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Arizona Wine Tourism Industry Study 2017

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Arizona Wine Tourism Industry Study 2017 Alliance Bank Business Outreach Center The Arizona Wine Tourism Industry – 2017 Prepared for the Arizona Office of Tourism July 2017 COMPARISON RATIOS/PROBABILITIES Alliance Bank Business Outreach Center Northern Arizona University Ryan Fitch, Ph.D., Research Associate Thomas Combrink, M.S., Senior Research Specialist Tom Pitts, Chair of the Arizona Association for Economic Development’s Rural Task Force i Acknowledgments The Alliance Bank Business Outreach Center would like to thank the members of the Arizona Office of Tourism and the 11 co-sponsors who made this project possible. Without your support, this study would not have been possible. Special thanks to Colleen Floyd, Director of Research and Kari Roberg, Research Manager at the Arizona Office of Tourism and the 11 co-sponsors: Arizona Wine Growers Association, City of Sedona, Cottonwood Chamber of Commerce, Cottonwood Economic Development Council, Sedona Chamber of Commerce, Sonoita/Elgin Chamber of Commerce, Verde Valley Regional Economic Organization, Verde Valley Wine Consortium, Willcox Chamber of Commerce and Agriculture, Jerome Chamber of Commerce, and Town of Camp Verde. We would like to thank and acknowledge Tom Pitts, Chair of the Arizona Association for Economic Development’s Rural Task Force, for putting together this group of co-sponsors to help fund the project. We received a tremendous amount of help and support with introductions, logistics, and survey dissemination. Again, Tom Pitts was instrumental in showing us around the Verde Valley and introducing us to winemakers throughout the region. Next, we would like to thank Alan Baker, Executive Director for the Willcox Chamber of Commerce and Agriculture, for taking us around the Willcox area and introducing us to the winemakers of the Willcox region. A big thanks to Kent Callaghan, Founder of Callaghan Vineyards, for taking the time to show us around the Sonoita/Elgin area and facilitating introductions to the winemakers of the Sonoita/Elgin region. Finally, we would like to thank all the participating tasting rooms, vineyards, and wineries for taking part in this study. Without your involvement, we would not have been able to collect the necessary data for this project. We understand administering surveys to wine tourists is not the typical duty of staff at the participating sites. We are grateful for your professionalism and dedication in distributing the survey instrument. Lastly, we thank all the individuals who took the time to take our survey. We hope this report will better serve you, the wine consumer. For the Alliance Bank Business Outreach Center: Ryan Fitch, Ph.D., Research Associate Thomas Combrink, M.S., Senior Research Specialist Heather Cornea, Research Assistant Wade Rousse, Ph.D., Interim Director Northern Arizona University Alliance Bank Business Outreach Center | July 2017 1 The Arizona Wine Tourism Industry – 2017 Executive Summary This survey and analysis is a 761 were deemed usable based of a wine purchase at the tasting follow-up to “The Arizona on completion of several key room, vineyard, or winery. We Wine Tourism Industry” 2011 questions in the survey. did not find this variable to be study conducted by Northern significant in predicting the Arizona University’s (NAU’s) Our surveys captured wine probability of purchasing a bottle Arizona Hospitality Research visitors from 41 states, the of wine. However, wine tourists and Resource Center (AHRRC), District of Columbia, and three most commonly traveled as a unit of the Alliance Bank foreign countries (Canada, couples or in groups of men and Business Outreach Center. On Scotland, and Mexico). women together. Approximately behalf of the Arizona Office Arizona wine tourism is largely 67% of wine visitors traveled of Tourism and 11 other co- driven by in-state visitors in groups of men and women. sponsors, this study looks into with approximately 58% of all Groups of women only was the the growth of Arizona wine Arizona wine tourists traveling next most common party type tourism over the past six years. from a place within the state. with around 19% of wine visitors The survey was designed to Wine visitors from the greater comprising a women only party. collect information regarding Phoenix and Tucson Metro general demographics, on-site areas comprise over 77% of wine Roughly 70% of survey expenditures, visitation length, tourists originating from Arizona. respondents purchased a bottle and the overall wine tasting Combined, Prescott and Flagstaff of wine while visiting the tasting experience of visitors. Surveys represent just over 3% of wine room, vineyard, or winery. We were administered to visitors visitors originating from Arizona. found age and