The Economic Impact of Tourism in Jacksonville, FL

January 2014

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 of more 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

A recovery in visitor spending

Visitor spending
within Jacksonville rose 4.0% in fiscal 2013. More overnight stays along with higher prices pushed lodging spending up 5.1% in 2013. Growth has averaged more than 4% per annum in the past 5 years.
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Sector
Lodging Transp w/in destination Food/bev Retail Recreation Visitor Spending % Change

Tourism Industry Sales

2009
$310.1 $182.4 $340.2 $243.8 $158.2 $1,234.7

2010
$306.3 $206.7 $353.4 $250.4 $168.1 $1,284.9 4.1%

(US$ Million) 2011

$321.2 $226.7 $372.5 $255.2 $168.3 $1,343.9 4.6%

2012
$339.1 $231.2 $396.7 $275.2 $171.8 $1,414.0 5.2%

2013
$356.4 $228.6 $419.1 $287.5 $179.4 $1,471.0 4.0%

% Change
5.1% -1.1% 5.7% 4.5% 4.4% 4.0%

1,500

1,471

6% 5% 4% 3% 2% 1% 0%

1,450
1,400 1,350 1,300 1,250

Visitor Spending % Change

$
1,414

1,344

1,285 1,235

1,200
1,150 1,100 2009 2010 2011 2012 2013

Visitor spending by sector

Food & beverage businesses received 29% of visitor spending in FY2013. Lodging and retail spending follow, comprising 25% and 20% of visitor spending.

Tourism Industry Sales By Sector

Retail 20%
Food/bev 29%

Recreation 13%

Transp w/in destination 13% Lodging 25%

Source: Tourism Economics

Visitor spending by sector

Visitor spending in Jacksonville has increased more than 18% since 2009.
$179 $288

Jacksonville's Tourism Industry Sales

by Year, Millions of $
$1,600 $1,400
$1,200 $158

$168 $250

$168
$255

$172
$275

$1,000 $800
$600

$244

$340 $182
$310

$353

$373

$397

$419

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.

$400 $200
$0

$207

$227 $321

$231

$229

$306

$339

$356

2009 2010 2011 2012 Lodging Transp w/in destination Food/bev Retail

2013 Recreation

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 going to transportation over time.

Jacksonville's Tourism Industry Sales

by Year, Share of Total
100% 90% 80%
70%

$158
$244

$168 $250

$168

$172

$179 $288
Recreation Retail

$255

$275

60% 50% 40%

30% $182

$340

$353

$373

$397

$419
Food/bev

$207

$227

$231

$229

Transp w/in destination

Lodging

20% 10% 0% 2009 2010 2011 2012 2013 $310 $306

$321

$339

$356

Source: Longwoods International, Tourism Economics, OTTI

Area Tourism Impacts

How visitor spending generates impact

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.

Lastly, the induced impact is generated when employees whose incomes are generated either directly or indirectly by tourism, spend those incomes in the Jacksonville economy.

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Tourism sales
Including indirect and induced business sales, tourism generated $2.2 billion in revenue in FY2013.
Tourism-Generated Sales
(US$ Million)

Direct
Agriculture, Fishing, Mining Construction and Utilities Manufacturing Wholesale Trade Air Transport 36.8 Other Transport 38.4 Retail Trade 287.5 Gasoline Stations 105.5 Communications Finance, Insurance and Real Estate 48.0 Business Services Business Day 9.0 Education and Health Care Recreation and Entertainment 160.5 Lodging 356.4 Food & Beverage 419.1 Personal Services 9.9 Government TOTAL 1,471.0 * Direct sales include cost of goods sold for retail sectors

Indirect
0.8 17.1 10.8 15.0 0.6 15.7 2.0 0.1 41.6 91.0 116.9 0.7 6.2 0.2 16.9 12.5 12.6 360.8

Induced
0.2 3.9 6.0 17.8 0.7 6.8 29.1 1.9 15.7 118.9 26.4 67.6 5.2 0.2 24.1 15.0 4.5 343.8

Total
1.0 21.0 16.7 32.8 38.0 60.9 318.6 107.6 57.3 257.9 152.3 68.3 171.9 356.8 460.1 37.4 17.0 2,175.6

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Tourism sales
All business sectors of the Jacksonville 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.
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Significant indirect benefits

Tourism Sales
By Industry, $ million 500 450 400 350 300 250 200 150 100 50 0 Induced
Indirect

Direct

F&B

FIRE

Recreation

Education

Other Transp

Retail Trade

Bus. Services

Lodging

Comm.

Air Transport

Note: Direct sales include cost of goods sold for retail FIRE = finance, insurance and real estate

Personal Serv.

Gas

Tourism employment surging (direct)

Tourism Industry Employment
2009
Employment % Change 15,197

2010
14,811 -2.5%

2011
15,027 1.5%

2012
15,517 3.3%

2013
16,431 5.9%

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 grew nearly 6% in fiscal 2013, growing nearly 3.5 percentage points faster than overall Duval County employment.
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17,000
Employment

7% $ 6%
16,431

16,500 16,000 15,500

% Change

5% 4% 3%
15,517

2% 1% 0% -1% -2%

15,197
15,027

15,000 14,500 14,000 2009

14,811

-3% 2010 2011 2012 2013

Tourism impact on employment (total)

Tourism Employment
Direct
Agriculture, Fishing, Mining Construction and Utilities Manufacturing Wholesale Trade Air Transport Other Transport Retail Trade Gasoline Stations Communications Finance, Insurance and Real Estate Business Services Education and Health Care Recreation and Entertainment Lodging Food & Beverage Personal Services Government TOTAL 122 415 1,686 111 228 69 1,998 4,515 7,152 135 16,431

Indirect
5 96 29 66 2 161 28 1 128 460 1,191 12 90 3 304 161 100 2,839

Induced
2 20 9 79 2 64 392 18 39 417 291 700 73 2 429 268 28 2,832

Total
7 116 38 145 127 640 2,105 131 167 1,105 1,551 712 2,161 4,520 7,885 565 128 22,102

The tourism sector directly and indirectly supported 22,102 jobs, or 5.7% of all employment in Jacksonville last year.

