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CONTRIBUTION REPORT FY20 Tourism Plays a Vital Role in Mississippi’S Growing Economy

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CONTRIBUTION REPORT FY20 Tourism Plays a Vital Role in Mississippi’S Growing Economy TOURISM ECONOMIC CONTRIBUTION REPORT FY20 Tourism plays a vital role in Mississippi’s growing economy. Last year no doubt presented challenges as people couldn’t travel the way they have in past years due to the pandemic. Despite that, in Fiscal Year 2020, 21 million visitors from across the country and the world spent $5.65 billion in Mississippi. This report – Tourism Economic Contribution Report FY20 – provides a detailed analysis of how tourism affects our state’s economy. The money generated from tourism contributed $362.2 million to the state’s General Fund, about $1 for every $15 spent. Whether it’s our delicious food, soulful music or engaging museums, Mississippi has so much to offer, and I invite you to experience the “Hospitality State” for yourself. FROM THE GOVERNOR Tate Reeves GOVERNOR 21.0 MILLION VISITORS SPENT $5.65 BILLION IN MISSISSIPPI AND GENERATED $362.2 MILLION FOR THE STATE’S GENERAL FUND Visit Mississippi is dedicated to promoting the state’s array of attractions to people across the U.S. and around the world. Visitors experience genuine hospitality when they dine in our restaurants, stay overnight, play at our golf courses and casinos and attend festivals and sporting events for all ages. Twenty-one million visitors spent $5.65 billion in Mississippi during FY20. This allowed our state to succeed in many other areas. Considering our unmatched contributions to the culinary scene, music, literature and the arts, culture may be Mississippi’s most valuable currency. FROM THE D. Craig Ray TOURISM DIRECTOR DIRECTOR VISIT MISSISSIPPI TABLE OF CONTENTS 01 EXECUTIVE SUMMARY 12 GAMING 02 FY20 Expenditures 13 Mississippi Gaming Commission Monthly Survey Trends 03 MISSISSIPPI AS AN ATTRACTION 13 Gaming Employment, Revenue and Legalized 03 Household Tax Relief and Estimated Effective Sports Betting Tax Rates 13 Non-gaming Summary of Revenue for 03 A Consistent Producer State-Licensed Casinos 04 Employment Rankings and Trends 14 OUTDOOR RECREATION 05 CITY/COUNTY/STATE LEVEL INDICATORS 15 STATE TRAVEL AND TOURISM LINKS 06 Travel/Tourism Expenditures/Lodging Data 15 Tourism Capital Investment FY20 Surveys 06 City/County Tax Revenues and Fees Attributed to (October 2019 - September 2020) Travel/Tourism 17 Film Productions 07 Travel/Tourism Advertising and Employment 18 State Gross Domestic Product by Partners 20 Travel/Tourism Employment Multipliers 07 Mississippi Visitation and FY20 Visitor Profile Study 20 Travel/Tourism Labor Income/Compensation Multipliers 09 CY19 International Travel to Mississippi 20 Delimitations (pre-COVID19) and CY20 Forecasts 21 Limitations 09 2021 Music Tourism Convention 22 Methods 10 TRANSPORTATION 23 APPENDICES 10 Welcome Center Reservation Service 46 GLOSSARY 11 Regional Airport/Air Passenger Data 49 ACKNOWLEDGMENTS 11 Amtrak COVER IMAGES: LEFT: MISSISSIPPI STATE CAPITOL - JACKSON; TOP: MAYES LAKE - JACKSON; BOTTOM: DOWNTOWN VICKSBURG. EXECUTIVE SUMMARY SAM D. HAMILTON NOXUBEE WILDLIFE REFUGE - STARKVILLE This report estimates travel/tourism’s Fiscal Year 2020 economic gaming jobs, including casino hotels, equaled 20.6 percent of direct travel contribution at the state and county level for Mississippi. Travel/tourism and tourism employment. All other direct travel/tourism jobs comprised is vital to Mississippi’s economy, based on 80,740 direct jobs in FY20, an - the remaining 79.4 percent. 11.3 percent decrease from the prior fiscal year. Nearly 98 percent of these direct jobs were in the private sector. Travel/tourism comprised 7.1 percent All casino hotel rooms accounted for 11,906, or 19.4 percent, of 61,288 of FY20 total direct statewide establishment-based nonfarm employment, statewide hotel/motel rooms by Dec. 31, 2020. By year-end 2020, a one of every 14 direct establishment-based jobs. Mississippi casino hotel had 458 rooms, on average; non-casino hotel/ motels had 71 rooms. The top three employment categories in terms of FY20 Mississippi travel/ tourism were food services and drinking establishments, state-licensed gaming, and lodging, per Appendix A. The 16,633 state-licensed casino 1 FY20 MISSISSIPPI TOURISM ECONOMIC CONTRIBUTION REPORT FY20 EXPENDITURES Estimated travel/tourism expenditures by visitors totaled $5.65 billion in FY20, versus $6.73 billion in FY19, minus $1.08 billion, a 16 percent decline. Visitors, on average, spent $6.2 billion/year in Mississippi from FY10 through FY19, inclusive. Travel/tourism’s $362.2 million slice of a $5.6 billion FY20 General Fund was 6.5 percent, via visitor expenditures, tourism capital investment, travel/tourism personal income, sales taxes, and other taxes. Travel/tourism total employment – direct, indirect, and induced – was 106,740, 9.5 percent, of statewide jobs, with $2.85 billion in total FY20 labor income. Travel/tourism is a major contributor to the state’s financials and quality of life. If other sectors stayed