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October 16, 2008

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October 16, 2008

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  1. Georgia Tourism Georgia Department of Economic Development October 16, 2008 Coast –June 19, 2009

  2. Tourism Is Big Business for the US • $1.7 trillion industry • $115.3 billion in tax revenues • Reduces average household tax liability by $995 • Directly sustains 7.7 million jobs • $189.3 billion payroll • $2 billion daily travel expenditures • Supports 18 million jobs in the US U.S. Travel Association - 2009

  3. Tourism – Preliminary 2008 Direct Economic Impact Direct Domestic Expenditures: 19b ↑ 1.9% Jobs: 221,300 ↓ -1.1% Payroll: $6.353 billion ↓ -0.4% State tax: $851.1 million ↑ 0.7% Local tax: $563.1million ↑ 1.4% Total tax benefit = $ 1.414 billion ↑ 0.9 % Source: U.S. Travel Association 2008 Preliminary Economic Impact numbers.

  4. Economic Impact on the Community Source: U.S. Travel Association

  5. So what’s …

  6. Tourism Satellite Account System • The TSA allows for true comparisons of tourism to other industries. The measures are consistent with the way other industries are measured. • The TSA provides greater detail.  Full detail of economic contribution by industry shows the composition of tourism.  Detail on supporting industries shows how non-tourism industries benefit from tourism activity. • The TSA is more comprehensive. By including all spending both by and on behalf of travelers, the TSA provides a complete picture of the demand and thus the supply related to tourism in the state. • The TSA is more credible. By utilizing the international standard for measuring tourism’s economic contribution, the TSA approach garners credibility. The U.S. Bureau of Economic Analysis utilizes this standard, thus providing a national benchmark. 

  7. How does this help us tell our story ? • Enables comparisons of the importance of tourism to other sectors of the economy in terms of GDP, employment, and income • Allows for benchmarking to other destinations • Tracks the economic contribution of tourism over time • Monitors strength by tracking capital investment • Allows for extension analysis for taxes, scenarios, full impact

  8. ROI (Return on Investment)

  9. Statewide TSA Findings?

  10. GOOD NEWS!!! • Direct demand of $28.5 billion generated $45.6 billion in business sales – indirect and inducted impact • Sustained 400,000 jobs = 9.8% of all employment • $2.4 billion in State and local taxes and $3.2 billion in Federal taxes • 5th largest employer in the State

  11. Online Platform

  12. How does this help on the local level ? • Where can I view the entire report ? • What can be tracked in my community? • How can I get my county data? • How do I explain these new numbers ?

  13. A look back at 2008.. Trying to predict the future

  14. Smith Travel Data 2008-2009

  15. Room supply .. Hotel construction was up 34% in 2008 –Source: CPN Source: Smith Travel-Georgia Data

  16. Supply outpacing demand Source: Smith Travel-Georgia Data

  17. Hotel Occupancy April 09 vs. April 08 April Coast -4.0% State -10.7% US -11.2% YTD Coast -5.9% State -12% US -11% Source: Smith Travel-Georgia Data

  18. What is the picture elsewhere ? Source: Smith Travel

  19. Hotel Revenue April 09 vs. April 08 April Coast -9.4% State -13.7% US -16.9% YTD Coast -11.3% State -13.7% US -15.6% Source: Smith Travel Data

  20. Revenue Snapshot Source: Smith Travel

  21. International Data flights to Savannah Source: OTTI

  22. Looking ahead 2009 forecasting • Smith Travel is anticipating a 2.4% increase in supply in 2009 and a 1.2% increase in 2010 • Occupancy is forecasted to be at 58% growing only slightly in 2010 to 58.1%. Average daily rate will decrease 2% rebounding in 2010 at 2.4% growth. REVPAR has been predicted to decrease anywhere from 10% to 5.9%, rising 2.4% in 2010 • PricewatehouseCoopers updated their forecast anticipating at 6.2% decline in demand for 2009 Coast YTD 58.3 % vs. 62% 2008

  23. Looking ahead…. • Consumer Confidence posted another gain this May. The index now stands at 54.9 up from 40.8 in April.

