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The Economic Review of the Travel Industry in Montana: 2012 Biennial Edition

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The Economic Review of the Travel Industry in Montana: 2012 Biennial Edition University of Montana ScholarWorks at University of Montana Institute for Tourism and Recreation Research Publications Institute for Tourism and Recreation Research 1-1-2013 The Economic Review of the Travel Industry in Montana: 2012 Biennial Edition Kara Grau University of Montana - Missoula Norma Nickerson University of Montana - Missoula Jacob Jorgenson University of Montana - Missoula, [email protected] Follow this and additional works at: https://scholarworks.umt.edu/itrr_pubs Part of the Economics Commons, Leisure Studies Commons, Recreation, Parks and Tourism Administration Commons, and the Tourism and Travel Commons Let us know how access to this document benefits ou.y Recommended Citation Grau, Kara; Nickerson, Norma; and Jorgenson, Jacob, "The Economic Review of the Travel Industry in Montana: 2012 Biennial Edition" (2013). Institute for Tourism and Recreation Research Publications. 2. https://scholarworks.umt.edu/itrr_pubs/2 This Report is brought to you for free and open access by the Institute for Tourism and Recreation Research at ScholarWorks at University of Montana. It has been accepted for inclusion in Institute for Tourism and Recreation Research Publications by an authorized administrator of ScholarWorks at University of Montana. For more information, please contact [email protected]. Institute B for The Economic Review of the I ourism and creation Travel Industry in Montana esearch 2012 Biennial Edition TheUniversityof Montana — Missoula T he Econom ic R eview of the T ravel Industry in M ontana 2012 B iennial Edition The Institute for Tourism and Recreation Research The University of Montana - Missoula Institute lOUriSm and ^creation research January 2013 This report was funded by Montana’s Accommodations Tax. Authored by: Kara Grau, M.S. Norma Nickerson, Ph.D. Jacob Jorgenson Institute B for I ourism and creation esearch The Institute for Tourism and Recreation Research College of Forestry and Conservation The University of Montana 32 Campus Drive #1234 Missoula, MT 59812-1234 (406) 243-5686 www.itrr.umt.edu A The UniversLty of >Jliif Montana Copyright © 2013 Institute for Tourism and Recreation Research. AM rights reserved. EXECUTIVE SUMMARY In 2011, travel expenditures by nonresident visitors totaled over $2.77 billion, which generated $3.33 billion in total economic impact. Preliminary 2012 numbers show a total impact slightly over $4 billion in total economic impact. Over 10.5 million individual nonresident travelers visited Montana in 2011, up 1.6 percent from 2010. This amounts to 4.5 million nonresident travel groups (2.33 people per group). Preliminary estimates for 2012 show a 3 percent increase to 10.9 million nonresident travelers. in 2011, nonresident visitor spending directly generated over 28,000 travel jobs to Montana, and contributed to a total of over 38,800 jobs, leading to over $1.05 billion in total personal income for Montana residents. Preliminary 2012 estimates show a 5.7 percent increase in travel generated employment to exceed 41,000 jobs. Nonresident travel spending supports nearly 10 percent of the service sector jobs and 12 percent of retail jobs, it also directly or indirectly accounts for jobs in every other industry sector in Montana. Montana state and iocai governments received an estimated $281 million in taxes attributable to nonresident traveler spending; the federal government coiiected $270 million in taxes from nonresident spending. The nonresident travel industry in Montana comprises 6.2 percent of the state’ s total employment, making it the fifth largest employer, foiiowing just behind construction (6.4% of total employment). Montana ranks 41® in‘ the U.S. fortourist spending, but 6*^ in the nation in per capita tourist spending. Nonresident vacationers to Montana in 2011 came primarily from the U.S. (84%), while 12 percent came from Canada and five percent came from other foreign countries. Mountains and forests; Yeiiowstone National Park; and open space and uncrowded areas were the most frequent attractions for vacationers in Montana, while scenic driving and nature photography are the most popular activities. Airline passenger traffic increased 5.6 percent in 2010 to 2011. The overall increase from 2007 to 2011 was 5.9 percent. Amtrak ridership in 2011 decreased 17 percent from 2010 due to serious flooding in the spring and summer stopping train traffic for an extended period. Montana s ’busiest station in Whitefish also had a 13 percent decrease in 2011. 2012 year-to-date figures are showing an increase in ridership. Room supply was up 0.8 percent, and room demand was up 5.3 percent in 2011. Occupancy rates increased the last two years, as did average daily rates, with an increase of 3.8 percent in 2011. Prices in the food service industry rose 2.5 percent in 2009, as opposed to the Consumer Price Index which decreased by 3.1 percent. Personal income in Montana s’ arts, entertainment and recreation services industry increased 1.0 percent from 2010 to 2011, while the industry Gross Domestic Product by State increased 2.0 percent. TABLE OF CONTENTS SECTION 1: ECONOMIC IMPACT OF NONRESIDENT TRAVEL.....................................................................1 Introduction....................................................................................................................................................... 2 Defining Travel and the Travel Industry .................................................................................................... 2 Publication Notes..........................................................................................................................................3 TRAVEL AND THE ECONOMY.................................................................................................................................. 5 Travel and Tourism: A Powerful Economic Force...................................................................................5 Travel Throughout the Economic Cycle.................................................................................................... 5 T ravel V olume.....................................................................................................................................................7 Nonresident Travel in Montana ...................................................................................................................7 Nonresident Expenditures in Montana.......................................................................................................9 Nonresident Expenditure Trends............................................................................................................. 11 T ravel -G enerated Income..............................................................................................................................12 T ravel -G enerated E mployment....................................................................................................................13 Montana s’ E mployment Str u c tu r e............................................................................................................. 14 The Travel Industry’ s Market Share in Montana ....................................................................................14 T ravel -G enerated Tax Reven u e...................................................................................................................16 SECTION 2: MONTANA AS A TRAVEL DESTINATION...................................................................................18 Montana s’ Place in National T o u r ism .........................................................................................................19 Tourism Receipts as Reflected by U.S. Travel Association Data (USTA) .........................................19 V acationer Place of Residence....................................................................................................................22 V acationer A ttractions , A ctivities and Destinations ............................................................................26 Montana State parks - by Maren Murphy, Parks & R ecreation Pla n n e r ..........................................28 SECTION 3: TRAVEL INDUSTRY SEGMENT DATA........................................................................................ 31 Montana T ransportation Overview............................................................................................................32 Airline Performance.................................................................................................................................... 32 Amtrak Performance.................................................................................................................................. 34 Montana Travel Industry Overview ..........................................................................................................36 Hotel Industry.............................................................................................................................................. 36 Foodservice Industry.................................................................................................................................. 38 Arts, Entertainment, and Recreation Services.......................................................................................40 Concluding Re m ar ks ...................................................................................................................................... 41 APPENDIX
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