FOR INTERNAL USE ONLY 1 2013 Research Roundup: Arizona Tourism in 2012 and Beyond
2 2012 Arizona Travel Industry Performance $19.3 billion in direct spending 38.1 million overnight visitors Source: Dean Runyan Associates, Tourism Economics, Office of Travel & Tourism Industries - U.S. Department of Commerce, 2007-08 Mexican Visitors to Arizona University of Arizona, Statistics Canada
3 2012 Arizona Travel Industry Performance - Introduction Economic Impact Total Overnight Visitation - U.S. Visitors to Arizona - International Visitor to Arizona Regional Profiles Indicators
Economic Impact 4
2012 Arizona Travel Impact Summary 5 $19.3 billion in direct spending generated: 161,300 direct jobs $5.4 billion direct earnings $2.6 billion in local, state and federal tax revenues Source: Dean Runyan Associates
2012 Direct Travel Spending in Arizona (dollars) historical comparison from 2006 6 20.0 4.6% 18.0 16.0 17.8 18.1 18.0 16.4 17.5 18.5 19.3 14.0 12.0 Billions 10.0 8.0 6.0 4.0 2.0 0.0 70% of 2012 Travel Spending is by Out-of-State Visitors 2006 2007 2008 2009 2010 2011 2012p Source: Dean Runyan Associates
2012 Direct Travel Spending in Arizona - by Commodity Purchased 7 2011 2012p 4.0 3.5 3.0 3.5 3.6 3.5 3.7 Billions 2.5 2.0 1.5 1.0 0.5 2.5 2.6 0.9 0.9 2.1 2.1 2.4 2.5 1.5 1.6 0.0 Accommodations Food Service Food Stores Local Tran. & Gas Arts, Ent. & Rec. Retail Sales Visitor Air Tran. Source: Dean Runyan Associates
2012 Direct Travel Employment in Arizona historical comparison through 2006 8 2.7% 160 140 168.5 168.0 165.2 156.3 154.3 157.1 161.3 120 Thousands 100 80 60 40 20 0 2006 2007 2008 2009 2010 2011 2012p Source: Dean Runyan Associates
2012 Arizona Travel Employment Distribution 9 2012p, Distribution of Travel-Generated Employment Percent of State Direct Travel-Generated Employment Maricopa & Pima 67% All other 33% Source: Dean Runyan Associates
2012 Arizona Travel Employment as Percent of Total Area Employment 10 2012p, Travel-Generated Employment as Percent of Total Area Employment in Maricopa & Pima Counties Percent of Total Area Employment that is Travel-Generated 2012p, Travel-Generated Employment as Percent of Total Area Employment in All Other Counties Percent of Total Area Employment that is Travel-Generated 4% 9% 96% 91% Source: Dean Runyan Associates
2012 Direct Travel Earnings in Arizona (dollars) historical comparison from 2006 11 6.0 5.5 5.0 4.5 4.9 5.2 5.1 4.9 4.9 5.1 4.2% 5.4 4.0 Billions 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2006 2007 2008 2009 2010 2011 2012p Source: Dean Runyan Associates
2012 Local, State and Federal Tax revenue generated by Direct Travel Spending in Arizona historical comparison from 2006 12 Millions 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2,474 2,554 2,518 2,397 2,477 Travel Industry Tax Revenues represent 7% of all State and Local Tax Revenues in Arizona 2,536 3.6% 2,628 2006 2007 2008 2009 2010 2011 2012p Source: Dean Runyan Associates
Annual Earnings, Selected AZ Export-Oriented Industries historical comparison from 1991 13 Annual Earnings, Selected Arizona Export-Oriented Industries Microelectronics Travel Aerospace Mining Agriculture $8 Real (2012) Earnings in Billions $7 $6 $5 $4 $3 $2 $1 $0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12p Source: Dean Runyan Associates
14 2012 Total Overnight Visitation
Total Overnight Visitation to Arizona 15 2011 2012 % Change 37.6 million 38.1 million 1.4% Source: Tourism Economics, 2007-08 Mexican Visitors to Arizona, US Department of Commerce-Office of Travel & Tourism Industries and Statistics Canada
