# April 2015



# The	E conomic	Impact	of To urism	in	Wisconsin

# State Overview

### 3 

# Headline **results**

 The Wisconsin visitor economy strengthened in 2014 with a 5.3% increase in visitor spending. This follows a 4.5% gain in 2013.

■ Vi sitor spending tallied $1 1.4 billion in 2014.

■ Wisconsin visitor volumes reached 102.4 million in 2014.

■ With improvements in the overall economy and moderating gas prices, both day and overnight visitor volumes grew a round 2%.

■ Per trip spending increased as personal income and consumer confidence strengthened in 2014.

■ Vi sitor spending grow th wa s led by spending on recreational activities along w ith lodging.

### 4 

# Headline **results**

 Vi sitor spending of $1 1.4 billion generated $18.5 billion in total business sales in 2014 as traveler dollars flowed through the Wisconsin economy

.
 Vi sitor activity sustained 187,650 jobs in 2014, both directly and indirectly

.
 These jobs represent 7.9% of total employment in Wisconsin; 1 in every 12.7 jobs in the state is sustained by tourism activity

.
 Including indirect and induced impacts, tourism in Wisconsin generated $1.4 billion in state and local taxes and $1.05 billion in Federal taxes last year

.
 In the absence of the state and local taxes generated by tourism, each Wisconsin household would need to pay $620 to maintain the current level of government services.

### 5 

# Industry **i ndicator**  **summary**

 Visits to Wisconsin destinations grew 2.0% between 2013 and 2014.

 Lodging metrics strengthened in 2014, posting their strongest numbers since 2011.

 State sales tax revenue on lodging properties grew 6.9% in 2014 (source: State Revenue Office).

 Tourism

- related employment grew on par with overall state employment growth, increasing 1.1% from the prior year.

### 6 

# Lodging **industry**

 The hotel sector expanded robustly in 2014, with room demand growing 3.5%.

 The occupancy rate increased from 55.1% in 2013 to 56.8% in 2014.

 Tighter occupancy boosted average room rates 3.7%.

 Rising demand and higher prices generated growth in
room revenues of 7.4%. 0% 1% 2% 3% 4% 5% 6% 7% 8%

2011 2012 2013 2014 De mand

Re venu e
ADR 

## Lodging **me tric**  **s r ef**  **lect a strong 2014** 

Sou rc e: T ou rism

E con om ics % ch ange



# All lodging **metrics posted their best results since the post** 
**- recession spike.** 

### 7 

# Sales taxes

 Sales tax collections in tourism

- related industries were robust in 2014 with the exception of retail sales.

 Strength in 2014 is evident across several visitor spending categories with lodging and F&B at 5

- year highs.

0% 1% 2% 3% 4% 5% 6% 7% 8%

2010 2011 2012 2013 2014

Lodging F&B Recreation Retail 

## Taxable sales in tourism
**- related industries** 

Source: WI Dept. of Revenue 

### % change

# Visitor Spending

### 9 

# Overview

 Wisconsin visitor volumes reached 102.4 million in 2014. Visitors spent a total of $11.4 billion.

 Visits grew 2.0% while spending increased 5.3% in 2014. 88 90 92 94 96 98 100 102 104

6 7 8 9 10 11 12

2010 2011 2012 2013 2014 Vi si to r Spen di ng, bl s (L ) Pe rson-Stays, m ls (R) 

## Wisconsin **Vi si**  **ts and**  **Spendi ng**  US$ Bil li on s

Sou rc es: Lon gwo od s In tern ation al
, OTTI
, Stats Can
, To ur ism E con om ics Mi lli on s

### 10 

# Visitor spending

 Wisconsin visitor spending reached $11.4 billion in 2014, posting 5.3% growth.

