Report Issue # July 2012 James Orr New Mexico Tourism Department Research Coordinator

2 INTRODUCTION The purpose of the New Mexico Tourism Department s Quarterly Reports is to document the state of New Mexico s tourism industry and the department s efforts to promote tourism by monitoring a variety of tourism indicators. This is the third edition of the New Mexico Tourism Department Quarterly Report and it s the first report since the release of Longwoods Travel USA 2011 data set, and so nearly every measure has been updated. There have also been numerous changes within sections of the report, including the addition and deletion of a variety of measures: The U.S. Travel Sector Performance and Trends section includes a broader selection of short term USTA measures while discontinuing long term economic projections that were considered to be not very informative. In the New Mexico Brand Performance section, the Intent to Travel measures were recalculated using new algorithms suggested by Longwoods International, and one new measure Repeat Visitation Rate was added. Within the New Mexico Visitor Relationships section, a new Facebook measure PTAT (which stands for people talking about this) was added to the Social Media Presence measure. PTAT is a comprehensive metric that measures the overall health of a Facebook brand Page. It analyzes the conversation happening around a Page and provides a numerical score (see page 11 for more details). All of the measures within the New Mexico Visitor Profile and Visit Characteristics sections have been updated with 2011 data, plus Passenger volume data for the Santa Fe Municipal airport was added. The Economic Impact of Tourism in New Mexico section was heavily revised. New, more reliable and timely sources were substituted for the New Mexico Leisure and Hospitality Employment measure and the Total Tourism Spending in New Mexico measure. For the New Mexico Leisure and Hospitality Employment measure, quarterly U.S. Bureau of Labor Statistics data replaced annually released USTA data. See for a description of what is included in the BLS Leisure & Hospitality supersector. For the Total Tourism Spending in New Mexico measure, data from Tourism Economics 2011 The Economic Impact of Tourism in New Mexico replaced USTA data (which had not been updated for two years). The Tourism Economics data is more comprehensive than what was available previously. This report, released for the April through June, 2012 quarter, contains data that was available as of September 30 th, The department s Quarterly Report is a living document that will evolve based on feedback and new information sources. Comments are welcome and should be addressed to james.orr@state.nm.us. Page 2

3 Contents EXECUTIVE SUMMARY... 4 U.S. TRAVEL SECTOR PERFORMANCE AND TRENDS... 8 NEW MEXICO BRAND PERFORMANCE Visitation Growth Intent to Travel National Recognition, In-State Regard, Repeat Visitation Rate NEW MEXICO VISITOR RELATIONSHIPS Social Media Presence Youtube Views Website Interaction Visitor Guides E-newsletter Performance Visitor Information Center Visits New Mexico Magazine Subscribership NEW MEXICO VISITOR PROFILE Percent Primary Overnight Visitor Trips Regional Concentration of Visitor Trips Average Age of Visitors Outdoor & Cultural Activities Indexes VISIT CHARACTERISTICS Fly Market Airport Passenger Volume Albuquerque International Airport Airport Passenger Volume Santa Fe Municipal Airport New Mexico National Park and Monuments Visits State Museums and Monuments Visits State Parks Visits ECONOMIC IMPACT OF TOURISM IN NEW MEXICO New Mexico Leisure and Hospitality Employment Self-reported Spend Total Tourism Spending in New Mexico New Mexico Hotel & Motel Total Receipts New Mexico Food, Drink and Accommodation Gross Receipts* New Mexico Lodgers Tax Receipts Page 3

4 EXECUTIVE SUMMARY On the National level, United States Travel Association (USTA) data (on pages 8 and 9) were mixed during the 2nd quarter of Employment gains slowed and consumer confidence declined somewhat during the quarter, but the Travel Sentiment Index held steady. Lodging performance increased modestly although the Mountain state region (which includes New Mexico), showed the smallest gains. Rural Arterial Vehicle miles driven (as shown in the Transportation chart) was positive for the quarter and the Travel Price index was relatively flat after increasing in the spring. Gas prices declined during most of the second quarter which was positive for New Mexico which is heavily dependent on the drive market. In 2011, New Mexico s overnight and day-trip visits increased 5.8% and 3.7% respectively for a combined total of 31.2 million visits, an increase of 1.4 million visits from 2010 (page 10). While visits to New Mexico increased, visits increased by a similar amount nationally, such that New Mexico s national market share held steady at about 1%, as it has for the last four years. But, as can be seen in the table below, what was especially encouraging for New Mexico tourism was an increase in 2011 in the quality of New Mexico s overnight visitors Primary 1 overnight visitation increased 12.4% and the number of overnight non-primary visits declined 8.1%. In a nutshell, Primary visits are much more valuable than non-primary visits since by definition, non-primary visitors spend most of their tourist dollars outside New Mexico (refer to footnote 1 for more details). Since in-state visitor spending is higher for Primary overnight visits and the total number of visitors increased, total visitor spending should also have increased, and New Mexico s tourism spend did increase by 5.9% in 2011 (see page 27). However, one countervailing factor was an increase in the percent of overnight visitors whose main trip purpose was in VFF - Visiting Friends and Family (VFF increased as a proportion of all overnight trips from 36.5% in 2010 to 39.3% in 2011). Spending for VFF trips is much lower than non-vff trips (44.8% less) yet the overall increase in visitation and proportion of Primary visits offset the VFF increase. New Mexico Change All Domestic Visitors 31,200,000 29,800, % Day-Trip Visitors 16,700,000 16,100, % Overnight Visitors 14,500,000 13,700, % -Primary Overnight 10,454,500 9,300, % -Pass-through Overnight 4,045,500 4,400, % 1 Primary visits are those in which overnight visitors spend at least one night in a state AND spent most of their time in that state. Pass-through or non-primary trips are trips in which visitors spent at least one night in a state, but spent most of their time in a different state. Since most of their visit is spent outside New Mexico, non-primary overnight visitors (of which New Mexico has a higher percentage than competitive states) spend relatively few dollars in-state compared to Primary visitors. Page 4

