How Important is Tourism to Rhode Island? 2006 Tourism Satellite Account Kenneth McGill Executive Managing Director Travel & Tourism Consulting [email protected]

How Important is Tourism to Rhode Island?

2006 Tourism Satellite Account

Kenneth McGillExecutive Managing DirectorTravel & Tourism [email protected]

Copyright © 2007 Global Insight, Inc. 2

About Global Insight:

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Formed in 2001 by combining WEFA and DRI

Provides the most comprehensive coverage of countries, regions and industries available from any single source

Brings a common analytical framework and a consistent set of assumptions to diverse capabilities and products

Most consistently accurate commercial forecaster www.globalinsight.com/accolades

• Provides a broad range of consulting capabilities covering:

• Strong reputation and experience within the travel & tourism sector

Market Analysis Business Planning Investment Strategy Risk Assessment Infrastructure Analysis Policy Evaluation Economic Development Economic Impact


Tourism Satellite Accounting

• The Tourism Satellite Account is the international (UN/WTO, OECD) standard for measuring the contribution of tourism to an economy

• Measuring the industry “tourism” is difficult: tourism is not measured in standard economic accounting terms. Most industries are accounted via the supply-side: firms are

categorized into NAICS codes and asked about jobs, revenues, costs.

But tourism is a demand-side activity: the focus is on what the traveler buys before and during a trip( hotel, food, transpo, retail…).

As a result, tourism touches many industries

• 4Cs: Credibility, Comprehensiveness, Comparability, Consistency

3


Benefits of a TSA

4

Which are our best economic development targets?Which are our best economic development targets? Allows policy-makers to compare the size & growth of tourism to other industrial sectors.

What is the ROI of public tourism investment?What is the ROI of public tourism investment? Enables analysts to assess long-term health of the tourism sector vis-a-vis capital investment and govt. support.

How can we benchmark ourselves against our destination How can we benchmark ourselves against our destination competition?competition? Provides an accepted international standard for benchmarking.

How can we communicate the full value of tourism to policy How can we communicate the full value of tourism to policy makers, businesses, and citizens?makers, businesses, and citizens? Quantifies the value of visitors to Rhode Island.

Copyright © 2007 Global Insight, Inc


TSA: Key Terms and Definitions• Visitor:Visitor: Over 50 miles, non-commuting or overnight stays• Resident Tourism: Resident Tourism: Only outbound purchases made in advance of a trip are

included. No resident usage of RI tourism assets.

• Tourism Spending:Tourism Spending: A TSA concept, includes all spending by all constituents on travel made in the jurisdiction (RI)

• Visitor Spending: Visitor Spending: Spending in the jurisdiction by visitors (accommodations, food & beverage, shopping, transportation, entertainment, other)

• Total Economic Impact:Total Economic Impact: Gross Domestic Product “GDP” definition…spending less value of supply chain purchases made elsewhere. The amount truly retained in jurisdiction.

• Import Leakages:Import Leakages: The value of supply chain purchases made outside of the jurisdiction.

• DirectDirect Spending/Jobs/Wages/Taxes: Spending/Jobs/Wages/Taxes: Industries that “touch” the visitor (e.g. hotels, restaurants, museums,…)

• IndirectIndirect Spending/Jobs/Wages/Taxes: Spending/Jobs/Wages/Taxes: Industries that supply those that touch the visitor

• Induced Induced Spending/Jobs/Wages/Taxes:Spending/Jobs/Wages/Taxes: Workers of industries that touch or supply will spend wages locally


Travel & Tourism Economy

T&T Industry and Economy

The TSA provides both a narrow & a broad understanding of the Tourism “Industry”

Travel & Tourism EconomyThe flow-through effect of travel demand across the economy

Travel & Tourism IndustryThe direct effect of travel demand


2006 Rhode IslandTourism Results


Rhode Island Tourism Economic Impact - Definitions

• TSA:TSA: Results (spending, economic impact, jobs,…) conform strictly to the TSA definition (e.g. 50mile+overnight visitor definition).

• TSA + Under 50 Mile:TSA + Under 50 Mile: TSA results, plus those trips coming from visitors traveling less than the 50 mile threshold. This classification is both historically consistent with previous Rhode Island studies and arguably more applicable to Rhode Island’s needs.

