TYBEE ISLAND TOURISM STUDY, 2014

OUTLINE 1.Introduction 2.Survey of Tybee Island Visitors 3.Visitor Expenditure Patterns 4.Estimated Annual Visitation and Room-Nights 5.Economic Impact Analysis 6.Fiscal Impact Analysis 7.Findings Related to Beach Re-nourishment Studies 8.Conclusion

1. INTRODUCTION Examine aspects of the tourism economy on Tybee Island, Georgia. Estimate total number of annual visitors and room-night demand. Estimate Employment and Business Revenue economic impacts. On-island and off-island Estimate fiscal impacts on Tybee Island, the City of Savannah, and Chatham County. Findings related to beach re-nourishment are presented.

2. SURVEY OF TYBEE ISLAND VISITORS

SURVEY: BASICS Walk-up survey: 1278 interviews (+/- 2.7%, with 95% confidence) Oct, Nov in 2013 March, May, June, July, Sep in 2014 Locations: Lighthouse, 2 nd St & south, Pier Demographics, socio-economic, and point of origin Analyze visitor expenditure patterns Comparison across various subgroups Chatham County Georgia Out-of-state Travel with or without children

VISITORS: STAY & POINT OF ORIGIN 63% day-trip 37% overnight trip

POINT OF ORIGIN: STATE

POINT OF ORIGIN: CITY

POINT OF ORIGIN: LICENSE PLATE COUNT (BY STATE) Note: Georgia accounts for 71% of total vehicles.

POINT OF ORIGIN: GA COUNTY

POINT OF ORIGIN: 3 DIGIT ZIP CODE Darker regions indicate higher concentrations (%) of Tybee Island visitors.

TRAVEL METHOD TO TYBEE AND PREVIOUS VISITS 22% of visitors from >30 miles away had previously visited for 4.5 days. 24% of visitors from <30 miles away had previously visited for 3.6 days.

TRAVEL PARTY CHARACTERISTICS PARTY SIZE AND CHILDREN Average party size for all respondents was 3.6 people and 40.1% reported traveling with children

DEMOGRAPHIC INFORMATION: AGE

DEMOGRAPHIC INFORMATION: HOUSEHOLD INCOME

OVERNIGHT ACCOMMODATIONS 37% of visitors had overnight accommodations. 62% of paid accommodations were on Tybee Island.

ROOM NIGHTS BY PARTY COMPOSITION The number of room nights for all visitors was 4.7

LENGTH OF STAY ON THE BEACH Most visitors tended to stay on the beach from 3 to 5 hours.

3. VISITOR EXPENDITURE PATTERNS

ACCOMMODATION SPENDING

COST OF ACCOMMODATIONS Avg. cost for all overnight visitors was $ per night

EXPENDITURE PATTERNS PER PERSON PER DAY Average per person per day Chatham County Georgia Outside Georgia Dining and Beverage $18.71$27.32$22.82 Recreational Equipment $3.01$5.37$1.42 Tours/attractions $3.19$3.58$4.51 Groceries $4.56$10.29$6.94 Shopping and Gifts $11.28$9.55$8.02 Entertainment/nightlife/non -food drinking $6.07$10.20$7.11 Local Transportation $0.65$0.51$0.43 Other Expenses $0.20$3.07$3.11 Parking $2.83$2.76$2.33

EXPENDITURE PATTERNS: BY POINT OF ORIGIN Daily Avg. Expenditure by all was $65.92

EXPENDITURE PATTERNS BY CHILDREN PRESENT Spending per person/day traveling with children: $27.70 Spending per person/day traveling without children: $94.01

RECOMMENDATIONS FROM RESPONDENTS

4. ESTIMATED ANNUAL VISITATION & ROOM-NIGHTS

ANNUAL VISITORS & ROOM-NIGHT DEMAND Method to estimate based on: survey expenditure data confidential industry spend data gross room sales (tax receipt data) Annual visitation: 1,044,000 Annual room-night demand: 247, % Vacation Rental & 48% Hotel FY14 Hotel/Motel Tax Revenue: $2.3 million 62% Vacation Rental & 38% Hotel

HIGHWAY 80 VEHICLE COUNT & ROOM TAXES

VOLUME OF VEHICLE FLOW: OFF- SEASON

VOLUME OF VEHICLE FLOW: PEAK SEASON

PERSONS PER VEHICLE

5. ECONOMIC IMPACT ANALYSIS

ECONOMIC IMPACT SUMMARY

EMPLOYMENT IMPACT BY MAJOR SECTOR: ON-ISLAND

BUSINESS REVENUE IMPACT BY MAJOR SECTOR

BUSINESS REVENUE IMPACT BY MAJOR SECTOR: OFF-ISLAND

6. FISCAL IMPACT ANALYSIS

SOURCES OF GENERAL FUND REVENUE 23.0%

PROPERTY TAXES The effect on real property tax millage rates is computed under the assumption that in the absence of the tax revenue generated by Tybee Island Tourism, municipalities would simply raise the millage rate to offset the absence of such revenue. About $50 per $230,000 house.

BUDGET ANALYSIS One means of assessing the fiscal impact of tourism on Tybee Island is to compare the sources of revenue and expenditure for non-coastal cities in Georgia, that share similar economic and demographic characteristics with Tybee Island, but do not have a thriving tourism sector comparable to that of Tybee Island. The resulting differences in expenditures can then be attributed to the presence of tourism on Tybee Island. The cities that were found to be similar to Tybee, within Georgia, are Springfield, Jasper, Cleveland, Royston, Lavonia, Hahira, Statham, and Gray.

BUDGET ANALYSIS EXPENDITURE PER CAPITA BY CATEGORY

BUDGET ANALYSIS TYBEE ISLAND PUBLIC SAFETY EXPENDITURE BEACH RELATED AS SHARE OF DEPARTMENT Expenditures on fire and police services for Tybee island are 3.5 and 2.9 times the amount spent On a per person basis as compared to the avg. In the comparison cities. However, 49% of it’s fire expenditure is for the Fire Ocean Rescue Division.

BUDGET ANALYSIS EXPENDITURE SHARE BY CATEGORY

BUDGET ANALYSIS GENERAL FUND REVENUE PER CAPITA

BUDGET ANALYSIS SHARE OF GENERAL REVENUE FUND BY REVENUE SOURCE

7. FINDINGS RELATED TO BEACH RE-NOURISHMENT STUDIES

VISITOR RESPONSES:

CONSEQUENCES OF BEACH EROSION If there were no Tybee beach, 92.5% fewer visitors would come to the Island. Lost tax revenue: City of Savannah: $2.1 million Chatham County: $672,000 not including Tybee lodging tax revenue for Trade Center. Assuming property taxes would be raised to offset this loss of revenue, City of Savannah: increase to mills from mills Chatham County: increase to mills from mills City of Tybee Island tourism-related revenue (sales taxes, hotel/motel taxes, parking revenue) falls about $4.5 million.

8. CONCLUSION Tourism on Tybee Island heavily shapes economic activity on the island. 1,044,000 annual visitors from 37 states and overseas Nearly 250,000 room-nights 82% of workers in Tybee establishment workers supported by tourism (1,225 jobs). Tybee Island businesses earn $93 million in revenue. $81 million spent in Chatham County (off-island) and the City of Savannah where another 1,643 workers have jobs primarily in retail trade, lodging, and restaurants. Combined, local governments derive about $8.7 million in tax revenue from Tybee-related tourism. Property tax relief of about $50 per $230,000 house.