sylva rotary 5/29/2014

Tourism’s Economic Importance to the Jackson Co. Economy

Tourism Works for Jackson County

Steve Morse, Ph.D.Director & Economist

Hospitality & Tourism ProgramCollege of Business

Western Carolina UniversityCullowhee, NC

Ph: (828) 227-3386E-mail: scmorse@wcu.edu

COLLEGE OF BUSINESS

Thank You:

Sylva Rotary Club

COLLEGE OF BUSINESS

Presentation Agenda – 3 Topics

Tourist spending generates jobs, paychecks & local taxes1.

Not all tourism jobs are low-skill, low-paying jobs2.

3.Tourism creates a higher quality of life & attracts businesses for more Econ Development

My EconomistJoke

Where am I? You’re

in a Balloon!

Economic Development s Jobs s Taxes

Tourism ConferenceApril 11, 2014Cullowhee, NC

Source: NC Division of Tourism & U.S. Travel Association’s Report “The Economic Impact of Travel on NC Counties, 2002-2012”

Jackson Co. Ten Year Trend of Tourist Spending 2002 – 2012, ($ millions)

$53.6 $53.5 $55.7

$61.7

$68.2$72.6

$69.1

$60.9 $62.6$66.8

$69.6

$0

$10

$20

$30

$40

$50

$60

$70

$80

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

($ millions) Recession

Jackson Co. & Area Counties for Tourist Spending, 2012 Swain Co. $293.0 million Macon Co. $135.7 million Haywood Co. $126.3 million Transylvania Co. $80.9 million Jackson Co. $69.6 million Cherokee Co. $35.3 million Graham Co. $24.8 million Clay Co. $12.3 million

Source: NC Division of Tourism & U.S. Travel Association’s Report “The Economic Impact of Travel on NC Counties, 2012”

Tourism Works for Jackson Co. in 2012

Source: NC Division of Tourism & U.S. Travel Association’s Report “The Economic Impact of Travel on North Carolina Counties, 2012”

Tourist Spending

Jobs Created

Worker Paychecks

State Taxes

Local County Taxes

$69.55 million

580 jobs

$11.04 million

$3.07 million

$5.31 million

Tourists are Temporary

Tax Payers

Source: NC Division of Tourism & U.S. Travel Association’s Report “The Economic Impact of Travel on North Carolina Counties, 2012”; U.S. Census Bureau, Dr. Steve Morse, Western Carolina University

• Tourists are considered

“Temporary Tax Payers”

• Each of the 26,140 households in Jackson Co. pay $321 less in State and local taxes as a result of taxes generated by tourist spending

Tourism Tax Relief for Jackson Co.

Source: NC Division of Tourism & U.S. Travel Association’s Report “The Economic Impact of Travel on North Carolina Counties, 2012”; U.S. Census Bureau, Dr. Steve Morse, Western Carolina University

Each of the 26,140 Jackson Co. Households would pay

$321 more in taxes

In other words, if it were not for State & local taxes generated by tourism …

$$321 in Tourism Tax Relief for Each Household in

Jackson County

321.00

May 29, 2014

Jackson County

Region 1Cherokee, Clay,

Graham & Macon

Counties

Region 2Haywood, Jackson,

Transylvania & Swain

Counties

Region 3Avery, Ashe, Wilkes,

Alleghany, Caldwell &

Watauga Counties

Region 4Yancey, Mitchell,

Madison, McDowell &

Burke CountiesRegion 5

Buncombe &

Henderson Counties

5 Regions for Western North Carolina Fall

Foliage Travel Trends and Forecast

Region 2: No. Hotel Rooms Sold in Jackson, Haywood, Transylvania & Swain Counties, 2012

46,996 51,964

70,951 82,279

97,817

116,073

124,818

109,699 101,677

126,462

73,141

61,637

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Source: Smith Travel Research & Dr. Steve Morse, Western Carolina University

No. Rooms Nights Sold

Region 2: October 2012 Week-Day vs. Week-End Hotel Occupancy Rate

60.4%

91.9%

0%

25%

50%

75%

100%

Week-Day Week-End

Note: Week-Day includes Sunday through ThursdayWeek-End includes Friday and Saturday

Occupancy Rate

Source: Smith Travel Research & Dr. Steve Morse, Western Carolina University

Oct. 1 – 15, 2013Federal Gov’t

Shutdown

The Great Smoky Mountains National Park is the No. 1 most visited NP in the U.S.

