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Prepared For Vermont Department of Tourism and Marketing Prepared By Dept of Community Development and Applied Economics University of Vermont Vermont Tourism Data Center, School of Natural Resources University of Vermont September 2001

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Page 1: Economic Impact Analysis of the Tourism Sector on the ... · PDF fileTourism Economic Impact on Output, ... data for the tourism sector to determine its impact on Vermont’s economy

Prepared For Vermont Department of Tourism and Marketing

Prepared By

Dept of Community Development and Applied Economics University of Vermont

Vermont Tourism Data Center, School of Natural Resources University of Vermont

September 2001

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The Impact of the Tourism Sector on the Vermont Economy 1999-2000

Report prepared

By

Nancy E. Wood and Dr. Kathleen Liang Department of Community Development & Applied Economics

University of Vermont

In Association with Vermont Tourism Data Center

School of Natural Resources, University of Vermont

September 2001

Research Available through a partnership between the Vermont Department of Tourism and Marketing (VDTM) and Vermont Tourism Data Center (VTDC), School of Natural

Resources, University of Vermont

(802) 828-3230 (VDTM) (802) 656-0623(VTDC) http://snr.uvm.edu/vtdc

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TABLE OF CONTENTS

Page TABLE OF CONTENTS .............................................................................................................................. I

EXECUTIVE SUMMARY .......................................................................................................................... 1

BACKGROUND PERSPECTIVE.............................................................................................................. 4 Vermont Tourism Industry: Context and Background....................................................................... 4 The Objective of This Study .................................................................................................................. 6 Analysis and Definitions ........................................................................................................................ 8 Data Sources............................................................................................................................................. 9

Visitor Survey................................................................................................................. 9 Business Surveys .......................................................................................................... 10 Lodging Survey.......................................................................................................... 10 Food and Beverage Survey ........................................................................................... 13 Ski Area Survey............................................................................................................ 16 IMPLAN Input/Output Model ................................................................................. 18

ECONOMIC IMPACT OF VERMONT TOURISM.............................................................................. 19 Vermont Tourist Numbers by Season................................................................................................. 19 Vermont Tourist Spending ................................................................................................................... 20 Annual and Seasonal Impact of Tourism on the Vermont Economy............................................. 26

Annual 1999 – 2000 Tourism Economic Impact .................................................. 26 Industrial Output Impact by Season........................................................................ 31 Employment Impact by Season ............................................................................... 32 Personal Income Impact by Season......................................................................... 33 Tax Impact by Season ............................................................................................... 33

SUMMARY................................................................................................................................................. 34

CONCLUSIONS......................................................................................................................................... 38

REFERENCES ........................................................................................................................................... 41

APPENDIX A: METHODOLOGY .......................................................................................................... 43 A.1 Vermont Input-Output IMPLAN Model............................................................................................ 43 A.2 Economic Multipliers ........................................................................................................................ 47 A.3 Limitations of and Potential Sources of Error in the IMPLAN Model .............................................. 48

APPENDIX B: VERMONT TOURISTS NUMBER AND EXPENDITURE CALCULATION......... 50

APPENDIX C: GLOSSARY ..................................................................................................................... 51

APPENDIX D: 1999-2000 VERMONT VISITOR SURVEY ................................................................. 52

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List of Tables And Figures

Table 1. Visitor Profile for All Tourists (1999-2000) ............................................................................... 19

Table 2. Total Trips by U.S. Tourists to Vermont (1999-2000) ............................................................ 20

Table 3. Average Expenditure per Person per Trip. ............................................................................... 21

Table 4. Primary Purposes of Trips by Season. ....................................................................................... 22

Table 5. U.S. Tourists’ Expenditures by Category .................................................................................. 25

Table 6. Tourism Economic Impact on Output, Employment, Personal Income and Indirect Business Taxes for 1999-2000.................................................................................................................................... 27

Table 7. Economic Multipliers for the Vermont Tourism Sector, 1999-2000. ...................................... 29

Table 8. Comparing the Tourism Sector Multipliers to Vermonts’ Largest Sectors*......................... 30

Table 9. Seasonal Tourism Economic Impact on Output for 1999-2000 (million $)............................ 31

Table 10. Seasonal Tourism Economic Impact on Employment for 1999-2000 (jobs) ........................ 32

Table 11. Seasonal Tourism Economic Impact on Personal Income for 1999-2000 (million$)........... 33

Table 12. Seasonal Tourism Economic Impact on Indirect Business Taxes for 1999-2000 (million $)...................................................................................................................................................................... 33

Table 13. Summary of Seasonal Statistics, 1999-2000............................................................................. 34

Table 14. Input-Output Transaction Table: An Example ..................................................................... 46

Figure 1. Primary Purposes of Trips as a Percentage of all Trips in the Year and by Season .............23 Figure 2. Tourist Expenditures by Season (Year Total = 2.58 billion, 1999-2000) ................................24 Figure 3. Tourism’s Relative Share of State Economy: 1997-98 vs. 1998-99 ........................................28 Figure 4. Total Impact on Output by Season, 1999-2000 compared to 1998-1999. ...............................32 Figure 5. Total Economic Impact on Output of Tourism in Vermont, 1997 – 2000. .............................35

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EXECUTIVE SUMMARY

Travel and tourism are keystones for both the U.S. and the Vermont economies. The

growth of the travel and tourism industry over the past decade has boosted the economic well

being of the country and the state. Because the tourism sector is important to the Vermont

economy, the Vermont Department of Tourism and Marketing has been investing in Vermont

tourism research to obtain consistent and reliable data on the economic impacts of the industry.

This is the third year of such research.

The objective of this year's study is to evaluate the annual and seasonal economic impacts

of Vermont tourists’ expenditure. This study evaluated the economic impact of tourism on

Vermont’s economy taking into account changes in industrial output, employment, income, and

taxes. An input/output economic impact model was used to measure both direct and secondary

impacts of the tourism industry using IMPLAN (IMpact analysis for PLANning) software, and

data used for this study were collected through a national visitor survey, prior business surveys

and the IMPLAN database.

Key findings include the following:

• From April 1, 1999, through March 31, 2000, U.S. tourists made a total of 3.84

million trips to Vermont, with an average party size of 3.2 people, equivalent to

12.25 million person-trips.

• Thirty-six percent of the trips to Vermont were made in the summer (June, July

and August); 31% in the fall (September, October, and November); 21% in the

winter (December, January, February, March); and 12% were made in the spring

(April and May).

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• U.S. tourists spent a total of $2.58 billion in Vermont in 1999-2000.

• Expenditure categories were dominated by lodging (26%), restaurants (20%), and

retail/shopping (19%).

• Summer tourist expenditures accounted for 35% of the total for the year, followed

by winter (28%), fall (27%) and spring (10%).

• In 1999-2000, U.S. tourist spending in Vermont contributed to a total impact of

$4.16 billion, or about 14% of the total state output.

• Tourist expenditures contributed to 75,200 jobs in total, which are about 19% of

the total jobs in the state.

• Tourism also contributed to a total impact of $1.4 billion in personal income

(employee compensation and proprietary income) and $245 million in indirect

business taxes for the state, which are 14% and 22% of total state personal income

and indirect business taxes, respectively.

• Compared to the preceding year, tourism's relative share of the state economy was

slightly lower in terms of industrial output (14% vs. 15%) and personal income

(14% vs. 15%). The number of jobs as a percent of the state total was also lower

(19% vs. 23%). Tourism’s relative share of state indirect business taxes

continued to be high relative to other sectors, at 22% of total state indirect

business taxes.

• The 12.25 million person-trips in 1999-2000 is down about 5.7% from 13 million

during the prior year, but because of an 8.1% increase in average spending (from

$194.78 to $210.64) the total spending of $2.58 billion is slightly higher (1.5%)

than during 1998-1999.

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• The total economic impact in terms of output, including indirect and induced

effects, increased 2% from $4.07 billion in 1998-99 to $4.16 billion in 1999-2000.

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BACKGROUND PERSPECTIVE

Vermont Tourism Industry: Context and Background Travel and tourism are keystones of the U.S. economy, and Vermont is no exception.

Both the growth rate and the size of the travel and tourism industry over the past decade have

boosted the country’s and the state's economic well being.

Nationwide in 1999, total travel expenditures in the U.S. were $526.6 billion, including

$451.6 billion by U.S. residents. This is a 6% increase over the prior year, and a 53% increase

since 1991. Americans took 987.3 million person-trips in 1999, a reduction of 1.7% from the

prior year. Pleasure travel, as opposed to business, government and other types of travel, was the

purpose of 640.6 million person trips. Travel and tourism make up the third largest retail industry

in the U.S. When we add in indirect and induced effects of $694.5 billion, the industry’s total

monetary impact in 1999 exceeded $1.2 trillion, about 13.8% of our nation’s gross domestic

product.

Travel and tourism are also remarkable engines of employment, directly generating 7.7

million jobs and $161.3 billion in payroll in 1999, while supporting another 10 million jobs and

$191.2 billion in payroll indirectly. In addition, travel and tourism are a significant source of tax

revenue for local, state and national governments. In 1999, it is estimated that the U.S. tourism

industry directly generated nearly $93.6 billion in tax revenue for federal, state and local

governments. Of this amount, about $81.3 billion was generated by domestic travelers.1

Tourism is also an important economic engine in Vermont. While small in size and

population, Vermont's varied landscape lends itself to a diversity of economic activity consisting

1 Travel statistics and trends from the Travel Industry Association of America website at http://www.tia.org.

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primarily of tourism, manufacturing, agriculture, and higher education. Vermont's commitment

to maintaining a pristine environment, with strict controls on development, is largely responsible

for Vermont's popularity as a vacation destination. While Vermont is a haven for outdoor

enthusiasts such as hikers and fishermen, the spectacular scenery, working landscape, and

changing seasons have stimulated the growth of many tourism-related activities.

All of these have made Vermont one of the most travel-expenditure-dependent

economies in the United States in the nineties. However, prior to 1998 reliable facts on the

economic impacts of the tourism industry on Vermont were not readily available, mostly because

the state of Vermont had not had complete, consistent, and accurate inventory data and economic

analysis of its tourism industry. This lack of information was one of the industry’s greatest

barriers to reaching its full potential. Therefore, the periodic and consistent collection of primary

data for the tourism sector to determine its impact on Vermont’s economy is vital to the

development and implementation of comprehensive strategic marketing and public investment

plans.