5 This report is the first to include two years of Longwoods International data for the seven annually updated baseline indexes that will be used in the future to help measure the impact of the department s new marketing strategies. 2 The following seven comparative 3 indexes contrast New Mexico s scores with those of our competitive set of states (Colorado, Arizona and Utah). Between calendar years 2010 and 2011 the following changes occurred in these measures: For each of the Intent to Travel measures 4 (National Recognition, In-State Regard, and Repeat Visitation Rates) in the NEW MEXICO BRAND PERFORMANCE section (page 10) New Mexico lagged behind our competitive set in both 2010 and However, the most problematic of these three measures is the Repeat Visitation Rate. This index (new for this report) measures the percentage of visitors who intend to return to the state they previously visited and spent most of their time in. New Mexico s repeat visitation rate is 11 to 12 percent lower than the competitive set average. The fact that this lower rate was consistent over two years indicates the result is not an anomaly, but points to a different dynamic in visitor s experiences in and perceptions of each state. The department s long term goal is to increase New Mexico s return rate so it is competitive with our competitive set. Increasing the proportion of Primary Overnight visits (page 17, in the NEW MEXICO VISITOR PROFILE section) is an important goal since, compared with our competitive set, New Mexico has a significantly smaller percentage of primary visitors. In 2011 New Mexico showed substantial improvement in this measure. Primary trips increased 4%, from 68% to 72% of all overnight trips while the competitive set average increased just 0.6%. Another long term objective is to reduce the Regional Concentration of Visitor Trips (page 17). The equivalent measure of regional visitor concentration from our competitive set of states (Colorado, Arizona and Utah) is substantially lower, largely because a higher percentage of their visitors arrive by plane and fly market trips are more likely to originate from a more geographically diverse set of states. Regional concentration declined in 2011 for both New Mexico and our competitive set as compared to The department seeks to align the Average Age of Visitors with our competitive set (page 18). Average age of all overnight visitors should decline as the percentage of Primary Overnight visits increases since non-primary overnight visitors are older on average than Primary overnight visitors. That is what occurred in 2011, as the average age of both Primary and all overnight visitors declined to levels similar to those of our competitive set of states. 2 While NMTD ran advertising and promotions in 2011, the True marketing campaign began in the spring of Due to the time lag in the delivery of Longwoods International annual survey results, any changes in these indexes due to the True marketing campaign won t be available until July 2013 and beyond. 3 Comparative measures allow us to better understand and measure New Mexico s competitive position now and in the future. 4 All the 2010 and 2011 Intent to Travel measures were recalculated based on suggestions from Longwoods International. Page 5

