ARIZONA TRAVEL PERFORMANCE • Economic Impact of Arizona’s Travel Industry • Visitor Volume • Looking Forward: 2017 YTD Indicators • Visitor Profile • Wine Tourism Impact Study • Advertising Impact
ARIZONA TRAVEL PERFORMANCE
$21.2 Billion Direct Spending
43 Million Overnight Visitors
Source: Dean Runyan Associates, Tourism Economics, 2016p data
2016 ARIZONA TRAVEL PERFORMANCE
$21.2 Billion Direct Spending
1.0% over 2015
43 Million Overnight Visitors
2.3% over 2015
Source: Dean Runyan Associates, Tourism Economics, 2016p data
ARIZONA TRAVEL PERFORMANCE
$21.2 Billion Direct Spending in 2016
$13.8 Billion Up 3.3% over 2015
NON-TRANSPORTATION TRANSPORTATION
$4.8 Billion Down -5.4% over 2015
Source: Dean Runyan Associates, 2016p data
ARIZONA TRAVEL PERFORMANCE
$21.2 Billion Direct Spending
$6.5 Billion Up 4.0% over 2015
EARNINGS EMPLOYMENT
184,200 direct jobs Up 2.6% over 2015
Source: Dean Runyan Associates, 2016p data
DIRECT SPENDING TREND
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Billio
ns $
Source: Dean Runyan Associates, 2016p data
VISITOR SPENDING BY ACCOMMODATION TYPE
Hotel, Motel 50%
Private Home 24%
Campground 3%
Vacation Home
4%
Day Travel 19%
Source: Dean Runyan Associates, 2016p data
VISITOR SPENDING BY ACCOMMODATION TYPE
Hotel, Motel 50%
Private Home 24%
Camp. 3%
Vacation Home
4%
Day Travel 19%
Hotel, Motel 45%
Private Home 12%
Camp. 2%
Vacation Home
4%
Day Travel 37%
Arizona Yavapai
Source: Dean Runyan Associates, 2016p data
ARIZONA TRAVEL PERFORMANCE
$3.1 Billion Total Tax Revenue
$893 Million Up 4.3% over 2015
LOCAL FEDERAL
$1.3 Billion Up 2.8% over 2015
$859 Million Up 2.3% over 2015
STATE
Source: Dean Runyan Associates, 2016p data
$2,520
$750
$410
$540
$1,160
$710
$700
$380
$490 $540 $1,110
$430
$720
$960
Taxes contributed by visitors save Arizona households an average of
$1,186 annually.
Source: Dean Runyan Associates, 2016p data
REGIONAL IMPACTS
Source: Dean Runyan Associates, 2016p data
Direct Spending
Northern $1.73 Billion
West Coast $1.28 Billion
North Central $1.04 Billion
Phoenix & Central $13.9 Billion
Tucson & Southern $3.31 Billion
REGIONAL IMPACTS
Source: Dean Runyan Associates, 2016p data
Employment
Northern 18,300 jobs
West Coast 14,400 jobs
North Central 12,000 jobs
Phoenix & Central 108,000 jobs
Tucson & Southern 31,300 jobs
REGIONAL IMPACTS
Source: Dean Runyan Associates, 2016p data
Earnings
Northern $500 Million
West Coast $354 Million
North Central $294 Million
Phoenix & Central $4.4 Billion
Tucson & Southern $838 Million
VISITATION VOLUME
VISITOR VOLUME
43 Million Total Overnight Visitors in 2016
37.4 Up 2.7% over 2015
DOMESTIC INTERNATIONAL
5.67 Million Down -0.7% over 2015
Source: Tourism Economics, 2016 data
VISITOR VOLUME
37.4 Million Domestic Overnight Visitors
10.4 Million Up 2.3% over 2015
RESIDENT NONRESIDENT
27.0 Million Up 2.8% over 2015
28%
72%
Source: Tourism Economics, 2016 data
VISITOR VOLUME
37.4 Million Domestic Overnight Visitors
31.2 Million Up 2.9% over 2015
LEISURE BUSINESS
6.2 Million Up 1.5% over 2015
83%
17%
Source: Tourism Economics, 2016 data
TOP DOMESTIC ORIGIN MARKETS
• Arizona 10.4 Million • California 8.1 Million • New York 2.6 Million • Texas 1.8 Million • Florida 1.6 Million • Illinois 1.4 Million
Source: Tourism Economics, Longwoods International, and AOT Research, 2016 data
DMA ORIGIN OF TRIP
18
12
7
6
4
3
3
2
2
2
2
2
0 10 20
Phoenix, AZ Los Angeles, CA