Aware of this, the Vermont Department of Tourism and Marketing began investing in

tourism economic impact research in 1998. They provided funding for the Vermont Tourism

Data Center in the School of Natural Resources and the Department of Community Development

and Applied Economics at the University of Vermont to investigate the economic impact of the

Vermont tourism industry. This year is the third year of the study.

For last year's study we collected primary data from Vermont visitors and Vermont

tourism business owners. Using these data, we constructed an input-output model for the

tourism sector in Vermont that can be used to estimate the economic impacts of U.S. tourism

spending on Vermont’s economy. We reported tourism’s effect on industry output, employment,

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tax generation, and the strength of inter-industry linkages.

According to our analysis, total direct domestic tourist spending in Vermont was about

$2.5 billion between April 1, 1998, and March 31, 1999. As this $2.5 billion circulated through

the Vermont economy, it generated a total of $4.0 billion in output, 85,900 jobs (both full-time

jobs and part-time jobs), $1.5 billion in personal income (employee compensation and

proprietary income), and $335 million in indirect business taxes for the state. In other words,

U.S. tourist spending generated, directly and indirectly, 15% of state total output and 23% of

total state employment. Results of studies of the economic impact of lodging businesses (by

size), the economic impact of ski areas, and of food and beverage industries on the Vermont

economy were also reported to the State Department of Tourism and Marketing in April 2000.

This year, we again use the collected data to enhance the Input-Output Model we built

last year to evaluate the impacts of Vermont tourism on the state economy. The objective of this

year's study is described in the next section.

The Objective of This Study

The primary objective of this year's study is to evaluate the economic impacts of

Vermont tourists’ expenditures and the tourism industry for the year April 1, 1999, through

March 31, 2000. The specific objective of this study is to use an input-output model to estimate

the annual and seasonal economic impacts of U.S. tourists' spending in Vermont on total industry

output, employment, tax generation, and the strength of inter-industry linkages. The input-output

model we built for the tourism sector in Vermont last year has been updated and used in this

study.

The study focuses on domestic tourist spending in Vermont. There are two reasons for

focusing initially on U.S. tourists. First, this is the third year of an ongoing project to explore the

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economic impact of tourism on the Vermont economy. International tourists’ information is

being gathered as another phase of the project. It is also a very common practice, even at the

national level, to study U.S. and international tourists separately due to their different travel

behaviors and expenditure patterns. Second, U.S. tourists account for most of the tourists who

visited Vermont (about 87%) of trips made to Vermont (Longwoods International, 1995).

There are a variety of definitions for tourists. For the purpose of this study, “tourists” are

defined as pleasure travelers. Tourist activities include trips primarily for pleasure such as

recreation, visiting friends and relatives, fall foliage touring, etc. The tourists defined in this

study include domestic visitors (excluding Alaska and Hawaii). “Tourist” is used as a synonym

for “pleasure traveler” in this study.

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Analysis and Definitions

To evaluate the economic impact of tourism on Vermont’s economy, this study used the

IMPLAN economic impact model, which traces the flow of goods and services, income, and

employment among related sectors of the economy. The model estimates the direct effects,

indirect effects, and induced effects of tourism spending. These effects characterize the way

money is circulated through a region’s economy (see Appendix A for a more detailed

explanation).

• Direct effect refers to production change associated with a change in demand for the good

itself. It is the initial impact to the economy.

• Indirect effect refers to the secondary impact caused by changing input needs of directly

affected industries (e.g., additional input purchases to produce additional output).

• Induced effect is caused by changes in household spending due to the additional

employment generated by direct and indirect effects.

The IMPLAN model also estimates an output multiplier, a personal income multiplier, an

employment multiplier, and an indirect business tax multiplier. Multipliers are summary

indicators of tourism impact that characterize how changes in tourist spending can affect other

sectors within the state’s economy (see Appendix A for a more detailed explanation).

• Output multiplier: An output multiplier for a sector is defined as the total production in

all sectors of the economy that is necessary to satisfy a dollar’s worth of final demand

for that sector’s output (Miller and Blair, 1985). In other words, for every dollar change

in final-demand spending (direct output), the change in the total value of output in all

sectors.

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• Personal income multiplier: For every dollar change in final-demand spending (direct

output), the change in income received by households.

• Employment multiplier: For every million-dollar change in final-demand spending (direct

output) in a sector, the change in number of jobs in the economy.

• Indirect business tax multiplier: For every dollar change in final-demand spending (direct

output), the change in indirect business taxes.2

Data Sources

The IMPLAN economic impact model requires three types of data inputs to estimate

spending and multiplier effects: Visitor data, business data and economic data for the state of

Vermont. This section describes the sources of these data used in this study.

Visitor Survey

First, the University of Vermont (UVM) developed a Vermont visitor survey to collect tourist

expenditure and trip data. To administer the survey, UVM derived a sample population from a

national group of 225,000 households, compiled by a national consulting firm (The NPD Group,

Inc.). This is called a screener survey. The screener survey includes a question to separate

Vermont tourists from the sample, which reads “If you took a pleasure trip to or through

Vermont anytime in the past year, please ‘x’ the months(s) in which you visited.” 129,738

screeners were returned, a response rate of 57.6%. All Vermont visitors identified by the

screener (2,804 households) were mailed the questionnaire included in Appendix D; 1,350

surveys were returned, of which 1,070 were usable for this research. The survey results can be

found in the separate report, "A National Survey of The Vermont Visitor 2000," prepared for the

2 Indirect business taxes consist primarily of excise and sales taxes paid by individuals to businesses. These taxes occur during the normal operation of these businesses but do not include taxes on profit and income (IMPLAN manual, 1996).

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Vermont Department of Tourism and Marketing by the School of Business Administration at the

University of Vermont in January 2001. Tourist expenditure data from those 1,070 surveys then

were used to estimate the total tourist spending in Vermont and were applied to Input-Output

analysis.

Business Surveys

Second, IMPLAN requires surveys of expenditures within tourism-related businesses in

the state. The purpose of the business surveys was to establish industry profiles and determine

the total revenue and cost structure of travel related businesses in Vermont. These studies were

conducted for the years 1997 and 1999. For 1999 we surveyed the Vermont lodging industry, ski

areas and food and beverage businesses in Vermont. Surveys were not conducted for the year

2000, so we include here a review of the 1999 data as background information for this report.

Complete details can be found in last year’s report, The Impact of the Tourism Sector on the

Vermont Economy: 1998-1999.

Lodging Survey

The lodging survey was sent to the entire population of 1,019 lodging businesses in

Vermont in March 2000. Due to various reasons (e.g., undeliverable address, seasonal business

close, etc.), only 942 were actually reached. Of these, 253 lodging businesses responded to the

six-page survey. Among the questions asked were type and size of lodging business, occupancy

rate by month, employment number, total revenue, expenditures by categories, local purchase

percentages, guest type, and tourist origin. Appendix B shows a copy of the lodging business

survey. The sample data are weighted by size and geographical location.

Here is a summary of key findings about Vermont’s lodging industry in 1999:

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Profile of the Lodging Industry in 1999

• Based on the lodging survey, Vermont’s 1,019 lodging businesses had an

estimated 26,098 rooms/units in total. Vermont lodging businesses are mostly

small in size.

• The statewide occupancy rate was 38%.

• Different regions show quite different occupancy rates. The Chittenden County

region had the highest average occupancy rate of 56%, followed by the Upper

Valley (44%), Bennington (43%), and Two Rivers (42%) regions.

• The region with the lowest occupancy rate of 25% was the Southern region.

Compared to 1997, 1999 room rent was generally up, ranging from 5% to 30%

higher.

• The Windham region had the highest average room rent of $120 (an average of

the single room rents of high season and low season), followed by the Central

($113), Chittenden ($105), and Upper Valley ($103) regions.

• On average, lodging establishments in Vermont have been in operation for 32

years. Current lodging business owners have owned their businesses for more

than a decade (12 years) and have an average of 16 years' experience in the

hospitality industry.

Employment

• In 1999, Vermont's lodging industry employed approximately 18,587 people.

Thirteen percent were employed year round as managers, while 34.2% were

employed in "support" staff positions. One-fourth of the remaining jobs were

part-time (24.7%), and another quarter were seasonal positions (27.7%).

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• The average annual wage for "full-time, year-round, managerial" staff was

$26,716, or roughly $12.85 per hour for a 40-hour week, 52 weeks a year. The

average annual wage for "full-time, year-round, support" staff was $21,035, or

approximately $10.00 per hour.

• Part-time managers received an average of $8.18 per hour, while part-time

support staff received an average of $7.95 per hour.

• At least 20% and as many as 35% to 40% of Vermont lodging business owners

draw no salaries from the business operation (Report "Employment and Wages in

Vermont's Lodging Industry").

• On average, a housekeeping supervisor in Vermont receives an hourly wage of

$9.95, higher than the national average ($9.42), New Hampshire ($9.31), and

Maine ($9.90). Housekeeping staff on average receive $7.02 per hour in

Vermont, compared to $6.84 nationwide, $7.36 in New Hampshire, and $7.26 in

Maine.

Use of Technology

• About 88% of the lodging establishments in the state use a computer to run their

businesses, increased from 74% in 1997.

• In 1999, more businesses had access to the Internet (86%) and had their own

World Wide Web page (76%) than in 1997.

• According to the survey, an overall average of 24% of business was generated by

the Internet and 12% of the businesses reported that over the Internet generated

half of their business.

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Sales

• The average revenue ranged from $61,203 for a small lodging business (1-10

rooms) to $3.4 million for a large lodging business (more than 50 rooms). A

medium-size lodging business (11-49 rooms) on average receives revenue of

about $425,000.

• Total lodging business sales in Vermont were estimated to be $645 million in

1999, according to our survey.

• On average, about 84% of lodging income was from pleasure travelers.

Economic Impact

• In 1999 the direct output of the lodging industry, including sales and rooms and

meals taxes, was $703 million.

• Total output impact of the lodging industry on the state economy was $1.4 billion,

including $703 million of direct impact and $704 million of indirect and induced

impact.

• In 1999, the lodging industry in total supported 28,681 jobs, including 18,587 jobs

directly, in the lodging industry itself, and 10,031 jobs through indirect and

induced effects.

Food and Beverage Survey

The food and beverage business survey was sent to the entire population of about 1,700

Vermont food and beverage businesses in April 2000. It was sent to various types of food and

beverage businesses including all restaurants, bars, caterers, mobile units, concessions, and

bakeries. Questions similar to those in the lodging sector survey were asked in the questionnaire.

