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Sullivan Co Off03 2 27 09
 

Sullivan Co Off03 2 27 09

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Kingsport, TN and Sullivan Co. impcts of tourism on the local economy, jobs, taxes

Kingsport, TN and Sullivan Co. impcts of tourism on the local economy, jobs, taxes

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    Sullivan Co Off03 2 27 09 Sullivan Co Off03 2 27 09 Presentation Transcript

    • Tourism’s Economic Significance to  the Sullivan County Economy Tourism Works for Sullivan County Stephen C. Morse, Ph.D. Director & Economist  Tourism Institute University of Tennessee Knoxville, TN
    • 3 Topics Today 1. Trends in Sullivan Co. tourists  spending 2. On an average day in Sullivan Co. 3. Tourism’s great investment in   Sullivan Co. 2
    • Top 10 Tennessee Counties for Tourist  Spending in 2007 1) Davidson Co. $3,991    million (Nashville) 2) Shelby Co.         $3,064    million (Memphis) 3) Sevier Co. $1,502    million (Gatlinburg, PF) 4) Knox Co.    $796   million (Knoxville) 5) Hamilton Co.        $710    million (Chattanooga) 6) Blount Co.             $276    million (Maryville, Townsend) 7) Sullivan Co.           $270   million (Kingsport, Bristol) 8) Williamson Co.     $251   million (Franklin, Brentwood) 9) Rutherford Co.      $237 million (Murfreesboro) 10)Washington Co.    $188   million (Johnson City) 3 Source:  TIA & TN Dept. of Tourist Development
    • Sullivan Co. Tourist Spending  Continues to Grow, 2002 ‐ 2007 $300.0 $258.52$270.23 $ Millions $239.10 $250.0 $208.72$219.03 $201.01 $200.0 $150.0 $100.0 $50.0 $0.0 2002 2003 2004 2005 2006 2007 4 Source:  TN Dept. of Tourist Development & TIA
    • Impacts of Tourism on the  Sullivan County Economy, 2007 Worker  Tourist  Payroll: Spending: $79.45 Million $270.2 Million Employment: State Taxes: Local Taxes: 2,910 Jobs $14.8 Million $7.32 Million Source:  TN Dept. of Tourist Development & U.S. Travel Association
    • Sullivan Co. Rank of Industries by  Employment Percent, 2007 (nearly 1 out of 10 job are in tourism!) 1. Manufacturing 23.1% 2. Retail – Wholesale Trade Transportation, Utilities 21.48% 3. Education & Health Services 18.8% 4. Hotel, Restaurant, Tourism 9.6% 5. Construction 9.0% 6. Prof & Business Services 8.5% 7. Financial Activities 3.7%
    • Q:  How much do tourists spend  on an average day in  Sullivan County? $740,360 7
    • Also on an Average Day in Sullivan  County, tourist spending generates… Paychecks worth $217,671 daily State taxes worth $40,547 daily Sullivan Co. taxes worth $20,054   daily 8
    • How much in TN State and Sullivan Co.  taxes did Tourism Generate in 2007? • TN State sales taxes $14.8 million + $7.3 million • Sullivan Co. local taxes • Total State & Local Taxes $22.1 million Source: TN Dept. of Tourist Dev. 9
    • Tourism Tax Relief – Sullivan Co. • Each household in Sullivan Co. pays $301  less in State and local taxes as a result of  tourism economic activity $301 Tax relief for each  Sullivan Co.  household
    • Restaurant Sales for Sullivan Co.,  by month 2006 – 2008 (June) $27 $25 2007 $23 2008 $21 $19 $17 2006 $15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
    • Airline Survival in 2009 1) Decrease Costs &  eliminate empty seats: Less flights per destination Smaller airplanes – less  seats 2) Increase Revenues Higher airfares for less seats  available Other non‐seat revenue  (bag & meal charges) 12
    • Tennessee – Percent Changes in Airline Seat  Capacity,  March 2008  vs.  March 2009 Chattanooga + 2.9%   ( + 1,069 seats) Knoxville ‐ 2.9%    ( ‐ 3,023 seats) Memphis ‐ 7.0%    ( ‐ 18,442 seats) Nashville ‐ 9.5%    ( ‐ 17,338 seats) Tri‐City  ‐11.4%   (‐ 837 seats) Source:  Official Airline Guide, Federal Aviation Adm., U.S. Dept. of Transportation,  March 2007 ‐ March 2008 13
    • Today’s U.S. & Tennessee’s  Economic Health • Slowest  growth since 1986 3rd & 4th Qtr. Negative U.S.  U.S.  Economy  Economic Growth has Slowed •TN sales tax collections Tennessee  •lowest levels in 12 years Sales Tax  Revenues • Decreasing tax revenues for each  Tennessee  Tennessee County County Tax  Revenues 14 Source:  U.S. Dept. of Commerce
    • TN County Newspaper  Headlines • County Tax Revenues  • Hotel Bed Tax to  Cover Economic  Fall Short Development Projects • Budget Shortfall  • Tourism Budget Cut to  Worries  Save Road Paving  Commissioners Project • County Workers Face  • Tourism Promotion &  Layoffs Marketing Budget  • City Officials Mull  Eyed for County  Spending Cuts Deficit 
    • In this slow economy… Tennessee City & County  governments are searching  for new tax revenues
    • During a Slowing Economy, More  Emphasis on Public Sector Benefits of  Tourism as a Tax Generator Private Sector  Public Sector  Benefits of  Benefits of Tourist  Tourist Spending Spending NEW EMPHASIS
    • Tourism is a Net Tax Revenue  Generator for Other Govt. Programs  & Services in Sullivan Co. Additional  Generates  Taxes Fund  Additional  Other Non‐ Local Tax  Tourism  Tourist  Revenues Spending in  Programs &  Your Local  Services Area
    • Great Return on Investment • Every $1 invested by the Kingsport  CVB… • Returns $20.10 in State and local  tax revenues
    • Thank you for inviting me Questions?  Comments? Stephen C. Morse, Ph.D. Director & Economist  Tourism Institute University of Tennessee Knoxville, TN PH: (865) 974‐6249 Email: smorse@utk.edu