  24. Any good news… • Traveler Sentiment Index (TSI) gone up to 90.2 from 78.2 in Oct 08. • Hotel industry much more adept at making profit. In 1990 when occupancy was at 64% the industry lost $5.7 billion. In 2008 occupancy was at 60% industry profits are expected to be over $20 billion. With 4% less occupancy industry was about $25 billion more profitable. Source: Hotel News Now

  25. What are the experts saying ?

  26. Meetings, Conventions and the AIG effect • Meetings mean business campaign • Ritz Carlton – 10% of meeting room revenue to charity • Relationships are the key!! • Pre and post conference quality time • Brand awareness – BE IMPRESSED • Short lead time, short duration meetings • Booking pace seems to be in recovery for the second half of the year- 2010 on target- fewer cancellations • Upscale SMERF stayed impressively strong - Ernst & Young • 6/2 – Hotel News Resource article • Planners are looking practicality • Value Add Practical Amenities • Reliability • Building and Maintaining those relationships • 6/1 Smith Travel reported that Mid size hotels without F&B winning the corporate travel battle and stealing share from the next level up due to the value proposition. Make sure you are offering comparable rate for corporate travelers. Hotel driving market share will drive rate when the recovery begins. Source: HotelsMag.com May 15, 2009

  27. Shared Challenges Problems • Limited budgets (Budget Cuts Are Here!) • Increased competition • Fighting to be recognized Opportunities • Tourism is more relevant to Georgia’s economy than ever before • Make Georgia Tourism promotion a priority Partnerships • Strong, Effective Partnerships can make it happen!

  28. Opportunities ???

  29. FY 2008 Target – Consumer Profile In general, market research says the typical tourism decision maker for Georgia includes: • Primary Targets • Families • Married women aged 35-49 with children and a HHI of $60k+ • Moms tend to be the main decision maker/influencer for family vacation • Baby Boomers (ages 41-60) • Secondary Targets • Active Adult empty nesters • Late Generation X’ers • Minorities: predominantly African-American, Hispanic and Asian

  30. Looking at all the sources • SMERF MARKET • Social, military, education, religious, fraternal organization (family) • Reunionsmag.hotelplanner.com- bid for family reunions a new reverse auction • Military • Military Warfare Chaplin weekends • Offdutytravel.com - discount tickets. Host a reception. • Where will the stimulus funding go ?? Government meetings.. expand outside of metro Atlanta

  31. G3ict- Global initiative for Accessible Technologies • UN Convention on the Rights of Persons with Disabilities • 137 countries signed it - 47 have ratified it • Legislation similar to ADA will be adopted around the world in the new 2-5 years “To enable persons with disabilities to live independently and participate fully in all aspects of life, states Parties shall take appropriate measures to ensure to persons with disabilities access, on an equal basis with others, to the physical environment, to transportation, to information and communications, including information and communications technologies and systems... ” (Article 9)

  32. Is your company missing out on a trillion-dollar market? • It is if it ignores people with disabilities. With $1 trillion, including $220 billion in discretionary income, people with disabilities have the most buying power of any traditionally underrepresented group, according to data from the U.S. Census Bureau. • 1 in 5 Americans (54 million) have a disability, making people with disabilities the largest traditionally underrepresented group in the nation. • 30% of the nation's 69.6 million families have at least one member with a disability. • 72% of people with disabilities are likely to upgrade to a product's latest model. • 62% of people with disabilities say they are likely to do business with companies that have a commitment to diversity and equal treatment of employees. • 73% of people with disabilities are heads of household. • People with disabilities spend $13.6 billion on 31.7 million trips each year -2004 • Travelers with disabilities each year spend $4.2 billion in the lodging industry- 2004 • 12% increase in revenue in the hospitality industry is attributed, in part, to consumers with disabilities -2004 • 4 of 10 members of the traveling public are Americans with disabilities and their companions- 2004 Source: G3ict Presentation

  33. GROWING TRENDS.. Grandparents • YPB - 30% of traveling grandparents have taken at least one trip with a grandchild in the last year. • Travel organizations are offering special packages for grandparents and grandchildren. • Typical tour ages for the children are 7-18 • Elderhostel.com- “ Grandparent trips” – current itineraries graphed below Source: Hometownlife.com- Savvy Seniors

  34. Consider all travelers • “Pink Money” – May NTA online Travel Agents and Operators in the gay and lesbian community have reported NO downturn in their business. • They spend as much as $800 per trip compared to average of $500. • Volunteer Travel on the rise - 61% of volunteer travel operators predict increase over 2008. • Need for meaningful travel driving the trend. Source: NTA May newsletter