Only 130 food and beverage businesses responded to the survey, a response rate of 8%. Quite a

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few factors contributed to the low response rate (e.g., poor mailing list, high employer turnover

rate in restaurant businesses, and not enough follow-up surveys, etc.), but the reluctance to share

information is usually high in food and beverage businesses --- a 1998 nationwide restaurant

survey received less than a 10% response for the same reason. The low response rate seriously

limits the sample's ability to represent the whole population; thus, any conclusions or

interpretations of the survey data should be handled carefully.

Profile of the Food and Beverage Industry in 1999

• Based on these surveys, full-service restaurants accounted for over half (51%)

state eating and drinking places, and limited-service places such as fast-food

restaurants, food bars, bars, pubs, lounges and take-outs accounted for another

25%. The rest are caterers (10%), food stores (7%), bakeries (5%), concessions

(3%), mobile food units (2%) and others (2%).

• About 43% of Vermont food and beverage businesses offer only non-alcoholic

beverages, while 39% provide full liquor service and 18% provide only beer

and/or wine.

• The most popular primary menu themes are: American food (25%),

sandwich/sub/deli (14%), pizza (8%), steak and seafood (8%), breads, baked

goods and desserts (7%), hamburgers (7%), and French/Continental (6%). In

addition, Italian food and Chinese food account for 3% each.

Seating Capacity

• About 20% of food and beverage businesses such as retail food stores, some fast-

food places, bakeries, and mobile food units, have no seating at all.

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• Another 20% of businesses have less than 30 seats in total. Forty-five percent of

businesses have 30 to 150 seats, and the rest (15%) have more than 150 seats.

• In 1999 individual food and beverage businesses served an average of 60.8

thousand customers throughout the year.

Sales

• Travelers, especially pleasure travelers, spent significantly more money on a per-

party basis. The average food bill for pleasure travelers was the highest at $19.91,

followed by business travelers ($15.38) and non-travelers ($14.62). The overall

average food bill was $19.55. The average food bill for pleasure travelers is

significantly higher than checks for other types of guests.

Employment

• According to the survey respondents, food and beverage businesses hired 19

people on average.

• Approximately 42% of employees (8 out of 19) in Vermont food and beverage

businesses are full-time employees, while 58% (11 out of 19) are part-time

employees.

• About 73% (14 out of 19) are employed year-round, while the other 27% (5 out of

19) are employed on a seasonal basis.

• Approximately one-third (6 out of 19) of the positions are managers with

managerial or supervisory duties (most likely including the owners for the owner-

operated businesses), while the other two-thirds (13 out of 19) are in "support"

positions, including cooks, wait staff, and dishwashers, etc.

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• A paid full-time year-round manager in a food and beverage business receives on

average $31,489 a year, and a paid year-round full-time support staff receives

$21,632 a year.

• For all the paid part-time positions, the average hourly wage rate is $7.78.

Vermont food and beverage businesses generally pay better wages than the

national average except for waiters and waitresses. Cooks, for example, on

average receive $9.05 per hour, $1.24 higher than the national average. Waiters

and waitresses in Vermont on average receive $5.85 per hour, two cents less than

the national average. Compared to New Hampshire and Maine, Vermont's wage is

competitive.

Economic Impact

• In 1999, total output impact of food and beverage businesses on the state

economy was $1.6 billion, including $949 million direct impact and $608 million

indirect and induced impact.

• In 1999, food and beverage businesses in total supported 38,314 jobs, including

19,373 jobs directly in food and beverage businesses themselves and 8,941 jobs

through indirect and induced effects in other industries.

Ski Area Survey

The ski area survey was administered through collaboration with the Vermont Ski Areas

Association. This survey was sent to 18 ski areas and included questions similar to those of the

lodging survey, along with questions specific to ski areas. Twelve ski areas responded with a

response rate of 67%.

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Profile of the Ski Industry in 1999

• Skiing is one of the most important recreation activities in Vermont. In 1999,

Vermont had 18 alpine ski areas, 984 ski trails with 5,175 acres of ski-able

terrain, and 9 mountains of over 2,000 vertical feet.

• In 1999, Vermonters were the largest patrons of Vermont ski areas (18%),

followed by residents of New York (18%), Massachusetts (13%), Connecticut

(13%), and New Jersey (11%).

• Skiers from the UK increased significantly. In 1997, total international skiers

(excluding Canada) accounted for only about 1% of skiers. However, in 1999,

skiers from the UK alone accounted for 5% of the skiers.

Employment

• On average, each Vermont ski area employs 736 people: 115 full-time employees

and 621 part-time or seasonal employees.

• Both full-time and part-time employment had quite strong increases in 1999. In

1999, a full-time exempt /supervisory employee in a Vermont ski area received

$40,741 on average for salary.

Sales

• On average, each resort makes $18 million in the winter season and $4.5 million in

the summer/fall season.

Economic Impact

• In 1999, total output impact of ski areas on the state economy was $722 million,

including $428 million direct impact and $294 million indirect and induced

impact.

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• This gives ski areas an output multiplier of 1.69, meaning that for every dollar of

direct output, ie., services provided by ski areas to meet skiers’ demand, an

additional 69 cents of output will be generated throughout the economy.

• In 1999, ski areas in total created 17,293 jobs, including 13,248 jobs directly in the

ski industry itself and 4,045 jobs indirectly or inducedly in other industries.

• In terms of the employment multiplier, for ski areas every million dollars worth of

sales generates 40 jobs in total, consistent with the 1997 number.

• Ski areas also contributed to about $226 million of state personal income and $43

million of indirect business taxes in 1999.

IMPLAN Input/Output Model

Finally, the Vermont input-output model uses data on Vermont’s economy for the year

1997, the most recent year for which data are available. Then all the data were inflated to 1999

dollars according to different deflation rates in each sector. The Minnesota IMPLAN Group

supplied the base data on a statewide and county level. The Minnesota IMPLAN Group

assembles its data from a number of sources, including the U.S. Bureau of Labor Statistics, the

U.S. Bureau of Economic Analysis, USDA, and the U.S. Census of Agriculture (Minnesota

IMPLAN Group).

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ECONOMIC IMPACT OF VERMONT TOURISM

Vermont Tourist Numbers by Season

In 1999-2000, U.S. tourist parties made a total of 3.84 million trips to Vermont with an

average party size of 3.2 people, equivalent to 12.25 million person-trips.3 Table 1 shows the

average Vermont visitor profile from which these estimates were derived. On average each

visiting household took 1.95 trips to Vermont. These visiting households stayed an average of

4.6 nights on their annual visits. Among Vermont visitors, 78% stayed overnight, while 22%

took day-trips or were passing through the state on their way to another destination.

Table 1. Visitor Profile for All Tourists (1999-2000)

All Tourists Average Party Size 3.19 Average Trips per Person 1.95 Average Length of Stay (nights) per Year

4.6

% of Overnight Visitors 78% Source: 1999-2000 Vermont Visitor Survey

Table 2 shows the trips made by season. In 1999-2000, U.S. tourist parties made a total of

3.84 million trips to Vermont. Of those, 450,000 trips (11.6%) were made in the spring (April

and May), 1.4 million trips (35.7%) were made in the summer (June, July, and August), 1.21

million trips (31.4%) were made in the fall (September, October, and November), and 820,000

trips (21.2%) were made in the winter (December, January, February, and March). The party

size also varies across the season. The average party sizes in the winter (3.4 persons) and

summer (3.3 persons) are higher than the annual average (3.2 persons), while the average party

size in spring and fall (3 persons each) is lower. The person trips in each season were calculated

3 Specific calculation is shown in the appendix B.

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by multiplying the total trips by the average party size in that season. Table 2 shows that 4.5

million person-trips were made in the summer, accounting for 37% of the total person-trips,

followed by 3.6 million person-trips in the fall, 2.8 million trips in the winter, and 1.3 million

trips in the spring. The year-round total number of person-trips was 12.25 million.

Table 2. Total Trips by U.S. Tourists to Vermont (1999-2000)

Source: Baker, William E., School of Business Administration, University of Vermont (January 2001), “A National Survey of the Vermont Visitor 2000”

Vermont Tourist Spending

The numbers of tourists visiting Vermont are not evenly distributed throughout the year,

and neither are their expenditures. Table 3 shows the average expenditure per trip per person.

The total average expenditure for a person per trip is $210.64, with a lodging expenditure of

$55.25, restaurant expenditure of $41.04, and retail shopping expenditure of $39.19.

Table 3 also shows the tourist per-capita expenditures across the seasons. Not

surprisingly, winter visitors tend to spend more money for each trip, or the trips are more costly

in the winter travel season (December, January, February, March). On average each winter

traveler spent an average of $256.96 on each trip, 22% higher than the overall Vermont average

tourist expenditure level. The average per-person per-trip expenditure was $193.61 in the spring,

$196.05 in the fall, and $198.96 in the summer. Statistical analysis shows that there is a

significant difference in expenditure by visitors by season.

Winter travelers spent a significantly higher amount of money on lodging and skiing,

while other expenditure categories were close to those of other season travelers. The skiing

Total Trips Spring Summer Fall Winter Trips (million party-trips) 3.84 .45 1.37 1.21 .82 Avg. Party Size (persons) 3.2 3.0 3.3 3.0 3.4 Person-trips (million person-trips)

12.25 1.34 4.52 3.62 2.77

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expenditure in winter of $36.74 per person per trip accounts for about 14% of the total average

spending per person in winter.

Table 3. Average Expenditure per Person per Trip.

Overall Spring Summer Fall Winter Avg. Total expenditures per person per trip: $ 210.64 $ 193.61 $ 198.96 $ 196.05 $ 256.96 Specific expenditures: Lodging 55.25 43.04 54.61 46.29 73.87 Camping 5.07 6.52 7.04 3.33 3.43 Skiing 10.71 5.48 - 6.10 36.74 Parks 0.96 2.04 1.04 0.81 0.48 Movies & Theater 1.66 2.48 2.22 0.62 1.70 Other recreation 12.76 11.70 14.57 12.81 10.26 Gasoline 13.00 13.09 13.09 12.52 13.43 Other transportation 5.73 7.39 4.70 7.29 4.61 Shopping 39.19 38.52 39.22 40.24 38.09 Restaurant 41.04 38.22 38.09 41.24 46.96 Groceries 13.98 14.22 14.74 10.95 16.57 Other 11.30 10.91 9.65 13.86 10.83 Source: Baker, William E., School of Business Administration, University of Vermont (January 2001), “A National Survey of the Vermont Visitor 2000”

In all seasons the major spending categories are lodging, food and beverage expenses in

restaurants, and shopping. Of the four seasons winter has the highest average lodging expense

per person per trip ($73.87), the highest restaurant expense ($46.96), but the lowest shopping

expense. Skiing is the major attraction, the only expense in any season coming close to the

average for shopping, and much higher than recreation expenses in other seasons.