 Recreational spending surged, followed by lodging and spending on food & beverages. $9.2 $9.9 $10.4 $10. 8 $1 1. 4

0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

0 2 4 6 8 10 12

2010 2011 2012 2013 2014**$ B** **i l** **l i** **o n** **s**

Spen di ng (L ) % C han ge (R ) 

### Tour **is m**  **In dust**  **ry Sal**  **es & Growt**  **h Rat**  **e** US$ Billions

Sou rces: Lon gwo ods In tern ation al
, OTTI
, Stats Ca n, T ou rism E con om ics **Sec to**  **r 2009**  **2010 2011**  **2012 2013**  **2014 %**  **Ch an**  **ge Lodging**  **$1, 685**  **$1, 840**  **$1, 995**  **$2, 087**  **$2, 182**  **$2, 339**  **7. 2%**  **Ot he**  **r Tr**  **an sp**  **or t**  **$834 $958**  **$1, 057**  **$1, 195**  **$1, 244**  **$1, 285**  **3. 3%** 

**Ai r**  **$384 $388**  **$405 $408**  **$407 $421**  **3. 6%**  **Fo od &**  **be v.**  **$2, 146**  **$2, 252**  **$2, 447**  **$2, 569**  **$2, 729**  **$2, 905**  **6. 4%**  **Re ta**  **il $1,**  **850 $2,**  **066 $2,**  **200 $2,**  **222 $2,**  **272 $2,**  **328 2.**  **4% Re**  **creati on**  **$1, 162**  **$1, 155**  **$1, 225**  **$1, 311**  **$1, 393**  **$1, 502**  **7. 8%**  **2n d hom**  **e ren**  **ta l**  **$462 $540**  **$569 $584**  **$613 $638**  **4. 2%** 

**TOTAL $8,**  **522 $9,**  **199 $9,**  **899 $10,**  **376 $10,**  **840 $11,**  **419 5.**  **3% %**  **Ch an**  **ge 7.**  **9% 7.**  **6% 4.**  **8% 4.**  **5% 5.**  **3%**



## Vis **it or**  **Spendi ng**  **(US $**  **Millio n)** 

### 11 

# Visitor spending **by s**  **ector**

 Traveler spending neared $3.0 billion on food & beverages.

 The lodging sector passed the retail sector to become the second largest spending category with $2.3 billion in sales.

 In 2014, visitor spending increased 7.8% on recreation & entertainment, 6.4% on food and beverage, and 7.2% on lodging. Note: In this chart T ransportation includes local and air transportation

**2,905**

**2,339 2,328** 

**1,706 1,502** 

**638**

0 500 1,000 1,500 2,000 2,500 3,000 3,500Food&bev.LodgingRetailTransportationRecreation2ndHomeRental 2013 2014 $ Million, 2014 values shown

### 12 

# Visitor spending **distribution**

 With strong growth in leisure visits, the share of spending on recreational activities now exceeds 13% of all visitor spending.

 The share of the traveler dollar spent on lodging, the largest sector, grew to 26.1% in 2014.

 Food & beverage spending ranks second, capturing a quarter of visitor spending, followed by retail at 20%. Lod gi ng 26. 1% Othe r Tr an sp ort 11 .3 % Air 3. 7% Fo od & b ev

. 25.4% Ret ail 20.4%

Recreation

13.2% 

## Vi **si to**  **r Spending**  **by Sect**  **or**

Sourc es: Lon gw ood s In tern ation al
, OTTI
, Stats Can
, To ur ism E con om ics

### 13 

# Visitor spending **trends**

$2. 4 $2. 6 $2. 7 $2.8 $3. 0 $1. 0 $1. 1 $1. 2 $1.2 $1. 3 $0. 4 $0. 4 $0. 4 $0.4 $0. 4 $2. 3 $2. 4 $2. 6 $2.7 $2. 9 $2. 1 $2. 2 $2. 2 $2.3 $2. 3 $1.2 $1. 2 $1. 3 $1. 4 $1. 5

$0 $2 $4 $6 $8 $1 0 $1 2

20 10 20 11 20 12 20 13 20 14 Recreat ion

Ret ai l
Food & be v.
Air
Ot he r Tr ansp or t Lodging

Sou rces: Lon gwo od s In tern at ion al
, OT TI
, Stats Ca n, T ou ris m Econ om ics 

# Wis **consi n's**  **Vi si**  **to r**  **Spendi ng**  by Y ear, Billions o f $ 

#  Visitor spending has grown an average of 5.6% annually since 2010.

 Lodging sales have increased 25% since 2010.

### 14 

# Visitor spending **by m**  **arket segment**

 Leisure tourism represents 88% of visitor spending in Wisconsin.

 Overnight visitors spend $7.7 billion in Wisconsin, 67% of the total.

 Day visitor spending added $3.8 billion in 2014.

