The Travel and Tourism Industry in Vermont - University of Vermont

The Travel and Tourism Industry in Vermont

A Benchmark Study of the Economic Impact of Visitor Expenditures on the

Vermont Economy -- 2003

Prepared for

Vermont Department of Tourism and Marketing

Final Report June 2005

EPR Economic & Policy Resources, Inc.

The Travel and Tourism Industry in Vermont

A Benchmark Study of the Economic Impact of Visitor Expenditures on the Vermont Economy--2003

Final Report June 2005

Prepared for: The Vermont Department of Tourism and Marketing 6 Baldwin Street Montpelier, Vermont 05633-1301 Prepared by: Economic & Policy Resources, Inc. 2141 Essex Road, Suite 5 P.O. Box 1660 Williston, Vermont 05495-1660

Table of Contents

Executive Summary

i

Introduction

1

The Travel Industry in the United States

3

The Travel Industry in Vermont

5

Goals of the Analysis

6

Report Format

6

Concepts and Methods of Analysis

7

Defining the Travel and Tourism Industry in Vermont

12

Defining Visitors

13

The Economic Impact of Visitor Expenditures

on Vermont

15

Estimating the Total Number of Visitors

15

Overview of Past Studies

16

Overview of Estimating Procedures used

in this Study

17

Estimating Total Visitor Expenditures

21

The Seasonal Impacts of Visitor Spending

25

Input/Output Modeling to Estimate Indirect Visitor Impacts 26

Introduction to Input/Output Modeling

27

Methods of Analysis

29

Direct and Indirect Impacts of Visitor Spending

30

The Travel Industry in Context

35

Estimating State Tax Revenues From Direct

Visitor Spending

37

Estimating the Fiscal Costs of Visitor Spending

39

The Inventory and Categorization of State Costs

39

The Estimating Process for the Cost Allocation Factors

43

Cost Estimation Results

45

Estimate of Education Costs

45

Estimate of General Fund Costs

46

Estimate of Transportation Fund Costs

47

Estimate of Direct VDTM General Fund Costs

47

Estimate of Net Fiscal Impact

47

The Prototypical Community

49

The Rural Prototypical Community

50

The Resort Prototypical Community

52

The Small Urban Prototypical Community

54

Limitations

56

Conclusion

57

Frequently Asked Questions

59

Listing of Tables

Table 1: Direct Impact of Travel?United States

4

Table 2: Vermont Visitors by Category?2003

20

Table 3: Average Expenditure per Trip

22

Table 4: Vermont Visitors, Average and Total Spending?2003

24

Table 5: Estimated Direct and Indirect Impact of Visitor

Spending in Vermont

32

Table 6: Comparison of Other Economic Impact Assessment

Studies' Results Versus the Calendar Year 2003 EPR Impact

Assessment Study

34

Table 7: Rank Order of Major Vermont Sectors?Estimated

Direct Employment in 2003

35

Table 8: Best Estimate of Job Impact of Visitor Spending

In Vermont ? 2003

37

Table 9: Estimated Direct State Revenue Impact of the

Tourism Industry from Visitor Demand (Calendar 2003$)

38

Table 10: Estimated Cost Impact of the Tourism Industry From Visitor

Demand (Calendar 2003)

46

Table 11: Estimated Net Fiscal Impact of Visitor Spending (Calendar

Year 2003$)

48

Table 12: General Characteristics of the Prototypical Community 51

Table 13: Lodging Establishments by Prototypical Community Type 52

Table 14: Visitor Activity by Prototypical Community

53

Table 15: Visitor Spending by Prototypical Community (2003$) 55

Table 16: Impacts of Visitor Activity by Prototypical Community 56

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download