6 Results were mixed for the Outdoor and Cultural activities indexes on page 19. New Mexico s rich culture, combined with numerous opportunities for outdoor activities is a unique strength of New Mexico. The Outdoor and Cultural Activities index (constructed from the set of activities listed on page 19) allows comparisons to be made to regional and national averages. In 2010, New Mexico had very high activity scores for Cultural activities, but lagged compared to our competitive set for Outdoor activities. In 2011, New Mexico s Outdoor Activity score increased by 1.0 while the Culture index decreased by 3.5. These scores changed little nationally and for our competitive set. The decline in New Mexico s Culture index was mostly due to lower visitation to Museums and Landmarks/Historic sites. Another goal is to increase Fly market visits to New Mexico. New Mexico has been more heavily reliant on the drive market than our competitive set (page 20). Analysis of fly market visitors shows they spend more in nearly all categories than drive market visitors. Therefore, it is believed a more balanced fly/drive visit profile (more similar to our competitive set) would be beneficial for New Mexico. In 2011 the percent of New Mexico Primary overnight visitors who travelled by air increased from 14.9% to 16.7%. The competitive set average changed little. Another long term objective is to increase the Self-reported Spend of New Mexico s overnight visitors (page 26). Primary 2011 overnight visitor per trip spend in New Mexico increased 9.3% from 2010, while per person per day per trip spend decreased 5.7%. Per trip per person spending declined only because the average trip party size and the number of nights away increased. So despite the increase in overall spending, the combination of these two factors (which are desirable in and of themselves) had a negative impact on the per person per trip per day spend. For the second quarter 2012, the following New Mexico measures that are reported on a quarterly basis increased from the second quarter 2011: New Mexico Leisure and Hospitality Employment, Social Media presence; E-newsletter Performance, # of Downloads of the Online Vacation Guide, Santa Fe airport passenger volume, National Park and Monument visits, New Mexico Hotel & Motel Total Receipts and New Mexico Food, Drink and Accommodation Gross Receipts. The following decreased: Youtube views, Website interaction, Online visitor guide visits and the number of mailed guides, visitor information center visits, State Museums and Monument visits, state parks visits, Albuquerque Sunport passenger volume, and state park visits. However, of all these quarterly measures, arguably the most important are those that measure the economic impact of tourism, and all economic impact measures were positive during the second quarter. Tourism related employment, gross receipts taxes and Hotel and motel receipts all increased 2.6% to 3.6% from the second quarter The following summarizes performance for each quarterly measure: Page 6

7 New Mexico Leisure and Hospitality Employment increased 2.6% the second quarter 2012 compared to Total Hotel/motel receipts (the number of occupied rooms multiplied by the average room rate) increased 3.6%. The total Gross receipts taxes for Food, Drink and Accommodations increased 3.6% in the second quarter of 2012 (pages 25, 28 & 29). Passenger volume through the Albuquerque airport decreased 3% compared to 2011Q2 although Passenger volume through the Santa Fe airport increased by 8.6% (pages 21 & 22). Visits to all department Websites decreased 26.9% in 2012Q2 (page 13). The decrease in visits was expected as the department launched a completely new website in the second quarter with new streamlined content. We expect these numbers will build as more content and features are added in the coming months. However, also note on page 13that there was an impressive response to NMTD s True advertising campaign. The number of Facebook fans (Social Media presence) increased as did the PTAT or People Talking AbouT measure. This newly introduced measure is a comprehensive metric that measures the overall health of a Facebook brand Page, and it has shown a nearly six fold increase compared to the 1st quarter as more department resources are devoted to Facebook. (see page 11 for a more thorough description of PTAT.) The number of Youtube views on the department s Youtube sites increased 17.1% and decreased 4.4% respectively. This was because there was a large spike during the first two weeks of May 2011 due to the launch and online push of the "Day of Enchantment" promotion. The 30-second commercial (with the spinning digital clock/location in the center of the frame) had an unusually high 15,500 plays in those two weeks. Overall, however, videos have seen an upward trend this calendar year. The number of department E-Newsletters sent during 2012Q2 increased 86,504 from the second quarter of 2011 (pages 15). National and state parks visits increased 2.7% and declined 0.2% respectively in 2012Q2 compared to the 2011Q2 (pages 23 and 24). Visits to State museums and monuments decreased 2.8% in the second quarter of 2012 (page 24). Visits to the department s nine Visitor Information Centers decreased 43.7% in the second quarter of 2012, or -5.3% when the closing of the Manuelito VIC is taken into account (page 16). There was a continued decline in online Visitor Guide visits (4.2%), and in Mailed visitor guides (30.2%) in the second quarter of 2012 compared to the second quarter of 2011 (page 14). However, Downloads of the online guide increased 4.7% as an Apple IPad app was made available for download in June 2012 and downloads of the app were included in the VG download stats. It should be noted that the traditional visitor guide format has been in decline since 2001 as consumers increasingly turn to travel websites, user content generated travel websites (such as Tripadvisor.com), mobile applications and social media for travel information. Page 7

8 U.S. TRAVEL SECTOR PERFORMANCE AND TRENDS National indicators* from the United States Travel Association were mixed during the 2 nd quarter of Employment gains were slower and consumer confidence decreased somewhat during the quarter but the Travel Sentiment Index held steady. Lodging performance increased modestly although the Mountain state region which includes New Mexico showed the smallest gains. The Rural Arterial Vehicle miles driven (as shown in the Transportation chart) were positive for the quarter and the Travel Price index was relatively flat after increasing in the spring. Gas prices declined during most of the second quarter (gas prices are a serious issue for New Mexico as we are heavily dependent on the drive market). *All charts on pages 8 and 9 (except for the 24 month Average Retail Gas Price Chart) were reproduced by permission of the United States Travel Association Page 8