 Domestic visitors to Wisconsin spent $10.8 billion in 2014, 94% of all visitor spending.

**Bu si**  **ne ss**  **$1. 4**  **Da y**  **$3. 8**  **Do mest**  **ic $10.**  **8 Le**  **is ur**  **e $10.**  **0 Ov**  **ern ight**  **$7. 7**  **Ov erseas**  **$0. 6**  **Ca na**  **da $0.**  **1 Tot**  **al $11.**  **4 Tot**  **al $11.**  **4 Tot**  **al $11.**  **4**

**Bu si**  **ne ss**  **12. 2%**  **Da y**  **32. 9%**  **Do mest**  **ic 94.**  **3% Le**  **is ur**  **e 87.**  **8% Ov**  **ern ight**  **67. 1%**  **Ov erseas**  **5. 0%**  **Ca na**  **da 0.**  **7%** 

# Vis **it or**  **S pendi**  **ng i n 2014**  **(US $**  **Bi llio**  **n)** 

## Pur **pos e**  **Sta y**  **Ma rk**  **et**

**Shar e**  **Pur pos**  **e Sta**  **y Ma**  **rk et** 

### 15 

# Visitor spending **by market segment** 

**12. 2%**  **32. 9%**  **94. 3%**  **87. 8%**  **67. 1%**  **5. 0%**  **0. 7%** 

0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 10 0%

Purp os e Sta y Marke tPercentagedistribution


### Le **is ur**  **e**

**Day Overn**  **ight Overseas** 

**Do mesti**  **c**

**Bu si**  **ne ss**  **Can ad**  **a**

So ur ces: Lon gw ood s In tern ation al
, OTTI
, Stats Can
, To ur ism E con om ics

### 16 

# Seasonality **o f lodging** 

 Tourism is a year

- round industry in Wisconsin. Its peak is in the third quarter with nearly one

- third of all
rooms rented. In 2014, room demand in each quarter is at least 20% of all rooms rented.

 In 2014, growth was spread throughout the year, with all but Q2 posting room revenue growth of 7% or higher. And Q2 revenue growth only dipped to 5.4%. 0 100 200 300 400 500 600

Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 **Wisconsin Hotel Room Revenue** $ millions

Source: Smith T rav

el R esearch

0% 5% 10% 15% 20% 25% 30% 35% 40%

Q1 Q2 Q3 Q4 Revenue

Rooms **Wisconsin Hotel Rooms and Revenue**  Quarterly Share, 2013

Sou rce: Smith Trav el R esearch

### 17 

# Seasonality **o f visitor spending** 

Business Day 

#  In 2014, t otal visitor spending peaked in the 3 rd 

# quarter with $3.6 billion in visitor sales.

 Spending growth was 3.5% or higher in all four quarters with Q1 posting spending growth of 6.8%. $2,280 $2,862 $3,645

$2,631

0 500 1, 000 1, 500 2, 000 2, 500 3, 000 3, 500 4, 000

Q1 Q2 Q3 Q4 2013

2014 

## Wisconsi **n Quar** 

**terly Vi**  **sit or** 

**S pendi**  **ng** $ M illions

Source: Tou rism Econ omics



### Q1 **Q2 Q3**  **Q4 2013**  **$2, 135.**  **6 $2,**  **766. 2**  **$3, 454.**  **1 $2,**  **484. 3**  

### 2014 **$2, 279.**  **9 $2,**  **862. 4**  **$3, 645.**  **3 $2,**  **631. 5**  

### % **Chn 6.**  **76% 3.**  **48% 5.**  **54% 5.**  **93%** 

## Vi **si to**  **r S pendi**  **ng by**  **Qu ar**  **te r**  **Wis consi**  **n**

### 18 

# Seasonality **o f visitor spending** 

Business Day 

#  Tourism spending has grown in every quarter since 2011.

 Growth did hit a slow patch in the second half of 2012 and first part of 2013 before rebounding in the 2 nd 

# half of 2013.

 The upward trend in quarterly tourism spending growth continued in 2014. 0% 2% 4% 6% 8% 10% 12%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2011 2012 2013 2014 

## Wisconsin Tour **is m Spendi**  **ng Growth**  **Y**
**- o**  **- Y**  **Gr ow**  **th Rates**  **by Quarter** 

Source: To urism E conom ics

# State Tourism **Impacts**

### 20 

# How visitor spending **generates impact** 

• Lastly , the induced impact is generated when employees whose incomes are generated either directly or indirectly by tourism, spend those incomes in the local economy

. 

