visit jacksonville - the economic impact of tourism in jacksonville, fl

8/12/2019 Visit Jacksonville - The Economic Impact of Tourism in Jacksonville, FL

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January 2014

The Economic Impact

of Tourism in

Jacksonville, FL


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Highlights

Tourism is a vital component of the Jacksonville, Florida

economy.

More than 22,000 jobs, with associated income of $684 million,

were sustained by visitors to Jacksonville in FY2013.

These jobs represent 5.7% of total employment in Jacksonville;

1 in every 17.7 jobs in Duval County is sustained by the tourism

economy.

Including indirect and induced impacts, tourism in Jacksonville

generated $180 million in state and local taxes of which $93

million went directly to local taxing authorities.

In the absence of the state and local taxes generated by

tourism, each Jacksonville household would need to pay $550

to maintain the current level of government services.


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Key trends

Visitor Spending within Jacksonville rose to 4.0% in

FY2013 to $1.5 Billion and has averaged increases ofmore than 4% in the past five years.

Visitor Spending has increased 18% since 2009

Growth in overnight visitation remains strong. In

FY2013, Duval County room demand grew 2.6%.

With the increase in occupancy, the hotel industry was

able to raise room rates by 2.4%.

Including indirect and induced Business Sales, Tourism

has generated $2.2 Billion in Revenue in FY2013.


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Spending Results


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A recovery in visitor spending

Visitor spendingwithin Jacksonville

rose 4.0% in fiscal2013.

More overnight

stays along with

higher pricespushed lodging

spending up 5.1%

in 2013.

Growth hasaveraged more

than 4% per

annum in the past

5 years.

Sector 2009 2010 2011 2012 2013 % Change

Lodging $310.1 $306.3 $321.2 $339.1 $356.4 5.1%

Transp w/in destination $182.4 $206.7 $226.7 $231.2 $228.6 -1.1%

Food/bev $340.2 $353.4 $372.5 $396.7 $419.1 5.7%

Retail $243.8 $250.4 $255.2 $275.2 $287.5 4.5%

Recreation $158.2 $168.1 $168.3 $171.8 $179.4 4.4%

Visitor Spending $1,234.7 $1,284.9 $1,343.9 $1,414.0 $1,471.0 4.0%

% Change 4.1% 4.6% 5.2% 4.0%

Tourism Industry Sales(US$ Million)

1,235

1,285

1,344

1,414

1,471

0%

1%

2%

3%

4%

5%

6%

1,100

1,150

1,200

1,250

1,300

1,350

1,400

1,450

1,500

2009 2010 2011 2012 2013

Visitor Spending

% Change


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Visitor spending by sector

Food & beveragebusinesses received 29%

of visitor spending in

FY2013.

Lodging and retail spendingfollow, comprising 25% and

20% of visitor spending.

Lodging25%

Transp w/in

destination13%

Food/bev29%

Retail20%

Recreation13%

Tourism Industry Sales By Sector


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$310 $306 $321 $339 $356

$182 $207 $227 $231 $229

$340 $353 $373 $397

$419

$244 $250 $255 $275

$288$158 $168

$168$172

$179

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2009 2010 2011 2012 2013

Lodging Transp w/in destination Food/bev Retail Recreation

Jacksonville's Tourism Industry Salesby Year, Millions of $

Visitor spending in

Jacksonville has

increased more than

18% since 2009.

Lodging sales have

increased by $46

million and are now

15% above the low

seen in 2009.

Spending at restaurants

and other food &

beverage providers has

increased by nearly $80

million since 2009.


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Lodgings share of

visitor spending fell

sharply in 2010 as

hoteliers dropped

prices to increase

demand but has

grown since then.

The high variability in

transportation costs,

let by gas prices, is

evident in the share of

the visitor dollar goingto transportation over

time.

$310 $306 $321 $339 $356

$182 $207 $227 $231 $229

$340 $353 $373 $397 $419

$244 $250 $255 $275 $288

$158 $168 $168 $172 $179

0%

10%20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013

Recreation

Retail

Food/bev

Transp w/indestination

Lodging

Jacksonville's Tourism Industry Salesby Year, Share of Total


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Area Tourism Impacts


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How visitor spending generates impact

Lastly, the induced impact isgenerated when employees

whose incomes are

generated either directly or

indirectly by tourism, spend

those incomes in the

Jacksonville economy.