9 *All charts on page 7 and 8 (except for the 24 month Average Retail Gas Price Chart) were reproduced by permission of the United States Travel Association Page 9

10 NEW MEXICO BRAND PERFORMANCE Visitation Growth In 2011, overnight and day-trip visits increased 5.8% and 4.4% respectively for a combined total of 31.2 million visits. New Mexico has maintained a market share of close to 1% for the last five years. New Mexico Total Person Visits & U.S. Market Share (% market share of overnight & day trip visits) CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 NM Overnight Trips* Y/Y Growth 1.4% -7.3% -1.4% 5.8% Overnight U.S. Market Share 1.03% 1.05% 1.06% 1.00% 1.00% NM Day Trips* * In Millions; No CY 2007 for NM Day Trips Intent to Travel National Recognition, In-State Regard, Repeat Visitation Rate Objective: Improve perceptions of New Mexico as an attractive travel destination for both the national and in-state travel markets so that it is more in line with competitive set averages. The percentage of New Mexicans who intend to take an overnight trip within New Mexico is consistently lower than the competitive set average. Increasing this percentage would provide a significant boost to tourism as New Mexicans are the single largest market for New Mexico tourism. The repeat visitation rate is also low. Over time, improving the visitor experience in New Mexico should improve this measure. Percent of Respondents in the Longwoods Intl. National Sample Intending to Visit New Mexico or Competitive Set* states in the next 12 months National Recognition CY 2010 CY 2011 New Mexico 2.0% 1.9% Competitive Set Average* 4.5% 4.2% Percent of State Residents Intending to Take an Overnight Trip within their Own State In-State Regard CY 2010 CY 2011 New Mexicans 29.2% 27.7% Competitive Set Average* 33.6% 33.1% Percent of Visitors Intending to Return to the State They Previously Visited and Spent Most of their Time In Repeat Visitation Rate CY 2010 CY 2011 New Mexico 40.5% 39.2% Competitive Set Average* 51.5% 51.2% * Competitive set average is the w eighted average of scores for Arizona, Colorado & Utah For both tables on this page: Source: Longwoods International 2010 & 2011 Travel USA data sets Interval of Measurement: Annual by Calendar Year Page 10

11 Social Media Presence Objective: Grow active visitor relationships. NEW MEXICO VISITOR RELATIONSHIPS Measurement of the department s Facebook activities began in the 3 rd quarter of calendar year There has been steady improvement in the number of fans each quarter, and a new measure, PTAT or People Talking About This was introduced August, PTAT is a comprehensive metric that measures the overall health of a Facebook brand Page. It analyzes the conversation happening around a Page across Facebook and provides a numerical score. It includes activities such as liking our page; liking, commenting on, or sharing a page post, answering a question, responding to an event, mentioning our page, and tagging a photo. The department s average 2 nd quarter PTAT measure increased nearly six fold compared to the 1 st quarter as more department resources were devoted to Facebook. New Mexico Department of Tourism Facebook Statistics 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 # of fans of Dept. facebook site (3 month ave) 32,862 34,094 36,131 37,377 38,202 39,909 Y/Y Growth 24.4% 13.3% 16.2% 17.1% Dept. Facebook PTAT (3 month ave) ,298 3,500 3,000 2,500 2,000 1,500 1, Q3 2011Q4 2012Q1 2012Q2 Dept. Facebook PTAT Source: Facebook Insights Interval of Measurement: Quarterly by Calendar Year Page 11

12 Youtube Views Visits to the department s YouTube page were 4.4% lower in the second quarter of 2012 compared to the same period in This was because there was a large spike during the first two weeks of May 2011 due to the launch and online push of the "Day of Enchantment" promotion. The 30-second commercial (with the spinning digital clock/location in the center of the frame) had an unusually high 15,500 plays in those two weeks. Overall, however, video views are staying at high levels this calendar year. (All department videos were sourced exclusively with YouTube beginning July Before that, videos were played from either YouTube or Flickr, so direct yoy comparisons begin as of July 2012.) Youtube: # of Views of Videos 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 CY 2011 # of views 11,243 31,754 29,230 27,427 28,670 30,358 99,654 Y/Y Growth 155.0% -4.4% 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Number of Youtube Views Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 Source: Youtube Interval of Measurement: Quarterly by Calendar Year Page 12

