visit jacksonville - the economic impact of tourism in jacksonville, fl
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January 2014
The Economic Impact
of Tourism in
Jacksonville, FL
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Highlights
Tourism is a vital component of the Jacksonville, Florida
economy.
More than 22,000 jobs, with associated income of $684 million,
were sustained by visitors to Jacksonville in FY2013.
These jobs represent 5.7% of total employment in Jacksonville;
1 in every 17.7 jobs in Duval County is sustained by the tourism
economy.
Including indirect and induced impacts, tourism in Jacksonville
generated $180 million in state and local taxes of which $93
million went directly to local taxing authorities.
In the absence of the state and local taxes generated by
tourism, each Jacksonville household would need to pay $550
to maintain the current level of government services.
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Key trends
Visitor Spending within Jacksonville rose to 4.0% in
FY2013 to $1.5 Billion and has averaged increases ofmore than 4% in the past five years.
Visitor Spending has increased 18% since 2009
Growth in overnight visitation remains strong. In
FY2013, Duval County room demand grew 2.6%.
With the increase in occupancy, the hotel industry was
able to raise room rates by 2.4%.
Including indirect and induced Business Sales, Tourism
has generated $2.2 Billion in Revenue in FY2013.
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Spending Results
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A recovery in visitor spending
Visitor spendingwithin Jacksonville
rose 4.0% in fiscal2013.
More overnight
stays along with
higher pricespushed lodging
spending up 5.1%
in 2013.
Growth hasaveraged more
than 4% per
annum in the past
5 years.
Sector 2009 2010 2011 2012 2013 % Change
Lodging $310.1 $306.3 $321.2 $339.1 $356.4 5.1%
Transp w/in destination $182.4 $206.7 $226.7 $231.2 $228.6 -1.1%
Food/bev $340.2 $353.4 $372.5 $396.7 $419.1 5.7%
Retail $243.8 $250.4 $255.2 $275.2 $287.5 4.5%
Recreation $158.2 $168.1 $168.3 $171.8 $179.4 4.4%
Visitor Spending $1,234.7 $1,284.9 $1,343.9 $1,414.0 $1,471.0 4.0%
% Change 4.1% 4.6% 5.2% 4.0%
Tourism Industry Sales(US$ Million)
1,235
1,285
1,344
1,414
1,471
0%
1%
2%
3%
4%
5%
6%
1,100
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
2009 2010 2011 2012 2013
Visitor Spending
% Change
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Visitor spending by sector
Food & beveragebusinesses received 29%
of visitor spending in
FY2013.
Lodging and retail spendingfollow, comprising 25% and
20% of visitor spending.
Lodging25%
Transp w/in
destination13%
Food/bev29%
Retail20%
Recreation13%
Tourism Industry Sales By Sector
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Visitor spending by sector
$310 $306 $321 $339 $356
$182 $207 $227 $231 $229
$340 $353 $373 $397
$419
$244 $250 $255 $275
$288$158 $168
$168$172
$179
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2009 2010 2011 2012 2013
Lodging Transp w/in destination Food/bev Retail Recreation
Jacksonville's Tourism Industry Salesby Year, Millions of $
Visitor spending in
Jacksonville has
increased more than
18% since 2009.
Lodging sales have
increased by $46
million and are now
15% above the low
seen in 2009.
Spending at restaurants
and other food &
beverage providers has
increased by nearly $80
million since 2009.
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Visitor spending by sector
Lodgings share of
visitor spending fell
sharply in 2010 as
hoteliers dropped
prices to increase
demand but has
grown since then.
The high variability in
transportation costs,
let by gas prices, is
evident in the share of
the visitor dollar goingto transportation over
time.
$310 $306 $321 $339 $356
$182 $207 $227 $231 $229
$340 $353 $373 $397 $419
$244 $250 $255 $275 $288
$158 $168 $168 $172 $179
0%
10%20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2011 2012 2013
Recreation
Retail
Food/bev
Transp w/indestination
Lodging
Jacksonville's Tourism Industry Salesby Year, Share of Total
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Area Tourism Impacts
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How visitor spending generates impact
Lastly, the induced impact isgenerated when employees
whose incomes are
generated either directly or
indirectly by tourism, spend
those incomes in the
Jacksonville economy.
Travelers create direct economic value within a discreet group of sectors (e.g. recreation,transportation). This supports a relative proportion of jobs, wages, taxes, and GDP withineach sector.
