WhyWesternNorthCarolinaTourismistheBestKeptSecretforEconomicDevelopment

SteveMorse,Ph.D.Economist&Director

Hospitality&TourismMgtCollegeofBusiness

WesternCarolinaUniversityCOLLEGE OF BUSINESS

ThankYouforInviGngMe

WesternCarolinaUniversity

PresentaGonAgenda–3TopicsHistory&currentWesternNCtourismeconomictrendsandimpacts

1.

Tourismtaxesandprivatesectortourismgrowth2.

3.Tourism’snewroleinprivatebusinessgrowth&economicdevelopment

PresentaGonAgenda–3TopicsHistory&currentWesternNCtourismeconomictrendsandimpacts

1.

2.

3.

HowFreeEnterpriseandthePrivateSectorBusinessstartedthe

WNCTourismEconomy

TheGreatSmokyMountainsNaGonalParkisthemostvisitedNaGonalParkintheU.S.with10.09

millionvisitors,2014

10.094.75

3.883.513.433.243.182.792.562.33

0 2 4 6 8 10 12

(1)GreatSmokyMtns.NP(TN/NC)

(2)GrandCanyonNP(AZ)

(3)YosemiteNP(CA)

(4)YellowstoneNP(WY,MT,ID)

(5)RockyMtn.NP(CO)

(6)OlympiaNP(WA)

(7)ZionNP(UT)

(8)GrandTetonNP(WY)

(9)AcadiaNP(ME)

(10)GlacierNP(MT)

(million visitors)

Source:U.S.Dept.OftheInterior,Na7onalParkService,UniversityofIdahoStudyofNa7onalParkVisita7on,2014

(million visitors)

HowtheFederalGovernmentgot$10milliontobuythelandforthe

GreatSmokyMountainsNaGonalPark

NorthCarolinataxpayers $2millionTennesseeTaxpayers$2millionNC&TNschoolchildren $1millionPrivateBusinessDonaGon$5millionTOTAL $10million

HowtheFederalGovernmentgot$10milliontobuythelandforthe

GreatSmokyMountainsNaGonalPark

NorthCarolinataxpayers$2millionTennesseetaxpayers$2millionNC&TNschoolchildren $1millionJohnRockefellerFoundaGon$5millionTOTAL $10million

$5millionin1934wouldequalhowmuchin2016dollars?

$86.4million

In2016dollars

PresidentFranklinD.RooseveltDedicaGngtheGreatSmokyMountains

NaGonalParkNewfoundGap,September2,1940

PlaquewithRockefeller$5millionDonaGon

NewfoundGap,NC/TNstateline

1outofevery5jobs(oraround21%)inSouthwesternNCareinthehospitalityandtourismindustry

Source:U.S.Dept.ofLabor,BureauofLaborSta7s7cs

InWesternNC,TourismjobswillNEVERbeoutsourcedtoanother

country

WNCis2014fastestgrowingtouristspendingregionsinNC

1) WesternNC +5.5%2) NorthCentral+4.8%3) Central +4.4%4) SouthWest +4.3%5) SouthEast +4.3%6) StatewideNC +4.2%7) NorthWest +3.8%8) SouthCentral+2.5%9) NorthEast +2.3%

PresentaGonAgenda–3Topics

1.

Tourismtaxesandprivatesectortourismgrowth2.

3.

Tourists are Temporary Tax Payers

Source:NCDivisionofTourism&U.S.TravelAssocia7on’sReport“TheEconomicImpactofTravelonNorthCarolinaCoun7es,2013”;U.S.CensusBureau,Dr.SteveMorse,WesternCarolinaUniversity

•  Touristsareconsidered

“TemporaryTaxPayers”

•  Eachofthe25,292householdsinMaconCo.pay$660lessinStateandlocaltaxesasaresultoftaxesgeneratedbytouristspending

TourismTaxReliefforMaconCo.