2012 Total Visitation to Arizona - Share 16 38.1 million Overnight Visitors to Arizona International 13.1% Domestic 86.9% Source: Tourism Economics, Office of Travel & Tourism Industries - U.S. Department of Commerce, 2007-08 Mexican Visitors to Arizona University of Arizona, Statistics Canada
2012 Arizona Domestic Overnight Visitation Volume Resident vs. Non-Resident 17 35.0 30.0 Overnight Resident Overnight Non-Resident 33.5 33.8 32.4 30.0 31.8 32.8 33.1 1.0% 25.0 Millions 20.0 15.0 23.5 23.7 22.7 21.1 22.6 23.5 23.8 1.1% 10.0 5.0 10.0 10.1 9.7 9.0 9.2 9.3 9.4 0.6% 0.0 2006 2007 2008 2009 2010 2011 2012 Source: Tourism Economics
2012 Arizona Overnight Visitor Profile: Domestic Overnight Residents vs. Non-Residents 18 Domestic Overnight Non-Residents Domestic Overnight Residents Share of AZ Overnight Visitors 72 % 28 % Average Length of Stay 4.7 nights 2.5 nights Average Travel Party Size 2.7 persons 2.8 persons Purpose of Stay 45% VFR, 15% Business, 14% Touring 40% VFR, 14% Business, 12% Outdoors Average Age 45.4 years 46.6 years Average Household Income $76,880 $63,480 Mode of Transportation 55% Auto, 38% Air, 29% Rented Auto 88% Auto, 5% Rented Auto, 4% Camper/RV Accommodations 72% Paid, 28% Non-Paid 63% Paid, 37% Non-Paid Trip Quarter 29% Q1, 25% Q2 29% Q1, 25% Q3 Trip Expenditures (excluding transportation to destination) $792 $342 Source: Longwoods International, Tourism Economics
2012 Arizona Domestic Overnight Visitation Volume Leisure vs. Business 19 35.0 30.0 Overnight Business Overnight Leisure 33.5 33.8 32.4 30.0 31.8 32.8 33.1 1.0% 25.0 Millions 20.0 15.0 26.7 27.0 25.6 24.8 26.1 27.0 27.4 1.5% 10.0 5.0 0.0 6.8 6.8 6.8 5.3 5.7 5.8 5.7 2006 2007 2008 2009 2010 2011 2012-1.7% Source: Tourism Economics
2012 Arizona Overnight Visitor Profile: Domestic Overnight Leisure vs. Business 20 Domestic Overnight Leisure Domestic Overnight Business Share of AZ Overnight Visitors 83 % 17 % Average Length of Stay 3.9 nights 3.4 nights Average Travel Party Size 2.9 persons 2.0 persons Purpose of Stay 51% VFR, 15% Touring, 9% Outdoors 69% General Business & 31% Conf./Convention Average Age 46.9 years 48.8 years Average Household Income $70,520 $86,020 Mode of Transportation 69% Auto, 24% Air, 19% Rented Auto 50% Auto, 42% Air, 30% Rented Auto Accommodations 67% Paid, 33% Non-Paid 87% Paid, 13% Non-Paid Trip Quarter 28% Q1, 24% Q2 32% Q1, 25% Q4 Trip Expenditures (excluding transportation to destination) $609 $668 Source: Longwoods International, Tourism Economics
2012 Domestic Overnight Visitation Top Origin States 21 Top Origin States: 1. Arizona 28.28% 2. California 17.16% 3. Texas 2.98% WA 1.9% NY 1.9% 4. Nevada 2.11% 5. New Mexico 2.04% 6. Illinois 2.01% CA 17.2% NV 2.1% CO 1.7% IL 2.0% 7. Florida 1.91% 8. Washington 1.90% 9. New York 1.89% AZ 28.3% NM 2.0% TX 3.0% FL 1.9% 10. Colorado 1.68% Source: Longwoods International, Tourism Economics
2012 Total Visitation to Arizona - Share 22 38.1 million Overnight Visitors to Arizona International 13.1% Domestic 86.9% Source: Tourism Economics, Office of Travel & Tourism Industries - U.S. Department of Commerce, 2007-08 Mexican Visitors to Arizona University of Arizona, Statistics Canada
23 2012 International Visitation Market Share Arizona International to Arizona 5 million overnight visitors Overseas, 17% Mexico, 68% Canada, 15% Source: Office of Travel & Tourism Industries - U.S. Department of Commerce, 2007-08 Mexican Visitors to Arizona University of Arizona, Statistics Canada, Tourism Economics
2012 Canadian Visitation to Arizona 24 800,000 700,000 600,000 500,000 2012 YOY % Change over: 2011 3.4% 2010 12.0% 2009 30.6% 2008 41.5% 496,300 455,600 514,500 557,400 650,000 703,800 728,000 400,000 300,000 200,000 100,000-2006 2007 2008 2009 2010 2011 2012 Source: Statistics Canada