13 Website Interaction Website visits to all department websites decreased 26.9% in the second quarter of The decrease in visits in the second quarter was expected as the department launched a completely new website with all new streamlined content during that quarter. We expect these numbers will build as we add content and features in the coming months. Department Website Data & Statistics 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 CY 2010 CY 2011 Newmexico.org Visits 520, , , , ,216 1,768,329 1,670,291 Y/Y Growth 3.3% -11.4% -9.3% -1.0% -31.4% 11.09% -5.5% NewMexico.org Unique Visits 427, , , , ,088 1,392,411 1,309,625 Y/Y Growth 4.1% -13.6% -10.7% -5.3% -29.4% 9.8% -6.0% NewMexico.org Pages per visit Y/Y Growth -9.1% -8.0% -5.1% -3.9% -26.0% -11.6% -8.7% NewMexico.org Ave time on site Y/Y Growth -7.3% -7.1% -3.5% -3.0% -15.2% -10.6% -6.2% Total visits to all Department websites* 588, , , , ,630 2,147,163 1,967,047 Y/Y Growth -14.1% -0.8% -8.1% 5.0% -26.9% 17.5% -8.4% Bounce Rate 56% 56% 57% 55% 60% 51% 55% * Includes vists to NewMexico.org, NMmagazine.com, Day of Enchantment for 2010Q2, Catch the Kid for 2011Q3 and Getthepicture.com for 2012 However, there was an impressive increase in web activity from the DMAs targeted by the 2012 True campaign. The following table shows the increase in Newmexico.org visits during the initial phase of the campaign from April 17 th through July 31 st, Website visits from the targeted media markets in three states increased from 53% to 338% in response to True Campaign advertising (an average increase of 178% compared to a 5.9% increase for the entire state totals). There were 23,433 more Newmexico.org visits as a result of the ad campaign during this period. The Power of Advertising: Change in Newmexico.org Visits 4/17 thru 7/31 Compared to 1/2 thru 4/16: Texas - entire state 1.4% Amarillo 159.3% El Paso 53.2% Lubbock 130.4% Midland 196.5% Odessa 337.7% Colorado - entire state 6.0% Colorado Springs 191.2% Pueblo 176.1% Arizona - entire state 10.4% Tucson 183.1% Source: Google Analytics Interval of Measurement: Quarterly by Calendar Year Page 13

14 Visitor Guides The traditional visitor guide format has been declining since 2001 as consumers increasingly turn to websites, user content generated travel websites (such as Tripadvisor.com), mobile applications and social media for travel information. The department will continue to monitor visitor guide use and make adjustments accordingly. In June 2012, the department introduced an Apple IPad app of the visitor guide. Data from the app is included in the 2012Q2 visitor guide numbers under Downloads of Online Guide. Online & Mailed Visitor Guides 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 CY 2011 # of Visits to Online Guide 21,110 18,980* 9,813 15,014 20,221 69,061 Y/Y Growth -9.9% 13.8% -8.7% -21.6% -4.2% -12.3% # of Downloads of Online Guide * ,830 Y/Y Growth -21.4% 12.5% -16.8% -23.2% 4.7% -11.8% # of Requested Mailed Visitor Guides 22,243 10,790* 7,750 21,127 15,528 70,470 Y/Y Growth -29.9% -59.6% -44.8% -28.8% -30.2% -37.1% *From June 20 th through July 31 st only online guides were available. Paper guides began to be delivered again on August 1 st Source: Zmags.com & Digimag beginning June, 2012 (for online data); Adelante Mailing Services (for data on mailed guides). Interval of Measurement: Quarterly by Calendar Year Page 14

15 E-newsletter Performance Objective: Grow visitor touch points. E-newsletter data is only available since August 2010; however, the metrics have improved nearly every quarter since then. E-newsletters are sent monthly by the department highlighting upcoming events and specific features of the state. The number of E-newsletters sent has increased steadily over the last seven quarters. E-newsletters Sent & Open Rate 2010Q4 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 CY 2011 # of e-newsletters sent 299, , , , , , ,427 1,237,252 % e-newsletter open rate (average) 16.8% 17.0% 17.4% 18.0% 17.6% 20.0% 18.8% 17.5% * 2010Q3 data only available beginning August 2010 Source: Vertical Response Interval of Measurement: Quarterly by Calendar Year Page 15

16 Visitor Information Center Visits Visits to the nine Visitor Information Centers were down 43.7% in the second quarter of However, this was because the Manuelito VIC was closed for repairs from April through July If the Manuelito VIC numbers are excluded, total VIC Visits declined 5.3% from 2011Q2. The Manuelito VIC near Gallup is the highest volume VIC. It accounted for almost half (45.3%) of all VIC visits in the first three months of 2012, so if it is closed the overall numbers fall dramatically. Total Visits to NMTD's Visitor Information Centers 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2* CY2010 CY 2011 Total Visits 220, , , , , ,119 1,278,150 1,182,732 Y/Y Growth -9.4% -9.3% -4.4% -7.6% 2.8% -43.7% 2.5% -7.5% * or -5.3% if the closed Manuelito VIC is not counted Source: New Mexico Tourism Department Visitor Information Center Program. Interval of Measurement: Quarterly by Calendar Year New Mexico Magazine Subscribership New Mexico Magazine circulation numbers stabilized in calendar year 2011 compared to These are BPA Qualified Circulation numbers that are averaged by month for each calendar year. New Mexico Magazine Circulation Numbers CY 2009 CY 2010 CY 2011 Magazine Circulation 100,083 92,446 91,815 Y/Y Growth -7.6% -0.7% Source: New Mexico Magazine Interval of Measurement: Calendar Year Page 16