• Total Impact:Total Impact: Total economic contribution of tourism to Rhode Island. Sum of core and non-core tourism.

• Core Impact:Core Impact: Economic contribution from industries directly providing goods and services to the visitor.

• Non-core Impact:Non-core Impact: Economic contribution from industries providing goods and services to core tourism providers. Also includes tourism investment.

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Rhode Island Tourism: Did You Know?

Total tourism expenditures* reached $5.4B in 2006Total tourism expenditures* reached $5.4B in 2006 In ’06, visitation grew by 2% and expenditures by 1%In ’06, visitation grew by 2% and expenditures by 1% Avg. spend-per-visitor grew to $308 in ‘06Avg. spend-per-visitor grew to $308 in ‘06 1 of every 10 Rhode Islanders owes his/her job to tourism1 of every 10 Rhode Islanders owes his/her job to tourism Rhode Island keeps 61Rhode Island keeps 61¢ of every dollar spent by visitors¢ of every dollar spent by visitors Tourism is responsible for 5% of total RI Gross State ProductTourism is responsible for 5% of total RI Gross State Product Tourism generated 11% of all state & local tax revenue in ’06Tourism generated 11% of all state & local tax revenue in ’06 Tourism’s tax contribution reached $1,140 per RI HouseholdTourism’s tax contribution reached $1,140 per RI Household Tourism is the 4Tourism is the 4thth largest industry in RI (based upon jobs) largest industry in RI (based upon jobs) Avg. Annual Tourism Wages reached $28,900 in ’06Avg. Annual Tourism Wages reached $28,900 in ’06 Every 249 visitor/travelers creates a new job in RIEvery 249 visitor/travelers creates a new job in RI Appx. 40% of RI restaurant revenue can be attributed to visitorsAppx. 40% of RI restaurant revenue can be attributed to visitors

Total tourism expenditures* reached $5.4B in 2006Total tourism expenditures* reached $5.4B in 2006 In ’06, visitation grew by 2% and expenditures by 1%In ’06, visitation grew by 2% and expenditures by 1% Avg. spend-per-visitor grew to $308 in ‘06Avg. spend-per-visitor grew to $308 in ‘06 1 of every 10 Rhode Islanders owes his/her job to tourism1 of every 10 Rhode Islanders owes his/her job to tourism Rhode Island keeps 61Rhode Island keeps 61¢ of every dollar spent by visitors¢ of every dollar spent by visitors Tourism is responsible for 5% of total RI Gross State ProductTourism is responsible for 5% of total RI Gross State Product Tourism generated 11% of all state & local tax revenue in ’06Tourism generated 11% of all state & local tax revenue in ’06 Tourism’s tax contribution reached $1,140 per RI HouseholdTourism’s tax contribution reached $1,140 per RI Household Tourism is the 4Tourism is the 4thth largest industry in RI (based upon jobs) largest industry in RI (based upon jobs) Avg. Annual Tourism Wages reached $28,900 in ’06Avg. Annual Tourism Wages reached $28,900 in ’06 Every 249 visitor/travelers creates a new job in RIEvery 249 visitor/travelers creates a new job in RI Appx. 40% of RI restaurant revenue can be attributed to visitorsAppx. 40% of RI restaurant revenue can be attributed to visitors


State Overview: 2006 Totals At A Glance

Source: Global Insight* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending.

Tourism Concept TSA*TSA* + Under

50 Mile VisitorsDifference

VisitsVisits 7.96 M7.96 M 17.46 M 9.50 M

ExpenditureExpenditure $3.69 B$3.69 B $5.38 B $1.69 B

Economic Impact (GSP)Economic Impact (GSP) $2.26 B$2.26 B $3.20 B $940 M

Jobs**Jobs** 47,85447,854 70,079 22,225

WagesWages $1.38 B$1.38 B $2.04 B $660 M

TaxesTaxes $860 M$860 M $1,327 M $467 M


State Overview: Tourism and Under 50Mile Trips

Source: Global Insight* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. These employment figures should not be confused with RI DLT Leisure & Hospitality Employment data.

