Sevier County, TN Sevier County (Gatlinburg, Pigeon Forge, Sevierville 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
Sevier 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) 974-2141; E-mail: smorse@utk.edu Report also available on web site at: http://utk.edu/tourism 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 http:// www.tennessee.gov/tourdev/reports.html. 1. Sevier County employment & number of establishments for Hotel, Restaurant, and Travel industries, 2. Sevier County ranking of Hotel, Restaurant, and Travel Industry employment to other county industries, 3. Sevier County tax revenues generated, 2004 - for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment, & Recreation 4. Sevier County employment and number of establishments by quarter & year, 2003 - for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 5. Sevier County Gross Sales by, 2004 - for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 6. Sevier County Hotel & Lodging performance by month & year - including: Occupancy Rates Average Daily Rates (ADR) Revenue Per Available Room (RevPAR)
Importance of the Hotel, Restaurant & Travel Industry to the Sevier County Economy Sevier County Employment and Number of Establishments in the Hotel, Restaurant, & Travel Sectors, NAICS Sector/Sub-Sector # of Employees # of Establishments 721 Accommodations 5,287 258 7211 Hotel, Motel, and B&B 5,215 244 7212 RV Parks and Recreational Camps 72 14 7213 Rooming and Boarding Houses NC NC 722 Food Services and Drinking Places 6,058 196 7221 Full-Service Restaurants 4,310 97 7222 Limited-Service Eating Places 1,725 90 7223 Special Food Services ND 2 7224 Drinking Places (Alcoholic Beverages) ND 7 71 Arts, Entertainment, and Recreation 3,562 82 7111 Performing Arts Companies 760 13 7112 Spectator Sports ND 1 7113 Performing Arts and Sports Promoters ND 1 7114 Agents and Managers for Public Figures ND 1 7115 Independent Artists/Writers/Performers 43 5 712 Museums, Parks and Historical Sites 521 16 713 Amusement, Gambling & Recreation 2,145 45 481 Air transportation ND 1 4853 Taxi and Limousine Service NC NC 4855 Charter bus industry NC NC 487 Scenic and Sightseeing Transportation 26 3 5615 Travel Arrangement and Reservation Services 257 14 56192 Convention and Trade Show Organizers 16 5 Total: Hotel, Restaurant, & Travel Sector 15,206 559 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, & 56192 NC = Not Calculable, the data does not exist or it is zero ND = Not Disclosable
Ranking of Hotel, Restaurant & Travel Industries by Employment Relative to Other Industries, Sevier Co. Rank of Industries by Percent Employment Compared to Tennessee, County Industry Rank Industry Sevier County Tennessee Statewide 1 Hotel, Restaurant, and Travel 45.52% 10.78% 2 Trade, Transportation, and Utilities 24.95% 24.44% 3 Construction 5.96% 5.00% 4 Professional and Business Services 5.74% 12.15% 5 Financial Activities 5.47% 5.60% 6 Education and Health Services 5.10% 20.82% 7 Manufacturing 3.98% 16.00% 8 Other Services 2.08% 2.79% 9 Information 1.08% 1.96% 10 Natural Resources and Mining 0.10% 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