## • Tr avelers create direct economic value within a discrete group of sectors (e.g. recreation, transportation). This supports a relative proportion of jobs, wages, and taxes within each sector

.



## • Each directly affected sector also purchases goods and services as inputs (e.g. food wholesalers, utilities) into production. These impacts are called indirect impacts.

### 21 

# Tourism sales by **i ndustry** 

**Di re**  **ct Indir**  **ec t**  **Induc ed**  **To ta**  **l Ag**  **ri cu**  **lt ur**  **e, F**  **is hing, M**  **ining**
**- 32.**  **3 24.**  **8 57.**  **1 Co**  **ns tr**  **uc tio**  **n a nd U**  **ti lit**  **ie s**  **- 300.**  **0 112.**  **6 412.**  **6 Ma**  **nuf act**  **ur ing** 
**- 480.**  **1 253.**  **7 733.**  **8 Wh**  **ole sal**  **e Tr**  **ad e**  **- 102.**  **7 154.**  **4 257.**  **1 Ai**  **r Tr**  **an sp**  **or t**  **421. 5**  **4. 5**  **7. 5**  **433. 5**  **Ot he**  **r Tr**  **an sp**  **or t**  **447. 1**  **154. 8**  **63. 4**  **665. 3**  **Re ta**  **il Tr ad**  **e 2,**  **327. 9**  **16. 0**  **293. 9**  **2, 637.**  **9 Ga**  **so line**  **S ta**  **tio ns**  **837. 9**  **1. 3**  **19. 6**  **858. 8**  **Co mmu**  **nic at**  **ions**
**- 252.**  **0 123.**  **8 375.**  **8 Fi**  **na nc**  **e, Ins**  **ur an**  **ce an**  **d R eal**  **E st**  **at e**  **638. 5**  **740. 4**  **1, 195.**  **7 2,**  **574. 6**  **Bu si**  **ne ss**  **Se rv**  **ic es**  **71. 4**  **775. 2**  **244. 4**  **1, 091.**  **0 Ed**  **uc at**  **ion a nd H**  **eal th**  **C are**  **- 5.**  **9 727.**  **3 733.**  **2 Re**  **creat ion a**  **nd E nte**  **rtai nm**  **en t**  **1, 236.**  **0 62.**  **2 40.**  **5 1,**  **338. 7**  **Lodging 2,**  **339. 3**  **2. 7**  **2. 3**  **2, 344.**  **3 Fo**  **od & B**  **ev**

**erag e**  **2, 904.**  **6 128.**  **6 238.**  **2 3,**  **271. 3**  **Pe rso**  **na l S**  **erv ic**  **es 195.**  **0 124.**  **8 179.**  **1 499.**  **0 Go**  **ve rn**  **men t** 
**- 122.**  **2 69.**  **3 191.**  **5 TOTA**  **L 11,**  **419. 1**  **3, 305.**  **8 3,**  **750. 7**  **18, 475.**  **6 Gr**  **ow th R** 

**at e**  **5. 3%**  **5. 7%**  **5. 7%**  **5. 5%**  ***** **Di rect**  **s al**  **es inc**  **lude c**  **os t**  **of goods s**  **old f or**  **r et**  **ai l s**  **ecto rs**  

# Tour **is m S**  **al es**  **(US $**  **Million)**

### 22 

#  All business sectors of the Wisconsin economy benefit from tourism activity directly and/or indirectly.

 Sectors that serve the tourism industry, like business services, gain as suppliers to a diverse tourism industry. 

