Buncombe County Tourism Update Presentation to Leadership Asheville Class January 21, 2009 Kelly Miller, CDME.

Buncombe County Tourism Update

Presentation to Leadership Asheville Class

January 21, 2009

Kelly Miller, CDME

Overnight Leisure Visitation to Asheville Area

1,980,0002,200,000

2,760,000 2,790,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2000 2002 2005 2007

Overnight Leisure Visits (D.K. Shifflet & Assoc.)

Visitor Spending

$138.55 $156.80 $171.45

$0.00

$50.00

$100.00

$150.00

$200.00

1998 2001 2007

Ave. Spend Per Person/Per Day

Spending increases 24%.

Typical Asheville Visitor

• Typical visitors are:– Age: 50s– HH income: $100,000+– College or post-

graduate degree– No children in the home

(i.e. empty nesters)– More than half

employed full-time, 1/3 retired

– Married & traveling as couple

– Have Internet Access

Information from 2007 Intercept Study & Cluster Study of Asheville Inquiry Database (06-07)

Anticipated Growth in Hotel Rooms

6,3436,534

7,004

7,144

5,800

6,000

6,200

6,400

6,600

6,800

7,000

7,200

Numer of Rooms

2007

2008 (estimated)

2009 (estimated)

2010 (estimated)

• Lodging Econometrics reported 36 percent growth in pipeline projects nationwide at the end of the 2007 that will come online in the next few years.

The Impact of Visitors

Economic Impact of Tourism

(Direct & Indirect)

$1,000,000,000

$1,887,608,954

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

2,000,000,000

2000 2007

The Total Tax Visitors Pay on Accommodations

4% Occupancy Tax (3% for marketing & advertising and 1% for product development)

Sales Tax (earmarked for state and 6.75% local government 10.75% Total Tax Paid on Lodging

Tax Returns to Local Government

• Buncombe County Government estimates that visitors to the Asheville area generate one third of all retail sales.

• Nearly $30 million goes back to local government in combined sales and property taxes that are the result of tourism.

Labor Impact

• More than 25,000 people are employed in hospitality- related jobs in Buncombe County.

• Estimated direct labor income impact is more than $473 million.

Tourism Builds Community $9,033,500

Tourism Product Funds Awarded through 2007

Projects Funded by Buncombe County Lodging

Industry Occupancy Tax (2007 Cycle)

Project Award

Pack Square Park $1,500,000

Asheville Art Museum $1,000,000

The Health Adventure (Momentum)

$1,000,000

Veteran’s War Memorial$67,000

Civil War Trails $16,500

TOTAL $3,583,500

Projects Funded by Buncombe County Lodging

Industry Occupancy Tax (Previous Cycles)

ProjectDate

AwardedAward

John B. Lewis Soccer Complex Azalea Park

2002 & 2004

$800,000

Grove Arcade Public Market 2002 $500,000

Bonsai Garden - North Carolina Arboretum

2003 $750,000

Asheville Visitor Center 2003 $750,000

Pack Square Park 2004 $500,000

The Health Adventure 2004 $500,000

TOTAL$3,800,00

0

Buncombe County Wayfinding Project

• $1,650,000 recommended by Tourism Product Development Committee and approved by BCTDA December 2007 to fund county-wide Wayfinding

in partnership with:– City of Asheville– Weaverville– Woodfin– Black Mountain– Montreat– Buncombe County

TDA Allocates $1.65 Million for Wayfinding

Wayfinding Update

• Working closely with NC DOT on established design guidelines and encroachment process for sign located on DOT roads in the county.

• Finalizing locations of pedestrian signs and kiosks and gateways. Fabrication will begin by end of the year.

Tourism Advertising Efforts$2.76 Million in Net

Media

Sample Tourism Ad Campaigns

• Atlanta Campaign launched August 2007

• Romance Campaign launched Fall 2007

• Epicurean Campaign launched January 2008

New overall campaign to be launched late 2008

Current Economic Challenges

Lodging Forecast

  Occupancy ADR Rev Par

2008 -3.0% 3.4%+ 0.4%+

2009 -3.5% 1.0%+ -2.5%

2010 -0.6% 2.1%+ 1.5%+

Thank You.