Each directly affected sector also purchases goods and services as inputs (e.g. foodwholesalers, utilities) into production. These impacts are called indirect impacts.
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Tourism sales
Business Day
Direct Indirect Induced Total
Agriculture, Fishing, Mining - 0.8 0.2 1.0
Construction and Utilities - 17.1 3.9 21.0
Manufacturing - 10.8 6.0 16.7
Wholesale Trade - 15.0 17.8 32.8Air Transport 36.8 0.6 0.7 38.0
Other Transport 38.4 15.7 6.8 60.9
Retail Trade 287.5 2.0 29.1 318.6
Gasoline Stations 105.5 0.1 1.9 107.6
Communications - 41.6 15.7 57.3
Finance, Insurance and Real Estate 48.0 91.0 118.9 257.9
Business Services 9.0 116.9 26.4 152.3
Education and Health Care - 0.7 67.6 68.3
Recreation and Entertainment 160.5 6.2 5.2 171.9
Lodging 356.4 0.2 0.2 356.8
Food & Beverage 419.1 16.9 24.1 460.1
Personal Services 9.9 12.5 15.0 37.4
Government - 12.6 4.5 17.0
TOTAL 1,471.0 360.8 343.8 2,175.6
* Direct sales include cost of goods sold for retail sectors
Tourism-Generated Sales
(US$ Million)
Including indirect and induced business sales, tourism generated $2.2
billion in revenue in FY2013.
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All business
sectors of theJacksonville
economy benefit
from tourism
activity directly
and/or indirectly.
Sectors that serve
the tourism
industry, like
business services,gain as suppliers
to a dynamic
industry.
Tourism sales
0
50
100
150
200
250300
350
400
450
500
F&B
Lodging
RetailTrade
FIRE
Recreation
Bus.
Services
Gas
Education
OtherTransp
Comm
.
AirTranspor
t
PersonalServ
.
Induced
Indirect
Direct
Tourism SalesBy Industry, $ million
Significant indirect
benefits
Note: Direct sales include cost of goods sold for retail
FIRE = finance, insurance and real estate
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Tourism employment surging (direct)
With the cumulative growth in
spending over the past five
years, tourism businesses
has been hiring for three
years to meet customer
demand.
Tourism employment grewnearly 6% in fiscal 2013,
growing nearly 3.5
percentage points faster than
overall Duval County
employment.
2009 2010 2011 2012 2013Employment 15,197 14,811 15,027 15,517 16,431
% Change -2.5% 1.5% 3.3% 5.9%
Tourism Industry Employment
15,197
14,811
15,027
15,517
16,431
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
14,000
14,500
15,000
15,500
16,000
16,500
17,000
2009 2010 2011 2012 2013
Employment
% Change
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Tourism impact on employment (total)
Direct Indirect Induced TotalAgriculture, Fishing, Mining - 5 2 7
Construction and Utilities - 96 20 116
Manufacturing - 29 9 38
Wholesale Trade - 66 79 145
Air Transport 122 2 2 127
Other Transport 415 161 64 640
Retail Trade 1,686 28 392 2,105
Gasoline Stations 111 1 18 131Communications - 128 39 167
Finance, Insurance and Real Estate 228 460 417 1,105
Business Services 69 1,191 291 1,551
Education and Health Care - 12 700 712
Recreation and Entertainment 1,998 90 73 2,161
Lodging 4,515 3 2 4,520
Food & Beverage 7,152 304 429 7,885
Personal Services 135 161 268 565
Government - 100 28 128
TOTAL 16,431 2,839 2,832 22,102
Tourism Employment
The tourism sector directly and indirectly supported 22,102 jobs, or 5.7% of all
employment in Jacksonville last year.
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Day0
1
2
3
4
5
6
7
8
F&B
Lo
dging
Recreat
ion
Re
tailTra
de
Bus.
Servic
es
FIRE
Educat
ion
Other
Tran
sp
Persona
lSe
rv.
Com
m.
Who
lesale
Tr.
G
as
Thousands
Induced
Indirect
Direct
Tourism Employment
Significant indirect and induced benefits
Tourism impact on employment (total)
As a labor intensive
collection of services,
tourism-related sectors
are significant
Jacksonville employers.
The more than 22,000
tourism-supported jobs inJacksonville span every
sector of the economy,
either directly or
indirectly.