  35. NTA

  36. NTA • Special Interest is on the rise • Culinary up 31% • Holiday Travel up 35% • Historic and Heritage up 23% • Garden Tours up 20% • Spectator Sports up 34% • Agricultural tours up 72% • Demographics • 92% serve senior market (60 +) • 82% serve leading-edge boomers (51-59) • 72% serve trailing edge boomers (39-50) • 49% serve student market • 43% serve Gen X market (21-38) • 55% said in-bound international increased- emerging countries – Greece, India and China

  37. ABA

  38. ABA • 2008 has the motorcoach industry at a historic growth pace - taking advantage of the opportunities .. glass is half full approach rather than half empty • Outlook for 2009 is good growth is expected to continue • Newer, younger demographic find traveling green on a bus as the “ cool thing to do”- iPod hook up, flat screen TV’s, personal climate control, reclining seats, other amenities with the added perk of shrinking their carbon footprint • Take an educational marketing approach • Involved with lobbying approach and working closely with the transition team

  39. Understanding the market • Groups are the growth segment in the travel industry and will continue to travel. They are least affected by economic downturn • 65-year-old seniors traveling today have 18 years of life expectancy and will travel until the age of 83. • This is a new senior on group tours and they will be the bread and butter of the travel industry for the next 20 years. • The fact is most seniors own their own home with no mortgage and have been mostly unaffected by the banking crisis as well as drops in the stock market. • Mass growth of the 55-plus market as boomers become seniors…all indicators are that the senior market will continue to grow and become the largest age sector of America in the next 10 years. • Increase in niche markets. • Frequency of day trips increasing. Group Leaders of America Meeting

  40. Detailed Itineraries 54

  41. Things to consider.. • ABA and OMCA will launce a group travel booking website in 2010. • ABA Top 2009 100 Events in North America • Macon Cherry Blossom Festival • Fantasy in Lights - Pine Mountain (Callaway Garden’s) • SYTA Georgia continues to be in 12th place what can we do to work with STYA to break into the top 10? • Look towards events that day trippers can attend, • Partnerships, partnerships, partnerships • New Quarterly Group Tour Newsletter • Group Tour Survey • Peach Greet Program at the VIC’s

  42. Visitor Information Center Marketing • Partnership with the Georgia Music Hall of Fame to promote Georgia’s music heritage • Kids’ Corner at the VICs, sponsored by Cabbage Patch • Partnership with Department of Agriculture • Sales Blitz Program- Promote YOURSELF!! • Visitor Information survey’s another look at travelers impressions • 92% of respondents said they would return to Georgia because of the information at the VIC • Upcoming GOMM Days – AMTA day in June Augusta - 7/17 West Point - 7/31 • Statewide- May visitation was down 6% • Savannah was up 2% Kingsland up 5%

  43. What is ERSI/BAO ? Business Analyst Online provides boardroom-ready reports and maps on demand. Powered by geographic information systems (GIS) software from ESRI, these accurate reports and maps help you quickly visualize and understand the demographics, consumer expenditures, business information, and market potential of any area. The demographic and consumer data analysis is based on the ESRI Community Tapestry™ system which classifies U.S. neighborhoods into 65 market segments, and assigns each segment a unique descriptive name. Each neighborhood is analyzed and sorted by more than 60 attributes including income, employment, home value, housing type, education, household composition, age, and other key determinants of consumer behavior.

  44. Customer profile can reveal demographics, lifestyle and product preference • Illuminates and helps define customer behaviors • Visual map is created for marketing efforts or possible conversion of current campaign • Zip codes are collected via guest registry • Zip codes analyzed to identify codes which had highest frequency of visitors • Top 5 States determined • Top 5 segments from each report listed

  45. What are these travelers interested in ?

  46. Example of Mapping – GIS !!

  47. Georgia Tourism Foundation • Georgiamadegeorgiagrownproduct.org • FREE listing for artist • Can sell their crafts/services • 1,080 businesses registered • Less than 100 registered for the coast

  48. Expanding your efforts.. Departmental efforts • Optimize your listing  ExploreGeorgia.org • Community Outreach  What is your approach ? • Promotions: • What is Your GA Story? • Scavenger hunt through Georgia • Postcard campaign • Music Initiative–> SGA • Partnerships • Universities  Student/Alumni/ Parents • You Tube- Coast focus- I-95 push • Targeted media push-> GH • Group Tour • Reunions • African American • Pathfinders 2009 Family Vacation -Savannah listed twice Best place to take an African American Tour, Best place for a seriously good meal

  49. Trends, tips, ect.