Source:NCDivisionofTourism&U.S.TravelAssocia7on’sReport“TheEconomicImpactofTravelonNorthCarolinaCoun7es,2013”;U.S.CensusBureau,Dr.SteveMorse,WesternCarolinaUniversity

Eachofthe25,292MaconCo.Householdswouldpay

$660moreintaxestoreplacethetaxespaidbytourists

Inotherwords,ifitwerenotforState&localtaxesgeneratedbytourism…

$$660inTourismTaxReliefforEachHouseholdinMaconCounty

660.00

March 9, 2016

MaconCounty

SwainCounty,NC

88% ofalllandisFederally-owned

• GreatSmokyMountainsNaGonalPark• NantahalaNaGonalForest• BlueRidgeParkway

Previousthoughtwasbecause88%oflandwasfederally-owned,thiswasaconstraintandroadblockforfutureeconomicdevelopment

NOCisagreatexampleofhow88%offederally-ownedthatwaspreviouslythoughttobearoadblocktoeconomicdevelopment,isnowavaluableassetinoutdoorrecreaGonandtourismbasedeconomies.Nowthat88%offederally-ownedlandisbeingusedtogeneratejobsandtaxesforthearea.

NOC

OutdoorBasedTourism&

AdventureTourism88%publicownedland

CompanyGoals:ProtectTripleBomomLineof:1) People2) Planet3) Profits

PresentaGonAgenda–3Topics

1.

2.

3.Tourism’snewroleinprivatebusinessgrowth&economicdevelopment

DoestourismhavearolehelpingamractjobsinWesternNorthCarolina?

Tomorrow’sHighQualityWorkforce:

NorthCarolina’snext

“CreaGveClass”ofworkers

NorthCarolina’snextcreaGveclassofinnovators&entrepreneurs

WhoarethenewcreaGveclassofworkers?

ü TechnologyProfessionalsü Arts&CultureExpertsü Managerial&AnalyGcalü EducaGon&TrainingProfessionals

Somefutureworkerswillbeabletoworkfromnearly…..Anywhere

ReliableBroadBandinternetaccessreadilyavailableacross

WesternNorthCarolina&SWCounGes

DowntownareaslikeCharlome…

FutureworkerswillhaveachoiceoflocaGonstoworkfrom

TownslikeSylva,Franklin,Robbinsville,Hayesville,Murphy,BrysonCity,orWaynesville

Measuresof“QualityofLife”amracGngnextgeneraGonofinnovators&entrepreneurs

LastGeneraGon’sQualityofLifeLowHomePrices

GoodSchools

LowTaxRates

LowCrimeRateAvailableHealthCare&Transp

NextGeneraGon’sQualityofLifeDiverseCultures

ReliableBroadbandLocalSenseofCommunity

OpenSpace&Greenways

NaturalResources

+Plus

+Plus

+Plus

MaconCounty,NC140milesNorthofAtlantaDrakeTaxSorwareCorp.AppTrailpassesthroughFranklin&Highlands,NC

OldschooleconomicdevelopmentstrategyfocusonemptyavailableBuildingstoluremanufacturers

Availableworkforce&qualityoflife!

Today’sVisitorcouldbe….

Tomorrow’sBusinessInvestor

InWesternNorthCarolina…

TourismEconDev

MainMessage-PerfectFit:TourismandEconomicDevelopment

ForWesternNorthCarolina

Inclosing…IfyourtourismorganizaGondoesnothaveaplaceatyourlocaleconomicdevelopmenttable…

Thenyouareprobablyonthemenu!

3MainTake-AwaysfromTodayHistory&currentWesternNCtourismeconomictrendsandimpacts

1.

Tourismtaxesandprivatesectortourismgrowth2.

3.Tourism’snewroleinprivatebusinessgrowth&economicdevelopment

ThankYouforInviGngme!

SteveMorse,Ph.D.

Economist,WesternCarolinaUniversityPh:(828)227-3386

Email:scmorse@wcu.edu

Our14yr.oldson

Chance