2017 economic impact of tourism in brown county · industries industry (naics) direct indirect...

2017 Economic Impact of Tourism in Brown County

Methodology, Metrics and Evaluation

Copyright © 2017 Rockport Analytics, LLC. All Rights Reserved. 2

Key Inputs & Data Tools

•2017 Tourism Economic Impact Study•Tourism Support/Promo Spending•http://www.in.gov/visitindiana/about-iotd/

Indiana Office of Tourism Development

•Visitor Volume & Spending•Panel survey of 600,000 households per year•http://www.longwoods-intl.com/

Longwoods International

•Bureau of Labor Statistics•Bureau of Economic Analysis•IN Gaming Commission•Indiana Office of Fiscal & Management Analysis

Government Sources

•Smith Travel Research

Private Data Sources

•Local economic model•Defacto standard for most economic impact work•www.implan.com

IMPLAN Model

Brown County Tourism Economic

Impact

Value-Added (GDP)

Wages & Income

Jobs

Taxes


Background & Methodology

Study OverviewA research cooperative was formed in 2017 by the Indiana Office of Tourism Development and Tourism Tomorrow to make this county-level economic impact study possible. The research cooperative engages leading and nationally recognized tourism research and economics experts. It was established to align the state of Indiana, its counties and largest cities around common research methodologies and industry best practices. This 2017 Economic Impact Study of Tourism in Brown County was conducted by Rockport Analytics, an independent market & economic research firm.

MethodologyThe total economic impact of travelers is separated into three distinct effects: direct, indirect, and induced. The direct impacts represent the value-added of those sectors that interact directly with, or touch, the visitor. The indirect impact represents the benefit to local suppliers to those direct sectors. This would include, for example, Brown County-based food suppliers to restaurants. The induced impact adds the impact of tourism-generated wages as they are spent throughout the local economy on an array of goods & services.

The economic impacts reported in this study are based on traveler spending as reported in the 2017 Economic Impact of Tourism in Indiana Study, augmented by other data from Longwoods International (http://www.Longwoods-Intl.com/), Reach Market Planning, and Office of Travel & Tourism Industries data on international visitation and spending (http://tinet.ita.doc.gov). These traveler data are reconciled with Bureau of Labor Statistics (BLS) reported employment data, Bureau of Economic Analysis (BEA) reported earnings data, and reported county tax collections to derive spending levels that are representative at the county level. >>


Background & Methodology

Methodology Cont.

An economic model of Indiana is also critical to estimating how traveler spending resounds through the state and county-level economies. Rockport Analytics has chosen the IMPLAN model for Brown County (www.implan.com), a non-proprietary economic model that is the defacto standard for most economic impact assessments in the United States. This model is critical to measuring the direct, indirect, and induced impacts of visitation to the state.

IMPLAN also to measure how much of each tourism dollar remains in the local economy. Total traveler spending generally exceeds the direct impact of tourism. This is because not all goods and services purchased by travelers are supplied by firms located in Indiana. The IMPLAN model accounts for these import “leakages” to suppliers located outside of the county. Generally, the more diversified a county’s economy, the lower are import leakages and the higher the retention and multiplier of visitor spending.

http://www.implan.com/


2017 Brown County Tourism Highlights

Tax Revenue GeneratedJobs and WagesTourism and Impact

636Total Traveler Spending

Supported Jobs

543Direct Jobs

60Indirect Jobs

33Induced Jobs

$12.2 MillionTotal Wages and Proprietor Income

$5.3 MillionTotal State and

Local Tax

$2.5 MillionSales Tax

$1.3 Million Property Tax

$1.5 MillionAll Other Taxes

$22.6 MillionTotal Economic

Impact

$17.2 MillionDirect

$3.3 Million Indirect

$2.1 MillionInduced

$2.9 MillionTotal

Federal Tax

$1.5 MillionSocial Security

$702 ThousandPersonal Income

$637 ThousandAll Other Taxes

$42.7 Million Tourism

Spending

$22.5 MillionLodging

$6.4 Million Food & Beverage

$4.3 MillionShopping

$2.7 MillionEntertainment and Recreation

$6.8 MillionTransportation

For every $67,102 spent on tourism in Brown County in 2017 supported a job, resulting in an average of $19,259 in gross wages. This includes jobs in the industries directly supporting the visitor such as the arts and retail trade but also in supply chain sectors like transportation. The income of direct and indirect workers also goes to support industries like arts, retail trade, and transportation.

