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Save Your Tourism Budget

Save Your Tourism Budget. Explaining the Economic Value of Tourism to Your Local Officials. Dr. Steve Morse Director & Economist Tourism Institute University of Tennessee. The Eastern Band of Cherokee Indians Cherokee, NC. Save Your Tourism Budget. Tourism Is Economic Development.

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Save Your Tourism Budget

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  1. Save Your Tourism Budget Explaining the Economic Value of Tourism to Your Local Officials Dr. Steve Morse Director & Economist Tourism Institute University of Tennessee The Eastern Band of Cherokee Indians Cherokee, NC

  2. Save Your Tourism Budget Tourism Is Economic Development The Eastern Band of Cherokee Indians Cherokee, NC

  3. Save Your Tourism Budget Presentation Topics • Bad News & Good News • Why tourism budgets are common targets for cuts (and possible solutions) • Do you have a TIED Plan? (Tourism Is Economic Development) • Telling the value of tourism in economic development & Tourism Tax Relief

  4. The Times Free Press Our Community’s Daily Newspaper - Since 1879 February 10, 2010 Tourism Budget Eyed for Cuts Newton: (AP) Tourism Taxes on the Table. County Council members met yesterday to discuss the deficit in county tax revenue collections. On the table for discussion was the hotel occupancy tax begun in 1987 as part of the area’s investment in tourism development. Over the years the 5 percent hotel occupancy tax has generated enough revenue to fund over $1.6 million going to fund tourism marketing and promotion efforts. The 2010 - 2011 tourism budget is being eyedto supplement the current deficit in tax revenues being collected during the 2009 – 2010 year and the forecasted tax revenues for the 2010 – 2011 year. County Commissioner Sarah Pickens said, “This year we may have to raid the tourism budget generated by hotel occupancy taxes to fund other needed services in the county that generate real economic development.”

  5. THE Daily Times Newton’s Daily Newspaper Since 1935 Wednesday, February 10, 2010 Tourism Loses Earmarked Hotel Occupancy Taxes: Sent to General Fund

  6. Daily Times - Since 1802 WEDNESDAY, FEBRUARY 10, 2010 County Commissioners Slash Tourism Marketing & Promotion Fund by 50%

  7. Why are local tourism budgets often targeted for cuts? • Tourism is an easy target • Tourism is not seen as real economic development • Taxpayers don’t see immediate impacts of tourism budget cuts

  8. Why isn’t tourism considered economic development? <<<<< Economic Development Tourism >>>>>>

  9. 2 Main reasons tourism gets little respect at the local economic development table (my opinion) • Failure to speak the economic development language (jobs, taxes, worker payrolls, spending) • Failure to convert tourism activity into the language on the tourism economic scoreboard

  10. CVB & Tourism Organization Activity Report & Language • No. of group & individual visitors • Group Tour Sales • Trade & Industry Shows • Conventions Booked • Travel Fam Tours • Cold Calls per mo. • E-mail blasts per mo. • Media Ad Placements • Direct & Indirect Inquiries • Visitor Guides Requested • Editorial Coverage • Internet Advertising Response • Meeting Planner Guides & Mass Mailings Sent • Site Inspections & Visits • Hotel Room Nights Generated

  11. Need to Convert Tourism Activity to Tourism Economic Language

  12. Tourism is Sustainable Economic Development          

  13. Tourism is Sustainable Economic Development

  14. Benefits of Tourism to Your Area’s Economic Development • Generates additional tax revenue helping to fund community services and infrastructure • Creates jobs & worker incomes • Diversifies the economy • Generates many support businesses • Brings in “new money” creating growth • Promotes business development – today’s visitor may be tomorrows investor • Improves appearance of a community

  15. External & Internal Marketing Goals

  16. Most CVB’s & Tourism Organizations Have Mission & Vision Statements that Include … • Stimulate economic development • Grow the local economy • Enhance economic growth • Generate economic growth • Lead in economic development • Positive impact on area economy • Contribute to economic growth