Travelers create direct economic value within a discreet group of sectors (e.g. recreation,transportation). This supports a relative proportion of jobs, wages, taxes, and GDP withineach sector.

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


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Tourism sales

Business Day

Direct Indirect Induced Total

Agriculture, Fishing, Mining - 0.8 0.2 1.0

Construction and Utilities - 17.1 3.9 21.0

Manufacturing - 10.8 6.0 16.7

Wholesale Trade - 15.0 17.8 32.8Air Transport 36.8 0.6 0.7 38.0

Other Transport 38.4 15.7 6.8 60.9

Retail Trade 287.5 2.0 29.1 318.6

Gasoline Stations 105.5 0.1 1.9 107.6

Communications - 41.6 15.7 57.3

Finance, Insurance and Real Estate 48.0 91.0 118.9 257.9

Business Services 9.0 116.9 26.4 152.3

Education and Health Care - 0.7 67.6 68.3

Recreation and Entertainment 160.5 6.2 5.2 171.9

Lodging 356.4 0.2 0.2 356.8

Food & Beverage 419.1 16.9 24.1 460.1

Personal Services 9.9 12.5 15.0 37.4

Government - 12.6 4.5 17.0

TOTAL 1,471.0 360.8 343.8 2,175.6

* Direct sales include cost of goods sold for retail sectors

Tourism-Generated Sales

(US$ Million)

Including indirect and induced business sales, tourism generated $2.2

billion in revenue in FY2013.


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All business

sectors of theJacksonville

economy benefit

from tourism

activity directly

and/or indirectly.

Sectors that serve

the tourism

industry, like

business services,gain as suppliers

to a dynamic

industry.

Tourism sales

0

50

100

150

200

250300

350

400

450

500

F&B

Lodging

RetailTrade

FIRE

Recreation

Bus.

Services

Gas

Education

OtherTransp

Comm

.

AirTranspor

t

PersonalServ

.

Induced

Indirect

Direct

Tourism SalesBy Industry, $ million

Significant indirect

benefits

Note: Direct sales include cost of goods sold for retail

FIRE = finance, insurance and real estate


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Tourism employment surging (direct)

With the cumulative growth in

spending over the past five

years, tourism businesses

has been hiring for three

years to meet customer

demand.

Tourism employment grewnearly 6% in fiscal 2013,

growing nearly 3.5

percentage points faster than

overall Duval County

employment.

2009 2010 2011 2012 2013Employment 15,197 14,811 15,027 15,517 16,431

% Change -2.5% 1.5% 3.3% 5.9%

Tourism Industry Employment

15,197

14,811

15,027

15,517

16,431

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

14,000

14,500

15,000

15,500

16,000

16,500

17,000

2009 2010 2011 2012 2013

Employment

% Change


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Tourism impact on employment (total)

Direct Indirect Induced TotalAgriculture, Fishing, Mining - 5 2 7

Construction and Utilities - 96 20 116

Manufacturing - 29 9 38

Wholesale Trade - 66 79 145

Air Transport 122 2 2 127

Other Transport 415 161 64 640

Retail Trade 1,686 28 392 2,105

Gasoline Stations 111 1 18 131Communications - 128 39 167

Finance, Insurance and Real Estate 228 460 417 1,105

Business Services 69 1,191 291 1,551

Education and Health Care - 12 700 712

Recreation and Entertainment 1,998 90 73 2,161

Lodging 4,515 3 2 4,520

Food & Beverage 7,152 304 429 7,885

Personal Services 135 161 268 565

Government - 100 28 128

TOTAL 16,431 2,839 2,832 22,102

Tourism Employment

The tourism sector directly and indirectly supported 22,102 jobs, or 5.7% of all

employment in Jacksonville last year.


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Day0

1

2

3

4

5

6

7

8

F&B

Lo

dging

Recreat

ion

Re

tailTra

de

Bus.

Servic

es

FIRE

Educat

ion

Other

Tran

sp

Persona

lSe

rv.

Com

m.

Who

lesale

Tr.

G

as

Thousands

Induced

Indirect

Direct

Tourism Employment

Significant indirect and induced benefits

Tourism impact on employment (total)

As a labor intensive

collection of services,

tourism-related sectors

are significant

Jacksonville employers.

The more than 22,000

tourism-supported jobs inJacksonville span every

sector of the economy,

either directly or

indirectly.

The most significant

indirect impacts are in

business services and

finance, real estate &

insurance.


