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
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) 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. 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, 2004 - for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment, & Recreation 4. Hamilton County employment and number of establishments by quarter & year, 2003 - for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 5. Hamilton County Gross Sales by, 2004 - for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 6. Chattanooga Metropolitan Airport passenger statistics by month and year, 2004 2007: 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)
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 1,645 71 7211 Hotel, Motel, and B&B 1,645 71 7212 RV Parks and Recreational Camps ND ND 7213 Rooming and Boarding Houses NC NC 722 Food Services and Drinking Places 14,762 561 7221 Full-Service Restaurants 6,191 251 7222 Limited-Service Eating Places 8,339 282 7223 Special Food Services 154 16 7224 Drinking Places (Alcoholic Beverages) 78 13 71 Arts, Entertainment, and Recreation 2,078 112 7111 Performing Arts Companies 129 7 7112 Spectator Sports ND 3 7113 Performing Arts and Sports Promoters ND 6 7114 Agents and Managers for Public Figures NC ND 7115 Independent Artists/Writers/Performers 52 7 712 Museums, Parks and Historical Sites 671 16 713 Amusement, Gambling & Recreation 1,082 73 481 Air transportation ND 2 4853 Taxi and Limousine Service 70 4 4855 Charter Bus Industry ND 1 487 Scenic and Sightseeing Transportation ND 3 5615 Travel Arrangement and Reservation Services 77 15 56192 Convention and Trade Show Organizers ND 2 Total: Hotel, Restaurant, & Travel Sector 18,632 771 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, 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
County Tax Revenues Generated, 2004- Hotel & Lodging, Restaurant, & Arts, Entertainment & Recreation HAMILTON COUNTY, TN County Tax Revenues Generated, 2004- 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% 855,686 879,800 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
Restaurant & Drinking Establishments Employment & Number of Establishments, 2003- Restaurant & Drinking Establishments, by Qtr., 2004- Restaurant & Drinking Establishments, Number of Employees, by Qtr., 2004-600 590 580 570 560 550 540 530 588 580 577 568 565 566 559 561 556 553 549 1st 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. 2004 2004 Source: TN Dept. of Labor & Workforce Development; U.S. Dept. of Labor, Bureau of Labor Statistics; Tourism Institute, University of Tennessee 650 640 630 620 610 600 590 580 570 Restaurant & Drinking Establishments, 2003-630 613 579 Average # of Employees 15,000 14,750 14,500 14,250 14,000 13,750 Restaurant & Drinking Establishments, Number of Employees, 2003-13,741 14,544 14,776 560 550 2003 2004 13,500 2003 2004
Hotel & Lodging Employment & Number of Establishments, 2003-85 Hotel & Lodging Establishments, by Qtr., 2004- Hotel & Lodging Establishments, Number of Employees, by Qtr., 2004-83 2,100 81 79 77 75 73 71 69 67 76 73 80 76 73 71 70 70 75 74 71 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 1,940 65 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 2004 1,300 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 Hotel & Lodging Establishments, 2003- Hotel & Lodging, Number of Employees, 2003-90 1,700 1,675 85 80 80 86 80 Average # of Employees 1,650 1,625 1,600 1,575 1,550 1,525 1,522 1,573 1,644 75 2003 2004 1,500 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., 2004-130 2,500 125 120 115 110 105 100 109 110 113 107 109 112 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 112 115 119 117 114 2,400 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. 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, 2003-125 2,200 120 115 113 121 122 Average # of Employees 2,150 2,100 2,050 2,000 1,950 1,900 1,850 1,824 1,848 2,078 110 2003 2004 1,800 2003 2004
