Washington County, TN Washington County (Jonesborough area) Hotel, Restaurant, and Travel Industries: Economic Profile and Business Trends, Steve Morse, Ph.D. Director & Economist Tourism Institute University of Tennessee Knoxville July 07
Washington 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. Washington County employment & number of establishments for Hotel, Restaurant, and Travel industries, 05 2. Washington County ranking of Hotel, Restaurant, and Travel Industry employment to other county industries, 05 3. Washington County tax revenues generated, 04-05 for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment, & Recreation 4. Washington County employment and number of establishments by quarter & year, 03-05 for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 5. Washington County Gross Sales by, 04 - for: Restaurant & Drinking Places Hotel & Lodging Arts, Entertainment & Recreation 6. Washington County Hotel & Lodging performance by month & year 05 - including: Occupancy Rates Average Daily Rates (ADR) Revenue Per Available Room (RevPAR)
Importance of the Hotel, Restaurant & Travel Industry to the Washington County Economy Washington County Employment and Number of Establishments in the Hotel, Restaurant, & Travel Sectors, 05 NAICS Sector/Sub-Sector # of Employees # of Establishments 721 Accommodations 489 7211 Hotel, Motel, and B&B 489 7212 RV Parks and Recreational Camps NC NC 7213 Rooming and Boarding Houses NC NC 7 Food Services and Drinking Places 5,801 190 71 Full-Service Restaurants 2,733 87 72 Limited-Service Eating Places 2,845 92 73 Special Food Services NC 3 74 Drinking Places (Alcoholic Beverages) NC 8 71 Arts, Entertainment, and Recreation 370 36 7111 Performing Arts Companies 7 3 7112 Spectator Sports ND 2 7113 Performing Arts and Sports Promoters ND 2 7114 Agents and Managers for Public Figures ND 1 7115 Independent Artists/Writers/Performers NC ND 712 Museums, Parks and Historical Sites ND 1 713 Amusement, Gambling & Recreation 300 27 481 Air transportation NC 1 4853 Taxi and Limousine Service NC NC 4855 Charter Bus Industry NC 1 487 Scenic and Sightseeing Transportation NC ND 5615 Travel Arrangement and Reservation Services NC 10 56192 Convention and Trade Show Organizers NC 1 Total: Hotel, Restaurant, & Travel Sector 6,660 261 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, 7, 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, 05 Washington Co. Rank of Industries by Percent Employment Compared to Tennessee, 05 County Industry Rank Industry Washington County Tennessee Statewide 1 Education and Health Services 25.96%.82% 2 Trade, Transportation, and Utilities 18.51% 24.44% 3 Manufacturing 13.12% 16.00% 4 Hotel, Restaurant, and Travel 11.23% 10.78% 5 Professional and Business Services 9.10% 12.15% 6 Financial Activities 6.19% 5.60% 7 Construction 4.52% 5.00% 8 Information 4.05% 1.96% 9 Other Services 3.76% 2.79% 10 Natural Resources and Mining 0.06% 0.39% 11 Unclassified 0.02% 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, 04-05 Hotel & Lodging, Restaurant, & Arts, Entertainment & Recreation WASHINGTON COUNTY, TN County Tax Revenues Generated, 04-05 Hotel & Lodging, Restaurant, & Arts, Entertainment, Recreation County Taxes Generated Industry County Tax Rate 04 05 Restaurant & Drinking 2.50% 4,723,404 4,961,568 Hotel & Lodging - Sales Tax 2.50% 472,344 501,026 Arts, Entertainment, & Recreation 2.50% 257,092 274,880 Total County Taxes Generated $5,452,840 $5,737,475 Source: TN Dept. of Labor and Workforce Development, TN Dept. of Revenue, and Tourism Institute, University of Tennessee
Restaurant & Dining Establishments Employment & Number of Establishments, 03- Restaurant & Drinking Establishments, by Qtr., 04- Restaurant & Drinking Establishments, Number of Employees, by Qtr., 04-5 2 215 210 5 0 195 190 185 180 4 3 4 1 197 191 192 191 189 189 210 Average # of Employees 6,000 5,900 5,800 5,700 5,600 5,500 5,400 5,300 5,405 5,435 5,377 5,456 5,599 5,869 5,905 5,897 5,408 5,469 5,426 175 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 5,0 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 04 05 04 05 Source: TN Dept. of Labor & Workforce Development; U.S. Dept. of Labor, Bureau of Labor Statistics; Tourism Institute, University of Tennessee 230 Restaurant & Drinking Establishments, 03-05 Restaurant & Drinking Establishments, Number of Employees, 03-05 5,900 5 2 215 210 5 219 4 2 Average # of Employees 5,800 5,700 5,600 5,500 5,400 5,397 5,428 5,800 0 03 04 05 5,300 03 04 05