# Tourism sales by **i ndustry** 

0 500 1, 000 1, 500 2, 000 2, 500 3, 000 3, 500F&BRetailTradeFIRELodgingRecreationBus.ServicesGasManuEducationOtherTranspPersonalServ.AirTransport 

### Indu ced
Indi rect
Di re ct 

# Tour **is m**  **Sal es**  **by**

**I ndust**  **ry** $ million

### 23 

# Total tourism employ **ment**

 The tourism sector directly and indirectly supported 187,643 jobs, or 7.8% of all employment in W isconsin last year

. **Di re**  **ct Indir**  **ec t**  **Induce d**  **To ta**  **l Ag**  **ri cu**  **lt ur**  **e, F**  **is hing, M**  **ining**
**- 382**  **270 653**  **Co ns**  **tru cti**  **on a nd U**  **ti lit**  **ie s**  **- 1,**  **014 344**  **1, 357**  **Ma nuf**  **act ur**  **ing**
**- 1,**  **303 545**  **1, 848**  **Wh ole**  **sal e**  **Tr ad**  **e -**  **624 938**  **1, 562**  **Ai r**  **Tr an**  **sp or**  **t 1,**  **812 16**  **26 1,**  **854 Othe**  **r Tr**  **an sp**  **or t**  **2, 195**  **1, 487**  **611 4,**  **293 Re**  **ta il Tr**  **ad e**  **15, 459**  **231 4,**  **352 20,**  **042 Ga**  **so line**  **S tati**  **ons 1,**  **672 20**  **307 1,**  **999 Co**  **mmu nic**  **at ions** 
**- 1,**  **026 426**  **1, 452**  **Fi na**  **nc e,**  **Ins ur**  **an ce**  **an d R**  **eal E**  **st ate**  **3, 495**  **4, 190**  **4, 086**  **11, 770**  **Bu si**  **ne ss**  **Serv ic**  **es 463**  **8, 136**  **2, 658**  **11, 257**  **Ed uc**  **ati on a**  **nd H eal**  **th Ca**  **re -**  **84 7,**  **183 7,**  **267 Re**  **creat ion a**  **nd E nt**  **ert ai**  **nm en**  **t 24,**  **337 1,**  **274 911**  **26, 522**  **Lodging 32,**  **755 44**  **38 32,**  **837 Fo**  **od & Be**  **ve rag**  **e 48,**  **380 2,**  **499 4,**  **662 55,**  **541 Pe**  **rso na**  **l S erv**  **ic es**  **2, 353**  **1, 329**  **2, 420**  **6, 103**  **Go ve**  **rn men**  **t**
**- 922**  **364 1,**  **285 TOTA**  **L 132,**  **920 24,**  **582 30,**  **142 187,**  **643 Gr**  **ow th**  **Ra te**  **1. 1%**  **1. 4%**  **1. 3%**  **1. 2%** 



## Tour **is m**  **Econom y**  **Em pl**  **oym ent** 

### 24 

# Total tourism employ **ment**

 Secondary benefits are realized across the entire economy through the supply chain and incomes as they are spent.

 The unemployment rate in Wisconsin
wa s 5.5% in 2014. Without the 187,643 tourism supported jobs, the unemployment rate
wo uld nearly double to 10.9%. 0 10 20 30 40 50 60F&BLodgingRecreationRetailTradeFIREBus.ServicesEducationPersonalServ.OtherTranspGasAirTransportManu **Thousands**



### In du ced
In di rect
Di rect 

# Tour **is m**  **Empl oy**  **ment by**  **I ndust**  **ry**

Significant indirect and induced benefits

### 25 

# Tourism employ **ment intensity** 

**3.7% 4.**  **1% 22.**  **8% 33.**  **8% 92.**  **4%**

0% 20% 40% 60% 80% 100% To ta l Ret ail Fo od & bev. Recreat ion Lodg ing 

# Tour **is m Empl**  **oy ment**  **I nt**  **ensi ty**  **by I**  **ndust ry**   To urism is a significant part of several industries

– 92% of lodging, 34% of recreation, and 23% of food & beverage employment is directly supported by tourism spending.

