Blount County, TN. Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, 2006
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1 Blount County, TN Blount County (Alcoa, Maryville, Rockford, Seymour, Townsend areas) Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, Steve Morse, Ph.D. Director & Economist Tourism Institute University of Tennessee Knoxville July 2007 page
2 Blount 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 Blount County employment & number of establishments for Hotel, Restaurant, and Travel industries 2. Blount County ranking of Hotel, Restaurant, and Travel Industry employment compared to other county industries 3. Blount County tax revenues generated, for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment, & Recreation 4. Blount County employment and number of establishments by quarter & year, for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 5. Blount County Gross Sales by, for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 6. McGhee Tyson Airport passenger statistics by month and year, : Departing Passengers from TYS & Load Factors Arriving passengers to TYS & Load Factors 7. Blount County Hotel & Lodging performance by month & year - including: Occupancy Rates Average Daily Rates (ADR) Revenue Per Available Room (RevPAR) page 2
3 Importance of the Hotel, Restaurant & Travel Industry to the Blount County Economy Blount County Employment and Number of Establishments in the Hotel, Restaurant, & Travel Sectors, NAICS Sector/Sub-Sector # of Employees # of Establishments 721 Accommodations Hotel, Motel, and B&B ND RV Parks and Recreational Camps ND Rooming and Boarding Houses NC NC 722 Food Services and Drinking Places 2, Full-Service Restaurants 1, Limited-Service Eating Places 1, Special Food Services Drinking Places (Alcoholic Beverages) Arts, Entertainment, and Recreation Performing Arts Companies ND Spectator Sports ND Performing Arts and Sports Promoters NC NC 7114 Agents and Managers for Public Figures ND ND 7115 Independent Artists/Writers/Performers Museums, Parks and Historical Sites Amusement, Gambling & Recreation Air transportation Taxi and Limousine Service NC ND 4855 Charter bus industry ND Scenic and Sightseeing Transportation ND ND 5615 Travel Arrangement and Reservation Services ND Convention and Trade Show Organizers ND ND Total: Hotel, Restaurant, & Travel Sector 4, 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 page 3
4 Ranking of Hotel, Restaurant & Travel Industries by Employment Relative to Other Industries, Blount Co. Rank of Industries by Percent Employment Compared to Tennessee, County Industry Rank Industry Blount County Tennessee Statewide 1 Trade, Transportation, and Utilities 24.87% 24.44% 2 Education and Health Services 10.09% 20.82% 3 Manufacturing 22.40% 16.00% 4 Professional and Business Services 9.28% 12.15% 5 Hotel, Restaurant, and Travel 11.77% 10.78% 6 Financial Activities 7.25% 5.60% 7 Construction 9.92% 5.00% 8 Other Services 2.93% 2.79% 9 Information 1.17% 1.96% 10 Natural Resources and Mining 0.30% 0.39% 11 Unclassified NC 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 page 4
5 County Tax Revenues Generated, Hotel & Lodging, Restaurant, & Arts, Entertainment & Recreation BLOUNT COUNTY, TN County Tax Revenues Generated, Hotel & Lodging, Restaurant, & Arts, Entertainment, Recreation County Taxes Generated Industry County Tax Rate 2004 Restaurant & Drinking 2.25% 2,864,411 3,003,523 Hotel & Lodging - Sales Tax 2.25% 898, ,638 Hotel Occupancy Tax 4.00% 1,596,753 1,755,801 Arts, Entertainment, & Recreation 2.25% 201, ,809 Total County Taxes Generated $5,560,445 $5,949,771 Source: TN Dept. of Labor and Workforce Development, TN Dept. of Revenue, and Tourism Institute, University of Tennessee page 5
6 Restaurant & Dining Establishments Employment & Number of Establishments, Restaurant & Drinking Establishments, by Qtr., Restaurant & Drinking Establishments, Number of Employees, by Qtr., ,300 Average # of Establishments Average # of Employees 3,200 3,100 3,000 2,900 2,800 2,700 2,600 2,605 3,013 2,970 2,899 2,820 2,959 3,025 2,975 2,926 3,123 3, st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr ,500 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, ,000 Restaurant & Drinking Establishments, Number of Employees, ,938 Average # of Establishments Average # of Employees 2,900 2,800 2,700 2,600 2,500 2,400 2,527 2, , page 6