Restaurant & Drinking, Hotel & Lodging, & Arts, Entertainment, & Recreation Gross Sales by, 2004- Restaurant & Drinking, Gross Sales, 2004- Hotel & Lodging, Gross Sales, 2004-65.00 14.00 Gross Sales ($ Millions) 60.00 55.00 50.00 45.00 40.00 35.00 2004 Gross Sales ($ Millions) 13.00 12.00 11.00 10.00 9.00 8.00 7.00 6.00 5.00 2004 30.00 43.67 43.11 49.07 46.92 47.49 58.27 56.11 57.70 56.09 41.17 41.60 45.95 45.70 44.89 47.38 47.21 44.81 41.82 44.73 41.34 46.46 2004 39.45 39.39 44.19 42.24 41.87 43.10 44.91 42.40 41.54 43.14 39.67 44.63 4.00 7.32 7.24 10.02 10.12 9.77 10.84 12.11 9.74 9.01 6.99 7.83 10.12 10.74 9.80 11.30 13.00 11.42 9.71 9.77 7.97 7.41 2004 6.03 7.34 9.45 9.56 8.99 9.72 11.57 9.50 9.02 10.19 7.99 7.52 Source: TN Dept. of Revenue; Tourism Institute, University of Tennessee Gross Sales ($ Millions) 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Arts, Entertainment & Recreation, Gross Sales, 2004-2004 2.78 2.69 3.53 3.81 4.21 4.42 5.13 4.55 4.38 2.22 2.13 2.99 3.52 3.78 4.01 4.25 3.41 3.45 3.61 2.78 2.97 2004 2.02 2.17 3.02 3.40 3.52 3.81 4.02 3.48 3.40 3.73 2.54 2.92 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
Chattanooga Metropolitan Airport Departing and Arriving Passengers Departing Passengers - Chattanooga Metropolitan Airport, by, 2004 - Departing Passengers - Chattanooga Metropolitan Airport, by, 2004-25,000 275,000 24,000 Enplaned Passengers 23,000 22,000 21,000 20,000 19,000 18,000 17,000 2004 Enplaned Passengers 260,000 245,000 230,000 244,470 258,745 230,064 (Jan-Nov) 16,000 215,000 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 20,425 2004 16,846 17,435 19,838 20,101 22,306 22,186 21,570 19,522 19,309 22,182 21,132 22,043 200,000 2004 Source: Chattanooga Metropolitan Airport; Tourism Institute, University of Tennessee Arriving Passengers - Chattanooga Metropolitan Airport, by, 2004-2007 Arriving Passengers - Chattanooga Metropolitan Airport, by, 2004-2007 25,000 275,000 24,000 Deplaned Passengers 23,000 22,000 21,000 20,000 19,000 18,000 17,000 16,000 2004 Deplaned Passengers 260,000 245,000 230,000 215,000 240,105 251,624 225,211 (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 19,857 2004 16,998 16,817 20,125 19,505 21,121 21,649 21,290 19,822 18,542 22,487 20,591 21,158 200,000 2004
Hamilton County Hotel & Lodging Occupancy Percentages & Percent Change by, - Hotel & Lodging Occupancy Percentages by, -2007 (Hamilton County) 80.0 75.0 Percentage (%) 70.0 65.0 60.0 55.0 50.0 45.0 2007 Chattanooga 15.0 10.0 40.0 2007 46.2 51.1 63.9 62.8 61.9 70.3 45.3 50.5 62.0 62.1 58.9 66.2 69.3 57.0 55.0 61.8 51.8 46.7 43.9 53.0 62.2 64.1 58.7 67.1 73.9 63.6 57.3 63.3 53.1 45.9 Hotel & Lodging Occupancy Percent Change from Same, - (Hamilton County) Zip Codes Included in Hamilton County Hotel & Lodging Data: 37341 37405 37419 37343 37408 37421 Percent Change (%) 5.0 0.0-5.0-10.0-15.0 3.3 1.6 0.2-4.9-0.3-1.3-3.1-3.9-2.3-2.5-6.2-10.3 37379 37409 37402 37411 37403 37412 37404 37415 Source: Smith Travel Research, Hendersonville, TN
Hamilton County Hotel & Lodging Average Daily Rate (ADR) & Percent Change by, - Hotel & Lodging Average Daily Rate (ADR) by, -2007 (Hamilton County) Average Daily Rate ($) 80.00 70.00 60.00 2007 Chattanooga 20.0 50.00 2007 64.64 64.70 68.16 68.83 69.04 74.03 61.08 61.65 65.32 66.30 65.48 68.13 70.02 65.85 66.93 68.89 68.51 62.49 58.94 58.71 62.40 63.77 60.83 65.43 68.64 66.36 62.15 63.72 60.13 58.14 Hotel & Lodging Average Daily Rate (ADR) Percent Change from Same, - (Hamilton County) Zip Codes Included in Hamilton County Hotel & Lodging Data: 37341 37405 37419 15.0 13.9 37343 37408 37421 Percent Change (%) 10.0 5.0 0.0 7.6 7.7 8.1 7.5 3.6 5.0 4.7 4.0 4.1 2.0-0.8 37379 37409 37402 37411 37403 37412 37404 37415-5.0 Source: Smith Travel Research, Hendersonville, TN
Hamilton County Hotel & Lodging Revenue Per Available Room (RevPAR) & Percent Change by, - Hotel & Lodging Revenue Per Available Room (RevPAR) by, -2007 (Hamilton County) Revenue Per Available Room ($) Percent Change (%) 15.0 10.0 60.00 55.00 50.00 45.00 40.00 35.00 30.00 25.00 20.00 5.0 0.0-5.0-10.0-15.0 2007 29.85 33.06 43.56 43.25 42.75 52.04 2007 27.69 31.10 40.51 41.15 38.56 45.12 48.54 37.56 36.82 42.60 35.48 29.18 25.88 31.13 38.82 40.85 35.74 43.92 50.75 42.21 35.59 40.31 31.92 26.71 Hotel & Lodging Revenue Per Available Room (RevPAR) Percent Change from Same, - (Hamilton County) 7.0 4.4 0.7 7.9 2.7-4.4-11.0 3.5 5.7 11.1-0.1 9.2 Chattanooga Zip Codes Included in Hamilton County Hotel & Lodging Data: 37341 37405 37419 37343 37408 37421 37379 37409 37402 37411 37403 37412 37404 37415 Source: Smith Travel Research, Hendersonville, TN