### 26 

# Tourism personal **income**

**Di re**  **ct Indir**  **ec t**  **Induce d**  **To ta**  **l Ag**  **ri cu**  **lt ur**  **e, F**  **is hing, M**  **ining**
**- 5.**  **9 5.**  **2 11.**  **1 Co**  **ns tr**  **uc ti**  **on a nd U**  **ti lit**  **ie s**  **- 80.**  **9 28.**  **9 109.**  **9 Ma**  **nuf act**  **ur ing** 
**- 76.**  **1 32.**  **1 108.**  **1 Wh**  **ole sal**  **e Tr**  **ad e**  **- 44.**  **1 66.**  **3 110.**  **4 Ai**  **r Tr**  **an sp**  **or t**  **99. 0**  **0. 9**  **1. 4**  **101. 2**  **Ot he**  **r Tr**  **an sp**  **or t**  **108. 0**  **70. 5**  **27. 8**  **206. 3**  **Re ta**  **il Tr ad**  **e 346.**  **8 6.**  **7 120.**  **4 473.**  **8 Ga**  **so line**  **S ta**  **ti ons**  **42. 6**  **0. 5**  **7. 7**  **50. 8**  **Co mmu**  **nic at**  **ions**
**- 58.**  **2 26.**  **3 84.**  **5 Fi**  **na nc**  **e, Ins**  **ur an**  **ce an**  **d R eal**  **E st**  **at e**  **60. 9**  **137. 0**  **138. 8**  **336. 7**  **Bu si**  **ne ss**  **Se rv**  **ic es**  **22. 5**  **386. 9**  **125. 5**  **534. 9**  **Ed uc**  **at ion a**  **nd H eal**  **th C**  **are -**  **3. 1**  **384. 8**  **387. 9**  **Re creat**  **ion a nd E**  **nt ert**  **ai nm**  **en t**  **414. 3**  **23. 2**  **14. 9**  **452. 4**  **Lodging 660.**  **1 0.**  **7 0.**  **6 661.**  **4 Fo**  **od & B**  **ev**

**erag e**  **776. 9**  **39. 4**  **82. 8**  **899. 0**  **Pe rso**  **na l S**  **erv ic**  **es 79.**  **8 57.**  **3 71.**  **2 208.**  **3 Go**  **ve rn**  **men t** 
**- 68.**  **6 24.**  **4 93.**  **0 TOTA**  **L 2,**  **610. 9**  **1, 060.**  **0 1,**  **159. 0**  **4, 829.**  **9 Pc**  **h C ha**  **nge 3.**  **9% 3.**  **9% 3.**  **1% 3.**  **7%**



# Tour **is m**  **Labor**

**In com**  **e (C**  **om pensat**  **io n)**  **(US $**  **Millio n)** 

### 27 

# Tourism personal **income**

 Substantial employment in F&B and recreation supports significant labor income in those industries.

 Business services and the FIRE (finance, insurance and real estate) sectors depend on tourism activity as suppliers to tourism companies and their employees. 0 100 200 300 400 500 600 700 800 900 1,000F&BLodgingBus.ServicesRetailTradeRecreationEducationFIREPersonalServ.OtherTranspWholesaleTr.ConstructionManu 

### In du ced
In di rect
Di rect 

# Tour **is m**  **Labor**

**I ncome by**  **I ndust**  **ry** $ million

Significant indirect and induced benefits

### 28 

# Tourism tax generation

 Taxes of $2.5 billion we re directly and indirectly generated by tourism in 2014.

 State and local taxes alone tallied $1.4 billion.

**Ta x T**  **yp e**  **2010 2011**  **2012 2013**  **2014**

**Fe de**  **ral Ta**  **xes Subtota**  **l 917.**  **6 944.**  **5 977.**  **0 1,**  **011. 0**  **1, 052.**  **3 Cor**  **por at**  **e 81.**  **9 87.**  **4 91.**  **5 95.**  **6 100.**  **8 Indir**  **ect Bu**  **si ne**  **ss 104.**  **8 112.**  **0 117.**  **2 122.**  **4 129.**  **1 Per**  **so na**  **l Inc om**  **e 212.**  **6 216.**  **8 223.**  **5 230.**  **7 239.**  **2 So**  **ci al**  **Se cu**  **ri ty**  **518. 2**  **528. 4**  **544. 8**  **562. 3**  **583. 1** 

**State an**  **d Loc al**  **Ta xes**  **Su btota**  **l 1,**  **202. 1**  **1, 269.**  **8 1,**  **312. 3**  **1, 356.**  **3 1,**  **412. 3**  **Cor por**  **at e**  **113. 2**  **120. 9**  **126. 6**  **132. 2**  **139. 4**  **Per so**  **na l Inc**  **om e**  **101. 9**  **103. 9**  **107. 2**  **110. 6**  **114. 7**  **Sal es**  **425. 3**  **453. 1**  **473. 4**  **490. 4**  **514. 8**  **Be d**  **72. 7**  **77. 3**  **80. 9**  **84. 6**  **90. 7**  **Pro pe**  **rty 370.**  **9 391.**  **7 397.**  **8 408.**  **3 417.**  **5 Ex**  **ci se**  **an d F** 