7 Hotel & Lodging Employment & Number of Establishments, Average # of Establishments Hotel & Lodging, Establishments, by Quarter, Average # of Employees Hotel & Lodging, 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 st 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, Average # of Establishments Average # of Employees page 7
8 Arts, Entertainment, & Recreation Employment & Number of Establishments, Arts, Entertainment, & Recreation Establishments, by Qtr., Arts, Entertainment, & Recreation, Number of Employees, by Qtr., Average # of Establishments Average # of Employees st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr st 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 Establishments Average # of Employees page 8
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 ($ Dollars) 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 0 Arts, Entertainment & Recreation, Gross Sales, , , , , ,658 1,188,866 1,604,028 1,059, , , , , ,047 8,094 1,085,584 1,430,721 1,208, , , , , , , , , ,450 1,021,190 1,367,945 1,141, , , , ,200 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 page 9
10 McGhee Tyson Airport Departing Passengers & Load Factor Departing Passengers - McGhee Tyson Airport, by, Departing Passengers - McGhee Tyson Airport, by, ,000 1,000, ,876 Enplaned Passengers 90,000 80,000 70,000 60,000 50,000 40, ,046 58,197 75, Enplaned Passengers 900, , , , , , , , , , , ,462 (Jan-Mar) 60,161 57,204 68,657 65,948 76,261 75,586 74,196 70,668 68,447 79,181 73,128 71,169 63,306 63,644 77,839 76,539 88,091 85,158 86,940 79,103 76,235 82,809 75,350 69, ,040 50,027 61,042 59,744 69,998 71,359 72,951 69,919 68,149 80,295 76,4 76, Source: Metropolitan Knoxville Airport Authority; Tourism Institute, University of Tennessee Departing Passenger Load Factor - McGhee Tyson Airport, by, % Departing Passenger Load Factor 85.00% 80.00% 75.00% 70.00% 65.00% 60.00% 55.00% 50.00% 45.00% % 63.91% 69.99% 65.97% 68.91% 72.% 74.22% 81.20% 83.19% 76.98% 70.36% 67.57% 78.87% 70.27% 68.95% 54.6% 53.4% 59.5% 60.8% 75.0% 78.8% 77.1% 66.1% 71.4% 78.9% 73.8% 71.1% % 55.9% 62.3% 62.7% 71.5% 73.5% 74.1% 64.3% 64.1% 71.3% 67.0% 66.8% page 10
11 McGhee Tyson Airport Arriving Passengers & Load Factor Arriving Passengers - McGhee Tyson Airport, by, Arriving Passengers - McGhee Tyson Airport, by, ,000 Deplaned Passengers 90,000 80,000 70,000 60,000 50,000 40, ,307 57,748 75, Deplaned Passengers 1,000, , , , , , , , , , , ,918 8, ,471 (Jan-Mar) 57,642 56,450 69,692 65,716 73,303 76,079 76,112 72,321 67,362 77,328 72,2 70,032 63,062 62,677 78,090 76,159 84,531 86,242 87,832 80,149 75,571 83,023 74,662 69, ,953 50,170 61,2 60,015 67,493 70,606 73,822 70,322 67,364 79,903 76,070 74, Source: Metropolitan Knoxville Airport Authority; Tourism Institute, University of Tennessee Arriving Passenger Load Factors - McGhee Tyson Airport, by Arriving Passenger Load Factor 90% 80% 70% 60% 50% % 60.54% 64.41% 69.81% % 68.00% 73.42% 73.96% 78.05% 83.73% 78.97% 72.00% 66.50% 77.03% 69.41% 67.85% 54.4% 52.6% 59.7% 60.5% 72.0% 79.8% 77.9% 67.0% 70.8% 79.1% 73.2% 71.2% % 56.1% 62.6% 62.9% 68.9% 72.7% 75.0% 64.6% 63.4% 71.0% 66.7% 65.5% page 11
12 Blount County Hotel & Lodging Occupancy Percentages & Percent Change by, - Hotel & Lodging Occupancy Percentages by, - (Blount County) Source: Smith Travel Research, Hendersonville, TN Percentage (%) Blount County Hotel & Lodging Occupancy Percent Change from Same, - (Blount County) Zip Codes Included in Blount County Hotel & Lodging Data: Percent Change (%) Source: Smith Travel Research, Hendersonville, TN page 12
13 Blount County Hotel & Lodging Average Daily Rate (ADR) & Percent Change by, - Hotel & Lodging Average Daily Rate (ADR) by, - (Blount County) Source: Smith Travel Research, Hendersonville, TN Average Daily Rate ($) Blount County Hotel & Lodging Average Daily Rate (ADR) Percent Change from Same, - (Blount County) Zip Codes Included in Blount County Hotel & Lodging Data: Percent Change (%) Source: Smith Travel Research, Hendersonville, TN page 13
14 Blount County Hotel & Lodging Revenue Per Available Room (RevPAR) & Percent Change by, - Hotel & Lodging Revenue Per Available Room (RevPAR) by, - (Blount County) Source: Smith Travel Research, Hendersonville, TN Revenue Per Available Room ($) Blount County Hotel & Lodging Revenue Per Available Room (RevPAR) Percent Change from Same, - (Blount County) Zip Codes Included in Blount County Hotel & Lodging Data: Percent Change (%) Source: Smith Travel Research, Hendersonville, TN page 14
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