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Business Day

4%

8%

20%

38%

99%

0% 20% 40% 60% 80% 100%

Total

Retail

Food & bev.

Recreation

Lodging

Tourism Employment Intensity by Industry

Tourism is a significant part of several industriestourism directly

supports nearly all employment in lodging, 38% of recreation, and 20% of

food and beverage employment.

Tourism share of key industry employment


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Tourism personal income

Business Day

Direct Indirect Induced Total

Agriculture, Fishing, Mining - 0.1 0.0 0.1

Construction and Utilities - 6.1 1.2 7.2

Manufacturing - 1.7 0.7 2.4

Wholesale Trade - 6.0 7.1 13.1

Air Transport 6.9 0.1 0.1 7.1

Other Transport 19.8 8.0 3.1 30.9

Retail Trade 47.1 1.0 13.4 61.4

Gasoline Stations 7.2 0.1 1.2 8.4

Communications - 12.7 3.7 16.4

Finance, Insurance and Real Estate 10.1 21.3 19.4 50.8

Business Services 3.5 62.0 14.8 80.2

Education and Health Care - 0.4 38.8 39.2

Recreation and Entertainment 66.6 3.0 2.3 71.9

Lodging 96.2 0.1 0.0 96.3

Food & Beverage 148.5 6.4 9.9 164.9Personal Services 5.8 8.1 8.4 22.4

Government - 8.6 2.3 10.9

TOTAL 411.6 145.5 126.4 683.5

Tourism Labor Income (Compensation)

(US$ Million)

Employees in Jacksonville earned $684 million as a result of visitor

activity in FY2013.


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Tourism personal income

The larger

employment

numbers in F&B and

recreations support

significant labor

income in those

industries.

Higher wages

support labor

income in supplier

industries.Day0

20

40

60

80100

120

140

160

180

F&B

Lodging

Bus.

Services

Recreation

RetailTrade

FIRE

Education

OtherTransp

PersonalServ.

Comm.

WholesaleTr.

Gov.

Induced

Indirect

Direct

Tourism Labor IncomeBy Industry, $ million

Significant indirect and induced benefits


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Tourism tax generation

Taxes of $327 million

were directly and indirectly

generated by tourism in

2013.

State and local taxes

alone tallied $180 million.

Each household in

Jacksonville would need

to be taxed an additional

$550 per year to replace

the tourism taxes received

by state and local

governments.

Business Day

Tax Type Direct Indirect/

Induced

Total

Federal Taxes Subtotal 90.9 56.1 147.0

Corporate 11.2 9.3 20.5

Indirect Business 16.3 5.4 21.7

Personal Income 23.9 16.0 39.9

Social Security 39.5 25.4 65.0

State and Local Taxes Subtotal 143.4 36.7 180.1

Corporate 1.4 1.2 2.6


Sales 74.9 17.6 92.5

Lodging 15.4 0.0 15.4

Local 15.4 0.0 15.4

State 0.0 0.0 0.0

Property 41.7 13.8 55.5

Excise and Fees 9.5 3.9 13.4

State Unemployment 0.5 0.3 0.8

TOTAL 234.3 92.8 327.1

All Traveler Generated Taxes

(US$ Million)


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Tourism tax generation

Of the $180 million in state

and local taxes, $93 million

accrues to local taxingauthorities.

In Duval County, the total

sales tax rate is 7%. Of

that, 6% is the general state

sales tax and 1% is the

county discretionary surtax.

The state portion of the

sales tax provides the

majority of tourism-relatedstate revenues.

Key local revenue streams

are property, bed and sales

taxes.

Business Day

Tax Type Direct Indirect/

Induced

Total

State Tax Subtotal 69.2 17.8 87.1



Sales 64.2 15.1 79.3

Lodging 0.0 0.0 0.0

Property 0.0 0.0 0.0



Local Tax Subtotal 74.1 18.9 93.0


Personal Income 0.0 0.0 0.0Sales 10.7 2.5 13.2

Lodging 15.4 0.0 15.4

Property 41.7 13.8 55.5



Traveler Generated Taxes - State and

Local Government Revenues(US$ Million)


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Fun facts

Visitor spending in Duval County surpassed $1.4 billion in 2013.

This is larger than the City of Jacksonville budget ($953 million)

and nearly as large as the Duval County School System budget

($1.6 billion in 2013).