constant, Mississippi’s economy without travel/ tourism, would yield: • $362.2 million less in General Fund revenues. • 80,740 fewer direct jobs and 26,000 fewer secondary jobs • 106,740 fewer total jobs (direct, indirect and induced) • $1.85 billion less in direct payroll and $1 billion less in secondary payroll • $2.85 billion less in total annual direct and secondary payroll associated with travel/tourism and quality-of-life issues. Subtracting 80,740 direct statewide travel/tourism jobs out of Mississippi’s economy would increase the state’s annual unemployment rate from 7.9 percent to 14.3 percent. Most of the 80,740 direct and 26,000 secondary travel and tourism jobs cannot be outsourced. WINDSOR RUINS - PORT GIBSON FY20 MISSISSIPPI TOURISM ECONOMIC CONTRIBUTION REPORT 2 ABE’S BBQ - CLARKSDALE MISSISSIPPI AS AN ATTRACTION HOUSEHOLD TAX RELIEF AND A CONSISTENT PRODUCER ESTIMATED EFFECTIVE TAX RATES The $415.55 million collected in FY20 travel/tourism state tax The travel/tourism industry is a “consistent producer” in Mississippi, which revenues/fees, plus $164.75 million in city/county tax revenues/fees, helped state/local governments close budget gaps and pay for much- were divided by 1,104,394 Mississippi households. Combined state needed services. This included real and personal property taxes paid by plus local tax revenues/fees attributed to travel/tourism in FY20 were hotels/motels, bed-and-breakfasts, restaurants and casinos; 18.5 percent $580.3 million. The result was $525 in tax relief per household, or of the 7 percent state sales tax allocated to the cities; motor vehicle $376 in state tax relief and $149 in local tax relief. The FY19 tax relief rental taxes; petroleum taxes; among others. Cities, counties and schools estimate was $613 per household ($441 state and $172 local). benefitted from property taxes paid by lodging, food and beverage. 3 FY20 MISSISSIPPI TOURISM ECONOMIC CONTRIBUTION REPORT WASHINGTON COUNTY WELCOME CENTER - GREENVILLE EMPLOYMENT RANKINGS AND TRENDS Travel/tourism was fourth in total estimated private FY20 direct nonfarm, establishment-based employment, behind manufacturing, private educational and health services and retail trade. Most direct FY20 statewide travel/tourism jobs – 79,020 of 80,740, 97.9 percent – were private sector careers, including hotels/motels, restaurants, casinos and retail. The other 1,720 (2.1 percent) were staff in state parks, federal parks, outdoor recreation, airports, historic sites, state/local tourism offices, museums, performing arts centers and spectator sports sites. Statewide direct travel/tourism jobs in FY20 were 7.1 percent of all establishment based nonfarm jobs, versus 7.8 percent of all jobs in FY19. These 80,740 direct jobs were 11.3 percent lower than 91,000 in FY19. Private direct tourism jobs comprised 8.8 percent of all statewide private sector jobs. Statewide travel/tourism direct jobs averaged 85,210 per year, FY10 - FY19, inclusive. The 80,740-direct statewide travel and tourism jobs in FY20 were 4,470 less, 5.2 percent lower, versus the 10-year average of 85,210. FY20 MISSISSIPPI TOURISM ECONOMIC CONTRIBUTION REPORT 4 CITY/COUNTY/STATE LEVEL INDICATORS Local travel/tourism indicators include economic contributions from: • Hotel/motel tax levies and restaurant taxes collected • Petroleum tax distribution • Motor vehicle rental tax diversions • Alcohol beverage control • Seawall taxes • Real and personal property taxes paid by hotels/motels, restaurants, and casinos • Tourism capital investment permit fees RENAISSANCE AT COLONY PARK - RIDGELAND 5 FY20 MISSISSIPPI TOURISM ECONOMIC CONTRIBUTION REPORT TRAVEL/TOURISM EXPENDITURES/LODGING DATA Mississippi had 721 total hotel/motel properties as of Dec. 31, 2020, Mississippi non-casino hotels/motels achieved a calendar year (CY) 2020 per STR census data and a countywide lodging census conducted by statewide average daily rate of $78.85, based on STR research, an 8.1 Visit Mississippi. From Dec. 31, 2019, to Dec. 31, 2020, statewide hotel/ percent decrease versus $85.85 in CY19. Mississippi’s CY20 statewide motel inventory was flat, 61,172, as of Dec. 31, 2019; and 61,288, plus occupancy percent was 49.7 using STR data for non-casino properties, 0.2 percent, as of Dec. 31, 2020. An estimated 712 new statewide hotel/ versus 58.4 in CY19, minus 15 percent. State-licensed casino hotels had motel rooms were either under construction or could be finalized by a 55.8 occupancy percent in CY20, compared to 77.2 percent in CY19, Dec. 31, 2021, for a 1.1 percent inventory increase, from 61,288 to but many rooms at casino hotels were used free-of-charge by preferred 62,000. Mississippi’s inventory had 151 estimated bed-and-breakfast customers or prize winners. These hotels were closed for 65 days: March establishments as of Sept. 30, 2020, with 758 total bed-and-breakfast 17 – May 20, 2020. CY20 average daily rate was $80.54 for just under 10 rooms, 1,309 cabins, 14,031 recreational vehicle spaces with electricity months, versus $77.95 in CY19, for 12 months. State-licensed casino hotel and water and 1,343 camp sites without hook-up.
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