County Tax Revenues Generated, 2004- Hotel & Lodging, Restaurant, & Arts, Entertainment & Recreation SEVIER COUNTY, TN County Tax Revenues Generated, 2004- Hotel & Lodging, Restaurant, & Arts, Entertainment, Recreation County Taxes Generated Industry County Tax Rate 2004 Restaurant & Drinking 2.50% 8,548,932 9,007,674 Hotel & Lodging - Sales Tax 2.50% 9,149,587 9,860,460 Arts, Entertainment, & Recreation 2.50% 3,651,041 4,004,576 Total County Taxes Generated $21,349,560 $22,872,710 Source: TN Dept. of Labor and Workforce Development, TN Dept. of Revenue, and Tourism Institute, University of Tennessee Does not include city hotel taxes for Gatlinburg, Pigeon Forge, and Sevierville
Restaurant & Dining Establishments Employment & Number of Establishments, 2003- Restaurant & Drinking Establishments, by Qtr., 2004- Restaurant & Drinking Establishments, Number of Employees, by Qtr., 2004-210 7,000 Average # of Establishments 200 190 180 170 160 198 200 198 196 193 195 193 187 185 187 178 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 2004 6,800 6,600 6,400 6,200 6,000 5,800 5,600 5,400 5,200 5,000 6,653 6,574 6,473 6,538 6,244 6,264 6,176 6,048 5,588 5,446 5,398 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 2004 Source: TN Dept. of Labor & Workforce Development; U.S. Dept. of Labor, Bureau of Labor Statistics; Tourism Institute, University of Tennessee 212 Restaurant & Drinking Establishments, 2003- Restaurant & Drinking Establishments, Number of Employees, 2003- Average # of Establishments 210 208 206 204 202 200 202 202 210 7,300 6,300 5,300 4,300 3,300 2,300 1,300 6,094 6,154 6,057 198 2003 2004 300 2003 2004
Hotel & Lodging Employment & Number of Establishments, 2003- Average # of Establishments 270 265 260 255 250 245 240 235 Hotel & Lodging Establishments, by Qtr., 2004-266 264 260 258 259 255 252 249 245 243 268 5,900 5,400 4,900 4,400 Hotel & Lodging, Number of Employees, by Qtr., 2004-4,988 5,295 4,967 4,570 5,598 5,830 5,219 4,703 5,589 5,744 230 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 3,900 4,086 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 2004 2004 Source: TN Dept. of Labor & Workforce Development; U.S. Dept. of Labor, Bureau of Labor Statistics; Tourism Institute, University of Tennessee Hotel & Lodging Establishments, 2003- Hotel & Lodging, Number of Employees, 2003-280 275 275 5,400 5,200 5,286 270 265 260 255 257 266 5,000 4,800 4,600 4,650 4,829 250 4,400 245 2003 2004 4,200 2003 2004
Arts, Entertainment, & Recreation Employment & Number of Establishments, 2003- Arts, Entertainment, & Recreation Establishments, by Qtr., 2004- Arts, Entertainment, & Recreation, Number of Employees, by Qtr., 2004- Average # of Establishments 85 84 83 82 81 80 79 78 84 84 83 83 83 83 82 82 82 81 79 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 5,000 4,500 4,000 3,500 3,000 2,500 2,000 4,765 4,383 4,592 3,998 4,143 4,166 3,427 3,232 2,802 2,447 2,283 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 2004 2004 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, 2003- Arts, Entertainment, & Recreation, Number of Employees, 2003- Average # of Establishments 94 92 90 88 86 84 82 80 78 82 92 88 3,600 3,500 3,400 3,300 3,200 3,100 3,000 3,136 3,472 3,561 76 2003 2004 2,900 2003 2004
