1. Economic Impact of Tourism in Hillsborough County - 2014 August 2015

2. 2 Key findings for 2014 Almost 21 million people visited Hillsborough County in 2014. Visitors to Hillsborough County spent $3.5 billion, and this spending supports total sales of over $5.4 billion in Hillsborough. Over 47,000 jobs, with associated incomes of $2.0 billion, were sustained by visitors to Hillsborough County. One-in-13 jobs in Hillsborough is supported by visitor spending. Tourism in Hillsborough generated almost $330 million in state and local tax revenues, equivalent to $698 per Hillsborough County household.

3. Local tourism trends

4. 4 Positive tourism trends for Hillsborough County Consumer confidence in the US has rebounded to near pre-recession levels. Employment growth in key source markets is strong. Local employment in the recreation sector and the accommodation sector have been is growing quickly and are outpacing the overall Hillsborough County economy. Hillsborough County hotels have seen increases in occupancy, average daily rate, and revenue per available room.

5. 5 Consumer confidence is up Consumer confidence has returned to near pre-recession levels. Consumers are feeling more optimistic about the state of the economy and their personal financial situations. Continued increases in consumer confidence should lead to increases in household travel and travel budgets.

6. 6 Employment gains in source markets Major source markets have experienced 4 straight years of employment growth. Employment and wage growth should lead to increases in tourism spending. While Florida employment has not reached pre-recession levels, it is increasing rapidly (up 9% since 2010) which bodes well for in-state visits and spending.

7. 7 Tourism related employment is growing Employment in the recreation and food services have exceeded their pre-recession highs. Employment in the recreation sector was largely unaffected by the recession. Employment in tourism related sectors is growing faster than the general economy.

8. 8 Key hotel metrics are all rising RevPAR currently stands at $67.40, and is up 36% from 2009. Occupancy rates have risen from 53% in 2009 to 69% in 2014. Over 5.5 million hotels room- nights were booked in Hillsborough County in 2014

9. Trends in visits and spending

10. 10 Growth in number of visits 20.8 million people visited Tampa in 2014. This includes 20.3 million domestic visitors and 514,000 international visitors. Visits are up 22.5% from 2009, when 17.0 million people visited. 2014 was a year of strong growth, with the number of visits increasing by 6.2%.

11. 11 Visits to Hillsborough County by source Total visits are up 22.5% from 2009, and were up 6.2% in 2014 alone. Domestic day visitors make up 60% of all trips to Hillsborough County. The international market is growing at more than double the rate of the domestic market.

12. 12 Growth in visitor spending Visitors spent $3.5 billion in Hillsborough County in 2014. Spending is up 31% from 2009, when visitors spent $2.7 million. Spending increased by 8.3% in 2014 alone.

13. 13 Visitor spending in Hillsborough County Domestic overnight visitors make up 59% of all visitor spending in Hillsborough County. Spending from international visitors is growing at more than double the rate of the domestic market.

14. 14 Visitor spending breakdown The largest share of the visitor dollar was spent on food and beverages – 27% of the average dollar. Spending on recreation represents 25% of visitor spending.

15. 15 Total Visitor Spending in Hillsborough County Expenditures by overnight domestic visitors make up over half of total spending. Spending by international visitors is approaching the level of spending by domestic day visitors.

16. The domestic market

17. 17 Domestic visitor segments Tampa hosted 20.3 million domestic trips in 2014. 7.9 million were overnight trips and 12.4 million were day night trips. 10.3 million trips can be considered marketable leisure trips, i.e. non-VFR(visiting friends and relatives) leisure trips.

18. 18 Domestic stays and spending On average, overnight visitors spend 2.6 nights in Tampa. This means that while overnight visitors account for only 39% of total trips, they represent 58% of total person-days in Tampa and 67% of expenditures.

19. 19 Domestic spending by day and overnight visitors Overnight visitors spend 2.5 times more per trip than day visitors ($226 vs $71). Overnight visitors spend the most on lodging and food and beverages; day visitors spend the most on recreation.

20. The international market

21. 21 International markets are driving growth Trips and spending by international visitors are increasing rapidly. Both visitation and spending from international markets have both more than doubled since 2004.

22. 22 Comparison to domestic visitors 514,000 international travelers visited Tampa last year, compared to 20.3 million domestic visitors. International visitors spent much more per person per trip than domestic visitors ($1,239 vs $131). So while international tourists make up only 2.1% of trips, they represent 19.3% of total spending.

23. Economic impacts

24. 24 How visitor spending generates impact Lastly, the induced impact is generated when employees whose incomes are generated either directly or indirectly by tourism, spend those incomes in the local economy. Travelers create direct economic value within a discreet group of sectors (e.g. recreation, transportation). This supports a relative proportion of jobs, wages, taxes, and GDP within each sector. Each directly affected sector also purchases goods and services as inputs (e.g. food wholesalers, utilities) into production. These impacts are called indirect impacts.