Measurement FY2006 FY2005 Definition

Tourism (TSA*) + Under 50Mile Visitor Spending $5.38 B$5.38 B $5.34 B • Spending from all tourism factors

Tourism (TSA*) $3.69 B$3.69 B $3.67 B • TSA Definition of State Tourism

Under 50Mile Visitors $1.69 B$1.69 B $1.67 B• Trips from less than 50 miles that utilize RI tourism assets

Tourism + Under 50Mile Visitors Core Employment** 58,90058,900 58,921

• Core TSA + Under 50 mile tourism employment is 2nd largest industry in Rhode Island

Core Tourism (TSA) Employment** 38,95638,956 39,201

• TSA Definition of Tourism “Industry”


Industry Structure: Definitions

Source: Global InsightCopyright © 2007 Global Insight, Inc.

12

$5.38 billion

$3.69 billion

$2.26 billion $1.43 billion

$1.71 billion $547 million


Total Tourism (TSA*) Expenditures

• RI visitation grew 2.1% in ‘06 • Spending per visit declined by 0.7% in ‘06

• Leisure travel increased by 4.2% in ’06**• Business travel decreased by 6.0% in ’06**

Tourism expenditures tallied $3.69 billion in 2006

Tourism expenditures tallied $3.69 billion in 2006

Source: Global Insight

-0.4% 0.6%

$0

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$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2004 2005 2006

$ M

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Core Tourism

Total Impact

TourismExpenditures

* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting** Visitors from over 50 miles or overnight only, provided by DK Shifflet & Associates, Ltd. Business travel results were estimated by GII.


0

2

4

6

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2004 2005 2006

Business Leisure

Total

(Million Visitors)

Visitors to Rhode Island*

Total visitors grew 2.1% in 2006 with a leisure visitors growing at twice that rate.

Total visitors grew 2.1% in 2006 with a leisure visitors growing at twice that rate.

* Visitors from over 50 miles or overnight only, provided by DK Shifflet & Associates, Ltd. Business travel results were estimated by GII.


Tourism Shows Growth in ‘06

Measurement FY2005

(billions)

FY2006

(billions)2005-06 growth

Tourism (TSA*) + Under 50Mile Visitor Expenditures

$5.337 $5.385$5.385 0.9%0.9%

Tourism (TSA*) Expenditures $3.668 $3.692$3.692 0.6%0.6%

Total Economic Impact $2.223 $2.257$2.257 1.5%1.5%

Core** Tourism (direct) $1.677 $1.709$1.709 1.9%1.9%

Non-Core Tourism $0.546 $0.547$0.547 0.2%0.2%

Import Leakage $1.445 $1.435$1.435 -0.7%-0.7%

Source: Global Insight

* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor.


Measurement FY2006 FY2005 % Perspective

Economic Value ($B)Economic Value ($B) Core** Tourism Total Impact

$1.71$1.71

$2.26$2.26

$1.68

$2.22

1.9%

1.5%

• Solid growth strengthened by leisure travel

Wages & SalariesWages & Salaries Core** Tourism ($M) Total Impact ($M)

$1,031 $1,031

$1,381$1,381

$1,008

$1,357

2.3%

1.8%

• Average annual salary saw 3.0% and 2.3% growth respectively

Employment*** (‘000)Employment*** (‘000) Core** Tourism Total Impact

38.9638.96

47.8547.85

39.20

48.03

-0.6%

-0.4%

• Core tourism is 4th largest industry in RI

Taxes –Total Impact Taxes –Total Impact ($M)($M) $856$856 $865 -0.6%

• If tourism didn’t exist, each household would pay an additional $1,140 in taxes to maintain current tax receipts.

Numbers may differ due to rounding

RI Tourism (TSA* Based) continues to grow…

Source: Global Insight* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor. *** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. These employment figures should not be confused with RI DLT Leisure & Hospitality Employment data.


Total Impact of Tourism

• In 2006, the total economic impact of travel & tourism (TSA* direct and indirect) was

$2.26 billion. This represents 5.5% of RI Gross State Product

• The ratio of the total impact to total expenditures reveals that 61% of each tourism

dollar spent in Rhode Island is retained in the state. The remainder represents

import leakages.

• 70,079 jobs – direct and indirect – were created by the entire tourism TSA + Under

50mile visitors. This accounts for 14.2% of total employment in the state.

• 47,854 jobs – direct and indirect – were created by travel & tourism (TSA) economic

activity. This accounts for 9.7% of total employment in the state

• Approximately $1.38 billion in wages & salaries were generated by TSA travel &

tourism in 2006.