**ees 108.**  **5 113.**  **0 116.**  **4 119.**  **9 124.**  **4 State**  **Un emp**  **loym en**  **t 9.**  **6 9.**  **8 10.**  **1 10.**  **4 10.**  **8**

**TOTAL 2,**  **119. 6**  **2, 214.**  **3 2,**  **289. 3**  **2, 367.**  **3 2,**  **464. 6** 



### Tr **avel er**  **Ge ner**  **at ed**  **Taxes (US$**  **M illion)** 



# In 2014, each household in Wisconsin w **ould hav**  **e been taxed an additional**  **$620 to replace the tourism taxes receiv ed**  **by state and local gov ernments.** 

### 29 

# Tourism tax generation

**– state & local government** 

 Of the $1.4 billion collected by state and local governments from traveler activity, $767 million (54%) accrued to state government.

 Local government revenues from visitor activity grew t o $647 million.

 Property tax revenue, along wi th local excise and fees and lodging taxes, comprise the major revenue streams for local governments. **Ta x T**  **yp e**  **2012 2013**  **2014**
**State Ta**  **x Su**  **bt ot**  **al 706.**  **0 731.**  **8 767.**  **1 Co**  **rp or**  **at e**  **126. 6**  **132. 2**  **139. 4**  **Pe rso**  **na l Inc**  **om e**  **107. 2**  **110. 6**  **114. 7**  **Sa le**  **s 438.**  **0 453.**  **7 476.**  **3 Lodging**  **0. 0**  **0. 0**  **0. 0**  **Pr ope**  **rty 0.**  **0 0.**  **0 0.**  **0 Ex**  **ci se**  **an d F** 

**ees 24.**  **2 25.**  **0 25.**  **9 Sta**  **te Un**  **emp loym**  **en t**  **10. 1**  **10. 4**  **10. 8** 

**Loc al**  **Ta x**  **Subtota l**  **606. 3**  **625. 5**  **647. 3**  **Co rp**  **or at**  **e 0.**  **0 0.**  **0 0.**  **0 Pe**  **rso na**  **l Inc om**  **e 0.**  **0 0.**  **0 0.**  **0 Sa**  **le s**  **35. 4**  **36. 7**  **38. 5**  **Lodging 80.**  **9 85.**  **6 92.**  **7 Pr**  **ope rty**  **397. 8**  **408. 3**  **417. 5**  **Ex ci**  **se an**  **d F**

**ees 92.**  **2 95.**  **0 98.**  **5 Sta**  **te Un**  **emp loym**  **en t**  **0. 0**  **0. 0**  **0. 0**  

## Tr **avel er**  **G ener**  **at ed**  **Taxes - S**  **ta te**  **a nd**  **Local G**  **over nm**  **ent R**  **evenues (US$ M**  **illion)**

### 30 

#  Were the Wisconsin tourism industry a single business, it would rank #242 on the Forbes 500 list, similar in size to Visa, Inc. and CarMax and larger than Norfolk Southern or Office Depot.

 Visitor spending of $11.4 billion is equal to the total revenue of the Wisconsin Lottery... since 1988.

 Total sales in supported by tourism in Wisconsin reached $18.5 billion in 2014.
By comparison, w orldwide revenue of Wisconsin’s 4 th 

# largest company

– Kohl’s

– wa s $19 billion in 2014 

# How important **is tourism?**

### 31 

#  Were the 133,000 direct tourism jobs located all in one county, it would be enough jobs for EVERY resident in Washington County

– the 11 th 

# largest county in the state.

 The total tourism employment of 187,643 is more than the total employment of the Appleton AND Janesville

- Beloit MSA’s. 

# How important **is tourism?**

### 32 

#  Each household in Wisconsin benefits from tourism, saving $620 in 2014 in taxes as visitor activity supports state and local governmental
revenue.

■ That is enough for a annual golfing membership at Christmas Mountain Village or

■ 20

- Game Fan's Choice Plan in the outfield for the Milwaukee Brewers or

■ About 20 separate admissions to a waterpark in Wisconsin Dells (assuming average price of $30). 

