Prepared for the: Maine Office of Tourism July 14, 2005 Travel and Tourism in Maine The 2004 Visitor StudyManagement Report
Table of Contents Page Background and Research Objectives 3 Research Method 4 Key Research Definitions6 Summary and Conclusions 11 Results in Detail Size & Structure of the U.S. Travel Market 18 Size & Structure of Maine’s Travel Market 34 Maine Travel Trends 37 Maine’s Competitive Position: Overnight Trips 69 Travel Expenditures 78 Economic Impacts 98 Overnight Marketable Trip Profile 111 Traveler Priorities and Product Delivery 171
Background & Research Objectives • A multi-component program of Visitor Research has been conducted each year since 1996 by Longwoods International for the Maine Office of Tourism. • The program is designed to provide: • an overview on the U.S. overnight travel market • estimates of overnight and day visitor volumes to Maine • a profile of Maine’s performance within its regional overnight travel market • visitor expenditures and economic impact estimates of travel and tourism in Maine • profiles of Maine’s overnight marketable trips and travelers.
Research Method • The program is comprised of three research studies; they are the: • Travel USA Monitor® • surveys the travel patterns of a representative sample of American adults (i.e. number and types of overnight trips, destinations, month of travel, and traveler demographics) and then, • returns to a representative sub-sample of them to obtain a detailed profile of trip planning and booking, the travel party, transportation, accommodation, activities, and related expenditures, • provides the U.S. Norm for comparison of state-specific findings.
Research Method cont’d • Maine Overnight Visitor Survey • returns for detailed follow-up among the Maine overnight trip visitors, identified through Travel USA®, for state-specific learning. • MaineDay Visitor Survey • surveys a representative sample of residents in Maine’s day trip market • to profile the number and types of Maine day trips and related expenditures.
Key Research Definitions • A TRIP is defined as any day or overnight (1+ nights away from home) journey for business or pleasure outside one’s community and not part of normal routine. • Trips are the number of individual adult person trips. • If 1 adult takes a trip alone, it counts as 1 trip. • If two adults travel together, it counts as 2 trips. And, so on. • Adults may or may not have traveled with children.
Key Research DefinitionsTrip-Type Segmentation Model • Reference is made to different types of trips in this report based on Longwoods’ proprietary segmentation model. • The model was developed and refined over 16 years, based on extensive consumer research, and allows for customized marketing strategies reflecting the unique profile, needs, and opportunities of a destination. • The segments are: • Visits to Friends and Relatives (VFR) where the primary purpose of the trip is to visit friends and family • Marketable Trips • Includes all other pleasure trips and are so-called because choice of destination on these trips is discretionary and open, therefore, to marketing influence • Comprised of eleven discrete types, as described on the following page • Business Tripsmade exclusively for business reasons • Comprised of three types: Sales/Service, Convention/Conference/Trade Shows, and Meetings.
Key Research DefinitionsMarketable Trip-Types • Touring: Travel through areas of scenic, cultural or general interest • Special Event: Attend an event such as a fair, sports event, or festival • Combined Business/Pleasure: Business extended at least one night just for pleasure • City Trip: Visit a city for sightseeing, culture, shopping, dining, theatre, etc. • Beach: Visit to a beach resort for swimming, boating, etc. • Theme Park: A trip to visit a major theme park • Outdoors: Visit a natural area for camping, fishing, hunting, etc. • Casino: Visit to casino or casino resort for the purpose of gaming • Country Resort: Visit to a a country resort to relax, enjoy sports, recreation, etc. • Ski Trip: Trip to a ski area or resort for downhill or cross-country skiing and snowboarding • Cruise: Extended boat trip with on-board activities, stops for sightseeing, etc.
Key Research DefinitionsMarkets of Interest • Maine’s Regional Market • Includes the New England states, Delaware, Maryland, New Jersey, New York, Pennsylvania, and Washington, D.C. • Maine’s Day Trip Market • Includes the states of Maine, Connecticut, Massachusetts, New Hampshire, Rhode Island, and Vermont.
Maine’s U.S. Travel Market • The travel and tourism industry continues to be a significant and growing contributor to Maine’s economy. • An estimated 43.6 million day and overnight trips were taken to Maine in 2004, representing a ±0% trend versus 2003. • Overnight trips accounted for 8.9 million of these, down 1% versus 2003. • Day trips accounted for 34.7 million, ±0% versus 2003.
Travel Expenditures • U.S. travelers spent an estimated $6.2 billion in Maine in the year. • $4.5 billion of these expenditures were spent by out-of-state travelers. • The retail and food sector were the largest beneficiaries, capturing estimated $1.9 and $1.7 billion respectively, followed by: • transportation at $1.0 billion, recreation at $0.8 billion, and accommodations at $0.8 billion. • Day and overnight trips are both significant contributors, generating estimated spending of $3.5 and $2.7 billion respectively.
Economic Impact of Travel and Tourism • Based on these levels of traveler spending, travel and tourism in Maine directly and indirectly generated - • 176,633 jobs in Maine • $3.8 billion in wages • over $531 million in tax revenues. • Spending by non-residents accounted for about 70% of the above totals.
Maine’s Market Position • Maine’s share of regional residents’ trips to anywhere softened for the third consecutive year - from 3.8% in 2001 to 3.5% in 2002, 3.3% in 2003, and 3.2% in 2004. • This share decline was apparent within the regional market as well. It declined from 5.5% to 5.3%. • Weather was an exacerbating factor for the state. • It was a cold and wet summer with temperatures well below average and precipitation well above average.
Overnight Marketable Travel Profile • Marketable pleasure trips continued to dominate Maine’s trip mix and the most important reasons among these for visiting were: • touring the state (32%) • enjoying the outdoors (20%) • for a beach vacation (14%) • attending a special event (11%) • Maine’s most important source of overnight marketable trips continued to be its regional market.