The higher lodging expenditure in winter reflects higher seasonal room rents and

generally higher room rents in ski areas. Also, a significantly lower drive-through rate of 6%

(i.e., more overnight visitors) in winter compared to 18% in the summer, 14% in the fall, and

7.7% in the spring, partially explains why the average expenditure for winter visitors was higher.

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Variations in seasonal spending are a reflection of the variation in activities pursued by

tourists during the different seasons. Table 4 details the “primary purposes”

Table 4. Primary Purposes of Trips by Season.

Primary Purpose of Trip % of All Trips

% of Spring Trips

% of Summer Trips

% of Fall Trips

% of Winter Trips

Visiting relatives 17.0% 18.7% 20.5% 13.0% 16.0% Visiting friends 15.5% 18.0% 19.8% 11.3% 12.9% Downhill skiing 8.7% 3.2% 0.0% 3.3% 34.0% Automobile touring 7.7% 6.2% 12.2% 5.3% 4.3% Buying Vermont products 7.2% 4.7% 8.8% 8.1% 4.6% Fall foliage tour 6.5% 0.0% 0.7% 19.9% 0.0% Family get-away 5.5% 5.2% 8.1% 5.3% 1.7% Relax in beauty 5.2% 5.7% 5.3% 6.3% 2.9% Romantic get-away 3.2% 5.7% 3.1% 3.0% 2.4% Cultural activities 3.1% 3.0% 4.2% 2.6% 1.9% Visiting historic sites 2.6% 2.2% 3.9% 2.7% 0.5% Visiting schools or colleges 2.6% 5.2% 2.0% 2.1% 2.9% Fishing 1.2% 2.7% 1.5% 1.2% 0.0% Agricultural tourism 1.0% 2.0% 1.4% 0.9% 0.0% Hiking 1.0% 0.3% 1.7% 0.5% 0.7% Water recreation 0.9% 0.0% 2.4% 0.0% 0.0% Snowmobiling 0.8% 0.3% 0.0% 0.0% 3.8% Fairs 0.8% 0.3% 0.7% 1.7% 0.0% Hunting 0.6% 0.5% 0.0% 1.4% 0.7% Watching wildlife 0.6% 1.3% 0.7% 0.5% 0.2% Cross country skiing 0.3% 0.3% 0.0% 0.0% 1.4% Sports events 0.3% 0.5% 0.3% 0.2% 0.2% Canoeing or kayaking 0.2% 0.3% 0.3% 0.3% 0.0% Golf 0.2% 0.3% 0.5% 0.0% 0.0% Biking 0.1% 0.0% 0.2% 0.2% 0.0% Other 6.9% 12.7% 1.9% 9.1% 8.9% * Totals do not equal exactly 100% due to rounding. (Source: Baker, William E., School of Business Administration, University of Vermont (January 2001), “A National Survey of the Vermont Visitor 2000,”).

of tourists for their visits to Vermont. Overall for the year the most popular “primary purpose” is

the visiting of relatives or friends, which accounts for 32.5% of all visits. It is

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Figure 1. Primary Purposes of Trips as a Percentage of all Trips in the Year and by Season.

also the most frequent purpose in three of the seasons: 36.7% of spring visits, 40.3% of summer

visits, and 24.3% of fall visits. Downhill skiing is the only seasonal activity that exceeds this

average: skiing is the primary purpose of 34% of winter trips, while visiting relatives or friends

is the primary purpose of 28.9% of winter trips. The next most frequent seasonal purpose is

foliage touring which accounts for about 20% of fall trips, followed by automobile touring which

is the primary purpose of more than 12% of summer trips.(Figure 1)

“Buying Vermont products” is a primary purpose of a greater percentage of summer and

fall trips, which corresponds to the higher spending per person on shopping in those seasons.

Also during summer there are more visits for the purpose of “other recreation” such as water

sports, visiting historic sites, golf and cultural events, which corresponds to the higher summer

spending per person in the “other recreation” category.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

Year Spring Summer Fall Winter

Seasons

% o

f Trip

s

Visiting friends or relativesSkiingFall Foliage TourAuto TouringBuying Vermont Products

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Figure 2. Tourist Expenditures by Season (Year Total = 2.58 billion, 1999-2000)

U.S. tourists spent a total of $2.58 billion in Vermont in 1999-2000. This was computed

by multiplying the total person-trips (12.25 million) by the expenditure per person per trip

($210.64).4 This figure shows a slight increase of 1.5% compared to last year's study due to the

8.1% increase in the per-person per-trip expenditure from $194.78. Compared to the year before,

fewer estimated tourists visited Vermont, but on average each tourist spent more money in

Vermont. Figure 2 shows tourists’ expenditures by season as a proportion of the total spending in

1999-2000 of $2.58 billion. Summer spending accounted for 35% of total spending,5 followed by

winter at 28%, fall slightly less at 27% and spring at 10%.

4 From Appendix B. 5 Four Seasons: Spring (April and May); Summer (June, July and August); Fall (September, October, and November), Winter (December, January, February, March)

Spring10%

Summer35%

Fall27%

Winter28%

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Table 5 shows tourists' annual expenditures by season and category. These expenditures

are calculated by multiplying the number of person-trips for each season (Table 2) by the

expenditures for each category per person per trip (Table 3).

Expenditure categories are dominated by lodging (26%), restaurant (19%), and

retail/shopping (19%) expenditures. Together these account for two thirds of all U.S. tourists'

expenditures in Vermont during 1999-2000. However, recreation expenditures, including skiing,

other recreation, movies and theater and parks also have a significant impact, accounting for

close to 13% of the tourist expenditures.

Table 5. U.S. Tourists’ Expenditures by Category

Twenty-six percent of U.S. tourists’

expenditures in Vermont are for lodging, which

is probably lower than the lodging percentage of

spending by international pleasure travelers and

business travelers. As seen in Table 4, a large

percent of tourists are visiting friends or

relatives, and many may be staying in private

homes. Business travelers and international

tourists are more likely to stay in lodging

businesses.

Camping, which accounts for 2% of spending this year, is a new category on the visitor

survey. The combination of lodging and camping expenditures equals 28%, the same percentage

as in the prior year when camping was not broken out from the total. Other proportions are very

Category of Expenditure million $ % of total Lodging 676.7 26% Restaurant 502.6 19% Shopping 479.9 19% Groceries 171.2 7% Gasoline 159.2 6% Other recreation 156.3 6% Skiing 131.2 5% Other transportation 70.2 3% Camping 62.2 2% Movies & Theater 20.3 1% Parks 11.7 0% Other 138.4 5% Total Spending 2,579.8 100%

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close to what we found last year, with changes in retail and restaurant (down from 21% to 19%)

and “other”: up from 2% to 5%.

Of the $62.2 million in camping expenditures we estimate approximately 10% was spent

in public campgrounds owned by the state or municipalities, and 90% was spent in private

campgrounds, for the use of recreational vehicles, privately owned camps or cottages, or on

wilderness or other camping related expenditures.

Annual and Seasonal Impact of Tourism on the Vermont Economy

This section analyzes the annual and seasonal economic impact of U.S. tourists’

expenditures in Vermont. In the previous section, U.S. tourists’ annual and seasonal

expenditures were presented by categories. Tourists’ expenditures represent the demand for

goods and services from the tourism sector of the economy. The response of the industry to this

spending is the “direct”/ first-round impact to the Vermont economy. In this section, a complete

picture is presented of the direct, indirect and induced impacts of tourism in terms of industry

output, employment, personal income and indirect business taxes. Multipliers of the tourism

sector are shown with a comparison to other sectors in the state.

Annual 1999 – 2000 Tourism Economic Impact

Table 6 shows the impact of the tourism sector on output, employment, personal income,

and indirect business taxes (business taxes excluding business or personal income taxes). In

1999-2000, U.S. tourist spending contributed to $4.15 billion, or about 14%, of state total output.

Of that amount, $2.48 billion was the direct impact and $1.67 billion indirect and induced

impacts. The direct impact is less than the actual spending by tourists because some

commodities purchased by tourists – specifically gasoline – are not produced in Vermont and

therefore are not part of Vermont industry output.

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Tourist expenditures contributed to 75,241 jobs in total, which is about 19% of total state

employment. Of those 75,241 jobs, 67.5% (50,767 jobs) were attributed directly to tourist

expenditures and 32.5% (24,474 jobs) were created due to the indirect and induced impacts of

tourist expenditures. These jobs include both full-time jobs and part-time jobs. Tourism also

generates $1.4 billion in personal income (employee compensation and proprietary income) and

$245 million in indirect business taxes for the state, which are 14% and 22% of total state

personal income and indirect business taxes, respectively.

Table 6. Tourism Economic Impact on Output, Employment, Personal Income and Indirect Business Taxes for 1999-2000.

Direct Indirect Induced Total % of State Output (million $) 2,478.8 814.8 863.3 4,157.0 14% Employment (jobs) 50,767 11,174 13,300 75,241 19% Personal Income (million $) 812.8 276.9 316.8 1,406.5 14% Indirect Business Taxes (million $) 161.0 33.1 50.9 244.9 22%

Figure 3 provides a comparison of tourism's relative share of the state economy over the

last three years. Industrial output and personal income due to tourism continue at about the same

relative level. Total impact on state output was 15% in both 1997-98 and 1998-99, compared to

14% for 1999-2000. Total impact of tourism on personal income (including employee

compensation and proprietary income) was 14% in 1997-98, 15% in 1998-99, and 14% in 1999-

2000. Tourism’s relative share of state jobs is somewhat less than in the prior two years (19% vs.

23%). There would appear to be a big drop in the share of indirect business taxes, from 31% last

year to 21% this year; however this is more in line with the 1997-98 share of 24%. Some of the

difference from prior years can be explained by a change in the method of allocating tourist

expenses among the industry sectors. For instance, the method of allocating “shopping”,

“groceries, and “gasoline” expenditures was changed. In prior years, these were allocated to

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specific retail sectors , such as “general merchandise” and “apparel & accessories” stores at

producer prices. This year the national average margins were followed for household

expenditures to distribute tourism expenditures associated with merchandise, food, and gasoline.