For every $1.00 spent on tourism in Brown County in 2017, 7 cents goes to federal taxes and 12 cents goes to state and local taxes. Federal tax collections include corporate & personal income taxes, excise taxes and social security collections. State and local tourism-derived taxes include sales taxes, property taxes and lodging taxes.

For every tourism dollar spent in Brown County in 2017, $0.53 cents 'stayed' local and contributed directly to the gross county product of Brown County. This includes impact on the direct (tourism-oriented), indirect (supply chain) and induced (income) industries. The remaining 47 cents of every dollar is ‘leaked’ to the supply chain outside of Brown County.

Copyright © 2017 Rockport Analytics, LLC. All Rights Reserved.

3.7%

3.8%

10.9%

3.2%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

6

Brown County At a Glance

Indiana

Indianapolis MSA

All IN Counties Median

Annual Growth in 2017 Tourism Spending

Brown County 2017 Tourism Report Card

Tourism Sales Per Capita $2,838.17

Tourism Spend Per Capita Ranking #8 of 92

2017 Spending by Visitors (Millions) $42.7

County Ranking of Tourism Spend #42 of 92

2017 Tourism Spending Growth 10.9%

2017 Tourism Growth Ranking #11 of 92

Brown County


Brown County Tourism Impact Flows

Value to Indiana Economy Impact on Indiana BusinessTotal Tourism Spending

Lodging

Transportation

Shopping

Food and Beverage

Entertainment

Other

$42.7 Million Tourism Spending

$22.6 MillionTotal Economic Impact

$17.2 MillionDirect ImpactIndustries directly providing goods and services to the visitore.g. restaurants

$3.3 MillionIndirect Impact (Supply Chain)Industries providing goods &services to front-line businesses e.g food suppliers

$2.1 MillionInduced (Income)Direct & Indirect incomes spent at an array of Indiana businesses e.g health care

$20.1 MillionMinus Import Leakages

Examples of import leakage include:retail goods, food, cleaning supplies, computer equipment, and raw materials


Lodging 53%

F&B 15%

Rec & Entertainment

6%Retail 10%

Transportation 16%

Distribution of Tourism Spending$42.7 Million USD

8

Visitor Spending By Category

Expenditure Category 20172016-17Growth

Lodging $ 22,483,182 10.7%

F&B $ 6,442,783 10.9%

Rec & Entertainment $ 2,650,655 11.4%

Retail $ 4,282,588 11.3%

Transportation $ 6,812,745 10.8%

Total $ 42,671,952 10.9%

Source: Longwoods International, OTTI, Reach Market Planning, Smith Travel Research, Rockport Analytics

Lodging accounts for the largest share of tourism spend in Brown County, totaling 53% of visitor expenditures.

Brown County

Indiana

Lodging 53% 16%

F&B 15% 28%

Rec & Entertainment 6% 18%

Retail 10% 22%

Transportation 16% 16%

Total 100% 100%

Categorical Spending Shares: State Comparisons

Note: Spending estimation methodology was changed slightly in 2017 to account for the addition of Madison County to the Indianapolis MSA. To reflect these changes, 2016 totals were also revised so that all reported growth rates are valid.


Tourism's Bottom Line in Brown County

2017 Metric Direct Indirect Induced Total

Total Spending $42,671,952 2017 Y/Y Growth 10.9%

Economic Impact (GDP) $17,178,768 $3,271,250 $2,109,414 $22,559,432 2017 Y/Y Growth 9.8% 9.5% 9.8% 9.7%

Wages $9,450,186 $2,028,163 $769,217 $12,247,567 2017 Y/Y Growth 9.8% 9.5% 9.8% 9.8%

Jobs 543 60 33 6362017 Y/Y Growth 8.1% 7.7% 7.9% 8.1%

Tax Receipts $8,193,196 2017 Y/Y Growth 10.5%

2017 Economic Impact Summary (Compared to 2016)

Impact Glossary

Direct: These impacts represent the value added of those sectors that interact directly, or “touch”, the visitor.