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Tourism impact on employment (total)

As a labor intensive collection of services, tourism-related sectors are significant Jacksonville employers.

Tourism Employment
Thousands

8 7
6

Induced
Indirect Direct
Significant indirect and induced benefits

The more than 22,000 tourism-supported jobs in 4 Jacksonville span every 3 sector of the economy, 2 either directly or 1 indirectly. 0
5

F&B

Recreation

Wholesale Tr.

Comm.

Education

Lodging

FIRE

Other Transp

The most significant indirect impacts are in business services and finance, real estate & insurance.
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Personal Serv.

Retail Trade

Bus. Services

Gas

Day

Tourism share of key industry employment

Tourism is a significant part of several industries tourism directly supports nearly all employment in lodging, 38% of recreation, and 20% of food and beverage employment.

Tourism Employment Intensity by Industry

Lodging

99%

Recreation

38%

Food & bev.

20%

Business
Retail

Day
8%

Total

4%

0%
16

20%

40%

60%

80%

100%

Tourism personal income

Tourism Labor Income (Compensation)
(US$ Million)

Direct
Agriculture, Fishing, Mining Construction and Utilities Manufacturing Wholesale Trade Air Transport Other Transport Retail Trade Gasoline Stations Communications Finance, Insurance and Real Estate Business Services Education and Health Care Recreation and Entertainment Lodging Business Food & Beverage Personal Services Government TOTAL 6.9 19.8 47.1 7.2 10.1 3.5 66.6 96.2 148.5 5.8 411.6

Indirect
0.1 6.1 1.7 6.0 0.1 8.0 1.0 0.1 12.7 21.3 62.0 0.4 3.0 0.1 6.4 8.1 8.6 145.5

Induced
0.0 1.2 0.7 7.1 0.1 3.1 13.4 1.2 3.7 19.4 14.8 38.8 2.3 0.0 9.9 8.4 2.3 126.4

Total
0.1 7.2 2.4 13.1 7.1 30.9 61.4 8.4 16.4 50.8 80.2 39.2 71.9 96.3 164.9 22.4 10.9 683.5

Day

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.

Tourism Labor Income

By Industry, $ million 180
160 140

Induced Indirect Direct

Significant indirect and induced benefits

120 100 80 60 40 20
F&B
0 Day

Recreation

FIRE

Bus. Services

Education

Other Transp

Lodging

Retail Trade

Comm.

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Personal Serv.

Wholesale Tr.

Gov.

Tourism tax generation

All Traveler Generated Taxes
Tax Type
Federal Taxes Subtotal Corporate Indirect Business Personal Income Social Security State and Local Taxes Subtotal Corporate Personal Income Sales Lodging Local Business State Property Excise and Fees State Unemployment TOTAL

(US$ Million) Direct

90.9 11.2 16.3 23.9 39.5 143.4 1.4 0.0 74.9 15.4 15.4 0.0 41.7 9.5 0.5 234.3

Indirect/ Induced
56.1 9.3 5.4 16.0 25.4 36.7 1.2 0.0 17.6 0.0 0.0 Day0.0 13.8 3.9 0.3 92.8

Total
147.0 20.5 21.7 39.9 65.0 180.1 2.6 0.0 92.5 15.4 15.4 0.0 55.5 13.4 0.8 327.1

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.

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Tourism tax generation

Traveler Generated Taxes - State and Local Government Revenues
Tax Type
State Tax Subtotal Corporate Personal Income Sales Lodging Property Excise and Fees State Unemployment Local Tax Subtotal Corporate Personal Income Sales Lodging Property Excise and Fees State Unemployment

(US$ Million) Direct

69.2 1.4 0.0 64.2 0.0 0.0 3.2 0.5 74.1

Indirect/ Induced
17.8 1.2 0.0 15.1 0.0 0.0 1.3 0.3 18.9

Total
87.1 2.6 0.0 79.3 0.0 0.0 4.5 0.8 93.0 0.0 0.0 13.2 15.4 55.5 8.9 0.0

Of the $180 million in state and local taxes, $93 million accrues to local taxing authorities.
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-related state revenues. Key local revenue streams are property, bed and sales taxes.

Business

0.0 0.0 10.7 15.4 41.7 6.3 0.0

Day 0.0
2.5 0.0 13.8 2.5 0.0

0.0

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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 3rd in 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

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Methodology and Background

Why quantify the tourism economy?

By monitoring tourisms economic impact, policy makers can 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 sectors i.e. tax generation, employment, wages, and gross domestic product.

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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 affects multiple 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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Methods and data sources

Fiscal year 2013 is defined as October 2012 September 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)

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Methods and data sources

An IMPLAN model was compiled for the Duval County, Florida. This traces the flow of visitor-related expenditures through the local economy and 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.

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Selected recent economic impact clients

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 Georgia Maryland New York North Carolina Ohio Pennsylvania Wisconsin

Cities Baltimore, MD Columbus, OH Kansas City, MO London, United Kingdom New York City Omaha, NE Orlando, FL Philadelphia, PA Pittsburgh, PA Rockford, IL
Countries / Provinces Bahamas Bermuda Cayman Islands Dubai Ontario Canada St. Lucia United Kingdom

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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. 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 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, and a range of partner institutions in Europe, the US and in the United Nations Project Link.
For more information: 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

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