  17. Instant Poll Question: My CVB or tourism organization’s mission, purpose, or vision statement includes some type of area economic development language. • Yes, I agree • No, I disagree

  18. Results of Poll Question

  19. Tourism is TIED to Economic Development

  20. 2 Steps for Your TIED Plan (Tourism Is Econ Dev.) Collect data on tourism’s economic significance Tell your story over and over

  21. Step No. 1 of Your TIED Plan(Tourism Is Economic Development) • Collect data on tourism’s economic significance on your County or area • Most State Departments of Tourism buy the study from the U.S. Travel Association on tourism’s economic impact at the State & County level

  22. Step 1: Data from U.S. Travel Association’s Travel Impact Model

  23. Step 2 of Your TIED Plan(Tourism Is Economic Development) • Tell your tourism economic significance story over and over in your community • Tourist Spending • Jobs Created • State Taxes Generated • Local Taxes Generated • Worker Paychecks Created

  24. Tourism’s Economic Significance on Washington Co., TN in 2008 $197.37 million 1,806 jobs $36.27 million $11.47 million $4.57 million Source: TN Dept. of Tourist Development & U.S. Travel Association’s Report “The Economic Impact of Travel on Tennessee Counties, 2008”

  25. Washington Co. Tourist Spending, 2001 – 2008, ($ millions) Source: TN Dept. of Tourist Development & U.S. Travel Association’s Report “The Economic Impact of Travel on Tennessee Counties, 2008” Source: TN Dept. of Tourist Development & U.S. Travel Association’s Report “The Economic Impact of Travel on Tennessee Counties, 2008”

  26. On an average day in Washington Co., how much do tourists spend on … • Transportation? • Restaurants? • Hotels & Lodging? • Retail Trade? • Entertainment & .Recreation?

  27. Source: TN Dept. of Tourist Development & U.S. Travel Association’s Report “The Economic Impact of Travel on Tennessee Counties, 2008”

  28. Tourism Tax Relief for Washington Co. • Each household in Washington Co. pays $300 less in State and local taxesas a result of taxes generated by tourism economic activity Source: TN Dept. of Tourist Development & U.S. Travel Association’s Report “The Economic Impact of Travel on Tennessee Counties, 2008”; U.S. Census Bureau, Dr. Steve Morse, University of Tennessee

  29. Be Dramatic – Present the Big Check for $300 to each household

  30. $300 in Tourism Tax Relief for Each Household in Washington County, TN Feb. 10, 2010 300.00 Three Hundred and No/100

  31. Suggestions for Telling Your TIED Story(Tourism Is Economic Development) • Work with a local college or university to prepare a one-page Tourism Economic Fact Sheet for your elected & appointed officials • Present Tourism Economic Fact Sheet to regular City & County Comm. meetings • Educate new City & County elected & appointed officials on tourism’s economic significance

  32. More Suggestions for Telling Your TIED Story • Chamber of Commerce • Civic leadership organizations (Rotary, Lions, Optimists, etc) • Business Leaders • Taxpayers • Story for your local newspaper every other mo.

  33. When is the best time to tell your tourism economic story? The time is right …

  34. Tell your TIED story at least 6 times per year • Develop a TIED Press Release Schedule: (Tourism Is Economic Development) • Jan.Last year in review, new taxes, jobs • MarchWinter & Spring festivals, tax update • MayNew tourism businesses, taxes created • JulyOutlook for July 4, summer jobs & taxes • Sept.Labor Day spending, jobs, taxes, payroll • Nov.Fall & Winter festivals, jobs, events, new taxes generated

  35. If your CVB or tourism organization does not have a respected place at your local economic development table … Then you are probably on the Menu!

  36. Show Your Tourism Budget is a Great Investment for Your Community

  37. Save Your Tourism Budget Tourism Is Economic Development The Eastern Band of Cherokee Indians Cherokee, NC

  38. Contact Info: (865) 974-6249 Email: smorse@utk.edu Thanks for your time and have a great day! Dr. Steve Morse Director & Economist Tourism Institute University of Tennessee The Eastern Band of Cherokee Indians Cherokee, NC

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