The most significant
indirect impacts are in
business services and
finance, real estate &
insurance.
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Business Day
4%
8%
20%
38%
99%
0% 20% 40% 60% 80% 100%
Total
Retail
Food & bev.
Recreation
Lodging
Tourism Employment Intensity by Industry
Tourism is a significant part of several industriestourism directly
supports nearly all employment in lodging, 38% of recreation, and 20% of
food and beverage employment.
Tourism share of key industry employment
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Tourism personal income
Business Day
Direct Indirect Induced Total
Agriculture, Fishing, Mining - 0.1 0.0 0.1
Construction and Utilities - 6.1 1.2 7.2
Manufacturing - 1.7 0.7 2.4
Wholesale Trade - 6.0 7.1 13.1
Air Transport 6.9 0.1 0.1 7.1
Other Transport 19.8 8.0 3.1 30.9
Retail Trade 47.1 1.0 13.4 61.4
Gasoline Stations 7.2 0.1 1.2 8.4
Communications - 12.7 3.7 16.4
Finance, Insurance and Real Estate 10.1 21.3 19.4 50.8
Business Services 3.5 62.0 14.8 80.2
Education and Health Care - 0.4 38.8 39.2
Recreation and Entertainment 66.6 3.0 2.3 71.9
Lodging 96.2 0.1 0.0 96.3
Food & Beverage 148.5 6.4 9.9 164.9Personal Services 5.8 8.1 8.4 22.4
Government - 8.6 2.3 10.9
TOTAL 411.6 145.5 126.4 683.5
Tourism Labor Income (Compensation)
(US$ Million)
Employees in Jacksonville earned $684 million as a result of visitor
activity in FY2013.
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Tourism personal income
The larger
employment
numbers in F&B and
recreations support
significant labor
income in those
industries.
Higher wages
support labor
income in supplier
industries.Day0
20
40
60
80100
120
140
160
180
F&B
Lodging
Bus.
Services
Recreation
RetailTrade
FIRE
Education
OtherTransp
PersonalServ.
Comm.
WholesaleTr.
Gov.
Induced
Indirect
Direct
Tourism Labor IncomeBy Industry, $ million
Significant indirect and induced benefits
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Tourism tax generation
Taxes of $327 million
were directly and indirectly
generated by tourism in
2013.
State and local taxes
alone tallied $180 million.
Each household in
Jacksonville would need
to be taxed an additional
$550 per year to replace
the tourism taxes received
by state and local
governments.
Business Day
Tax Type Direct Indirect/
Induced
Total
Federal Taxes Subtotal 90.9 56.1 147.0
Corporate 11.2 9.3 20.5
Indirect Business 16.3 5.4 21.7
Personal Income 23.9 16.0 39.9
Social Security 39.5 25.4 65.0
State and Local Taxes Subtotal 143.4 36.7 180.1
Corporate 1.4 1.2 2.6
Personal Income 0.0 0.0 0.0
Sales 74.9 17.6 92.5
Lodging 15.4 0.0 15.4
Local 15.4 0.0 15.4
State 0.0 0.0 0.0
Property 41.7 13.8 55.5
Excise and Fees 9.5 3.9 13.4
State Unemployment 0.5 0.3 0.8
TOTAL 234.3 92.8 327.1
All Traveler Generated Taxes
(US$ Million)
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Tourism tax generation
Of the $180 million in state
and local taxes, $93 million
accrues to local taxingauthorities.
In Duval County, the total
sales tax rate is 7%. Of
that, 6% is the general state
sales tax and 1% is the
county discretionary surtax.
The state portion of the
sales tax provides the
majority of tourism-relatedstate revenues.
Key local revenue streams
are property, bed and sales
taxes.
Business Day
Tax Type Direct Indirect/
Induced
Total
State Tax Subtotal 69.2 17.8 87.1
Corporate 1.4 1.2 2.6
Personal Income 0.0 0.0 0.0
Sales 64.2 15.1 79.3
Lodging 0.0 0.0 0.0
Property 0.0 0.0 0.0
Excise and Fees 3.2 1.3 4.5
State Unemployment 0.5 0.3 0.8
Local Tax Subtotal 74.1 18.9 93.0
Corporate 0.0 0.0 0.0
Personal Income 0.0 0.0 0.0Sales 10.7 2.5 13.2
Lodging 15.4 0.0 15.4
Property 41.7 13.8 55.5
Excise and Fees 6.3 2.5 8.9
State Unemployment 0.0 0.0 0.0
Traveler Generated Taxes - State and
Local Government Revenues(US$ Million)
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Fun facts
Visitor spending in Duval County surpassed $1.4 billion in 2013.
