Mendocino County s Travel Industry. An Overview of Economic Benefits
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1 Mendocino County s Travel Industry An Overview of Economic Benefits
2 The Size and Scope of the Travel Industry Overall Benefits of the Travel Industry California Travel Industry Mendocino County Travel Industry Travel Industry Challenges
3 The Iceberg Effect Those industries that are part of the direct tourism sector represent the impact that is visible, i.e., above the surface of the water. *But below the surface, traveler spending generates wages, employment, and taxes in a host of supporting industries. Although these are not seen, they are critical to understanding the full economic impact of tourism in Mendocino
4 The Benefits of the Travel Industry Tourism is one of the most effective ways of redistributing wealth. brings income into a community that would otherwise not be earned. Tourist Dollar a new dollar injected into the local economy. A percentage of this new dollar is spent in the community by the recipient and this dollar is spent and re spent creating a multiplier effect.
5 The Benefits of the Travel Industry Economic Benefits 1. Increased spending Relates to the tourism dollar and its ripple effect within the community. Generates tax revenue every time tourism dollar is spent. 2. Economic diversification makes the local economy less reliant on a traditional industries such as agriculture, fishing and timber. Provides insurance against hard economic times. Particularly significant for regional rural communities as they tend not to have wide variety of industries to rely on.
6 The Benefits of the Travel Industry Business and Employment Benefits 1. Employment Travel industry is labor intensive creating many job opportunities, especially for young people. Provides a way in for prospective residents. 2. Business benefits Tourism creates opportunities for growth of existing business and new business which would not otherwise be justified solely on the resident population.
7 The Benefits of the Travel Industry Social benefits 1. Generates identity and pride within a community encouraging preservation of traditions and identity. 2. New ideas are generated through interaction with visitors. 3. Increases relocation for those in search of a better quality of life further enhancing our community. Environmental benefits 1. Tourism, particularly ecotourism, can place a greater focus on the conservation of natural resources through the recognition of their importance to visitor experiences and their economic value to the local community.
8 California Travel Industry The Travel Industry is one of the state s largest industries (2006) Revenues $93.8B Taxes $2.1B Employment 928,700 Increased promotional budget from $7M to $50M ROI of 29:1
9 California Travel Industry 1.4% 365m Visitors 14% In State Out of State International 82% NOTE: In State and Out of State reported in person stays; International in visits. Source: D. K. Shifflet & Associates Ltd. DIRECTIONS DESTINATION PERFORMANCE/Monitor SM CIC Research; California Tourism Research
10 California Travel Industry NOTE: In State and Out of State reported in person stays; International in visits. Source: D. K. Shifflet & Associates Ltd. DIRECTIONS DESTINATION PERFORMANCE/Monitor SM CIC Research; California Tourism Research
11 The Importance of the Travel Industry to Mendocino County Creating jobs and business growth Creating tax revenues Contributing to sustainable development
12 Mendocino County Travel Spending Currently $307M in Travel spending generated within Mendocino County (Above the surface of the iceberg) Does not include secondary impacts of spending (below the surface of the iceberg) 5,490 jobs generated by Mendocino s travel industry Approximately $7m in local taxes (T.O.T. and Sales tax) generated within Mendocino County Source: Dean Runyan & Associates
13 Mendocino County Travel Spending Item Accommodations Food & Beverage Service Food Stores Transportation & Fuel Arts, Entertainment & Recreation Retail Sales Total Spending $70.9M $86.1M $16.5M $33.8M $50.5M $48.9M $306.6M Source: Dean Runyan & Associates
14 Mendocino County Employment Employment Accommodations & Food Service 3,130 Arts Entertainment & Recreation 1,950 Retail 390 Other 20 Total 5,490 Source: Dean Runyan & Associates
15 Travel Spending Trend Source: Dean Runyan & Associates
16 Source: Dean Runyan & Associates Employment Trend
17 Source: Dean Runyan & Associates Local Tax Trend
18 Mendocino County Promotion Mendocino County Promotional Alliance (MCPA) Mendocino County Lodging Association (MCLA) Mendocino Winegrape and Wine Commission (MWWC) Arts Council of Mendocino County Chambers of Commerce & City Promotional Groups Partnerships
19 Mendocino County Achievements Lodging BID & Wine Commission Joint Marketing Committee New public relations campaign New advertising campaign including a brand New sales campaign including travel shows State and Regional Partnerships Nature Tourism Coalition All within the past 2 years! 8% Increase of TOT 2007 v. 2006
20 Samples of Promotional Efforts
21 Looking Ahead for Mendocino County Promotion Establishing a National Heritage Area Updated Fulfillment Pieces Comprehensive Visitor Market Research 3 5 Year County wide Marketing Plan Agritourism Development Develop a county wide visitor service program Further development of Brand and Sales Effort Improved Signage throughout the County
22 Travel Industry Challenges Economy Competition Funding
23 Economic Challenges Economic slowdown nationally and within California Subprime issues impacts within the state including real estate and home equity value California budget shortfall
24 Competitive Challenges Increased competition from wine areas (Napa & Sonoma) Increased competition from coastal areas including Monterey, San Luis Obispo, and Santa Barbara Improved recreational choices closer to population bases ( i.e. Lake Tahoe) Location/Accessibility
25 Travel Industry Funding Need to maintain tourism funding in the short term (BID) and identify ways to increase funding in the long term (grants & special projects)
26 Summary Mendocino County benefits from its travel industry Economic Business and Employment Social and Environmental We now have the promotion infrastructure We now have a viable funding mechanism There are challenges confronting our tourism efforts A clear need to continue and increase our efforts Thank You
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