Indirect: These impacts represents the benefit to local suppliers to those direct sectors. This would include, for example, local based food suppliers to restaurants.

Induced: These impacts are derived from tourism-generated wages as they are spent throughout the local economy.

Source: Rockport Analytics, Longwoods International, STR, BLS, BEA, Indiana Office of Fiscal & Management Analysis, IMPLAN


Tourism Supports Sales in a Multitude of Industries

Industry (NAICS) Direct Indirect Induced TotalAccommodations $9,001 $14 $7 $9,022Food services & drinking places $2,967 $332 $169 $3,468Transportation & Warehousing $3,218 $42 $17 $3,277Real estate & rental $0 $402 $833 $1,234Retail trade $910 $28 $285 $1,223Arts- entertainment & recreation $1,082 $11 $55 $1,149Administrative & waste services $0 $706 $52 $759Government & non NAICs $0 $465 $57 $523Other services $0 $286 $123 $409Finance & insurance $0 $224 $149 $373Professional- scientific & tech services $0 $262 $33 $295Construction $0 $207 $16 $223Information $0 $157 $35 $193Health & social services $0 $0 $186 $186Wholesale Trade $0 $45 $65 $110Utilities $0 $62 $18 $81Manufacturing $0 $12 $3 $16Management of companies $0 $11 $0 $12Educational services $0 $1 $5 $5Ag, Forestry, Fish & Hunting $0 $2 $1 $3Mining $0 $0 $0 $0Total $17,179 $3,271 $2,109 $22,559

Total - 2017 $15,648 $2,987 $1,922 $20,557% change 9.8% 9.5% 9.8% 9.7%

Brown Tourism: 2017 Economic Impact (Value Added/GDP)Thousands of $s

Source: Rockport Analytics, IMPLAN


Jobs in a Wide Array of Sectors Also Impacted by County Tourism

Industry (NAICS) Direct Indirect Induced TotalAccommodations 209 0 0 210Transportation & Warehousing 168 1 1 169Food services & drinking places 114 13 7 134Retail trade 27 1 9 37Arts- entertainment & recreation 24 1 2 27Other services 0 9 4 14Administrative & waste services 0 12 1 13Government & non NAICs 0 5 1 5Professional- scientific & tech services 0 5 0 5Finance & insurance 0 3 2 5Real estate & rental 0 3 2 5Health & social services 0 0 4 4Construction 0 4 0 4Information 0 2 0 2Wholesale Trade 0 0 1 1Utilities 0 0 0 0Manufacturing 0 0 0 0Ag, Forestry, Fish & Hunting 0 0 0 0Management of companies 0 0 0 0Educational services 0 0 0 0Mining 0 0 0 0Total 543 60 33 636

Total - 2017 502 56 30 588% change 8.1% 7.7% 7.9% 8.1%

Brown Tourism: 2017 Economic Impact (Employment)

Source: Rockport Analytics, IMPLAN


Tourism is the 2nd Largest Industry in Brown County

Rank Industry 2017 Reported 2017 Tourism Extracted

% of Total Employment

16-17 Growth Rate

1 Government 859 859 26.5% 0.2%2 Tourism N/A 543 16.7% 8.1%3 Retail trade 339 311 9.6% -0.1%4 Accomodation & Food Services 604 280 8.6% -0.6%5 Health & Social Services 237 237 7.3% 4.4%6 Manufacturing 222 222 6.8% 1.1%7 Educational Services 175 175 5.4% 0.7%8 Construction 133 133 4.1% 2.7%9 Other Services 112 112 3.5% -0.3%10 Professional Services 106 106 3.3% 0.7%11 Administrative & Waste Services 104 104 3.2% -0.4%12 Wholesale Trade 67 67 2.1% 0.2%13 Finance & Insurance 48 48 1.5% 0.7%14 Arts, Entertainment & Recreation 69 45 1.4% 2.6%15 Real Estate 24 24 0.7% 1.5%16 Utilities 23 23 0.7% -3.6%17 Management of Companies 20 20 0.6% -5.2%18 Mining 12 12 0.4% 0.0%19 Information 9 9 0.3% -5.2%20 Transportation & Warehousing 81 0 0.0% 0.0%