This approach requires fewer assumptions about the items tourists purchase, and with margins

the IMPLAN software allocates the spending to appropriate wholesale, retail, transportation, and

manufacturing sectors. Indirect business tax estimates are lower because of less of the spending

is being considered retail output with this method. At 21% of Vermont’s total indirect business

taxes tourism continues to contribute significantly to state revenues, bearing a large portion of

the tax burden relative to its 14% share of state industry output.

0

5

10

15

20

25

30

35

Perc

ent o

f Sta

te T

otal

Output Employment Personal Income Indirect Business Taxes

1997 - 1998 1998 - 1999 1999 - 2000

Figure 3. Tourism’s Relative Share of State Economy: Three Year Comparison, 1998-2000

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Table 7 reports the economic multipliers for the tourism sector serving Vermont tourists

whose origin is from the U.S. The definitions of various economic multipliers

Table 7. Economic Multipliers for the Vermont Tourism Sector, 1999-2000.

Industry Output* Jobs

Personal Income*

Employee Compensation*

Proprietors Income*

Indirect Business Taxes*

Direct Impact 2,478.8 50,767 812.8 732.7 80.1 160.96 Indirect Impact 814.8 11,174 276.9 227.9 49.0 33.09 Induced Impact 863.3 13,300 316.8 274.0 42.7 50.88 Total Impact 4,157.0 75,241 1,406.5 1,234.6 171.9 244.93 Output multiplier1 1.68 30.35 0.57 0.50 0.07 0.10 Spending multiplier2 1.61 29.17 0.55 0.48 0.07 0.09 *Millions of dollars (1999 dollars). 1. Output multipliers are based on $2,478.8 million direct industry output to meet tourist demand. 2. Spending multipliers are based on $2,579.8 million spent by tourists in Vermont.

can be found in Appendix C. For the tourism sector, the industry output multiplier is 1.68.

(Table 7) We also estimate a personal income multiplier of 0.57; an employment multiplier of

30; and an indirect business tax multiplier of 0.10. These multipliers are based on the direct

output of Vermont’s industries to meet tourist demand for goods and services. For every dollar of

industry output there is $1.68 in total impact; for every dollar of industry output, an additional 57

cents of personal income is generated. The multiplier for jobs is based on millions of dollars of

output: for each million dollars of industry output to meet tourism demand, 30 jobs are

supported.

Table 7 also includes “spending multipliers,” which relate total impacts to the dollars

actually spent by tourists. The spending multiplier for industry output is 1.61: that is, for each

dollar spent by tourists there is a total impact of $1.61. The spending multiplier for jobs is 29;

for personal income, .55; and for indirect business taxes, .09. Another way of looking at it, for

every million dollars spent by tourists in Vermont, an additional $610,000 worth of output is

generated for a total $1,610,000 impact on output; personal income increases by about $550,000;

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29 jobs are created; and revenue to the state from indirect business taxes increases by about

$90,000.

Table 8 compares the tourism industry output multiplier, employment multiplier and

indirect business tax multiplier with those of other sectors in the Vermont economy. The tourism

output multiplier (1.68) is about average when compared to other sectors in the state. The

tourism employment multiplier (30) is relatively high among the sectors, meaning that relatively

more jobs are created for every million dollars brought in by the tourism sector. The indirect

business tax multiplier for tourism is higher than for most of the other sectors. For every dollar

tourists spend in Vermont, indirect business

Table 8. Comparing the Tourism Sector Multipliers to Vermonts’ Largest Sectors*

Sector Industry Output

Output Multiplier

Employ- ment

Multiplier

Indirect Business Tax

Multiplier Health services 1,787.6 1.83 30.5 0.05 Business services 844.5 1.83 34.4 0.06 Construction 2,281.4 1.75 24.7 0.05 Wood products 633.7 1.74 19.4 0.04 State & local non-ed government 1,026.9 1.69 30.6 0.04 Industrial machinery 541.2 1.69 17.4 0.04 Tourism 2,478.8 1.68 30.0 0.10 Farms 654.0 1.66 24.3 0.05 Furniture 236.0 1.64 20.5 0.04 Insurance Carriers 347.1 1.63 18.7 0.10 Food processing 1,408.3 1.62 12.0 0.04 Printing and publishing 597.4 1.61 19.0 0.04 Electrical equipment 2,255.3 1.57 11.9 0.04 Banking 655.2 1.46 14.4 0.05 Fabricated metal 408.5 1.41 12.7 0.06 Real estate 1,634.8 1.32 9.2 0.14 *Sector aggregation is based on the two-digit SIC codes. ** Million dollars, 1997 output for all sectors except tourism. Source: IMPLAN Model with 1997 data and study analysis

taxes will increase 10 cents, as compared to many sectors like electrical equipment (which

includes the computer industry) with an indirect business tax multiplier of .04, or construction

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with a multiplier of .05, or business services at .06. The only sectors among this selection of

sectors with the same or higher indirect business tax multipliers are real estate (.14) and

insurance carriers (.10). The tourism sector includes a large share of retail, lodging and restaurant

activity, which generate high rooms and meals and sales taxes, which are a large share of indirect

business taxes.

Industrial Output Impact by Season

In order to explore the economic impact of seasonality in tourism activities, we define the

four seasons as following: spring includes April and May; summer includes June, July, and

August; fall includes September, October, and November; winter includes December, January,

February, and March.

Table 9 shows the output impact of tourism activities in different seasons. Summer

tourism had the largest total impact, including direct, indirect and induced effects, on industrial

output. Summer accounted for $1.45 billion, or close to 35% of annual tourism impact on

industrial output. The total impact of winter tourism ($1.15 billion) was 28%, followed by fall

($1.14 billion) and spring ($416 million).

Table 9. Seasonal Tourism Economic Impact on Output for 1999-2000 (million $)

Direct Indirect Induced Total Spring 247.65 82.34 86.80 416.79 Summer 862.68 285.19 299.11 1,446.98 Fall 680.00 221.70 238.51 1,140.21 Winter 688.51 225.60 238.90 1,153.01 Year-round 2,478.84 814.83 863.32 4,156.99

Figure 4 shows total impact on output in 1999-2000 compared to the prior year season by

season. The year-round total impact of $4.157 billion is 2% greater than the total impact of

$4.072 billion, with the gain primarily in the summer and fall seasons. Summer was 22% higher

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($1.45 billion compared to $1.18 billion), and fall was 4 % higher ($1.14 billion compared to

$1.09 billion). The total impact of the winter season in 1999-2000 was slightly less than in 1998-

99 ($1.15 billion compared to $1.18), and spring was $200 million lower.

Figure 4. Total Impact on Output by Season, 1999-2000 compared to 1998-1999.

Employment Impact by Season

Table 10 shows the employment impact of tourism activities in different seasons.

Summer tourism generates the most jobs at almost 17,000 directly serving tourists’ needs, and

more than 25,000 jobs including indirect and induced effects. Winter contributes to

Table 10. Seasonal Tourism Economic Impact on Employment for 1999-2000 (jobs)

Direct Indirect Induced Total Spring 5,035 1,123 1,337 7,495 Summer 16,975 3,887 4,608 25,469 Fall 13,733 3,034 3,674 20,441 Winter 15,024 3,131 3,680 21,836 Year-round 50,767 11,174 13,300 75,241

0

200

400

600

800

1000

1200

1400

1600

Spring Summer Fall Winter

Seasons

Mill

ion

Dol

lars

1998-19991999-2000

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nearly 22,000 jobs followed by fall at 20,441. Spring, the shorter “off season,” is significantly

lower, supporting about 7500 jobs.

Personal Income Impact by Season

Table 11 shows the personal income impact of tourism activities in different seasons.

Similar to the output and employment impacts, summer shows the highest numbers, followed by

winter and fall with nearly the same impact, and spring substantially less.

Table 11. Seasonal Tourism Economic Impact on Personal Income for 1999-2000 (million$)

Direct Indirect Induced Total Spring 81.59 27.88 31.85 141.32 Summer 281.10 96.41 109.75 487.26 Fall 225.21 75.67 87.52 388.40 Winter 224.88 76.96 87.66 389.50 Year-round 812.78 276.92 316.77 1,406.48

Tax Impact by Season

Table 12 shows the indirect business tax impact of tourism activities in different seasons.

State total indirect businesses taxes were about $1.1 billion. Summer tourism alone accounted

for about 8% of that tax income. Tourism in winter and fall seasons each contributed about 6%.

Spring tourism was lower, accounting for about 2%. Overall, tourism for the year accounted for

about 22% of the state’s total indirect business taxes.

Table 12. Seasonal Tourism Economic Impact on Indirect Business Taxes for 1999-2000 (million $)

Direct Indirect Induced Total Spring 15.86 3.31 5.12 24.29 Summer 56.82 11.53 17.63 85.97 Fall 44.13 9.05 14.06 67.24 Winter 44.15 9.20 14.08 67.43 Year-round 160.96 33.09 50.88 244.93

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SUMMARY

Table 13 summarizes the key statistics by season for domestic tourism in Vermont for the

year April 1, 1999, through March 31, 2000. Summer tourists had the greatest number of trips

and 35% of total spending, about $900 million, during the months of June, July and August.

Spring tourists had the fewest number of trips and spent the least, about 10% of the total, during

April and May. Fall tourists were second to summer in the number of person-trips, but spent on

average less per person per trip than summer tourists, and significantly less than winter tourists.

Total spending during fall, the three months of September, October and November, was $708.7

million, about $4 million less

Table 13. Summary of Seasonal Statistics, 1999-2000

Average Spending

($/person/trip) Person-trips

(million)

Total Spending (million $)

Seasonal % of Total

Spending

Economic Impact:

Direct Output (million $)

Economic Impact: Total

Output (million $)

Spring $ 193.61 1.34 258.7 10% 247.6 416.8 Summer $ 198.96 4.52 900.2 35% 862.7 1,447.0 Fall $ 196.05 3.62 708.7 27% 680.0 1,140.2 Winter $ 256.96 2.77 712.1 28% 688.5 1,153.0 Full Year $ 210.64 12.25 2579.8 100% 2,478.8 4,157.0

than during the four winter months of December through March. Only domestic (U.S. resident)

tourists are included in this study.