If employed by a single business, tourisms 16,430 employees

would rank 3rdin employment in Jacksonville behind the Naval

Air Station and Duval County schools and ahead of the City of

Jacksonville and Baptist Health System.http://www.jaxdailyrecord.com/showstory.php?Story_id=533987
http://www.jaxdailyrecord.com/showstory.php?Story_id=533987http://www.jaxdailyrecord.com/showstory.php?Story_id=533987


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Methodology and Background


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By monitoring tourisms economic impact, policy makerscan make informed decisions regarding the funding and

prioritization of tourism development.

It can also carefully monitor its successes and future

needs.

In order to do this, tourism must be measured in the

same categories as other economic sectorsi.e. tax

generation, employment, wages, and gross domesticproduct.

Why quantify the tourism economy?


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What is this a challenge?

Most economic sectors such as financial services,insurance, or construction are easily defined within a

countrys national accounts statistics.

Tourism is not so easily measured because it is not a

single industry. It is a demand-side activity which affectsmultiple sectors to various degrees.

Tourism spans nearly a dozen sectors including lodging,

recreation, retail, real estate, air passenger transport, food

& beverage, car rental, taxi services, travel agents


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Fiscal year 2013 is defined as October 2012September 2013.

Domestic visitor expenditure estimates are provided by Longwoods Internationals

representative survey of US travelers. These are broken out by sectors (lodging,

transport at destination, food & beverage, retail, and recreation), by purpose

(business and leisure), and by length of stay (day and overnight).

Tourism Economics then adjusts these levels of spending based on a range of

known measures of tourism activity:

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

Smith Travel Research data on hotel revenues

Bed tax receipts

Overseas visitor spending (source: OTTI, TE)

Canada visitor spending (source: Statistics Canada, TE)

Spending on air travel which accrues to all airports and locally-based airlines

Gasoline purchases by visitors (source: TE calculation)

Methods and data sources


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An IMPLAN model was compiled for the Duval County, Florida. This

traces the flow of visitor-related expenditures through the local economyand their effects on employment, wages, and taxes. IMPLAN also

quantifies the indirect (supplier) and induced (income) impacts of tourism.

All results are benchmarked and cross-checked and adjusted based on

the following:

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

US Census (business sales by industry)

The source of the employment and wage data is the Regional Economic

Information System (REIS), Bureau of Economic Analysis, U.S.

Department of Commerce. All employment rankings are based on Bureau

of Labor Statistics (ES202/QCEW) data.

Methods and data sources


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Selected recent economic impact clients

Cities

Baltimore, MD

Columbus, OHKansas City, MO

London, United Kingdom

New York City

Omaha, NE

Orlando, FL

Philadelphia, PAPittsburgh, PA

Rockford, IL

Countries / Provinces

Bahamas

BermudaCayman Islands

Dubai

Ontario Canada

St. Lucia

United Kingdom

Associations / Companies

Center for Exhibition Industry

Research (Economic Impact

of Visa Restrictions)

DMAI (Event Impact

Calculator for 80 CVBs)

US Travel Association (Impact

of travel promotion)

InterContinental Hotels

States

California

GeorgiaMaryland

New York

North Carolina

Ohio

Pennsylvania

Wisconsin


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About Tourism Economics

Tourism Economics, headquartered in Philadelphia, is an Oxford Economics

company dedicated to providing high value, robust, and relevant analyses of the

tourism sector that reflects the dynamics of local and global economies. Bycombining quantitative methods with industry knowledge, Tourism Economics

designs custom market strategies, project feasibility analysis, tourism forecasting

models, tourism policy analysis, and economic impact studies.

Our staff have worked with over 100 destinations to quantify the economic value

of tourism, forecast demand, guide strategy, or evaluate tourism policies.

Oxford Economics is one of the worlds leading providers of economic analysis,

forecasts and consulting advice. Founded in 1981 as a joint venture with Oxford

Universitys business college, Oxford Economics is founded on a reputation for

high quality, quantitative analysis and evidence-based advice. For this, it draws

on its own staff of 40 highly-experienced professional economists; a dedicated

data analysis team; global modeling tools; close links with Oxford University, anda range of partner institutions in Europe, the US and in the United Nations

Project Link.

For more information: [email protected].
mailto:[email protected]:[email protected]


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For more information:

Adam Sacks, Managing Director

[email protected]

Christopher Pike, Director of Impact Studies

[email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]

visit jacksonville - the economic impact of tourism in jacksonville, fl

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