• Tourism (TSA) generated $860 million in federal, state, and local government taxes

in 2006, a 0.6% decrease from 2005.

Source: Global Insight* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting


Sources of Tourism Expenditures

• Visitor Spending – Expenditures by visitors who have come from greater

than 50 miles or stayed overnight

• Business Travel – Businesses’ spending within the state economy on travel

• Resident Outbound – Resident spending preparing for an out-of-state trip

• Government Spending – Tourism Office Budgets, transportation functions

related to tourism, publicly funded attractions and funding for security in tourism-

intensive areas

• Investment – Construction of hotels, attractions, tourism infrastructure,

operating and transportation equipment

• International – Spending of international visitors within the state

• Under 50Mile Visitors – Spending by residents or non-residents who have

come from under 50 miles. No commuters or local utilization. These trips are not

included in TSA definition.


Category Distribution of Expenditures

Food accounts for the largest share of tourism expenditure for both definitions of expenditures. Combined with accommodation and transportation, these

components represent 64% of TSA* related visitor expenditures in Rhode Island.

TSA* + <50Mile Million $

TSA* Million $

2005-2006 Growth (TSA*)

Entertainment** 1,213 751 2.3%

Accommodation 655 655 2.1%

Transportation 670 651 0.6%

Food 1,584 758 2.3%

Shopping 914 528 - 5.1%

Total *** $5,037 $3,342 0.7%*** Direct and Indirect Tourism Expenditures (w/o construction & investment)

Source: Global Insight* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting.** Entertainment category includes all marina and boating activity

TSA + <50Mile Shares

Entertainment24%

Food32%

Shopping18%

Accommodation

13%

Transportation13%


Category Distribution of TSA* ExpendituresBusiness spending made up just under 26% of total expenditures in 2006,

compared to just under 20% of total visitation. Business expenditures were up 1.1% in 2006, reflecting lower concentrations in Shopping and higher

concentrations in Food.

2006 TotalsTSA*

(Million $)Leisure

(Million $)Business (Million $)

Entertainment** 751 581 170

Accommodation 655 493 162

Transportation 651 527 125

Food 758 421 337

Shopping 528 435 93

Total *** $3,342 $2,456 $887*** Direct and Indirect Tourism Expenditures (w/o construction & investment)

Source: Global Insight* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting** Entertainment category includes all marina and boating activity


Core** TSA* Tourism

• Answers the question “How does tourism compare with other industries?”

• Core Tourism measures the size of the industry directly providing goods & services to the visitor.

• Indirect effects are excluded – these are part of other supplier industries such as wholesalers. The impact of capital investment is also excluded.

• Core Tourism generated $1.7 billion in economic value in 2006.



Core** TSA* Tourism Impact – CompositionThe TSA model measures how spending of visitors touches

diverse sectors to create the aggregate Core Tourism for Rhode Island.Composition of Core TourismRank Industry $ Value ’05-’06 % of

(Millions) Growth Total1 Other amusement- gambling- and recreation industries 425 3.7% 24.8%2 Food services and drinking places 371 2.3% 21.7%3 Real estate 258 0.0% 15.1%4 Hotels and motels- including casino hotels 189 5.0% 11.1%5 Automotive equipment rental and leasing 149 0.0% 8.7%6 Travel arrangement and reservation services 107 1.9% 6.2%7 Food and beverage stores 39 -5.1% 2.3%8 Clothing and clothing accessories stores 30 -5.1% 1.7%9 Air transportation 27 0.3% 1.6%10 Spectator sports 25 0.6% 1.5%11 Performing arts companies 18 1.2% 1.0%12 Miscellaneous store retailers 15 -5.1% 0.9%13 Transit and ground passenger transportation 13 15.5% 0.8%14 Gasoline stations 13 -2.7% 0.8%15 Scenic and sightseeing transportation and support 12 11.6% 0.7%

Other Industries 20 -3.3% 1.2%

Total 1,709 1.9% 100.0%Source: Global Insight



Core** TSA* Tourism – Employment*

• Core Tourism is the 4th largest private sector employer in Rhode Island with 38,956 direct full-time equivalency jobs in 2006.

• Core Tourism generated 7.9% of non-farm state employment in 2006.