Total tourist spending for the year is estimated at $2.58 billion, based on an average

spending of $210.64 per person per trip, and 12.25 million person-trips. The number of person

trips is down about 5.7% from 13 million during the prior year, but because of an 8.1% increase

in average spending (from $194.78 to $210.64) the total spending is higher than during 1998-

1999. The total economic impact in terms of output, including indirect and induced effects, is

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$4.157 billion, up 2% over $4.072 billion in 1998-99, and an increase of 12% over the total

impact of tourism in 1997-1998. The three year comparison is illustrated by Figure 5.

Figure 5. Total Economic Impact on Output of Tourism in Vermont, 1997 – 2000.

During the summer the average amount spent per person per trip was $199, an increase of

18% over the amount reported for the prior year. This increase in per person spending offset a

2% decline in the number of visits to Vermont in the summer of 1999 compared to 1998. The

average amount spent per person per trip in the fall was $196, a small increase of 3% over the

amount reported for the prior year. This increase in per person spending offset a 7% decline in

the number of visits in the fall of 1999 compared to 1998.

In the winter the average amount spent per person per trip was $257, an increase of 5%

over the amount reported for the prior year. However, this increase in per person spending was

3.70

4.07

4.16

3.50

3.60

3.70

3.80

3.90

4.00

4.10

4.20

1997-98 1998-99 1999-2000

B I L L I O N S D O L L A R S

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not enough to offset a 9% decline in the number of visits to Vermont in the winter of 1999 - 2000

compared to 1998 - 1999. Total spending was an estimated $712 million, a decrease of 3% from

the prior year. Based on their spending, winter tourists are more active than tourists during other

seasons. They spent over $100 million on downhill skiing, and an additional $33 million on other

recreation and entertainment.

Two thirds of summer tourist spending was in three categories: $247 million for lodging,

$177 million on shopping, and $172 million for eating and drinking. Forty-five percent of fall

tourist spending was in two industry sectors: $167 million for lodging and $149 million for food

and beverages in restaurants. Forty-seven percent of winter tourist spending was in the same two

industry sectors, but with a larger proportion in lodging: $205 million for lodging and $130

million for food and beverages in restaurants.

The total economic impact for Vermont of summer tourism is estimated to be $1.4 billion

in industry output, $487 million in personal income and $86 million in indirect business taxes.

Indirect business taxes include rooms and meals, sales, excise and other business taxes, but not

income taxes. Personal income includes $429 million in employee compensation (including

benefits) and $58 million in proprietors income to small business owners and self-employed

persons. The total impact on employment was approximately 25,000 jobs, both full-time and

part-time.

The total economic impact for Vermont of fall tourism is estimated to be $1.14 billion in

industry output, $388 million in personal income and $67 million in indirect business taxes. In

terms of employment the total impact was $342 million in employee compensation (including

benefits) and 20,400 jobs.

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The total economic impact for Vermont of winter tourism is estimated to be $1.153

billion in industry output, $389.5 million in personal income and $67.4 million in indirect

business taxes. In terms of employment the total impact was $339.6 million in employee

compensation (including benefits) and 21,800 jobs.

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CONCLUSIONS

Summer tourism remained strong during 1999 relative to the prior year. During both

years it represented the most trips and highest revenues of the four seasons in Vermont. An

increase in per person spending of 18% more than offset the 2% reduction in the number of trips

and 5.3% reduction in the number of households who visited the state.

Fall tourist spending increased only a small amount from 1998 to 1999. The increase was

due to higher spending per person per trip, which offset a 7% decrease in the average number of

fall trips from 1998 to 1999 and a 6% decrease in the number of households who traveled to

Vermont.

Despite a 5% increase in per person spending, overall winter tourist spending decreased

3% from 1998-1999 to 1999-2000. This decrease was due to a 9% decline in the number of

winter trips and a 3.1% decline in the number of households who traveled to Vermont.

A large part of the draw to Vermont for tourists in all seasons is social, particularly for

summer tourists. Of summer tourists 40% say the primary purpose of their trip is to visit friends

or relatives. But once here they participate in a variety of activities. This suggests a marketing

strategy to Vermont residents to involve them in offering their guests options for activities during

their visits.

Shopping is a major activity of summer tourists, accounting for $177.5 million dollars --

20% of their total spending. “Buying Vermont products” specifically was listed by 8% of

visitors as the primary reason for their visit, and was included in 56% of summer trips by visitors

who came only in the summer. This would suggest that cross marketing efforts of tourism and

Vermont food and other products have been successful.

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Fall tourists continued to come for the beautiful foliage, but there was a decrease from

27% in 1998 to 20% in 1999 in the percentage that considered foliage the primary purpose of

their trip. The weather may have been a factor in these reductions, with the hurricane in

September of 1999, and the damage to Vermont forests caused by the ice storm in the prior year.

Shopping continued to be a major activity, contributing $145.5 million of the total $709

million in fall tourist spending. The number who considered “buying Vermont products” the

primary purpose of their trip nearly doubled, from 4.5% in 1998 to 8.1% in 1999, and Vermont

products were purchased during 55% of trips. Burlington and Manchester were the two top

destinations for fall tourists, perhaps because of their shopping appeal.

More than one-third of trips (36%) in the fall include visits to historic sites, slightly more

than during the summer (31%), suggesting both the current strength and future potential of

heritage tourism in Vermont.

Automobile touring is more frequent in the fall (during 39% of trips) than in the summer

(31%), yet spending on gasoline is slightly less per person and spending on "other

transportation" is slightly higher. This may indicate shorter drives and a greater usage of

alternative transportation, such as tour buses and trains, for fall foliage viewing. Future studies

could investigate this trend.

Winter tourism continues to be highly dependent upon the ski industry. Downhill skiing

was the primary purpose of 34% of winter trips, and tourists who came only in winter enjoyed

some skiing during 54% of their trips. However, average spending of $36.74 per person per trip

on skiing was less that the $40.65 reported for the prior year in The Impact of the Tourism Sector

on the Vermont Economy: 1998-1999.

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These decreases in individual spending on skiing and in total spending for the winter

season coincide with a 2% decrease in seasonal skier days reported by the Vermont Department

of Employment and Training, from 4,042,461 in 1998-99 to 3,957,457 in 1999-2000.

Winter is the only season during which tourists spend less on “shopping” than on

recreation and entertainment. Also, a smaller proportion of trips include the purchase of Vermont

products. Marketing Vermont products at ski areas may help increase sales to these recreation-

focused tourists while they are in Vermont. Also there may be increasing potential in cross-

marketing Vermont products with ski vacation information to these tourists in their homes via

the Internet.

This study addresses only domestic (U.S. residents excluding Alaska and Hawaii)

“pleasure travelers.” Thus the $2.58 billion spent in Vermont by these tourists is only a portion

of the larger travel industry, which includes international tourists, business travelers, and others

who come for services such as education and health care. Estimating the economic impact of all

types of travel to Vermont could be the focus of future studies.

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REFERENCES

1999 Official State of VT General Obligation Refunding Bonds Baker, William E., School of Business Administration, University of Vermont (June

2000), “A Geo-Demographic Analysis of the Vermont Visitor 2000,” report prepared for the Vermont Department of Tourism and Marketing

. Baker, William E., School of Business Administration, University of Vermont (January

2001), “A National Survey of the Vermont Visitor 2000,” report prepared for the Vermont Department of Tourism and Marketing.

Bureau of Labor Statistics web site: http://146.142.4.24/. Department of Community Development and Applied Economics (CDAE) and Vermont

Tourism Data Center-School of Natural Resources (SNR), University of Vermont (2000), “The Impact of the Tourism Sector on the Vermont Economy: 1998-1999,” report prepared for the Vermont Department of Tourism and Marketing.

Longwoods International and Center for Survey and Marketing Research Studies,

including: The Economic Impact, Performance and Profile of the Vermont Travel and Tourism Industry 1993-1994. Vermont Agency of Transportation, 1995. The Economic Impact, Performance and Profile of the New Jersey Travel and Tourism Industry 1990-1991. New Jersey Department of Commerce and Economic Department, 1992. The Economic Impact, Performance and Profile of the New Jersey Travel and Tourism Industry 1991-1992. New Jersey Department of Commerce and Economic Department, 1993. The Economic Impact of the Connecticut Travel and Tourism Industry 1992-1993. Connecticut Department of Economic Development, 1995.

Miller, Ronald E., and Blair, Peter D. (1985). Input-Output Analysis: Foundations and

Extensions. New Jersey: Prentice-Hall. Minnesota IMPLAN Group, Inc. (1996). IMPLAN Pro Beta User’s Guide. Tanjuakio, Rodolfo V., Hastings, Steven E., and Tytus, Peter J. (1996). “The Economic

Contribution of Agriculture in Delaware.” Agricultural and Resource Economics Review, (April) 1996.

Travel Industry Association of America, Travel Statistics & Trends (2001),

http://www.tia.org/Travel/EconImpact.asp

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Vermont Department of Employment and Training publications, including: Economic and Travel Indicators, 1998-99 State of Vermont 1997 Employment and Wages, 1998. Vermont Occupational Employment & Wage Survey, 1996, 1997. DET web site : http://www.det.state.vt.us/.

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Appendix A: Methodology

This study adopted input-output analysis to estimate the status and importance of

the tourism industry on the Vermont economy because of the following reasons:

1. An input-output model is ideally suited to measure both the relative sizes of

sectors that make up the economy and the linkages among them. I/O

modeling produces a structural model that illuminates the interactions among

many sectors and measures impacts as they reverberate through the economy.

Understanding which types of economic activities generate higher returns can

direct decision makers toward enterprises that will stimulate economic

development within a region.

2. Input-output modeling is the most commonly used method to assess the

economic impact of tourism by many other states as well as at the national

level. So it is expected to provide comparable results to other states’ research,

national data, and previous Vermont studies.

3. The advantage of an input-output model is that it provides impact estimates in

a general equilibrium framework instead of single-market analysis (referred

to as “partial equilibrium”). The input-output model captures not only the

direct impact of tourist expenditures but also the indirect and induced impacts

that occur when tourist dollars work their way through the economy.

A.1 Vermont Input-Output IMPLAN Model An input-output (I/O) analysis uses an economic model that traces the flow of

goods and services, income, and employment among related sectors of the economy. The

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I/O approach triggers the flow of activities as follows: When final demand for a good

changes, the sector producing the good (output) purchases inputs from other industrial

sectors, which in turn purchase inputs from other industries. Moreover, all of these

industrial sectors purchase additional labor input. The employees use their compensation

to purchase goods and services from the economy. Linkages among industries in a

region create a ripple effect as a result of change in demand for a product. Strong

linkages can lead to healthier economies, as capital flows through the economy rather

than out of it.