2012 Canadian Visitation to Arizona by Province 25 Province 2012 % Change 12/11 Alberta 243,600 3.3% Ontario 168,100-3.9% British Columbia 164,500 7.0% Quebec 52,300 13.2% Saskatchewan 50,600 45.4% Manitoba 34,500-8.5% Atlantic Canada 14,500 29.3% TOTAL 728,000 3.4% Source: Statistics Canada
2012 International VisaVUE Spending Trends in Arizona Top 10 Countries 26 % CHANGE MARKET SHARE Top Countries to Arizona 2008 YOY % Change 2009 YOY % Change 2010 YOY % Change 2011 YOY % Change 2012 YOY % Change 2007 2008 2009 2010 2011 2012 1 CANADA 0.0% -7.9% 25.3% 11.8% 0.8% 44.1% 45.8% 50.1% 53.5% 53.0% 52.3% 2 MEXICO -8.1% -23.6% 10.8% 16.4% 9.7% 21.3% 20.2% 18.4% 17.4% 17.9% 19.2% 3 UNITED KINGDOM -10.2% -37.4% -0.2% -3.4% -0.4% 7.4% 6.9% 5.1% 4.4% 3.7% 3.6% 4 GERMANY -15.9% -18.3% 0.4% 8.1% -2.8% 3.8% 3.3% 3.2% 2.7% 2.6% 2.5% 5 FRANCE 32.9% -16.8% -1.9% 6.3% -0.3% 2.3% 3.2% 3.2% 2.7% 2.5% 2.4% 6 JAPAN -22.2% -26.0% 15.8% 29.0% 1.7% 2.6% 2.1% 1.8% 1.8% 2.1% 2.1% 7 CHINA 17.9% 18.1% 26.2% 61.5% 41.9% 0.5% 0.6% 0.8% 0.9% 1.2% 1.7% 8 AUSTRALIA -12.7% -8.6% 14.9% 15.6% -3.1% 1.6% 1.4% 1.5% 1.5% 1.5% 1.5% 9 SWITZERLAND 2.9% -10.6% 16.2% 24.5% -8.4% 0.9% 1.0% 1.0% 1.0% 1.1% 1.0% 10 BRAZIL -4.8% 1.2% 50.3% 15.8% 3.4% 0.7% 0.7% 0.8% 1.0% 1.0% 1.0% TOTAL -3.5% -15.8% 17.2% 12.9% 2.3% Source: The Arizona Office of Tourism estimates based on and extrapolated from aggregate card usage data provided by VisaVue Travel for the period of 2012 and incorporates data from other independent research sources.
2012 International VisaVUE Spending Trends in Arizona 27 Mexico, 68% Overseas, 17% Canada, 15% UPDATE VISITATION Overseas, 28% Canada, 52% Mexico, 19% Source: The Arizona Office of Tourism estimates based on and extrapolated from aggregate card usage data provided by VisaVue Travel for the period of 2012 and incorporates data from other independent research sources.
2012 International VisaVUE Spending Trends in Arizona 28 Total International Spending % Change (Year-over-Year) 20.0% 15.0% 10.0% 17.2% 12.9% 5.0% 0.0% -5.0% -3.5% 2.3% -10.0% -15.0% -15.8% -20.0% 2008 YOY % Change 2009 YOY % Change 2010 YOY % Change 2011 YOY % Change 2012 YOY % Change Source: The Arizona Office of Tourism estimates based on and extrapolated from aggregate card usage data provided by VisaVue Travel for the period of 2012 and incorporates data from other independent research sources. 28
2012 International VisaVUE Spending Trends in Arizona 29 Total International Spending % Change (Year-over-Year) by Segment 30.0% 20.0% 25.3% 16.4% 10.0% 10.8% 8.2% 11.8% 12.8% 9.7% 0.0% 0.0% 0.8% 0.2% -10.0% -5.2% -8.1% -7.9% -20.0% -21.9% -23.6% -30.0% 2008 YOY % Change 2009 YOY % Change 2010 YOY % Change 2011 YOY % Change 2012 YOY % Change Canada Mexico Overseas Source: The Arizona Office of Tourism estimates based on and extrapolated from aggregate card usage data provided by VisaVue Travel for the period of 2007-2012 and incorporates data from other independent research sources. 29
30 Arizona Regional Profiles
Arizona s Five Marketing Regions 31 Northern North Central West Coast Central & Phoenix Tucson & Southern
Arizona s Northern Region Profile 32 $1.5 billion (7.8% of Arizona Direct Travel Spending) in direct spending generated: 15,900 direct jobs $394 million direct earnings $103 million in local and state tax revenues 5.8 million Domestic Overnight Visitors (17.7% of Arizona s Domestic Overnight Visitors) 9% Share of VisaVUE International Spending (Top Country Spending from Canada, France and Germany) Counties: Apache, Coconino, Navajo Source: Dean Runyan Associates, Tourism Economics, Longwoods International, VisaVUE, Smith Travel Research