• Core Tourism jobs provided $1,031 million in wages & salaries in 2006.

• Core Tourism’s average annual wage has grown to $26,468/year.



Source: Bureau of Labor Statistics and Global Insight* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting** Core Tourism includes the economic contribution from industries directly providing goods and services to the visitor. *** Employment figures taken from a top down review of the total spending, creating a resultant number of jobs required to support that spending. These employment figures should not be confused with RI DLT Leisure & Hospitality Employment data.

Core** TSA* Tourism Impact – Employment*** In Rhode Island Is Composed of Many Industries

Rank IndustryReported

Employment(Thousands)

2005-2006

Growth% of State

Tourism-Extracted

Employment (Thousands)

1 Health Care and Social Assistance 74.05 1.5% 15.0% 74.052 Retail Trade 52.43 -0.1% 10.6% 49.423 Accommodation and Food Services 43.06 0.5% 8.7% 24.614 Professional, Scientific, and Tech. Services 35.54 -1.9% 7.2% 35.545 Administrative and Waste Services 29.42 6.4% 6.0% 27.226 Wholesale Trade 26.25 2.3% 5.3% 26.257 Finance and Insurance 23.07 5.1% 4.7% 23.078 Manufacturing, Nondurables 22.52 -3.0% 4.6% 22.529 Construction 22.30 -0.1% 4.5% 22.30

10 Other Services 21.34 2.1% 4.3% 21.3411 Transportation and Warehousing 17.82 -5.8% 3.6% 16.8212 Manufacturing, Durables 16.36 -2.0% 3.3% 16.3613 Information 10.38 -2.8% 2.1% 10.3814 Educational Services 9.64 -0.9% 2.0% 9.6415 Management of Companies and Enterprises 9.10 4.3% 1.8% 9.10

Other Industries 15.5 -1.4% 3.1% 1.22State & Local Government 64.8 -0.3% 13.1% 64.8

Total Nonfarm 493.6 0.4% 100.% 493.6

Core Tourism represented

38,956 jobs in 2006.

Core Tourism represented

38,956 jobs in 2006.

Travel & Tourism 39.0 - 0.6% 7.9% 39.0


-0.4%1.4%

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10

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30

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50

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2004 2005 2006

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Total Rhode Island TSA* Tourism Employment*** Down 0.4% in 2006

CoreTourism

TotalImpact

Core** Tourism jobs comprise 81% of total tourism-generated employment.Core** Tourism jobs comprise 81% of total tourism-generated employment.



Non-Core TSA* Tourism – Indirect BenefitsMany industries not thought of as “tourism” but that supply

goods and services to the industry are beneficiaries of RI tourism.Indirect Benefits of TourismRank Industry $ Value ’05-’06 % of

(Millions) Growth Total1 Real estate 73 0.7% 9.9%2 Wholesale trade 21 0.0% 2.8%3 Nondepository credit intermediation and related firms 19 1.8% 2.6%4 Power generation and supply 17 1.2% 2.3%5 Monetary authorities and depository credit intermediaries 15 0.8% 2.0%6 Telecommunications 13 0.3% 1.8%7 Legal services 12 1.7% 1.6%8 Maintenance and repair of nonresidential buildings 11 0.4% 1.5%9 Architectural and engineering services 10 0.8% 1.3%10 Management of companies and enterprises 10 1.9% 1.3%11 Food services and drinking places 8 1.8% 1.1%12 Other State and local government enterprises 8 1.6% 1.1%13 Postal service 7 1.0% 1.0%14 Employment services 6 1.1% 0.9%15 Accounting and bookkeeping services 6 2.2% 0.8%

Other Industries 154 1.1% 20.9%Investment 349 0.2% 47.2%

Total 739 0.6% 100.0%Source: Global Insight* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting


TSA* Tourism Generated $861M in Total Tax Revenue in 2006

• Tourism activity generated $462 million in state and local government revenue in 2006, a 0.6% decrease over 2005.

• In 2006, $314 million in state tax revenue was generated by the travel & tourism sector in Rhode Island. Indirect business tax (sales tax) and the gaming taxes are the two largest contributors.

• Tourism contributes disproportionately to state & local tax revenue. While Core Tourism is responsible for 4.2% of RI GSP, it contributed 10.9% of state government revenue in 2006.