An input-output model is a snapshot of an economy in equilibrium, where the

gross output of each industry is equal to the gross inputs to the industry. The gross output

of an industry includes both inter-industry sales and sales to final demand. The gross

input of an industry includes the purchase of goods and services, labor, investment, and

profit. The I/O model provides a means of examining relationships within an economy

both among different sectors and between sectors and final consumers such as households

and government. The model allows one to examine the impact on the entire economy of

a change in one or several economic activities.

This study uses the IMPLAN software to evaluate the economic impact of the

tourism sector. IMPLAN (IMpact analysis for PLANning) is the most widely used

software for I/O analysis. The USDA Forest Service originally developed IMPLAN in

1979. It is a sophisticated software package that makes regional input-output models and

forecasts regional economic impact based on those models. It is widely used by

government agencies to make regional economic forecasts (Miller and Blair, 1985).

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The I/O model works with a transaction table diagramming the flows among

sectors (see Table 14). Rows and columns are the producing and purchasing sectors in

the economy, respectively. The columns are buyers and the rows are sellers. The more

sectors in the model, the more rows and columns there are, and the more inter-linkages

the model has. The conventional seven-sector model of the United States economy

includes agriculture, mining, construction, manufacturing, transportation, and services

sectors; all economic activity that does not fall within one of these six sectors is placed in

the “other” sector (Miller and Blair, 1985). IMPLAN has 528 sectors, of which 344

sectors exist in Vermont.

To interpret a transaction table, let’s examine the agricultural sector. In Table 14

the agricultural sector is shown in the first column and the first row. Column one shows

that the agriculture sector buys $Z11 from the agriculture sector itself (row 1), $Zi1 from

manufacturing (row i), $H1 from households for their labor, and so forth. Total input

expenditure by the agriculture sector ($X1, found in the last row) is the sum of the first

column.

To examine what sectors agriculture sells to, look at the first row in the I/O

transaction table: the agriculture sector (row one) sells $Z11 to the agriculture sector itself

(column one), $Z1j to the manufacturing sector (column j), $C1 to households, $G1 to

government, and so on. Total output of the agriculture sector ($X1, found in the last

column of the first row) is the sum of the first row. For each sector, total expenditures

(input) always equal total earnings (output).

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Table 14. Input-Output Transaction Table: An Example

Purchasing Sectors (Buyers) Intermediate Demand Final Demand

1….……..j……….n

I Intermediate Production and Consumption

II Final Outputs

Agriculture Forestry Trade Manufacturing Finance Services

1 : : i : n

Z11 ……Z1j …….Z1n : : : : : : Zi1 ……Zij ….….Zin : : : Zn1 ……Znj …….Znn

C1 G1 I1 E1 : : : : : : : : Ci Gi Ii Ei : : : : Cn Gn In En

X1 : :

Xi :

Xn

III Primary Inputs to Production

IV Primary Inputs to Final Demand

Payments to Households

Government Depreciation Imports

H1 ……. Hj ……..Hn T1 ……. Tj ……...Tn D1…….. Dj ……..Dn M1 …... Mj ….…..Mn

HC HG HI HE TC TG TI TE DC DG DI DE MC MG MI ME

H T D M

Total Gross Outlays X1……..XI……….Xn C G I E

The input-output transaction table (Table 14) is always balanced at any given

time. Any change in this table will trigger changes throughout the economy that will

achieve a new balance. For example, suppose the household demand for agricultural

goods (C1) increases due to increased product promotion. As a result there is a change in

the demand for (C1). The change will increase the total earnings of the agriculture sector

(X1), and row one changes. In order to meet the increase in demand for agricultural

goods, the agriculture sector has to buy more intermediate input (e.g., machinery) and

hire more people---everything in column one will change. Then the affected

(Sel

lers

)

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manufacturing sector has more earnings (output) because the agriculture sector buys

more machines, and in turn the manufacturing sector will buy more inputs from other

sectors. The ripple (multiplier) effect due to an initial increase in the demand for

agricultural goods will ripple through the economy, until the economy reaches a new

balance.

The I/O model provides a means to capture and measure these effects. It uses

three effects to measure economic impact: direct effect, indirect effect and induced effect.

• Direct effect refers to production change associated with a change in demand for

the good itself. It is the initial impact to the economy, which is exogenous to the

model.

• Indirect effect refers to the secondary impact caused by changing input needs of

directly affected industries (e.g., additional input purchases to produce additional

output).

• Induced effect is caused by changes in household spending due to the additional

employment generated by direct and indirect effects.

A.2 Economic Multipliers Generally, economic multipliers estimate the economy-wide impact on related

variables of changing one variable in the specified economy, such as a state (Tanjuakio,

Hastings and Tytus, 1996). There are several multipliers calculated by the IMPLAN

model:

• Output Multiplier: An output multiplier for a sector is defined as the total

production in all sectors of the economy that is necessary to satisfy a dollar’s

worth of final demand for that sector’s output (Miller and Blair, 1985). In other

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words, for every dollar change in final-demand spending (direct output), the

change in the total value of output in all sectors.

• Personal Income Multiplier: For every dollar change in final-demand spending

(direct output), the change in income received by households.

• Employment Multiplier: For every million-dollar change in final-demand

spending (direct output) in a sector, the change in number of jobs in the

economy.

• Indirect Business Taxes Multiplier: For every dollar change in final-demand

spending (direct output), the change in indirect business taxes.6

A.3 Limitations of and Potential Sources of Error in the IMPLAN Model Input-output models incorporate several important assumptions (Miller and Blair,

1985; Minnesota IMPLAN Group, 1996) that place limitations on their interpretation:

• The I/O model assumes a linear production function, which means constant

returns to scale and constant production functions for each firm within an

industry. For example, the model assumes that a small sawmill would use the

same inputs, in the same proportion, as a large sawmill. Furthermore, the model

assumes that the percentage of those inputs that are purchased locally is constant

from one firm to the next.

• Output is also assumed to be homogenous. In other words, the assumption is that

the two sawmills would produce the same percentage of lumber, wood chips, and

other outputs.

• It assumes that there are no constraints on the supply of any commodity.

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• It assumes that increases or decreases in employment cause in- or out-migration

from the state modeled, so that “full employment” is maintained.

The IMPLAN model combines the national average data and location-specific

data. In the Vermont model, final-demand data and value-added data (such as employee

compensation, proprietary income, property income and indirect business taxes) are

collected specifically for Vermont. Production functions for the 344 sectors in the model

are derived from national averages. Potential sources of error in the IMPLAN model,

based on national averages, include production functions (what industries purchase to

produce their output), byproducts (the mix of products that industries actually produce),

and regional purchase coefficients, or RPC’s (the percentage of a commodity that is

purchased from local suppliers). The greatest source of error in the base model data is

the RPC’s.

6 Indirect business taxes consist primarily of excise and sales taxes paid by individuals to businesses. These taxes occur during the normal operation of these businesses but do not include taxes on profit and income (IMPLAN manual,1996).

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Appendix B: Vermont Tourists Number and Expenditure Calculation

In this study the total number of tourists (domestic pleasure travelers) and their total expenditures for the year April 1, 1999, through March 31, 2000, were estimated using the following equations:

Number of Tourists = Vermont Lodging Sales to U.S. Tourists ($506.15 million)7 ÷

Average Lodging Expense per Person per Trip ($87.59)8 ÷ Average Trips per Party

(1.95) ÷ % of Tourists Staying in Lodging Establishments (47.2%) = 6.28 million

Number of Tourist Parties = Number of Tourists (6.28 million) ÷ Average Party Size

(3.192) = 1.967 million

Number of Person Trips = Number of Tourists (6.28 million) x Average Number of Trips

(1.95) = 12.25 million

Total tourists’ expenditures are derived by multiplying the total number of person trips by the average expenditure per person per trip:

Total Tourists’ Expenditure = Number of Person Trips (12.25 million) × Average

Expenditure per Person Per Trip ($210.64) =$ 2.58 billion

7 Lodging Business Survey. Domestic Tourists’ Lodging Expenditure = Total Lodging Sales in 1999 including rooms and meals taxes ($703 million) x % Domestic Origin Tourists (72%) = $506.15 million. 8 Visitor Follow-up Survey, only for those who stayed in lodging businesses.

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Appendix C: Glossary

• Direct effect: production changes associated with changes in demand for the good itself: the initial

impact on the economy.

• Employee compensation: wage and salary payments as well as benefits, including health and life

insurance, retirement payments and other non-cash compensation.

• Employment multiplier: the change in employment (jobs) for every million-dollar change in final-

demand spending. *

• Indirect business tax multiplier: the change in indirect business taxes for every dollar change in

final-demand spending. *

• Indirect business taxes: primarily excise and sales taxes paid by individuals to businesses; these

taxes occur during the normal operation of the businesses but do not include taxes on profit and

income.

• Indirect effect: the secondary impact caused by changing input needs of directly affected

industries (e.g., the purchase of labor, goods and services by an industry to produce additional

output).

• Induced effect: changes in household spending due to the additional employment generated by

direct and indirect effects.

• Output multiplier: The total production in all sectors of the economy that is necessary to satisfy a

dollar’s worth of final demand for a specific sector’s output. In other words, every dollar change in

final-demand spending* changes the total value of output in all sectors.

• Output: industry output is a measure of the value of goods and services produced in the study area.

• Personal income multiplier: the change in income received by households for every dollar change

in final-demand spending. *

• Personal income: consists of employee compensation and proprietary income.

• Proprietary income: consists of payments received by self-employed individuals as income. This

includes income received by private business owners, doctors, lawyers and so forth.

• Total impact: the sum of the direct, indirect and induced effects.

* Multipliers in this study are calculated in two ways: 1. Based on dollars of direct industry output

produced to meet tourist demand for goods and services; and 2. Based on dollars of tourist spending.

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Appendix D: 1999-2000 Vermont Visitor Survey

WW4XG0007-1 0600 01

1-8 9-11

1. Pduritripactiacti

2. Ieach2000destrepo

Spri(Apr

Dest#1__ Dest#2__ Dest#3__Fall(SepOcto

Dest#1__ Dest#2__

I3p

n a prior mini-survey, you said you visited Vermont at least once from April 1, 1999 through March 1, 2000. We need your help. Please think about any visits that you made to Vermont during this time eriod. Answer each question as accurately as you can.