# How important **is tourism?**

# Methodology **and Background**

### 34 

#  By monitoring tourism’s economic impact, policy makers can make informed decisions regarding the funding and prioritization of tourism development.

 It can also carefully monitor its successes and future needs.

 In order to do this, tourism must be measured in the same categories as other economic sectors

– i.e. tax generation, employment, wages, and gross domestic product. 

# Why **q uantify**  **t he tourism economy**  **?**

### 35 

# Why **i s this a challenge?** 

 Most economic sectors such as financial services, insurance, or construction are easily defined within a country’ s national accounts statistics.

 To urism is not so easily measured because it is not a single industry . It is a demand

- side activity which af fects multiple sectors to various degrees.

 To urism spans nearly a dozen sectors including lodging, recreation, retail, real estate, air passenger transport, food & beverage, car rental, taxi services, travel agents...

### 36 

## • Domestic visitor expenditure estimates are provided by Longwoods International’s representative survey of US travelers. These are broken out by sectors (lodging, transport at destination, food & beverage, retail, and recreation), by purpose (business and leisure), and by length of stay (day and overnight).

• To urism Economics then adjusts these levels of spending based on a range of known measures of tourism activity:

• Overseas visitor spending (source: OTTI, TE)

• Canada visitor spending (source: Statistics Canada, TE)

• Sales tax receipts

• Spending on air travel which accrues to all airports and locally

- based airlines

• Gasoline purchases by visitors (source: TE calculation)

• Smith Tr avel Research data on hotel revenues

• Industry data on employment, wages, GDP , and sales (source: BEA, BLS, Census) 

# Methods **and data sources**

### 37 

## • An IMPLAN model was compiled for the State of Wisconsin. This traces

the flow of visitor

- related expenditures through the local economy and their ef fects on employment, wages, and taxes. IMPLAN also quantifies the indirect (supplier) and induced (income) impacts of tourism.

• All results are benchmarked and cross

- checked and adjusted based on the following:

• US Bureau of Labor Statistics and Bureau of Economic Analysis (employment and wages by industry)

• US Census (business sales by industry)

• The source of the employment and wage data is the Regional Economic Information System (REIS), Bureau of Economic Analysis, U.S. Department of Commerce. All employment rankings are based on Bureau of Labor Statistics (ES202/QCEW) data. 

# Methods **and data sources**

### 38 

# Selected recent economic impact clients

**Cities** Baltimore, MD Columbus, OH Kansas City , MO London, United Kingdom New Y ork City Omaha, NE Orlando, FL Philadelphia, PA Pittsburgh, PA Rockford, IL

**Countries / Provinces**  Bahamas Bermuda Cayman Islands Dubai Ontario Canada St. Lucia United Kingdom **As sociations / Companies**  Center for Exhibition Industry Research (Economic Impact of Visa Restrictions) DMAI (Event Impact Calculator for 80 CVBs) US T ravel Association (Impact of travel promotion) InterContinental Hotels **States** California Georgia Maryland New Y ork North Carolina Ohio Pennsylvania Wisconsin

### 39 

# About **Tourism Economics**

 To urism Economics, headquartered in Philadelphia, is an Oxford Economics company dedicated to providing high value, robust, and relevant analyses of the tourism sector that reflects the dynamics of local and global economies. By combining quantitative methods with industry knowledge, To urism Economics designs custom market strategies, project feasibility analysis, tourism forecasting models, tourism policy analysis, and economic impact studies.

 Our staff have worked with over 300 destinations to quantify the economic value of tourism, forecast demand, guide strategy , or evaluate tourism policies.

 Oxford Economics is one of the world’s leading providers of economic analysis, forecasts and consulting advice. Founded in 1981 as a joint venture with Oxford University’s business college, Oxford Economics is founded on a reputation for high quality , quantitative analysis and evidence

- based advice. For this, it draws on its own staff of 90 highly

- experienced professional economists; a dedicated data analysis team; global modeling tools; close links with Oxford University , and a range of partner institutions in Europe, the US and in the United Nations Project Link.

 For more information: info@tourismeconomics.com

.

### 40 

## For more information:

Adam Sacks, President adam@tourismeconomics.com

Christopher Pike, Senior Economist cpike@tourismeconomics.com