33 Arizona s North Central Region Profile $1.06 billion (5.6% of Arizona Direct Travel Spending) in direct spending generated: 12,100 direct jobs $257 million direct earnings $66 million in local and state tax revenues 4.5 million Domestic Overnight Visitors (13.7% of Arizona s Domestic Overnight Visitors) 4% Share of VisaVUE International Spending (Top Country Spending from Canada, Japan and UK) Counties: Gila, Graham, Greenlee, Yavapai Source: Dean Runyan Associates, Tourism Economics, Longwoods International, VisaVUE, Smith Travel Research
34 Arizona s Tucson & Southern Region Profile $3.3 billion (17.1% of Arizona Direct Travel Spending) in direct spending generated: 28,000 direct jobs $700 million direct earnings $190 million in local and state tax revenues 7.0 million Domestic Overnight Visitors (21.0% of Arizona s Domestic Overnight Visitors) Counties: Cochise, Pima, Santa Cruz 21% Share of VisaVUE International Spending (Top Country Spending from Mexico, Canada and UK) Source: Dean Runyan Associates, Tourism Economics, Longwoods International, VisaVUE, Smith Travel Research
35 Arizona s West Coast Region Profile $1.3 billion (6.7% of Arizona Direct Travel Spending) in direct spending generated: 13,800 direct jobs $313 million direct earnings $81 million in local and state tax revenues 4.2 million Domestic Overnight Visitors (12.7% of Arizona s Domestic Overnight Visitors) 8% Share of VisaVUE International Spending (Top Country Spending from Canada, Mexico and Germany) Counties: La Paz, Mohave, Yuma Source: Dean Runyan Associates, Tourism Economics, Longwoods International, VisaVUE, Smith Travel Research
36 Arizona s Phoenix & Central Region Profile $12.2 billion (63.2% of Arizona Direct Travel Spending) in direct spending generated: 91,600 direct jobs $3.7 billion direct earnings $772 million in local and state tax revenues 16.7 million Domestic Overnight Visitors (50% of Arizona s Domestic Overnight Visitors) 60% Share of VisaVUE International Spending (Top Country Spending from Canada, Mexico and UK) Counties: Maricopa, Pinal Source: Dean Runyan Associates, Tourism Economics, Longwoods International, VisaVUE, Smith Travel Research
37 Arizona Indicators
Arizona Indicators - Summary 2012 Annual % Change compared to 2011, 2010 & 2007 38 Indicator 2012 Arizona Tourism Indicators % Change from 2007 % Change from 2010 % Change from 2011 2012 Volume Tourism Related Tax -5.5% 13.3% 4.9% $559,148,796 Airports (Enplaned & Deplaned) -1.0% 2.8% 0.6% 46,694,380 State Park Visitation -6.1% -0.4% 5.2% 2,170,077 National Park Visitation -2.9% -2.2% -1.0% 11,507,469 Statewide Lodging Occupancy -13.1% 3.0% 0.3% 57.5% ADR -7.9% 4.8% 1.8% $97.10 RevPAR -20.1% 7.9% 2.1% $55.82 Demand -2.4% 4.3% 0.6% 23,568,277 Supply 12.5% 1.3% 0.3% 40,998,183 * The above tax estimates DO NOT include the 1% temporary tax increase which took effect June 1, 2010 and expired June 1, 2013. Source: Arizona State Parks, National Park Service, Individual Arizona Airports, Arizona Dept. of Revenue, Northern Arizona University and Smith Travel Research
Arizona Indicators 2013 YTD 39 2013 YTD Arizona Tourism Indicators Indicator 2013 YTD Tourism Related Tax 5.0% April Airports (Enplaned & Deplaned) -0.2% April State Park Visitation -2.0% March National Park Visitation 4.7% Jan Statewide Lodging Occupancy 1.5% May ADR 3.1% May RevPAR 4.6% May Demand 1.3% May Supply -0.1% May * The above tax estimates DO NOT include the 1% temporary tax increase which took effect June 1, 2010 and expired June 1, 2013. Source: Arizona State Parks, National Park Service, Individual Arizona Airports, Arizona Dept. of Revenue, Northern Arizona University and Smith Travel Research 39