9.684.42

3.853.443.22

2.972.82

2.462.432.29

0 2 4 6 8 10 12

(1) Great Smoky Mtns. NP (TN/NC)

(2) Grand Canyon NP (AZ)

(3) Yosemite NP (CA)

(4) Yellowstone NP (WY, MT, ID)

(5) Rocky Mtn. NP (CO)

(6) Zion NP (UT)

(7) Olympia NP (WA)

(8) Grand Teton NP (WY)

(9) Arcadia NP (ME)

(10) Cuyahoga Valley NP (OH)

(million visitors)

Source: U.S. Dept. Of the Interior, National Park Service, University of Idaho Study of National Park Visitation, 2012

(million visitors)

Jackson Co. Taxable Sales, Oct 2012 vs. Oct. 2013

Effects of Great Smoky Mountain National Park Shutdown

$33.24

$31.42

$31$31$32$32$33$33$34

Oct.2012

Oct.2013

$ million

Source: NC Dept. of Revenue

Oct. 2013 National Park

Shutdown Effect

-5.4%

Percent Change in Taxable Sales, Oct. 2013 vs. Oct. 2012

-30.0%

-18.8%

-11.3%-9.4%

-5.4%-3.2%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

ClayCo.

GrahamCo.

SwainCo.

CherokeeCo.

JacksonCo.

MaconCo.

Note: Federal Gov’t Shutdown included closingThe Great Smoky Mountain National Park for the first 15 days of Oct. 2013.

Source: NC Dept. of Revenue

How have Jackson Co. Employment Trends Changed From 2001 to 2011?

Industry (% of total jobs) 2001 2011

Tourism & Hospitality 22.7%Retail & Wholesale Trade, Transp, Utilities

21.9%

Education & Health Services 18.2%

Prof. & Business Services 12.0%Construction 10.3%Manufacturing 6.8%

Source: U.S. Dept. of Commerce, Bureau of Labor Statistics

How have Jackson Co. Employment Trends Changed From 2001 to 2012?

Industry (% of total jobs) 2001 2012

Tourism & Hospitality 22.7% 26.2%Retail & Wholesale Trade, Transp, Utilities

21.9% 21.4%

Education & Health Services 18.2% 22.0%

Prof. & Business Services 12.0% 10.4%Construction 10.3% 6.9%Manufacturing 6.8% 3.5%Source: U.S. Dept. of Commerce, Bureau of Labor Statistics

1 out of every 4 jobs (or 26%) in Jackson Co. are in the hospitality

and tourism industry

Source: U.S. Dept. of Labor, Bureau of Labor Statistics

In Jackson County,Tourism jobs will NEVER

be outsourced to another country

Does tourism have a role helping create quality jobs in Jackson Co.?

Tomorrow’s High Quality Workforce:

North Carolina’s“Creative Class”

of workers

Who are the new creative class of workers?

Technology ProfessionalsArts & Culture ExpertsManagerial & AnalyticalEducation & Training

Professionals

Some future workers will be able to work from nearly ….. Anywhere

Downtown urban areas &

cities, or …

Future workers will have a choice of locations to work from

Towns and communities like Sylva, Dillsboro, Cullowhee, or Cashiers

Measures of “Quality of Life” attracting next generation of innovators & entrepreneurs

Last 30 yearsQuality of Life

Low Home Prices

Good Schools

Low Tax Rates

Low Crime Rate

Available Transp

Next 30 yearsQuality of Life

Diverse Cultures

Natural Resources

Sense of Community

Open Space & Greenways

Local Unique Flavor

+ Plus

+ Plus

+ Plus

Today’s Visitor

could be ….

Tomorrow’s Business Investor

In Sylva, Dillsboro, Cullowhee, Cashiers, or Webster …

TourismEcon Dev

Main Message - Perfect Fit:Tourism and Economic Development

For Jackson Co.

Thank You for Inviting Me!

Steve MorseWestern Carolina University

Thank You for Inviting me!

Steve Morse, Ph.D.Economist

Western Carolina UniversityPh: (828) 227-3386

Email: scmorse@wcu.edu