income to be (one per party) at tasting rooms, Out-of-state places of origin that variables that can help determine vineyards, and wineries within comprise greater than 1% of total the probability of a bottle of wine the three dominant wine growing wine visitors include: being purchased. As age increases, regions of Arizona. These regions Illinois (approximately 6%), each additional year increases are Cochise County, Willcox; California (approximately 5%), the odds ratio of purchasing a Santa Cruz County, Sonoita/ Wisconsin (approximately 4%), bottle of wine by 1.015. Survey Elgin; and Yavapai County, New York (approximately 3%), respondents with an income Verde Valley. Five locations were Washington (approximately greater than $150,000 are more surveyed in the Willcox area, 3%), Canada (approximately likely to purchase a bottle of wine nine locations were surveyed 2%), Colorado (approximately compared to survey respondents in the Sonoita/Elgin area, and 2%), Texas (approximately 2%), with an income less than 16 locations were surveyed Indiana (approximately 1%), $50,000 (odds ratio of 1.403). in the Verde Valley. Over the Florida (approximately 1%), and Surprisingly, survey respondents four month survey period from Ohio (approximately 1%). with an income between $50,000 February – May 2017, 1,026 and $99,999 were slightly less We analyzed the impact party surveys were collected. From likely to purchase a bottle of wine composition (men, women, and the 1,026 surveys collected, compared to survey respondents children) had on the probability Northern Arizona University Alliance Bank Business Outreach Center | July 2017 2 with an income of less than wineries with an experience expected” with an additional 15% $50,000 (odds ratio of 0.964). that, on the whole, exceeds of survey respondents rating their expectations. Over 63% of survey experience as “A little better than Wine tourists depart Arizona respondents rated their overall I expected.” tasting rooms, vineyards, and experience as “Much better than I Key Findings and Summary Statistics from the Survey Data • The Arizona wine tourism visitors spending the night in 5% of visitors), Wisconsin industry creates an estimated the region. (approximately 4% of visitors), $56,178,643 in total New York (approximately 3% • Visitors with incomes economic output. of visitors), and Washington ranging between $100,000 (approximately 3% of visitors). • The Arizona wine tourism and $149,999 are estimated industry creates an estimated to have almost twice the • About 50% of wine visitors 640.6 full-time equivalent jobs. odds of spending the night from Arizona come from the in the region compared to greater Phoenix Metro area. • Approximately $3.6 million visitors with incomes less than Approximately 27% of wine in local and state taxes are $50,000 (odds ratio of 1.997). visitors from Arizona come generated from Arizona wine from the greater Tucson Metro tourism expenditures, indirect • Visitors with incomes greater area. Roughly 3% of wine effects, and induced effects. than $150,000 are estimated visitors from Arizona come to have 1.8 the odds of from Flagstaff and Prescott • Percentage of surveys received spending the night in the combined. from each area closely match region compared to visitors the percentage of survey sites with incomes less than $50,000 • Approximately 67% of wine from each area: Approximately (odds ratio of 1.8). tourists travel as couples or in 17% of the sites were located groups of men and women. in Willcox, roughly 12% (93) • Approximately 70% of visitors of surveys analyzed came from purchased a bottle of wine at • Over 78% of survey Willcox; approximately 30% the tasting room, winery, or respondents rated their tasting of the sites were located in vineyard they visited. room, vineyard, or winery Sonoita/Elgin, roughly 35% • Given at least one bottle experience as exceeding (263) of surveys analyzed came of wine was purchased by a expectations. from Sonoita/Elgin; and 53% visitor at the tasting room, • An additional year of age of the sites were located in the winery, or vineyard, the average for the visitor increases Verde Valley, approximately expenditure on wine was the estimated odds ratio of 53% (405) of surveys analyzed roughly $78. making a wine purchase at came from the Verde Valley. • Given at least one bottle of the tasting room, winery, or • Approximately 38% of visitors wine was purchased by a visitor vineyard by 1.015. to tasting rooms, wineries, and at the tasting room, winery, • Visitors making $150,000 or vineyards had previously visited or vineyard, the average total more have an estimated odds the site (repeat visitors). expenditure was roughly $101. ratio for purchasing a bottle of • Approximately 57% of visitors • The top five out-of-state wine at a tasting room, winery, to tasting rooms, wineries,
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