New Study Results Show Visitor Spending Impact On Vermont Economy

New Study Results Show Visitor Spending Impact On Vermont Economy
MONTPELIER - Governor Jim Douglas and Vermont's Tourism Commissioner have unveiled the results of a major new study that they say is the most detailed and comprehensive ever undertaken to measure the impact of visitor spending on the Vermont economy.
The survey, conducted by Economic and Policy Resources (EPR) of Williston shows that in 2003, visitors made an estimated 12.8 million trips to Vermont and direct visitor spending totaled $1.46 billion. In addition, the study found that visitor spending, both directly and indirectly, supported more than 36,470 jobs (approximately 1 in every 10) for Vermont workers and business owners and added $181.7 million in tax and fee revenues to state coffers in the General, Education and Transportation Funds.
The study also looks at many other aspects of the industry including where visitors to Vermont come from, average visitor spending, visitor expenditures by category, seasonal occupancy rates for Vermont lodging properties and a comparison of lodging establishments by size.
"This study is an important reminder of just how critical the tourism sector is to Vermont," said Governor Jim Douglas. "As this report shows, the impact of visitor spending is felt widely across Vermont, both geographically and across many sectors of the economy."
"This is a landmark study for the Vermont tourism industry," said Tourism & Marketing Commissioner Bruce Hyde. "We now have solid baseline information on visitor spending and its impact on tourism sectors and the overall economy in Vermont. This information will allow us to better set annual performance targets and direct promotional resources."
Hyde said that for many years now the focus has been on total economic impact of visitor spending. As a result of this study, the state can now deal in terms of direct visitor spending which is a far more accurate and useful measure, and is the standard used at the national level by organizations like the Travel Industry Association of America (TIA).
Hyde added that previous studies have provided a great deal of useful information, all of which has been carefully reviewed in preparing this report. However, Hyde said that the new study differs from earlier research in several key ways, including:
* While previous studies have provided information about the characteristics and travel activities of visitors, they were not designed specifically to compile an estimate of overall economic impact.
* Earlier research employs different definitions of visitors in its survey work, and therefore the results are not directly comparable to those reported in the new study.
* Previous studies were not designed to independently reconcile direct spending with comparable state revenues for tourism sectors.
* The new study looks in detail at many previously unexplored aspects of the tourism industry including spending generated by second home owners, visitors staying with friends and the in-state travel spending of Vermonters themselves.
"I think one of the most significant findings of this study is that nearly all tourism sectors in Vermont are more dependent than the national average on visitor spending," Hyde said. "In fact, some sectors like eating and drinking, gasoline and oil, and retail and retail-related businesses are 2-3 times more dependent on visitor spending than the national average."
The complete report is available online on the Vermont Department of Tourism & Marketing's industry website at www.VermontPartners.org.
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