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FY18 Tourism Economic Contribution Report

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FY18 Tourism Economic Contribution Report TOURISM ECONOMIC CONTRIBUTION 2 0REPORT 1 8 (COVER) JAREKUS SINGLETON 2018 RED BRICK ROADS MUSIC & ARTS FEST - CLINTON FROM THE GOVERNOR Welcome to the Fiscal Year 2018 Economic Contribution Report of Travel/Tourism in Mississippi. This report gives a detailed analysis of the tremendous role tourism plays in Mississippi’s economy. Tourism is big business in Mississippi. During the last fiscal year, 24 million visitors spent $6.51 billion in Mississippi and generated $405.2 million for the state’s General Fund. I invite you to consider exploring more of Mississippi for yourself. Every region in the state has a wealth of unique sights, sounds, tastes and experiences worthy of your time. Governor Phil Bryant THE MIDTOWNER - HATTIESBURG 24 VISITORS SPENT $405.2 MILLION MILLION FOR THE STATE’S $6.51 GENERAL FUND BILLION IN MISSISSIPPI AND GENERATED FROM THE EXECUTIVE DIRECTOR Tourism is a vital component of our state’s economy. More than 89,500 Mississippians work directly in the travel and tourism trade, with nearly 98 percent employed in the private sector. Still, those numbers only tell part of the story. The attractions making up Mississippi’s vast tourism assets also create more vibrant communities where people not only want to visit, but also to live. Quality of life is directly related to the abundance of opportunities. In Mississippi, we are fortunate to have both. Glenn McCullough, Jr. EXECUTIVE DIRECTOR MISSISSIPPI DEVELOPMENT AUTHORITY Visit Mississippi is dedicated to promoting the state’s array of attractions to people across the U.S. and around the world. When visitors dine in our restaurants, stay FROM THE overnight and play at our golf courses and casinos, they experience genuine hospitality. These visitors respond by spending more money – $170 million, or 2.7 TOURISM DIRECTOR percent, over FY2017 – and this growth allows our state to succeed in many other areas. Considering our unmatched contributions to music, literature and the arts, culture may be Mississippi’s most valuable currency. D. Craig Ray DIRECTOR VISIT MISSISSIPPI TABLE OF CONTENTS EXECUTIVE SUMMARY GAMING 02 FY2018 Expenditures by Visitors 12 Mississippi Gaming Commission Quarterly Survey Trends 12 Gaming Employment, Revenue and Legalized Sports Betting MISSISSIPPI AS AN ATTRACTION 12 Non-gaming Summary of Revenue for State- 03 Travel/Tourism Exports and Imports Licensed Casinos 03 Household Tax Relief and Estimated Effective Tax Rates 04 A Consistent Producer OUTDOOR RECREATION 04 Employment Rankings and Trends STATE TRAVEL/TOURISM LINKS CITY/COUNTY/STATE LEVEL INDICATORS 15 Tourism Capital Investment FY2018 Surveys (October 2017 - September 2018) 05 Travel/Tourism Expenditures/Lodging data 16 Film Productions 06 City/County Tax Revenues and Fees Attributed to Travel/Tourism 17 State Gross Domestic Product and Total Value Added 06 Travel/Tourism Advertising and Employment by Partners 17 Travel/Tourism Employment Multipliers 07 Mississippi Runs Deep Campaign 17 Travel/Tourism Labor Income Multipliers 07 Mississippi Visitation and Prior Visitor Profile Studies 08 International Travel to Mississippi 18 DELIMITATIONS 08 Some New Amenities for Visitors FY2018 18 LIMITATIONS 18 METHODS 19 APPENDICES TRANSPORTATION 43 GLOSSARY 09 Welcome Center Reservation Service 45 ACKNOWLEDGMENTS 10 Regional Airport/Air Passenger Data 10 Amtrak EXECUTIVE SUMMARY BILOXI LIGHTHOUSE his report estimates travel/tourism’s Fiscal Year 2018 economic contribution at the state and county level for Mississippi. Travel/tourism is vital to Mississippi’s economy, based on 89,610 direct jobs in FY2018 - a 2.6 percent increase from the prior fiscal year. Nearly 98 percent Twere in the private sector. Travel/tourism comprised 7.7 percent of FY2018 total direct statewide establishment-based nonfarm employment. The top three employment categories in terms of FY2018 Mississippi travel/tourism were food services and drinking establishments, state-licensed gaming and lodging, per Appendix A. The 21,562 state- licensed casino gaming jobs, including casino hotels, equaled 24.1 percent of direct travel/tourism employment. All other direct travel/tourism jobs comprised the remaining 75.9 percent. All casino hotel rooms accounted for 12,590, or 20.8 percent, of 60,452 statewide hotel/motel rooms. VISITORS, ON AVERAGE, SPENT In 2018, a Mississippi casino hotel had 450 rooms, on average; non-casino hotel/motels had 71 rooms. FY2018 EXPENDITURES BY VISITORS Estimated travel/tourism expenditures by visitors Travel/tourism is a major contributor to the state’s totaled $6.51 billion in FY2018, versus $6.34 billion financials and quality of life. If other sectors stayed in FY2017, plus $170 million, or 2.7 percent. The $6.51 constant, Mississippi’s economy without travel/ billion spent is the highest ever, surpassing $6.35 tourism, would yield: $6.25 billion spent in FY2005 and $6.34 billion spent in • $405.2 million less in General Fund revenues. BILLION/YEAR FY2017. Visitors, on average, spent $6.25 billion/ • 127,710 fewer total jobs (direct, indirect and IN MISSISSIPPI FROM year in Mississippi from FY2012 through FY2018, induced). FY2012 THROUGH FY2018 inclusive. The $6.51 billion in direct spending by visitors in FY2018 was 4.2 percent higher than this • $3.17 billion less in total annual direct and seven-year average spend. Travel/tourism’s $405.2 secondary payroll associated with travel/ million slice of a $5.49 billion FY2018 General Fund tourism and quality-of-life issues. was 7.4 percent, via visitor expenditures, tourism capital investment, travel/tourism personal income, Subtracting 89,610 direct statewide travel tourism sales taxes and other taxes. Travel/tourism total jobs out of Mississippi’s economy would increase the employment – direct, indirect and induced – was state’s annual unemployment rate from 4.7 percent 127,710, or 11 percent, of statewide jobs. They to 11.7 percent. Most of the 89,610 direct and 38,100 generated $3.17 billion in total FY2018 labor income. secondary travel/tourism jobs cannot be outsourced. FY2018 MISSISSIPPI TOURISM ECONOMIC CONTRIBUTION REPORT MISSISSIPPI AS AN ATTRACTION 2018 BRIGHT LIGHTS BELHAVEN NIGHTS - JACKSON TRAVEL/TOURISM EXPORTS AND IMPORTS ravel/tourism is one of Mississippi’s largest spent an estimated $1.34 billion, 20.5 percent HOUSEHOLD TAX RELIEF export industries, generating economic of $6.51 billion. International visitors spent an AND ESTIMATED EFFECTIVE benefits across all parts of the state. Out-of- estimated $176 million in Mississippi, 2.7 percent TAX RATES Tstate visitors to Mississippi spent more on travel/ of $6.51 billion. An in-state travel party, on average, tourism than Mississippi residents spent on travel/ may have spent $480 on their entire Mississippi The $476.6 million collected in FY2018 travel/ tourism in other states or abroad. Travel/tourism trip, versus $780 for an out-of-state domestic tourism state tax revenues/fees, plus $188.5 is an industry, comprised of different sectors of travel party. These spending averages reflect a million in city/county tax revenues and fees, the economy. combination of day and overnight visitors. were divided by 1,103,514 Mississippi households. Combined state plus local tax revenues/fees Domestic out-of-state visitors spent $5 billion attributed to travel/tourism in FY2018 were $665.1 in Mississippi, 76.8 percent of $6.51 billion in million. The result was $603 in tax relief per statewide FY2018 visitor spending. Mississippians household, or $432 in state tax relief and $171 in traveling in state – 50 miles or more one way – local tax relief. The 2017 tax relief estimate was $588 per household ($420 state and $168 local). FY2018 MISSISSIPPI TOURISM ECONOMIC CONTRIBUTION REPORT A CONSISTENT PRODUCER Travel/tourism industry is a “consistent producer” in Mississippi, helping state/local governments close budget gaps and pay for much-needed services. This DOMESTIC OUT-OF-STATE includes real and personal property taxes paid by VISITORS SPENT hotels/motels, bed-and-breakfasts, restaurants and casinos; 18.5 percent of the 7 percent state sales tax allocated to the cities; motor vehicle rental taxes; petroleum taxes; among others. Cities/counties $5 BILLION and schools benefit from property taxes paid by IN MISSISSIPPI. lodging, food and beverage. TUPELO FAIRGROUNDS EMPLOYMENT RANKINGS AND TRENDS Travel/tourism was fourth in total estimated versus 7.6 percent of all jobs in FY2017. Mississippi’s private FY2018 direct nonfarm, establishment- 89,610 direct travel/tourism jobs in FY2018, were the based employment, behind private health care and most in 13 years and 4,310 more than the FY2007, social assistance, manufacturing and retail trade. pre-“Great Recession,” number of 85,300. The 89,610 Most direct FY2018 statewide travel/tourism jobs direct travel/tourism jobs in FY2018 comprised 105 – 87,665 of 89,610, of 97.8 percent – were private percent of the 85,300 pre-recession figure in FY2007. sector careers, including hotels/motels, restaurants, These 89,610 direct jobs were 2.6 percent higher casinos and retail. The other 1,945 (2.2 percent) than the 87,335 in FY2017. Private direct tourism were staff in state parks, federal parks, outdoor jobs comprised 9.5 percent of all statewide private recreation, airports, historic sites, state/local sector jobs. Statewide travel/tourism direct jobs tourism offices, museums, performing arts centers averaged 85,800 per year, FY2012 - FY2018, inclusive. and spectator sports sites. The 89,610 direct statewide travel/tourism jobs in FY2018 were 3,810
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