• If tourism didn’t exist, each RI household would pay $1,140 more in taxes to maintain the current level of state and local tax receipts.

* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting


State and Local Government Revenue

Tax Revenues from TSA* Tourism 2006 (Million) ’05-’06 GrowthFederal Government

Corporate Profits Tax 85.5 -1.2%Personal Income 122.8 -0.5%Social Security & Other Taxes 189.7 -0.4%

Federal Total 398.1 -0.6%State Government

Corporate Profits Tax 7.6 -1.0%Personal Income 39.0 -0.5%Sales 98.3 -1.4%Licenses & Fees 10.2 -0.6%Gaming Tax 103.9 0.7%Other Taxes 45.4 -1.0%State Share of Occupancy Tax 9.6 3.9%

State Total 314.0 -0.4%Local Government

Local Share of Occupancy Taxes 5.7 3.9%Property Taxes 142.0 -1.4%

Local Total 147.7 -1.2%

Total 859.8 -0.6%Source: Global Insight* TSA includes all overnight visitors and those traveling over 50 miles, non-commuting


Gross State Product: $3.20 billion 7.8% of GSP

Total Employment***: 70,079 jobs 14.2% of Employment

Gross State Product: $2.26 billion

5.5% of GSP

Total Employment: 47,854 jobs

9.7% of Employment

Core GSP: $1.71 billion 4.1% of GSP

Core Employment: 38,965 jobs7.9% of Employment

4th largest private sector employer

How Important?

Total Tourism-related

spending of $5.38 billion



2006 Rhode Island TourismRegional Analysis


Regional Distribution of Tourism

Blackstone Valley• Burrillville• Central Falls• Cumberland• Glocester• Lincoln• North Smithfield• Pawtucket• Smithfield• Woonsocket

Providence • Providence

Warwick • Warwick

Block Island• Block Island

Balance of State• Cranston• Foster• Johnston• North Providence• Scituate• West Warwick

Rhode Island is divided into eight regions in the analysis: Newport County

• Little Compton• Middletown• Newport• Portsmouth• Tiverton• Jamestown

South County • Charlestown• Coventry• East Greenwich• Exeter• Hopkinton• Narragansett• North Kingstown• Richmond• South Kingstown• Westerly• West Greenwich

East Bay• Barrington• Bristol• East Providence• Warren


Regional TSA* + Under 50Mile Expenditures

Regional Share of State Expenditures by Category ($M)Accomodations Entertainment Food Retail Transportation Total

Balance of State 13.10 45.66 214.57 76.95 70.94 421.22 Blackstone Valley

16.37 396.82 245.77 57.71 65.13 781.80

Block Island 86.49 59.56 22.18 50.57 17.81 236.62 East Bay 6.55 39.07 114.51 47.34 40.76 248.23 Newport 194.31 200.31 218.62 87.71 34.85 735.81 Providence 108.03 319.74 326.12 355.89 212.69 1,322.47 South County 172.79 88.45 253.46 155.32 38.87 708.89 Warwick 57.14 63.79 188.86 82.77 188.49 581.05

Total 654.78 1,213.41 1,584.08 914.26 669.54 5,036.08

Entertainment data includes gaming, spectator sports boating and marina activity and other categories.




Regional TSA* Tourism Expenditures

Regional Share of State Expenditures by Category ($M)Accomodations Entertainment Food Retail Transportation Total

Balance of State 13.10 31.57 96.06 42.25 71.63 254.60 Blackstone Valley

16.37 169.62 109.92 31.69 65.77 393.36

Block Island 86.49 52.60 21.98 29.57 14.33 204.97 East Bay 6.55 35.99 56.86 32.74 36.46 168.60 Newport 194.31 124.49 105.15 48.18 26.15 498.28 Providence 108.03 221.06 170.57 195.40 214.75 909.80 South County 172.79 78.10 111.44 90.83 31.25 484.42 Warwick 57.14 37.14 86.14 57.46 190.84 428.72

Total 654.78 750.57 758.12 528.12 651.17 3,342.76

Accomodation data includes seasonal second home rentals, which creates significant differences in share

from state room tax data. As the TSA definition of tourism includes any overnight stay, accomodations

results are the same for TSA and TSA + Under 50Mile.






