Chattanooga & Hamilton Co. Tourism Trends & Economic Outlook How Tourism Works for Chattanooga, TN January 21, 2010 Presentation by: Steve Morse, Ph.D. Director & Economist, Tourism Institute University of Tennessee Knoxville, TN
2009 General Manager of the Year for Medium Size Properties as Honored by the American Hotel & Lodging Association Andrea Anderson General Manager, Courtyard by Marriott, Downtown Chattanooga
2009 Lodging Employee of the Year for Medium Size Properties as Honored by the American Hotel & Lodging Association Shareef Smith Front Desk, Courtyard by Marriott Downtown Chattanooga
Chattanooga City Monthly Hotel Occupancy Rates, 2008 vs. 2009 65% 2009 55% 45% 35% 2008 Source: Smith Travel Research
Chattanooga City Percent Change in Avg. Daily Rate (ADR), 2009 2008 2% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0.4% 2% 4% 6% 8% 10% 0.8% 0.9% 0.9% 2.2% 4.0% 3.6% 3.3% 4.7% Source: Smith Travel Research 7.7% 2.9% 2.6%
Chattanooga City Percent Change in Rev. Per Available Room (RevPAR), 2009 2008 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20% 15% 10% 5% 0% 5% 10% 15% 20% 15.1% 0.0% 4.2% 1.4% 1.5% 3.1% 6.5% 8.1% 11.9% 14.6% Source: Smith Travel Research 7.9% 9.8%
How much did Hamilton Co. Tourism grow in 2008? Blount Co. (Maryville) + 8.8% Hamilton Co. (Chattanooga) + 7.3% Knox Co. (Knoxville) + 7.2% TN State Avg. (Statewide) + 1.7% Sevier Co. (P. Forge, Gatlinburg) 0.2% Davidson Co. (Nashville) 1.1% Shelby Co. (Memphis) 1.0%
What are the impacts of tourism on the Hamilton County economy, 2008? Tourist Spending Jobs Created Worker Paychecks State Taxes Local County Taxes Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008
Yearly Impacts of Tourism on the Hamilton County economy, 2008 Tourist Spending Tourists spent $762.14 million Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008
Yearly Impacts of Tourism on the Hamilton County economy, 2008 Jobs Created Tourism created 7,834 jobs Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008
Yearly Impacts of Tourism on the Hamilton County economy, 2008 Tourism generated Worker Paychecks $176.83 million in worker paychecks Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008
Yearly Impacts of Tourism on the Hamilton County economy, 2008 Tourism generated $42.78 State Taxes million in State taxes Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008
Yearly Impacts of Tourism on the Hamilton County economy, 2008 Tourism generated $16.72 million in Local County Taxes local county taxes Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008
Hamilton Co. Tourist Spending, $800 $700 $600 $500 2001 2008, ($ millions) ($ millions) 647.3 601.3 562.8 529.7 533.7 688.2 710.3 762.1 $400 $300 2001 2002 2003 2004 2005 2006 2007 2008 Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008
On an average day in Hamilton Co., how much do tourists spend on Transportation? Restaurants? Hotels & Lodging? Retail Trade? Entertainment &.Recreation?
On an average day in Hamilton Co., tourists spent $659,825 daily in Transportation (including air, car/truck, taxi, gas, rentals)
On an average day in Hamilton Co., tourists spent $638,944 daily in Restaurants (including drinking places & grocery stores)
On an average day in Hamilton Co., tourists spent $348,705 daily on Hotels & Lodging (including motels, campgrounds, vacation homes & condos, bed & breakfasts)
On an average day in Hamilton Co., tourists spent $223,422 daily on Retail Trade (including gifts, clothes, souvenirs, incidental retail)
On an average day in Hamilton Co., tourists spent $217,158 daily on Entertainment & Recreation (including parks, museums, historical sites, amusements, performing arts & shows, golf, fishing, water sports, spectator sports, theme parks)
Also on an average day in Hamilton Co., tourists spending generates $117,215 daily in State tax revenues $45,817 daily in local tax revenues $484,466 daily worker paychecks Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008
Tourism Tax Relief for Hamilton Co. Each household in Hamilton Co. pays $395 less in State and local taxes as a result of taxes generated by tourism economic activity Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008 ; U.S. Census Bureau, Dr. Steve Morse, University of Tennessee
In other words, if it were not for State & local taxes generated by tourism Each Hamilton Co. Household would pay $395 more in taxes Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008 ; U.S. Census Bureau, Dr. Steve Morse, University of Tennessee
Predictions are difficult, Especially when you are talking about the future. Yogi Berra
What will be the shape of our recovery? V Shaped Quick Bounce Back? Economic Growth 1.2 1 0.8 0.6 Now Jan. 2010 0.4 0.2 0 2007 2008 2009 2010 2011 2012 Source: Dr. Steve Morse, University of Tennessee
V Shaped Quick Bounce Economic Recovery, Recession of 1973 1975 12 10 8 6 4 2 0 2 4 6 Percent Change in Gross Domestic Product per quarter Source: U.S. Dept. of Commerce, Bureau of Economic Research 1972 1973 1974 1975 1976 1977
What will be the shape of our recovery? W Shaped Double Dip Recovery? Economic Growth 1.2 1 Now Jan. 2010 0.8 0.6 0.4 0.2 0 2008 2009 2010 2011 2012
Double Dip Economic Recovery, Recession of 1980 & 1982 20 Percent Change in Gross Domestic Product per quarter 15 10 5 0 5 10 Source: U.S. Dept. of Commerce, Bureau of Economic Research 1978 1979 1980 1981 1982 1983 1984
What will be the shape of our recovery? U Shaped, Long & Slow Recovery? Economic Growth 1.2 1 0.8 0.6 Now Jan. 2010 0.4 0.2 0 2008 2009 2010 2011 2012 Source: Dr. Steve Morse, University of Tennessee
U Shaped Long & Slow Economic Recovery, Recession of 1990 1991 15 Percent Change in Gross Domestic Product per quarter 10 5 0 5 Source: U.S. Dept. of Commerce, Bureau of Economic Research 1990 1991 1992 1993
In summary: Tourism works for Hamilton Co., TN in 2008 Tourist Spending Jobs Created Worker Paychecks State Taxes Local County Taxes $762.14 million 7,834 jobs $176.83 million $42.78 million $16.72 million Source: TN Dept. of Tourist Development & U.S. Travel Association s Report The Economic Impact of Travel on Tennessee Counties, 2008
Thank you for inviting me! Questions? Comments? Steve Morse, Ph.D. Director & Economist Tourism Institute University of Tennessee Knoxville, TN Ph: (865) 974 6249 Email: smorse@utk.edu Web: www.utk.edu/tourism