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
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) 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. 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, 2004 - for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment, & Recreation 4. Blount County employment and number of establishments by quarter & year, 2003 - for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 5. Blount County Gross Sales by, 2004 - for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 6. McGhee Tyson Airport passenger statistics by month and year, 2004 2007: 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
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 565 32 7211 Hotel, Motel, and B&B ND 30 7212 RV Parks and Recreational Camps ND 2 7213 Rooming and Boarding Houses NC NC 722 Food Services and Drinking Places 2,938 127 7221 Full-Service Restaurants 1,683 55 7222 Limited-Service Eating Places 1,147 58 7223 Special Food Services 76 6 7224 Drinking Places (Alcoholic Beverages) 32 8 71 Arts, Entertainment, and Recreation 356 37 7111 Performing Arts Companies ND 1 7112 Spectator Sports ND 3 7113 Performing Arts and Sports Promoters NC NC 7114 Agents and Managers for Public Figures ND ND 7115 Independent Artists/Writers/Performers 3 3 712 Museums, Parks and Historical Sites 44 3 713 Amusement, Gambling & Recreation 287 27 481 Air transportation 273 9 4853 Taxi and Limousine Service NC ND 4855 Charter bus industry ND 1 487 Scenic and Sightseeing Transportation ND ND 5615 Travel Arrangement and Reservation Services ND 2 56192 Convention and Trade Show Organizers ND ND Total: Hotel, Restaurant, & Travel Sector 4,132 208 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 page 3
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
County Tax Revenues Generated, 2004- Hotel & Lodging, Restaurant, & Arts, Entertainment & Recreation BLOUNT 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% 2,864,411 3,003,523 Hotel & Lodging - Sales Tax 2.25% 898,174 987,638 Hotel Occupancy Tax 4.00% 1,596,753 1,755,801 Arts, Entertainment, & Recreation 2.25% 201,107 202,809 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
Restaurant & Dining Establishments Employment & Number of Establishments, 2003- Restaurant & Drinking Establishments, by Qtr., 2004- Restaurant & Drinking Establishments, Number of Employees, by Qtr., 2004-140 3,300 Average # of Establishments 138 136 1 132 130 128 126 124 122 124 127 126 126 130 127 128 128 132 135 136 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 3,188 120 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 2004 2,500 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 141 140 Restaurant & Drinking Establishments, 2003-140 3,000 Restaurant & Drinking Establishments, Number of Employees, 2003-2,938 Average # of Establishments 139 138 137 136 135 1 1 132 1 1 Average # of Employees 2,900 2,800 2,700 2,600 2,500 2,400 2,527 2,837 131 2003 2004 2,300 2003 2004 page 6
Hotel & Lodging Employment & Number of Establishments, 2003- Average # of Establishments 35 32 31 30 29 Hotel & Lodging, Establishments, by Quarter, 2004-32 32 31 Average # of Employees 700 650 600 550 500 450 483 Hotel & Lodging, Number of Employees, by Qtr., 2004-539 551 526 516 560 598 593 569 609 655 28 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 400 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, 2003-38 580 570 566 Average # of Establishments 37 36 35 37 35 Average # of Employees 560 550 540 530 520 510 500 490 509 524 32 2003 2004 480 2003 2004 page 7
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 38 37 36 35 32 35 35 36 35 36 37 36 Average # of Employees 600 550 500 450 400 350 352 519 516 386 352 478 539 388 362 510 525 31 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 300 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 40 39 38 37 36 35 35 38 39 Average # of Employees 445 440 435 430 425 420 425 442 439 2003 2004 415 2003 2004 page 8
Restaurant & Drinking, Hotel & Lodging, & Arts, Entertainment, & Recreation Gross Sales by, 2004- Restaurant & Drinking, Gross Sales, 2004- Hotel & Lodging, Gross Sales, 2004-14.00 7.00 Gross Sales ($ Millions) 13.00 12.00 11.00 10.00 9.00 8.00 2004 Gross Sales ($ Millions) 6.00 5.00 4.00 3.00 2.00 1.00 2004 7.00 10.5 10.3 11.9 11.6 12.1 12.1 12.3 12.0 12.2 9.9 10.0 11.1 11.3 11.4 11.7 11.9 11.4 11.2 11.6 10.6 11.3 2004 9.5 9.7 10.8 10.7 10.7 10.9 11.2 10.9 11.2 11.4 9.9 10.6 0.00 2.32 2.41 3.18 3.77 4.32 4.56 5.00 3.99 4.54 2.11 2.18 3.13 3.39 3.96 4.26 4.58 3.76 3.97 5.49 3.90 3.16 2004 1.97 2.12 2.56 3.13 3.46 3.79 4.27 3.36 3.89 5.11 3.43 2.83 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 1,000,000 800,000 600,000 400,000 200,000 0 Arts, Entertainment & Recreation, Gross Sales, 2004-2004 446,946 391,471 635,317 785,758 867,658 1,188,866 1,604,028 1,059,177 895,464 358,353 384,601 622,310 624,047 8,094 1,085,584 1,430,721 1,208,197 745,363 778,275 539,384 402,799 2004 365,714 431,146 624,776 791,538 819,450 1,021,190 1,367,945 1,141,536 740,183 756,377 459,052 419,200 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