Regional Share of Statewide TSA* + Under 50Mile Expenditures

Regional Share of State Expenditures by CategoryAccommodation Entertainment Food Shopping Transportation Total

Providence 16.5% 26.4% 20.6% 38.9% 31.8% 26.3%Blackstone Valley

2.5% 32.7% 15.5% 6.3% 9.7% 15.5%

Newport 29.7% 16.5% 13.8% 9.6% 5.2% 14.6%South County 26.4% 7.3% 16.0% 17.0% 5.8% 14.1%Warwick 8.7% 5.3% 11.9% 9.1% 28.2% 11.5%Balance of State 2.0% 3.8% 13.5% 8.4% 10.6% 8.4%East Bay 1.0% 3.2% 7.2% 5.2% 6.1% 4.9%Block Island 13.2% 4.9% 1.4% 5.5% 2.7% 4.7%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%





Expenditure Category Share of Regional Tourism SpendingAccommodation Entertainment Food Shopping Transportation Total

Providence 8.2% 24.2% 24.7% 26.9% 16.1% 100.0%Blackstone Valley

2.1% 50.8% 31.4% 7.4% 8.3% 100.0%

Newport 26.4% 27.2% 29.7% 11.9% 4.7% 100.0%South County 24.4% 12.5% 35.8% 21.9% 5.5% 100.0%Warwick 9.8% 11.0% 32.5% 14.2% 32.4% 100.0%Balance of State 3.1% 10.8% 50.9% 18.3% 16.8% 100.0%East Bay 2.6% 15.7% 46.1% 19.1% 16.4% 100.0%Block Island 36.6% 25.2% 9.4% 21.4% 7.5% 100.0%

Total 13.0% 24.1% 31.5% 18.2% 13.3% 100.0%

Regional Share of Statewide TSA* + Under 50Mile Expenditures

Warwick’s Transportation share is very high as TF Green Airport revenue is counted here.




Regional Share of Statewide TSA* Tourism

Regional Share of State Expenditures by CategoryAccommodation Entertainment Food Shopping Transportation Total

Providence 16.5% 29.5% 22.5% 37.0% 33.0% 27.2%Newport 29.7% 16.6% 13.9% 9.1% 4.0% 14.9%South County 26.4% 10.4% 14.7% 17.2% 4.8% 14.5%Warwick 8.7% 4.9% 11.4% 10.9% 29.3% 12.8%Blackstone Valley

2.5% 22.6% 14.5% 6.0% 10.1% 11.8%

Balance of State 2.0% 4.2% 12.7% 8.0% 11.0% 7.6%Block Island 13.2% 7.0% 2.9% 5.6% 2.2% 6.1%East Bay 1.0% 4.8% 7.5% 6.2% 5.6% 5.0%

Total 100% 100% 100% 100% 100% 100%









Regional Share of Statewide TSA* Tourism

Expenditure Category Share of Regional Tourism SpendingAccommodation Entertainment Food Shopping Transportation Total

Providence 11.9% 24.3% 18.7% 21.5% 23.6% 100.0%Newport 39.0% 25.0% 21.1% 9.7% 5.2% 100.0%South County 35.7% 16.1% 23.0% 18.8% 6.5% 100.0%Warwick 13.3% 8.7% 20.1% 13.4% 44.5% 100.0%Blackstone Valley

4.2% 43.1% 27.9% 8.1% 16.7% 100.0%

Balance of State 5.1% 12.4% 37.7% 16.6% 28.1% 100.0%Block Island 42.2% 25.7% 10.7% 14.4% 7.0% 100.0%East Bay 3.9% 21.3% 33.7% 19.4% 21.6% 100.0%

Total 19.6% 22.5% 22.7% 15.8% 19.5% 100.0%





TSA* + Under 50Mile Growth Rates by Region for 2006

Regional Growth Rates by Category 2006 vs 2005Accomodation Entertainment Food Retail Transportation Grand Total

Balance of State 7.9% 7.4% 12.9% -0.9% 5.8% 8.2%Blackstone Valley

0.7% 2.3% 4.6% -5.7% 0.7% 2.2%

Block Island 7.7% 3.4% 0.1% -4.6% 1.8% 2.6%East Bay 3.9% 1.8% 0.5% -6.1% 0.3% -0.5%Newport 1.8% 0.9% 2.3% -4.6% 3.4% 1.0%Providence 0.8% 1.5% 2.9% -6.4% 0.0% -0.7%South County 0.9% 1.1% 2.0% -6.7% -0.4% -0.5%Warwick 0.3% 0.8% 2.1% -7.0% -0.7% -0.5%

Grand Total 2.1% 1.9% 3.8% -5.7% 0.7% 0.9%

Retail is only sector where all regions saw a drop in 2006. Food saw the strongest and most evenly

distributed category growth.