Hotel & Lodging Employment & Number of Establishments, 03-25 Hotel & Lodging Establishments, by Qtr., 04- Hotel & Lodging Establishments, Number of Employees, by Qtr., 04-24 23 21 19 18 17 16 21 23 Average # of Employees 550 525 500 475 450 425 450 506 539 518 470 510 488 488 491 494 528 15 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. 04 05 04 05 Source: TN Dept. of Labor & Workforce Development; U.S. Dept. of Labor, Bureau of Labor Statistics; Tourism Institute, University of Tennessee Hotel & Lodging Establishments, 03-05 Hotel & Lodging, Number of Employees, 03-05 25 525 24 23 21 23 23 Average # of Employees 500 475 460 503 490 03 04 05 450 03 04 05
Arts, Entertainment, & Recreation Employment & Number of Establishments, 03- Arts, Entertainment & Recreation Establishments, by Qtr., 04- Arts, Entertainment & Recreation, Number of Employees, by Qtr., 04-40 600 39 38 37 36 35 34 33 32 31 30 35 34 35 37 38 36 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 37 35 33 36 34 550 500 450 400 350 300 250 276 426 453 288 288 4 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 1st Qtr. 2nd Qtr. 3rd Qtr. 443 330 300 499 569 04 05 04 05 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, 03-05 Arts, Entertainment & Recreation, Number of Employees, 03-05 45 380 44 43 42 41 40 39 38 37 36 35 34 33 32 33 40 40 Average # of Employees 375 370 365 360 355 362 361 370 31 30 03 04 05 350 03 04 05
Restaurant & Drinking, Hotel & Lodging, & Arts, Entertainment, & Recreation Gross Sales by, 04- Restaurant & Drinking, Gross Sales, 04- Hotel & Lodging, Gross Sales, 04-19.00 3.50 18.00 3.00 Gross Sales ($ Millions) 17.00 16.00 15.00 14.00 05 04 Gross Sales ($ Millions) 2.50 2.00 1.50 1.00 05 04 13.00 16.16 15.38 17.80 17.02 17.01 16.99 17.11 17. 16.64 05 15.11 15.43 16.81 17.29 16.47 16.97 16.87 16.67 16.06 16.71 16.08 18.00 04 14.84 14.53 16.02 15.49 15.47 15.59 15.92 15.77 15.77 16.59 15.53 17.39 0.50 1.21 1.23 2.53 1.62 1.84 1.91 2.37 3.14 1.55 05 0.96 1.10 1.57 2.23 1.59 1.70 2.15 2.70 1.42 1.96 1.44 1.21 04 1.03 1.11 2.07 1.46 1.51 1.81 1.98 2.24 1.41 1.77 1.28 1.21 Source: TN Dept. of Revenue; Tourism Institute, University of Tennessee Gross Sales ($ Dollars) 1,400,000 1,300,000 1,0,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 Arts, Entertainment & Recreation, Gross Sales, 04-05 04 868,727 877,705 799,307 902,724 936,459 1,299,835 951,078 866,182 871,110 05 940,071 831,983 929,118 994,472 697,017 1,044,019 1,069,917 832,830 863,990 1,017,302 952,186 8,311 04 856,479 833,235 907,966 777,015 850,103 1,006,430 924,584 810,619 777,756 839,462 800,838 899,1 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
Washington County Hotel & Lodging Occupancy Percentages & Percent Change by, 05- Hotel & Lodging Occupancy Percentages by, 05-07 (Washington County) Percentage (%) 75.0 70.0 65.0 60.0 55.0 50.0 45.0 07 05 Johnson City 40.0 Percent Change (%) 25.0.0 15.0 10.0 5.0 0.0-5.0 35.0 07 38.0 43.1 58.1 45.8 54.5 61.4 39.4 41.9 56.9 49.7 54.4 61.1 70.6 68.4 50.0 60.8 43.4 36.6 05 39.2 40.8 46.8 57.3 49.8 57.3 68.5 62.1 46.0 58.4 47.3 37.4 0.7 Hotel & Lodging Occupancy Percent Change from Same, 05- (Washington County) 2.7 21.6 9.4 6.7 3.1 10.2-2.2 8.6 4.2 Zip Codes Included in Washington County Hotel & Lodging Data: 37601 37604 37615 37659-10.0-8.4-15.0-13.3 Source: Smith Travel Research, Hendersonville, TN
Washington County Hotel & Lodging Average Daily Rate (ADR) & Percent Change by, 05- Hotel & Lodging Average Daily Rate (ADR) by, 05-07 (Washington County) 110.00 Average Daily Rate ($) 100.00 90.00 80.00 70.00 60.00 50.00 07 05 Johnson City 40.00 07 63.61 65.36 98.32 66.68 67.96 67.63 60.99 60.93 91.40 68.24 65.68 64.02 66.73 92.45 63.67 70.32 64.32 61.79 05 58.66 58. 68.43 84.44 62.07 61.71 61.76 90.27 61.42 67.68 61.47 59.46 35.0 Hotel & Lodging Average Daily Rate (ADR) Percent Change from Same, 05- (Washington County) 33.6 Zip Codes Included in Washington County Hotel & Lodging Data: 37601 25.0 37604 Percent Change (%) 15.0 5.0-5.0 8.0 4.0 4.6 5.8 3.8 2.4 3.7 3.9 4.6 3.9 37615 37659-15.0-25.0-19.2 Source: Smith Travel Research, Hendersonville, TN
Washington County Hotel & Lodging Revenue Per Available Room (RevPAR) & Percent Change by, 05- Hotel & Lodging Revenue Per Available Room (RevPAR) by, 05-07 (Washington County) Revenue Per Available Room ($) 70.00 65.00 60.00 55.00 50.00 45.00 40.00 35.00 30.00 25.00.00 80.0 60.0 07 24. 28.17 57.11 30.57 37.03 41.51 07 05 24.05 25.55 51.98 33.91 35.75 39.12 47.10 63.24 31.81 42.77 27.89.59 05.98 23.78 32.02 48.42 30.89 35.33 42.30 56.03 28.26 39.50 29.10.24 Hotel & Lodging Revenue Per Available Room (RevPAR) Percent Change from Same, 05- (Washington County) 62.4 Johnson City Zip Codes Included in Washington County Hotel & Lodging Data: 37601 37604 Percent Change (%) 40.0.0 0.0 -.0 15.7 4.7 7.5 10.7 11.3 12.9 12.6 8.3 1.6-4.2 37615 37659-40.0-30.0 Source: Smith Travel Research, Hendersonville, TN