17 NEW MEXICO VISITOR PROFILE Percent Primary Overnight Visitor Trips Objective: Increase the percentage of Primary Overnight visits and decrease the percentage of pass-through visits. New Mexico s share of Primary overnight visitor trips increased 4% from 2010 to 2011 while the Competitive set average barely changed. (*Primary visits are those in which overnight visitors spend at least one night in a state AND spent most of their time in that state. Pass-through or non-primary trips are trips in which visitors spent at least one night in a state, but spent most of their time in a different state. Since most of their visit is spent outside New Mexico, Pass-through overnight visitors (of which New Mexico has a higher percentage than competitive states) spend relatively few dollars in-state compared to Primary visitors.) % of Primary* Overnight Visitors CY 2010 CY 2011 New Mexico 68.0% 72.0% Competitive Set** 84.3% 83.9% * Primary visitors are overnight visitors w ho spent most of their time in that state. ** Competitive set is w eighted average of Arizona, Colorado & Utah. Regional Concentration of Visitor Trips Objective: Broaden New Mexico s visitor market by reducing the percentage of visitor trips from the top 5 states of origin. New Mexico s percent of visitor trips from the top five states of origin (for New Mexico, the top 5 states of origin for overnight trips are New Mexico, Texas, Arizona, Colorado and California) declined.9% in 2011 as did the Competitive set average. The equivalent top 5 states weighted average from our competitive set of states continues to be substantially lower, largely because a higher percentage of their visitors arrive by air and fly market visitors are much more likely to come from a more diverse set of states. % of Primary* Overnight Visitors from top 5 states CY 2010 CY 2011 New Mexico 78.2% 77.3% Competitive Set** 67.8% 66.9% * Primary visitors are overnight visitors w ho spent most of their time in that state. ** Competitive set is w eighted average of Arizona, Colorado & Utah. For the two tables on this page: Source: Longwoods International 2010 & 2011 Travel USA data sets Interval of Measurement: Annual by Calendar Year Page 17

18 Average Age of Visitors Objective: Align the average age of overnight visitors to our competitive set. There was a significant change in the age profile of New Mexico s overnight visitors in While in 2010 New Mexico s visitors were older than average, especially for non-primary (all Overnight) visitors, in 2011, New Mexico s visitors were very similar to the U.S. and Competitive set averages. Primary Overnight Visitors* All Overnight Visitors Average Age of Overnight Visitors CY 2010 CY 2011 New Mexico Competitive Set** U.S New Mexico Competitive Set** U.S * Primary visitors are overnight visitors who spent most of their time in that state. ** Competitive Set is the weighted average of Arizona, Colorado, Utah. Source: Longwoods International 2010 & 2011 Travel USA data sets Interval of Measurement: Annual by Calendar Year Page 18

19 Outdoor & Cultural Activities Indexes Objective: Increase visitor Outdoor activity levels and maintain high Cultural activity levels. New Mexico s rich culture, combined with numerous opportunities for outdoor activities is a unique strength of New Mexico. These indexes are the cumulative totals of Outdoor and Cultural activities Primary visitors engaged in during their trips. When New Mexico s scores are compared to regional and national averages, New Mexico has uniformly high activity levels for Cultural activities, but lags compared to our competitive set for Outdoor activities. (Note that only Primary overnight visitors were measured as nonprimary overnight visitors spent most of their trip outside New Mexico.) For 2011, the percentage of Primary overnight visitors who engaged in Outdoor activities increased from 33.6% to 34.6% in 2010, while the percentage who engaged in Cultural activities declined from 60.2% in 2010 to 56.7%. There was little change for the national and competitive set visitors. Outdoor Activity Index* Culture Index** Outdoor Activity and Culture Indexes (for primary overnight visitors) CY 2010 CY 2011 New Mexico Competitive Set U.S New Mexico Competitive Set U.S * Outdoor Activity Index is cumulative total of % of Primary overnight visitors who engaged in Hiking/backpacking, Camping, Fishing, Mountain Climbing, Golf, Skiing/snowboarding, Hunting, Biking or Rafting. ** Culture Index is cumulative total of % of Primary overnight visitors who attended either a Museum, Landmark/historic site, Art gallery, Winery, Theater, Fair/exhibition/festival, Rock/pop concert, Symphony, Opera or Rodeo. Source: Longwoods International 2010 & 2011 Travel USA data sets Interval of Measurement: Annual by Calendar Year Page 19