Retail is only sector where all regions saw a drop in 2006. Food saw the strongest and most evenly

distributed category growth.



Regional Share of Statewide TSA* + Under 50Mile Visitation and Trips

Regional Share of State Visitors

Share of Expenditures Share of VisitationTotal Visitors

(000)Balance of State 8.4% 7.9% 1,374.9Blackstone Valley

15.5% 18.0% 3,148.3

Block Island 4.7% 3.4% 596.9East Bay 4.9% 5.0% 874.5Newport 14.6% 16.8% 2,932.0Providence 26.3% 26.7% 4,663.8South County 14.1% 13.0% 2,263.7Warwick 11.5% 9.2% 1,607.2

Total 100.0% 100.0% 17,461.4

Biggest variances from spending shares are in regions where there is a dominant category, such as expensive accomodations in Block Island or high transportation

revenue in Warwick


revenue in Warwick



Regional Share of Statewide TSA* Tourism Visitation

Regional Share of State Visitors

Share of Expenditures Share of VisitationTotal Visitors

(000)Balance of State 7.6% 7.9% 627.9Blackstone Valley

11.8% 12.8% 1,014.7

Block Island 6.1% 5.5% 437.5East Bay 5.0% 6.4% 511.1Newport 14.9% 15.4% 1,224.8Providence 27.2% 29.4% 2,337.7South County 14.5% 13.3% 1,060.1Warwick 12.8% 9.3% 742.0

Total 100.0% 100.0% 7,955.8


revenue in Warwick


revenue in Warwick



Regional Share of Statewide Core** TSA* + Under 50Mile Employment***

Regional Share of State Tourism EmploymentShare of State Expenditures

Share of Total Employment

Total Employment

Balance of State 8.4% 9.8% 5,780Blackstone Valley

15.5% 10.7% 6,322

Block Island 4.7% 3.3% 1,947East Bay 4.9% 5.9% 3,458Newport 14.6% 12.4% 7,309Providence 26.3% 32.4% 19,111South County 14.1% 8.8% 5,160Warwick 11.5% 16.7% 9,813

Total 100.0% 100.0% 58,900

Biggest variances from spending shares are in regions where with a high concentration in one area, such as entertainment for Blackstone Valley, accomodations for Block Island and

South County, or transportation for Warwick

Biggest variances from spending shares are in regions where with a high concentration in one area, such as entertainment for Blackstone Valley, accomodations for Block Island and

South County, or transportation for Warwick



Talking Points: What Does the Entire Industry* Mean to RI?

Each RI visitor/trip generates about $308 in Each RI visitor/trip generates about $308 in

expenditures, $34 of which goes to RI businesses that do expenditures, $34 of which goes to RI businesses that do

not directly “touch” that visitornot directly “touch” that visitor

Every 249 visitors and trips creates a new RI jobEvery 249 visitors and trips creates a new RI job

Each visitor and trip creates about $76 in tax receipts, Each visitor and trip creates about $76 in tax receipts,

$43 of which goes to state & local authorities$43 of which goes to state & local authorities

It takes only 360 visitors and trips to pay for one Rhode It takes only 360 visitors and trips to pay for one Rhode

Island public school student for one yearIsland public school student for one year

Each RI visitor and trip generates $117 in wages paid to Each RI visitor and trip generates $117 in wages paid to

RI workers employed across an array of industriesRI workers employed across an array of industries

Each visitor/trip adds $184 to RI Gross State ProductEach visitor/trip adds $184 to RI Gross State ProductSource: Global Insight* Based on TSA definition of visitor, which includes all overnight visitors and those traveling over 50 miles, non-commuting, and under 50 mile visitors

Documents

How Important is Tourism to Rhode Island? 2006 Tourism Satellite Account Kenneth McGill Executive Managing Director Travel & Tourism Consulting [email protected]