Restaurant & Drinking, Hotel & Lodging, & Arts, Entertainment, & Recreation Gross Sales by, 2004- Restaurant & Drinking, Gross Sales, 2004- Hotel & Lodging, Gross Sales, 2004-50.00 45.00 70.00 Gross Sales ($ Millions) 40.00 35.00 30.00 25.00 20.00 2004 Gross Sales ($ Millions) 60.00 50.00 40.00 30.00 20.00 2004 15.00 19.8 19.8 28.6 32.1 28.1 39.0 47.4 32.8 31.5 17.6 19.1 26.2 27.6 27.5 36.7 46.4 31.9 28.5 36.4 30.9 31.5 2004 17.3 17.6 22.9 27.6 26.1 34.0 42.0 31.8 29.0 36.3 28.0 29.3 10.00 16.1 16.9 25.0 32.6 28.5 45.5 60.8 34.3 36.8 14.6 16.2 23.8 27.9 28.4 41.9 60.8 33.5 33.5 47.7 35.0 31.2 2004 14.3 14.8 18.9 27.6 25.2 36.8 53.0 32.2 34.2 48.9 32.3 27.9 Source: TN Dept. of Revenue; Tourism Institute, University of Tennessee Gross Sales ($ Millions) 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 Arts, Entertainment, & Recreation, Gross Sales, 2004-2004 3.4 4.6 9.2 18.5 15.5 25.8 33.3 18.1 11.1 3.6 3.9 10.2 13.2 16.0 23.5 29.8 18.4 9.9 13.1 8.2 10.3 2004 3.3 2.5 8.6 13.2 14.1 20.7 28.2 17.0 9.6 13.5 7.0 8.4 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
Sevier County Hotel & Lodging Occupancy Percentages & Percent Change by, - Hotel & Lodging Occupancy Percentages by, - (Sevier County) 90.0 80.0 Percentage (%) 70.0 60.0 50.0 40.0 Sevierville 30.0 20.0 25.2 33.3 48.2 57.2 55.7 72.7 85.0 58.8 59.3 69.9 59.1 49.3 26.0 32.4 47.1 59.1 52.7 71.3 82.0 56.1 64.4 73.1 57.3 48.6 Hotel & Lodging Occupancy Percent Change from Same, - (Sevier County) Zip Codes Included in Sevier County Hotel & Lodging Data: 10.0 8.6 37738 37764 8.0 37862 37863 Percent Change (%) 6.0 4.0 2.0 0.0-2.0-4.0-6.0 4.6 3.5 3.4-2.6-2.3-1.4-2.0-3.0-3.5-5.3-4.7 37868 37876 Source: Smith Travel Research, Hendersonville, TN
Sevier County Hotel & Lodging Average Daily Rate (ADR) & Percent Change by, - Hotel & Lodging Average Daily Rate (ADR) by, - (Sevier County) 85.00 80.00 Average Daily Rate ($) 75.00 70.00 65.00 60.00 55.00 Sevierville Percent Change (%) 50.00 5.0 4.0 3.0 2.0 1.0 0.0-1.0 52.82 53.98 54.89 64.30 62.44 67.59 80.70 65.47 70.49 77.44 66.05 66.57 51.53 53.79 56.86 62.80 63.14 70.38 81.61 67.43 73.04 77.78 68.29 68.82 Hotel & Lodging Average Daily Rate (ADR) Percent Change from Same, - (Sevier County) 3.6 1.1 4.1 1.1 3.0 3.6 0.4 3.4 3.4-0.4 Zip Codes Included in Sevier County Hotel & Lodging Data: 37738 37764 37862 37863 37868 37876-2.0-3.0-2.4-2.3 Source: Smith Travel Research, Hendersonville, TN
Sevier County Hotel & Lodging Revenue Per Available Room (RevPAR) & Percent Change by, - Hotel & Lodging Revenue Per Available Room (RevPAR) by, - (Sevier County) 70.00 Revenue Per Available Room ($) 60.00 50.00 40.00 30.00 20.00 Sevierville 10.00 13.29 17.98 26.47 36.76 34.76 49.15 68.59 38.52 41.78 54.12 39.05 32.81 13.42 17.45 26.79 37.10 33.29 50.18 66.96 37.81 47.03 56.88 39.16 33.46 Hotel & Lodging Revenue Per Available Room (RevPAR) Percent Change from Same, - (Sevier County) Zip Codes Included in Sevier County Hotel & Lodging Data: 14.0 12.6 37738 37764 12.0 10.0 37862 37863 Percent Change (%) 8.0 6.0 4.0 2.0 0.0-2.0-4.0-6.0 5.1 1.0 1.2 0.9 2.1 2.0 0.3-1.8-2.4-3.0-4.2 37868 37876 Source: Smith Travel Research, Hendersonville, TN