McGhee Tyson Airport Departing Passengers & Load Factor 2004-2007 Departing Passengers - McGhee Tyson Airport, by, 2004-2007 Departing Passengers - McGhee Tyson Airport, by, 2004-2007 100,000 1,000,000 924,876 Enplaned Passengers 90,000 80,000 70,000 60,000 50,000 40,000 2007 61,046 58,197 75,219 2007 2004 Enplaned Passengers 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 806,240 840,606 194,462 (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 69,862 2004 50,040 50,027 61,042 59,744 69,998 71,359 72,951 69,919 68,149 80,295 76,4 76,283 0 2004 2007 Source: Metropolitan Knoxville Airport Authority; Tourism Institute, University of Tennessee Departing Passenger Load Factor - McGhee Tyson Airport, by, 2004-2007 90.00% Departing Passenger Load Factor 85.00% 80.00% 75.00% 70.00% 65.00% 60.00% 55.00% 50.00% 45.00% 2007 2004 2007 59.81% 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% 2004 53.1% 55.9% 62.3% 62.7% 71.5% 73.5% 74.1% 64.3% 64.1% 71.3% 67.0% 66.8% page 10
McGhee Tyson Airport Arriving Passengers & Load Factor 2004-2007 Arriving Passengers - McGhee Tyson Airport, by, 2004-2007 Arriving Passengers - McGhee Tyson Airport, by, 2004-2007 100,000 Deplaned Passengers 90,000 80,000 70,000 60,000 50,000 40,000 2007 60,307 57,748 75,416 2007 2004 Deplaned Passengers 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 800,837 921,918 8,271 193,471 (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 69,920 2004 48,953 50,170 61,2 60,015 67,493 70,606 73,822 70,322 67,364 79,903 76,070 74,777 0 2004 2007 Source: Metropolitan Knoxville Airport Authority; Tourism Institute, University of Tennessee Arriving Passenger Load Factors - McGhee Tyson Airport, by 2004-2007 Arriving Passenger Load Factor 90% 80% 70% 60% 50% 2007 2004 40% 60.54% 64.41% 69.81% 2007 63.20% 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% 2004 51.9% 56.1% 62.6% 62.9% 68.9% 72.7% 75.0% 64.6% 63.4% 71.0% 66.7% 65.5% page 11
Blount County Hotel & Lodging Occupancy Percentages & Percent Change by, - Hotel & Lodging Occupancy Percentages by, - (Blount County) Source: Smith Travel Research, Hendersonville, TN 80.0 75.0 Percentage (%) 70.0 65.0 60.0 55.0 50.0 Blount County 45.0 40.0 46.4 52.6 64.4 68.1 67.6 70.5 68.0 64.2 63.2 72.4 62.3 47.4 49.7 56.8 68.1 67.3 67.8 71.3 70.7 65.2 66.9 69.3 63.1 48.9 Hotel & Lodging Occupancy Percent Change from Same, - (Blount County) Zip Codes Included in Blount County Hotel & Lodging Data: 10.0 8.0 7.1 7.9 37701 Percent Change (%) 6.0 4.0 2.0 0.0-2.0 5.7-1.3 0.2 1.0 3.9 1.7 5.8 1.2 3.0 37801 37882 37886-4.0-6.0-4.3 Source: Smith Travel Research, Hendersonville, TN page 12
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 80.00 Average Daily Rate ($) 75.00 70.00 65.00 Blount County 60.00 64.16 65.88 66.08 66.77 67.75 67.57 66.99 68.66 69.93 71.76 67.08 64.73 66.57 67.36 68.01 67.91 70.92 69.52 69.36 70.91 74.92 74.97 71.13 64.88 Hotel & Lodging Average Daily Rate (ADR) Percent Change from Same, - (Blount County) Zip Codes Included in Blount County Hotel & Lodging Data: Percent Change (%) 8.0 7.0 6.0 5.0 4.0 3.0 2.0 3.8 2.3 2.9 1.7 4.7 2.9 3.6 3.3 7.1 4.5 6.0 37701 37801 37882 37886 1.0 0.0 0.2 Source: Smith Travel Research, Hendersonville, TN page 13
Blount County Hotel & Lodging Revenue Per Available Room (RevPAR) & Percent Change by, - Hotel & Lodging Revenue Per Available Room (RevPAR) by, - (Blount County) Source: Smith Travel Research, Hendersonville, TN 55.00 Revenue Per Available Room ($) 50.00 45.00 40.00 35.00 30.00 Blount County 25.00 16.0 29.79.66 42.59 45.48 45.83 47.67 45.57 44.06 44.21 51.95 41.80 30.71.12 38.26 46.32 45.68 48.09 49.54 49.01 46.26 50.14 51.94 44.86 31.69 Hotel & Lodging Revenue Per Available Room (RevPAR) Percent Change from Same, - (Blount County) Zip Codes Included in Blount County Hotel & Lodging Data: 37701 Percent Change (%) 14.0 12.0 10.0 8.0 6.0 4.0 11.2 10.4 8.8 4.9 3.9 7.5 5.0 13.4 7.3 3.2 37801 37882 37886 2.0 0.0 0.4 0.0 Source: Smith Travel Research, Hendersonville, TN page 14