25. 25 Visitor sales The $3.5 billion of visitors’ expenditures in Hillsborough County supports a total of $5.4 billion in sales after accounting for indirect and induced spending. Sectors such as FIRE, education, and construction do not receive many sales directly from tourists, but the visitors’ spending eventually funnels towards their services F&B: Food and Beverage FIRE: Finance, Insurance Real Estate Bus. Services: Business Services Gas: Gasoline Stations Other Transp: Other Transportation Manu.: Manufacturing Personal Serv.: Personal Services Comm: Communication

26. 26 Visitor sales

27. 27 Visitor employment Visitors spending directly supports almost 33,000 jobs and sustains 47,000 jobs when indirect and induced impacts are calculated. Most employment is generated in industries in which visitors spend directly, such as food and beverage, recreation, and lodging. Around 3,000 jobs are created in business services and FIRE each, predominately through indirect and induced impacts.

28. 28 Visitor employment

29. 29 Employment contribution 5.3% of all jobs in Hillsborough County are directly supported by visitor spending, that is 1 out of every 19 jobs in the county.

30. 30 Visitor related income The direct impacts of visitors directly sustains over $1.3 billion dollars of income and supports $2.0 billion of income when indirect and induced effects are included. Over $450 billion in income is created in both the food and beverage and recreation sectors. The average job supported by tourism has an income of over $43,000.

31. 31 Visitor related income

32. 32 Total Visitor tax generation

33. 33 State and local tax generation Visitors generate almost $330 million in state a local tax revenues. This is equivalent to $698 per Hillsborough County household. The room tax accounts for 16% of local government tax revenue generated.

34. Key figures in context

35. 35 Spending and employment comparisons 20.8 million total trips is equivalent to everyone from the state of Florida visiting Hillsborough County during the year. The number of people employed directly by visitors (32,631) would exceed the current capacity of Tropicana Field (31,042), and the employees sustained by tourism’s indirect and induced impacts (14,672) would fill up most of the Tampa Bay Times Forum (20,500). The $3.5 billion in visitor spending means that almost $400,000 was spent by visitors EVERY HOUR in Hillsborough County in 2014. The $3.5 billion of visitor spending in Tampa is roughly equivalent to total revenue from sales of orange juice in the US ($3.5 billion; source: WSJ).

36. 36 Tax revenue comparisons The $154 million in local taxes generated would be enough to fully fund the Hillsborough Fire Rescue Department ($123m), with almost enough left over to fund the Parks, Recreation and Conservation Department ($36m). The revenue generated by the bed tax ($24.4m) alone would fund the 9-1-1 Agency ($6.5m), Animal Services ($8m), the Communications & Digital Media Services Department ($3.5m), AND the Strategic Planning Department ($2.3m). To make up for the $329 million in state and local taxes generated by visitor activity, each household in Hillsborough County would need to contribute an additional $698 annually to maintain the current level of government.

37. Trends to watch in 2015

38. 38 Gas prices are down Fuel prices have fallen, freeing up resources to spend in other categories. Low gas prices also boost consumer confidence, encouraging more trips and visitor spending that otherwise might not occur. The lower gas prices will save each household around $1000.

39. 39 Gas prices and airfare While decreased oil prices may lead to cheaper car travel, the same might not be true of air travel. Due to fuel hedging and limited pass through costs, the price of airfare tends to be less volatile than the price of gasoline. This may lead to a greater increase to driving trips than flying trips, and day visits may experience a sharper increase than overnight visits.

40. 40 US Dollar concerns The strengthening US Dollar may be a concern for destinations across the country. Tourism Economics estimates a further 10% increase in the value of the dollar may lead to a 3.1% decrease in international tourism to the US. The strong US Dollar may also encourage American tourists to travel abroad rather than domestically.

41. Methodology

42. 42 Methods and data sources Domestic visitor expenditure estimates are provided by Longwoods International’s representative survey of US travelers. These are broken out by sectors (lodging, transport at destination, food & beverage, retail, and recreation), by purpose (business and leisure), and by length of stay (day and overnight). Tourism Economics then adds several categories of spending to these figures: ■Overseas visitor spending (source: OTTI, TE) ■Spending on air travel which accrues to all airports and locally-based airlines ■STR data on hotel revenues ■Lodging tax receipts All results are benchmarked and cross-checked against US Bureau of Labor Statistics and the Bureau of Economic Analysis data on wages and employment.

43. 43 About Tourism Economics Tourism Economics, headquartered in Philadelphia, is an Oxford Economics company dedicated to providing high value, robust, and relevant analyses of the tourism sector that reflects the dynamics of local and global economies. By combining quantitative methods with industry knowledge, Tourism Economics designs custom market strategies, project feasibility analysis, tourism forecasting models, tourism policy analysis, and economic impact studies. Our staff have worked with over 100 destinations to quantify the economic value of tourism, forecast demand, guide strategy, or evaluate tourism policies. Oxford Economics is one of the world’s leading providers of economic analysis, forecasts and consulting advice. Founded in 1981 as a joint venture with Oxford University’s business college, Oxford Economics is founded on a reputation for high quality, quantitative analysis and evidence-based advice. For this, it draws on its own staff of 40 highly-experienced professional economists; a dedicated data analysis team; global modeling tools; close links with Oxford University, and a range of partner institutions in Europe, the US and in the United Nations Project Link. For more information: info@tourismeconomics.com.

44. 44 For more information: Adam Sacks, Managing Director adam@tourismeconomics.com Geoff Lacher, Senior Economist glacher@oxfordeconomics.com