20 VISIT CHARACTERISTICS Fly Market Objective: Grow the fly market as a percent of total visits. New Mexico is more reliant on the drive market than our competitive set. Analysis of fly market visitors shows they spend more in nearly all spending categories compared to drive market visitors. Therefore, it is believed a more balanced fly/drive visit profile (more similar to our competitive set) would be beneficial for New Mexico. In 2011, the percent of Primary overnight visitors who travelled by air increased from 14.9% to 16.7%. The competitive set average showed little change. Traveled by Air - Percent of Primary Overnight Visits CY 2010 CY 2011 New Mexico 14.9% 16.7% Competitive set weighted average* 23.8% 23.7% * Competitive set is Arizona, Colorado, Utah Source: Longwoods International 2010 & 2011 Travel USA data sets Interval of Measurement: Annual by Calendar Year Page 20

21 Airport Passenger Volume Albuquerque International Airport There was a 3.0% decrease in passenger volume through the Albuquerque International Airport in the second quarter of There have been decreases in volume the last three full calendar years. Albuquerque International Airport Total Enplaned & Deplaned 2011Q1 2011Q Q3 2011Q4 2012Q1 2012Q2 CY 2009 CY 2010 CY 2011 ABQ Rider Count* Y/Y Growth -1.7% -2.2% -1.9% -1.0% -1.1% -3.0% -9.3% -1.6% -1.7% * In millions Source: City of Albuquerque Website, Airport Fact and Figures, Interval of Measurement: Quarterly Page 21

22 Airport Passenger Volume Santa Fe Municipal Airport Passenger volume at the Santa Fe Airport increased 8.6% during the second quarter of For the first two quarters of 2012, volume is up 4.7% over the first two quarters of Santa Fe Municipal Airport Total Enplaned & Deplaned 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 CY 2010* CY 2011 SAF Rider Count 16,130 24,178 28,027 18,431 15,961 26, Y/Y Growth -6.7% -3.2% 11.2% -6.8% -1.0% 8.6% 344.0% -0.6% * Service began on June 11, 2009 Source: Santa Fe Municipal Airport Interval of Measurement: Quarterly Page 22

23 New Mexico National Park and Monuments Visits Objective: Grow visitation to New Mexico s unique natural and cultural attractions. Visits were up 2.7% in the second quarter of 2012 compared to the same period in National Parks and Monuments include the following: Aztec Ruins NM; Bandelier NM; Capulin Volcano NM; Carlsbad Caverns NP; Chaco Culture NHP; El Malpais NM; El Morro NM; Fort Union NM; Gila Cliff Dwellings NM; Pecos NHP; Petroglyph NM; Salinas Pueblo Missions NM; White Sands NM New Mexico National Park & Monument Visits 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 CY 2010 CY 2011 NM National Park Visits 280, , , , , ,886 1,657,550 1,455,587 Y/Y Growth 5.30% -12.5% -16.5% -18.7% -1.8% 2.7% 10.6% -12.2% Source: National Park Service Public Reports, Interval of Measurement: Quarterly Page 23

24 State Museums and Monuments Visits Museum and Monuments visits declined 2.8% in the second quarter of 2012, following increased visitation the previous four quarters. Visits to New Mexico State Museums & Monuments 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 CY 2010 CY 2011 State Museum & Monument Visit 230, , , , , , ,767 Y/Y Growth 1.6% 3.2% 4.1% 7.5% -2.8% -8.8% 0.7% Source: New Mexico Department of Cultural Affairs Interval of Measurement: Quarterly State Parks Visits State parks visits increased by 0.2% in the second quarter from the 2 nd quarter of The second and third quarters of 2011 were down due to large fires and some closures that occurred during that period. Visits to New Mexico State Parks 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 CY 2010 CY 2011 State Parks Visits 1,537,447 1,751, , ,919 1,534,641 4,766,156 4,244,739 Y/Y Growth -14.1% -14.1% -4.6% -5.4% -0.2% -1.9% -10.9% Source: Energy Minerals, National Resources Department, Park & Recreation Division Interval of Measurement: Quarterly Page 24

25 ECONOMIC IMPACT OF TOURISM IN NEW MEXICO Objective: Make tourism the economic growth engine for New Mexico. New Mexico Leisure and Hospitality Employment Objective: Increase Tourism related employment. This is a new indicator beginning in this quarterly report. Utilizing U.S. Bureau of Labor Statistics data in the Leisure and Hospitality sectors, this indicator adds a standard measure of tourism-related employment which will be utilized in all future reports. L Leisure and Hospitality Employment has been increasing in New Mexico since the second quarter of 2011 and picked up substantially in the second quarter of 2012, increasing 2.6%, which represents an additional 2,200 jobs over the previous year. New Mexico Leisure and Hospitality Employment (in thousands) 2011Q1 2011Q Q3 2011Q4 2012Q1 2012Q2 CY 2009 CY 2010 CY 2011 Number of Jobs Y/Y Growth -1.7% 0.7% 0.8% 1.3% 1.3% 2.6% -3.0% -0.6% 1.0% Source: U.S. Bureau of Labor Statistics Interval of Measurement: Quarterly Page 25

