Angelos Angelou Tourism Presentation — original pdf

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Tourism Commission Board Tourism Tax Impacts February 2024 Courtesy of C3 Presents About AE Over the past 28 years, AngelouEconomics has executed over 1,000 projects working hand-in-hand with major corporations, towns, cities, regions, states, and countries to develop visions, strategies, and implementation plans to advance regional growth and prosperity. MAJOR CORPORATE CLIENTS Austin Tourism 2 Austin’s tourism industry is worth billions. Visit Austin reported travelers spent over $8.2 billion in 2022. • • Many of these visitors come from out of the area and from out of state • Visitors are drawn to Austin for many events with state, national, and international appeal Introduction • • • • Austin City Limits Music Festival F1 SXSW UT Athletics • Each event sees contributions to Sales & Use • Rental Car • Title 5, ABC • • Mixed Beverages • Hotel Courtesy of C3 Presents Austin Tourism 3 Economic Impact Methodology Economic Impact Models & Inputs  AngelouEconomics employs the IMPLAN (IMpact Analysis for PLANning) model for the analysis of the various events. The model utilizes multipliers specific to the Austin economy. The analysis of such events is comprised of two models: event operations and attendee expenditures. The sum of these two impacts create the total economic output of the event.  Event operations data are provided by clients and are used to generate the event operations model. The attendee expenditures models are created using inputs from survey data and assumptions estimating the amount of money spent by attendants on various categories of expenditures. Event Operations Attendee Expenditures TOTAL ECONOMIC OUTPUT Model Outputs  Each of the models generate three different types of effects: direct, indirect and induced effects. The IMPLAN model’s calculated outputs include jobs, labor income, total economic output, and state and local tax revenues. Direct Limited to the effects in the local economy that occur as a direct result of the event. Indirect Includes increases to sales, incomes and jobs in business sectors that support or supply the event. Induced The household spending patterns of employees through all business sectors that gain increased earnings as a result of the event. Austin Tourism 4 TAX IMPACTS Hotel Tax Range $525,000 - $2,500,000 $350,000 - $3,500,000 University of Texas Athletics $550,000 - $4,400,000 SXSW $1,100,000 - $1,900,000 Tax Impact Events Multi Day Music Events Multi Day Race Events Ripples Throughout Economy  Top Sectors: 1. 2. 3. Food & Beverage Non-Event Entertainment Ground Transportation Sources: AngelouEconomics Greyhill Advisors Length of Stay  3.2 to 3.7 days  How to encourage an extra day? Courtesy of C3 Presents Austin Tourism 5 Opportunities Niche Tourism • Specialized interests or preferences catering to specific segments of travelers seeking unique experiences such as: Ecotourism – focused on responsible travel to natural areas, conserving the environment, sustaining the well-being of local communities, accompanied by educational experiences. • • • • • • • Examples include wildlife viewing, nature walks, eco-friendly accommodations • Wellness – focused on promoting health, relaxation, and holistic well-being. Examples include spa retreats, yoga retreats, meditation, workshops, healthy dining Culinary – revolves around exploring the local food culture(s), culinary traditions, and gastronomic specialties of the destination. Examples include food tours, cooking classes, farmers’ markets, wine tastings, unique dining experiences Voluntourism – combining travel with volunteer work Examples include community development, conservation projects, humanitarian initiatives Closing Thoughts • • Identifying market segments and demographics and tailoring additional experiences on the bookends of the larger Austin events Nebraska Passport Program • $237.2 million in traveler spending, $4.9 million on overnight accommodations Sources: AngelouEconomics Dean Runyan Associates Austin Tourism 6 AngelouEconomics AngelouEconomics partners with client communities and regions across the United States and abroad to candidly assess current economic development realities and identify opportunities. Our goal is to leverage the unique strengths of each region to provide new, strategic direction for economic development. As a result, AngelouEconomics’ clients diversify their economies, expand job opportunities and investment, foster entrepreneurial growth, better prepare their workforce and attract ‘new economy’ companies. To learn more, visit www.angeloueconomics.com Austin Tourism 7