Total County Employment 3,242 3,242 100% 0.5%

2017 Tourism in Brown County: Ranking of Major Industries By Total Employment

Reported: As released by the Bureau of Labor Statistics and the Indiana Department of LaborTourism Extracted: Tourism’s contribution to jobs in each industry is removed and placed in Brown’s Tourism Industry”

Source: Rockport Analytics, BLS, Moody’s Analytics, IMPLAN


Corporate Income1%

Personal Income5%

Social Insurance Taxes

1%

Tourism Excises16%

Sales Taxes47%

Property Taxes25%

Other Taxes5%

Corporate Income15%

Personal Income24%

Excise & Fees 7%

Social Security & Other Taxes

54%

13

Tourism Tax Sources

Federal Taxes State & Local Taxes2017 Tax Total: $5.3 Million

2017 Total County Tourism-Initiated Taxes: $8.2 Million

2017 Tax Total: $2.9 Million


Tourism-Initiated Tax Revenue

2016 2017 % ChangeThousands

Federal: USCorporate Income $403.7 $442.9 9.7%Personal Income $639.0 $701.5 9.8%Excise & Fees $177.2 $194.3 9.7%Social Security & Other Taxes $1,399.6 $1,536.2 9.8%

Federal Total $2,619.4 $2,874.8 9.8%

State & Local Corporate Income $58.4 $64.1 9.7%Personal Income $244.6 $268.5 9.8%Social Insurance Taxes $25.1 $27.5 9.7%Tourism Excises

Hotel Tax $706.4 $804.7 13.9%Food & Beverage $58.1 $64.4 10.9%Rental Car Excise $0.0 $0.0

Sales Taxes $2,245.9 $2,489.7 10.9%Property Taxes $1,219.1 $1,337.1 9.7%Other Taxes $239.8 $262.4 9.4%

State & Local Tax Total $4,797.4 $5,318.4 10.9%

Total County Tourism-Initiated Taxes $7,416.8 $8,193.2 10.5%

2016 – 2017 Tourism Tax Revenue Collections

• Brown County tourism generated over $8.2 million in total taxes in 2017, up 10.5% over 2016.

• Federal tax collections resulting from tourism in Brown County include income taxes and social security and totaled $2.9 million in 2017.

• State & local tax collections totaled $5.3 million, including $2.5 million in sales taxes contributing to state collections and $1.3 million in property taxes supporting the local tax base.

Source: Rockport Analytics, IMPLAN, Indiana Department of Revenue


Brown County Tourism in Perspective

By Promoting a Healthy Job MarketApproximately 16.7% of all jobs in Brown County are supported by tourism to the region. In addition to the hotel and restaurant industry, tourism directly supports jobs in arts, retail trade, and transportation.

By Contributing to the Health of the Public Education SystemRevenue collected from tourism in Brown County is sufficient to support 549 Indiana public school students.

By Playing a Significant Role in the County’s Industrial Make upTourism is the 2nd largest industry (1st not including Government) in Brown County (by jobs).

By Providing Tax Revenue to Support Federal, State & Local Government In addition to hotel occupancy levies ($804,700 in 2017), Brown County tourism activity generated over $64,100 in Indiana corporate taxes, $268,500 in Indiana personal income tax, and $1.3 million in local property taxes during 2017.

By Helping to Relieve the Tax Burden of Brown County HouseholdsIf Brown County tourism did not exist, each of the 8,669 households in the county would have to pay an additional $613 per year in taxes to maintain current state & local tax levels.

By Capturing and Retaining the Expenditures Made By Visitors Of every dollar spent by visitors in Brown County, 53¢ in economic impact is returned to the local area.

How Does Tourism Benefit Brown County?


Contact

Rockport Analytics West Chester, PA

Annapolis, MD

web: rockportanalytics.comemail: [email protected]

phone: (866) 481-9877

2017 economic impact of tourism in brown county · industries industry (naics) direct indirect...

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