Product Delivery • Maine has an outstanding tourism product. Visitors hold favorable impressions. • The state’s signature strengths relate to: • providing a Family Atmosphere, • being Unique, yet Worry-free • with Sightseeing, as well as Sports & Recreation.
Performance of the U.S. Travel Market • American adults took an estimated 1.53 billion overnight trips in 2004. • Visits to Friends/Relatives accounted for 41% of them or 616 million trips. • Marketable Trips accounted for 43% or 647 million. • Touring, Special Event, Outdoors, Casino, and Beach trips were, in rank order, the largest Marketable Trip types. • Business Trips accounted for the balance 16% or 267 million trips.
U.S. Travel Trends • The 1.53 billion overnight trip volume of 2004 returned the market to growth, up 2%, after a 1% decline in 2003. • Pleasure travel performed similarly, with: • VFR up 1%, recovering from 1% decline in 2003. • Marketable trips up 4%, building on growth in the previous two years, • with, in rank order of magnitude, Combined Business-Pleasure, Cruise, Outdoor, Beach City, Casino, and Touring trip-types; contributing; • whereas, Theme Park and Ski trip-types declined. • Business travel grew for the first time in five years … by 1%.
Size of the U.S. Travel Market 2004 Overnight Trips Total = 1.530 Billion Marketable Pleasure 647 Million (43%) Visit Friends/Relatives 616 Million (41%) Business 267 Million (16%)
Size of the U.S. Travel MarketOvernight Trips Base: Overnight Trips 4% higher than in 1999 +2% +1% -2% +4% -1% +2%
U.S. VFR Trips Base: Overnight VFR Trips 8% higher than in 1999 +1% +4% -1% -1% +1% +2%
U.S. Marketable Trips Base: Overnight Marketable Trips 11% higher than in 1999 +4% +1% +6% +5% +2% -2%
U.S. Business Trips Base: Overnight Business Trips 18% lower than in 1999 +3% ± 0% -10% -3% +1% -6%
Marketable Trip Trends by State 2004 vs. 2003 Percent Change +11% or more +1 to 10% No change -1% to -10% -11% or more
Marketable Trip Trends by State 2003 vs. 2002 Percent Change +11% or more +1 to 10% No change -1% to -10% -11% or more
Marketable Trip Trends by State2002 vs. 2001 Percent Change Over Time +11% or more +1 to 10% No change -1% to -10% -11% or more
Marketable Trip Trends by State2001 vs. 2000 Percent Change Over Time +11% or more +1 to 10% No change -1% to -10% -11% or more
Performance of Maine’s Travel Market • Maine’s combined Day and Overnight trip market totaled an estimated 43.6 million trips in 2004. • There were 34.7 million Day trips. • 60% or 20.8 million of which were Marketable. • Shopping was the leading Marketable trip-type, followed by Outdoors, Touring, and Beach trips. • 33% were VFR. • 7% were Business trips.
Performance of Maine’s Travel Marketcont’d • There were 8.9 million Overnight trips. • 46% or 4.2 million of which were Marketable trips. • The leading types, in rank order, were Touring, Outdoors, Beach and Special Event trips. • 41% were VFR. • 13% were Business trips.
Performance of Maine’s Travel Marketcont’d • Non-residents and the nearby region were important contributors to Maine’s travel market; non-residents accounted for: • 57% of Maine day trips - • 42% by Boston residents and 15% by other non-residents within the day trip area. • 82% of Maine overnight trips - • 61% by non-residents living in the nearby region and 21% by non-residents living beyond. Note: The Regional Market includes New England, DC, DE, MD, NJ, NY, and PA.
Maine Travel Trends • Maine’s overall travel market flattened out in 2004 after being down and up 2% in the previous two years. The number of trips was just shy of 2000 levels. • Day trips were flat for the second consecutive year. • Overnight trips were down by 1% for the second consecutive year. Note: The Regional Market includes New England, DC, DE, MD, NJ, NY, and PA.
Maine Travel Trendscont’dBy Key Segments • Among Maine’s overnight trips: • VFR dropped by 9% in 2004, to a level 11% lower than in 1999. • Marketable trips held their own, recovering from a 4% decline in 2003. Volume was nonetheless 4% shy of 1999. • Business trips grew by double-digit rates for the second consecutive year to highest level in five years.
Size of Maine’s U.S. Travel Market2004 Travel Year Base: Total Overnight and Day Trips Total = 43.6 Million Day Trips 34.7 Million (80%) Overnight Trips 8.9 Million (20%)
Maine’s U.S. Travel Market Base: Total Overnight and Day Trips N/C vs. 1999 ± 0% +6 % +1 % -2% +2 %
Maine Overnight Trips Base: Overnight Trips 5% lower than in 1999 +9% +2% +1% -1% - 6 % - 1 %
Maine Overnight VFR Trips Base: Overnight VFR Trips 11% lower than in 1999 +14% ± 0% +8% +1% - 11% -9%
Maine Overnight Marketable Trips Base: Overnight Marketable Trips 4% lower than in 1999 ± 0% +10% -1% +1% -4% ±0%
Maine Overnight Business Trips Base: Overnight Business Trips 12% higher than in 1999 - 9% +22% +11% - 11% +6% - 12%
Marketable Trip MixOvernight Trips Base: Overnight Marketable Trips N/A
Marketable Trip MixMaine Overnight Trips Base: Overnight Marketable Trips
Marketable Trip MixMaine Overnight Trips Base: Overnight Marketable Trips
Role of Maine Residentson Maine Overnight Trips Base: Overnight Trips
Maine’s Regional Market Includes New England, DC, DE, MD, NJ, NY, and PA