Home Testing Institute P.O. Box 9200 Port Washington, NY11050-0401

lease indicate the NUMBER OF PLEASURE TRIPS that you made to Vermont ng EACH SEASON from April 1, 1999 through March 31, 2000. A pleasure includes any trip that included the pursuit of recreational vities. It may or may not have also included business related vities.

a. Spring 1999 (April and May) _______ trips

b. Summer 1999 (June, July and August) _______ trips

c. Fall 1999 (September, October and November) _______ trips

d. Winter 1999-2000 (December, January, February and March) _______ trips

n Column A below, please list the primary destination in Vermont for of your pleasure trips to Vermont from April 1999 through March . In Column B, please list the number of trips that you made to each ination in the given season. Be sure that the total number of trips rted below equals the number of trips reported in question #1 above.

A B A B ng 1999 il, May)

Summer 1999 (June, July, August)

ination ______

# of Visits:___ Destination #1________

# of Visits:___

ination ______

# of Visits:___ Destination #2________

# of Visits:___

ination ______

# of Visits:___ Destination #3________

# of Visits:___

1999 tember, ber, November)

Winter 1999-2000 (December, January, February, March)

ination ______

# of Visits:___ Destination #1________

# of Visits:___

ination ______

# of Visits:___ Destination #2________

# of Visits:___

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Destination #3________

# of Visits:___ Destination #3________

# of Visits:___

3. Did any of the trips you listed include business activities related to your career or the career of someone in your traveling party? (44 ) No ........................ q1 Yes............. q2 If “ yes ”, how many trips? ___________ 4. On any of the trips listed above, did you visit Vermont as part of a tour group (i.e., you traveled to Vermont as a part of a corporate group, church group, coach tour, etc.)? (WRITE IN NUMBER BELOW) __________________ trips 5. Excluding any trips you made with a group tour, how many people were in your Vermont traveling party (If you made more than one trip, ON AVERAGE how many people were in your party)? If all of your trips to Vermont were group tours, write “0 ” in the spaces provided. (WRITE IN NUMBER BELOW) __________________ people from your household (including yourself) __________________ total people in your traveling party (including yourself) 6. In the space provided below, please write down the number of trips to Vermont that included each of the following activities. (WRITE IN NUMBER FOR EACH BELOW)

# of Trips 1. Downhill skiing ..................................................................................... _______________ 2. Cross-country skiing............................................................................... _______________ 3. Snowmobiling......................................................................................... _______________ 4. Visited friends ........................................... ............................................ _______________ 5. Visited relatives....................................................................................... _______________ 6. Visited a child/grandchild in school or visited a potential school or college ..___________ 7. Romantic get-away.................................................................................. _______________ 8. Family get-away ..................................................................................... _______________ 9. Fall foliage touring ................................................................................. _______________ 10. Auto-touring (driving for pleasure)....................................................... _______________ 11. Water recreation (e.g., Power-boating, sailing, swimming).................. _______________ 12. Canoeing and kayaking ........................................................................ _______________

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13. Fishing .................................................................................................. _______________ 14. Hunting.................................................................................................. _______________ 15. Hiking.................................................................................................... _______________ 16. Biking ................................................................................................... _______________ 17. Golf........................................................................................................ _______________ 18. Bought Vermont made products (e.g., food, crafts, furniture, antiques) ..._____________ 19. Visited historic sites (e.g., colonial homes, forts, museums) ............... _______________ 20. Attended cultural events (e.g., music festivals, arts/crafts shows, theater)..…__________ 21 Attended sporting events ....................................................................... _______________ 22 Attended fairs ........................................................................................ _______________ 23. Watchable wildlife (e.g., bird watching, moose watching)................... _______________ 24. Agricultural tourism (e.g., farm visits, fruit picking, farmer’s markets).…____________ 25. Relaxed in beauty and serenity.............................................................. _______________ 26. Other (Specify): __________________________________________ _______________ IF YOUR TRIP INCLUDED DOWNHILL SKIING GO TO Q.7, OTHERWISE SKIP TO Q.8 7. For each household member, please write down the total number of days that were spent downhill skiing. (WRITE IN NUMBER FOR EACH BELOW) Household Member #1 ____ Household Member #4____ Household Member #2____ Household Member #5____ Household Member #3____ Household Member #6____ 8. Although each visit may have included several of the activities listed above, trips generally have a “primary purpose. ” In column A, please list the primary purpose of each of your trips to Vermont. Use the codes from question 6 above (e.g., visited friends = 4, watchable wildlife = 20). The total in column B should equal the total number of trips you listed in question #1.

A B A B Spring 1999 (April, May)

Summer 1999 (June, July, August)

Purpose # of Visits:___ Purpose # of

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#1__________ #1__________ Visits:___ Purpose #2__________

# of Visits:___ Purpose #2__________

# of Visits:___

Purpose #3__________

# of Visits:___ Purpose #3__________

# of Visits:___

Fall 1999 (September, October, November)

Winter 1999-2000 (December, January, February, March)

Purpose #1__________

# of Visits:___ Purpose #1__________

# of Visits:___

Purpose #2__________

# of Visits:___ Purpose #2__________

# of Visits:___

Purpose #3__________

# of Visits:___ Purpose #3__________

# of Visits:___

9. How many children from your household under the age of 18 went with you on your trip(s)? (If you made more than one trip, ON AVERAGE how many children went?) (WRITE IN NUMBER BELOW) _________ children under 18 10. Please indicate how many times you visited Vermont using each of the following types of transportation. The total number should equal the total number of trips you reported in question #1. (WRITE IN NUMBER FOR EACH BELOW) Owned auto or truck.. ___________ (50-51) Rented auto or truck............................... ___________ (58-59) Group tour bus .......... ___________ (52-53) Ferry ...................................................... ___________ (60-61) Private plane.............. ___________ (54-55) Commercial bus ..................................... ___________ (62-63) Commercial Airline... ___________ (54-55) Recreational vehicle............................... ___________ (62-63) Train .......................... ___________ (56-57) Other (Specify): __________________ ___________ (64-65) 11. Considering all of your Vermont visits, how many total nights did you spend in Vermont? (WRITE IN NUMBER BELOW) _________ nights 12. How would you rate the VALUE of a Vermont vacation relative to other recent vacation experiences? ( “X ” ONE BOX) Poor Fair Good Very Good Excellent Perfect q1 q2 q3 q4 q5 q6 13. OVERALL, how would you rate your recent vacation experience(s) in Vermont relative to other recent vacation experiences? ( “X” ONE BOX) Poor Fair Good Very Good Excellent Perfect q1 q2 q3 q4 q5 q6 14. What is the likelihood that you will visit Vermont again sometime in the next 12 months? ( “X ” ONE BOX)

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DefinitelyWill Not Visit DefinitelyWill Visit q1 q2 q3 q4 q5 15. Approximately how much money would you estimate was spent by your household while in Vermont? (ROUND TO THE NEAREST DOLLAR) > If you made more than one trip for the same primary purpose, please indicate how much YOU SPENT ON AVERAGE in each category by season. > If you made multiple trips in the same season, but for different primary purposes, please select the primary purpose that involved the greatest expenditures. > Please do not consider costs incurred outside of the state such as airline tickets. All information is confidential and anonymous.

Spring 1999 Summer 1999 Fall 1999 Winter 1999-00 (April, May) (June, July, Aug) (Sept, Oct, Nov)

(Dec, Jan, Feb, Mar) PRIMARY PURPOSE (Specify) ____________ ________ _____________ ____________ LODGING (not including camping) $_________ $_________ $_________ $_________ LODGING (camping) $_________ $_________ $_________ $_________ RECREATION/ENTERTAINMENT Skiing $_________ $_________ $_________ $_________ Parks $_________ $_________ $_________ $_________ Movies & Theater $_________ $_________ $_________ $_________ All Other Recreation/Entertainment $_________ $_________ $_________ $_________ TRANSPORTATION Gasoline $_________ $_________ $_________ $_________ All Other transportation $_________ $_________ $_________ $_________ SHOPPING PURCHASES (Not Including Food/Beverage or Recreation/Entertainment) $_________ $_________ $_________ $_________ FOOD/BEVERAGE: Restaurant $_________ $_________ $_________ $_________ Grocery Store $_________ $_________ $_________ $_________ OTHER EXPENSES (Specify: _____________________________) $_________ $_________ $_________ $_________ 16. While in Vermont, in which of the following types of accommodations did you spend the most nights? ( “X ” ONE BOX) A locally owned hotel/motel q1 A hotel/motel chain q5 A private residence of a friend or relative q2 A vacation home that you own q6 A bed and breakfast or country inn q3 A campground or RV park q7 A rented cabin, cottage, home or condominium q4 Other (Specify): ___________________ q8

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17. On the scale provided below, how important were each of the information sources in influencing your decision to take one or more trips to Vermont? (“ X ” ONE BOX FOR EACH) Check if

do not recall receivin

g informat

ion from this source

Definitely did not influence desire to visit Vermont

Definitely influenced desire to

visit Vermont

A newspaper article Advertising A magazine article The 1-800 Vermont information number

Vermont vacation kit/planning packet

The Internet A friend, co-worker or relative

A travel agent A newspaper article FINALLY, WE WOULD LIKE TO ASK YOU SOME DEMOGRAPHIC QUESTIONS. AS ALWAYS, YOUR RESPONSES WILL BE KEPT CONFIDENTIAL. 18. YEAR BORN: ______________ GENDER: q1 Female q2 Male 19. Which of the following categories contains your annual household income? ( “X ” ONE BOX) Less than $25,000............ q1 $50,000 - $74,999.............. q4 $25,000 - $34,999............ q2 $75,000 - $99,999.............. q5 $35,000 - $49,999............ q3 $100,000 or more............... q6 20. Where do you currently live? ( “X ” ONE BOX) Rural area..................... q1 City 100,000 – 499,999 .. q4 Small town ................... q2 City 500,000-999,999..... q5 Suburban area .............. q3 City 1,000,000 Plus ........ q6 21. Which of the following categories best describes the last level of education that you completed? ( “X ” ONE BOX) High school or less................................... q1 Some college ............................................ q2 Undergraduate degree .............................. q3 Masters or equivalent............................... q4 Advanced degree (M.D., Ph.D., etc.)....... q4

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22. How many children under the age of 18 live in your household? (WRITE IN NUMBER BELOW) ___________ children

P

THANK YOU FOR YOUR HELP ON THIS IMPORTANT SURVEY!

LEASE RETURN YOUR COMPLETED QUESTIONNAIRE IN THE ENCLOSED POSTAGE PAID ENVELOPE AS SOON AS POSSIBLE.