26 Self-reported Spend Objective: Increase visitor spending. Primary 2011 overnight visitor per trip spend in New Mexico increased 9.3% from 2010, while per person per day per trip spend decreased 5.7%. Primary Overnight Visitors* Primary Overnight Visitors* Average $ Spent on Overnight Trips (per trip) CY 2010 CY 2011 New Mexico $ $ Competitive Set** $ $ U.S. $ $ Average $ Spent on Overnight Trips (per person per trip per day) CY 2010 CY 2011 New Mexico $67.34 $63.50 Competitive Set** $68.50 $71.74 U.S. $70.61 $74.00 * Primary visitors are overnight visitors who spent most of their time in that state. ** Competitive set is the weighted average of Arizona, Colorado & Utah residents As seen in the table below, per trip per person spending declined only because in New Mexico the average trip party size and the number of nights away increased. So despite the increase in overall spending, the combination of these two factors (which are desirable in and of themselves) had a negative impact on the per person per trip per day spend Change Average travel party size % Average Number Of Nights Away % Expenditures per trip $ $ % Spend per trip per person per day $67.34 $ % Source: Longwoods International 2010 & 2011 Travel USA data sets Interval of Measurement: Annual by Calendar Year Page 26

27 Total Tourism Spending in New Mexico Tourism Economics 2011 economic impact study showed total Tourism sales were up 5.9% in s $5.513 billion finally surpassed the pre-recession year of 2008 as Lodging and Food & Beverage sales were higher than in Gasoline sales grew the fastest in 2011 due to last year s high prices. Also note the importance of spending associated with second homes (almost 10% of the total). New Mexico Tourism Sales, $US Millions Lodging $1,230 $1,134 $1,201 $1,233 Gasoline $484 $349 $413 $524 Local Transport $218 $205 $209 $225 Food & Bev. $1,164 $1,097 $1,120 $1,172 Retail $899 $847 $865 $902 Recreation $755 $744 $722 $744 Second Homes $523 $493 $503 $530 Air $195 $177 $174 $183 Total $5,468 $5,046 $5,207 $5,513 % change yoy -7.70% 3.20% 5.90% Source: United States Travel Association Interval of Measurement: Annual by Calendar Year Page 27

28 New Mexico Hotel & Motel Total Receipts The second quarter of 2012 saw an increase of 3.6% in Total Receipts while the occupancy rate declined slightly by 0.5% and the Average room rate increased 4.1% compared to the 2 nd quarter of Total Receipts (No. of occupied rooms * Average Room Rate) 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 CY 2010 CY 2011 Total Receipts* $58.6 $78.6 $91.2 $69.3 $59.5 $81.4 $296.4 $297.7 Y/Y Change 0.9% 0.4% -0.7% 1.6% 1.5% 3.6% 0.2% -1.1% * in millions $ *Total Receipts = (Number of occupied rooms * Average Room Rate) Source: Rocky Mountain Lodging Report Interval of Measurement: Quarterly Page 28

29 New Mexico Food, Drink and Accommodation Gross Receipts* Objective: Grow tourism tax revenue. The total New Mexico Food, Drink and Accommodation gross receipts taxes increased by 2.6% during the second quarter of calendar year 2012, continuing increases seen in CY 2010 and Q2 2011Q3 2011Q4 2012Q1 2012Q2 CY 2009 CY 2010 CY 2011 Total Receipts* $ $ $ $ $ $3, $3, $3, Y/Y Growth 4.2% 4.4% 1.3% 4.2% 2.6% -3.7% 3.2% 4.2% Food & Drink Receipts* $ $ $ $ $ $2, $2, $2, Y/Y Growth 5.0% 5.9% 1.1% 4.6% 2.1% -2.5% 2.5% 4.7% Accommodation Receipts* $ $ $ $ $ $ $ $ Y/Y Growth 1.7% -0.4% 2.0% 2.9% 4.5% -7.8% 5.9% 2.3% * In millions $ Total New Mexico Food & Drink and Accommodation Taxable Gross Receipts by Component * WITHOUT Medical Deduction Source: BBER & New Mexico Tax & Revenue Department Interval of Measurement: Quarterly Page 29

30 New Mexico Lodgers Tax Receipts Lodgers taxes will not be reported this quarter as the data for the first two quarters of 2012 for Santa Fe and the Santa Fe Convention Center Funding Act are under review. These two sources have historically been an important component of taxes for the entire state, so while this data is under review we will withhold reporting on this measure. Page 30