This is larger than the City of Jacksonville budget ($953 million)
and nearly as large as the Duval County School System budget
($1.6 billion in 2013).
If employed by a single business, tourisms 16,430 employees
would rank 3rdin employment in Jacksonville behind the Naval
Air Station and Duval County schools and ahead of the City of
Jacksonville and Baptist Health System.http://www.jaxdailyrecord.com/showstory.php?Story_id=533987
http://www.jaxdailyrecord.com/showstory.php?Story_id=533987http://www.jaxdailyrecord.com/showstory.php?Story_id=533987 -
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Methodology and Background
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By monitoring tourisms economic impact, policy makerscan make informed decisions regarding the funding and
prioritization of tourism development.
It can also carefully monitor its successes and future
needs.
In order to do this, tourism must be measured in the
same categories as other economic sectorsi.e. tax
generation, employment, wages, and gross domesticproduct.
Why quantify the tourism economy?
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What is this a challenge?
Most economic sectors such as financial services,insurance, or construction are easily defined within a
countrys national accounts statistics.
Tourism is not so easily measured because it is not a
single industry. It is a demand-side activity which affectsmultiple sectors to various degrees.
Tourism spans nearly a dozen sectors including lodging,
recreation, retail, real estate, air passenger transport, food
& beverage, car rental, taxi services, travel agents
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Fiscal year 2013 is defined as October 2012September 2013.
Domestic visitor expenditure estimates are provided by Longwoods Internationals
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 adjusts these levels of spending based on a range of
known measures of tourism activity:
Industry data on employment, wages, GDP, and sales (source: BEA, BLS,Census)
Smith Travel Research data on hotel revenues
Bed tax receipts
Overseas visitor spending (source: OTTI, TE)
Canada visitor spending (source: Statistics Canada, TE)
Spending on air travel which accrues to all airports and locally-based airlines
Gasoline purchases by visitors (source: TE calculation)
Methods and data sources
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An IMPLAN model was compiled for the Duval County, Florida. This
traces the flow of visitor-related expenditures through the local economyand their effects on employment, wages, and taxes. IMPLAN also
quantifies the indirect (supplier) and induced (income) impacts of tourism.
All results are benchmarked and cross-checked and adjusted based on
the following:
US Bureau of Labor Statistics and Bureau of Economic Analysis(employment and wages by industry)
US Census (business sales by industry)
The source of the employment and wage data is the Regional Economic
Information System (REIS), Bureau of Economic Analysis, U.S.
Department of Commerce. All employment rankings are based on Bureau
of Labor Statistics (ES202/QCEW) data.
Methods and data sources
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Selected recent economic impact clients
Cities
Baltimore, MD
Columbus, OHKansas City, MO
London, United Kingdom
New York City
Omaha, NE
Orlando, FL
Philadelphia, PAPittsburgh, PA
Rockford, IL
Countries / Provinces
Bahamas
BermudaCayman Islands
Dubai
Ontario Canada
St. Lucia
United Kingdom
Associations / Companies
Center for Exhibition Industry
Research (Economic Impact
of Visa Restrictions)
DMAI (Event Impact
Calculator for 80 CVBs)
US Travel Association (Impact
of travel promotion)
InterContinental Hotels
States
California
GeorgiaMaryland
New York
North Carolina
Ohio
Pennsylvania
Wisconsin
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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. Bycombining 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 worlds leading providers of economic analysis,
forecasts and consulting advice. Founded in 1981 as a joint venture with Oxford
Universitys 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, anda range of partner institutions in Europe, the US and in the United Nations
Project Link.
For more information: info@tourismeconomics.com.
mailto:info@tourismeconomics.commailto:info@tourismeconomics.com -
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For more information:
Adam Sacks, Managing Director
adam@tourismeconomics.com
Christopher Pike, Director of Impact Studies
cpike@tourismeconomics.com
mailto:adam@tourismeconomics.commailto:cpike@tourismeconomics.commailto:cpike@tourismeconomics.commailto:adam@tourismeconomics.com
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