Tucson (Nogales), AZ New York, NY
San Francisco-Oakland-San Jose, CA Chicago, IL
Las Vegas, NV Washington, DC
Denver, CO Seattle-Tacoma, WA
Miami-Ft. Lauderdale, FL Albuquerque-Santa Fe, NM
Percent
Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
QUARTERLY DOMESTIC VOLUME TRENDS
Source: Tourism Economics, 2016-2017 data
QUARTERLY DOMESTIC VOLUME TRENDS
Source: Tourism Economics, 2016-2017 data
DOMESTIC OVERNIGHT VISITATION
• Phoenix & Central 22.8 Million • Tucson & Southern 6.0 Million • Northern 8.1 Million • North Central 6.2 Million • West Coast 6.3 Million
Source: Longwoods International, 2016 data
2.6% 2.5% 2.5% 2.7%
0%
1%
2%
3%
2013 2014 2015 2016
Perc
ent
ARIZONA’S SHARE OF ADULT DOMESTIC OVERNIGHT TRIPS
Base: Adult Overnight Person-Trips
Source: Longwoods International, 2016 data
5.7%
4.5% 4.0%
2.4% 2.2%
0%
1%
2%
3%
4%
5%
6%
Golf Touring Outdoor Special Event
City
Perc
ent
MARKET SHARE BY TRIP TYPE
Source: Longwoods International, 2016 data
MAIN PURPOSE OF TRIP
43 14
9 7
5 4
3 2 1 1
1
3 4
3
0 10 20 30 40 50
Visiting friends/relatives Touring
Outdoors Special event
City trip Casino Resort
Theme park Golf Trip
Cruise Ski/Snowboarding
Conference/Convention Other business trip
Business-Leisure
Percent
Marketable Trips 47%
Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
INTERNATIONAL VISITATION • Mexico 3.77 million • Canada 878,647 • Germany 127,823 • United Kingdom 124,013 • France 101,303 • China 76,884 • South Korea 63,524 • Japan 62,724 • Australia 59,908
Source: Tourism Economics, 2016 data
RELATIVE VALUE OF SELECTED FOREIGN CURRENCIES COMPARED TO U.S. DOLLAR
Source: Dean Runyan Associates, 2016p data
2016 INTERNATIONAL VISITATION • Mexico -0.5% • Canada -5.3% • Germany -4.5% • United Kingdom 5.5% • France -9.9% • China 20.3% • South Korea 3.9% • Japan 14.5% • Australia 10.0%
Source: Tourism Economics, 2016 data
2016 INTERNATIONAL VISITATION
• Mexico -0.5% 1.9% • Canada -5.3% -6.8% • Germany -4.5% -10.4% • United Kingdom 5.5% -6.7% • France -9.9% -7.1% • China 20.3% 14.7% • South Korea 3.9% 11.8% • Japan 14.5% -4.8% • Australia 10.0% -7.1%
Source: Tourism Economics, US Dept. of Commerce, 2016p data
ARIZONA US
2017 YTD ARIZONA INDICATORS • Gross Sales – YTD May
– Lodging 9.1% – Restaurant/Bar 5.8% – Retail 3.7% – Amusement 5.7% – Total 4.1%
• Lodging - YTD June – OCC 70.1% 1.6% – ADR $129.22 5.1% – RevPAR $90.57 6.8%
• AZ State Parks - YTD May – 1.46 million visitors 9.4%
• See website for latest Airport
and National Park data Source: Arizona Department of Revenue, Arizona Hospitality Research and Resource Center, Arizona State Parks, STR Inc.
ARIZONA’S DOMESTIC VISITOR PROFILE
$230 $160
$101 $98 $86
0
50
100
150
200
250
300
Lodging Restaurant Food &
Beverage
Retail Purchases
Transportation at Destination
Recreation/ Sightseeing/
Entertainment
Dol
lars
Total Per Party* = $675
AVERAGE PARTY EXPENDITURES ON DOMESTIC OVERNIGHT TRIPS — BY SECTOR
Source: Longwoods International, 2016 data
NUMBER OF NIGHTS SPENT IN ARIZONA
29
27
24
9
11
0 10 20 30
1 night
2 nights
3-4 nights
5-6 nights
7 + nights
Percent
Average Nights Spent in Arizona = 3.5
Base: Overnight Person-Trips with 1+ Nights Spent In Arizona
Source: Longwoods International, 2016 data
NUMBER OF NIGHTS SPENT IN ARIZONA
42
34
18
3
3
24
24
27
11
15
0 15 30 45
1 night
2 nights
3-4 nights
5-6 nights
7 + nights
Percent
Base: Overnight Person-Trips with 1+ Nights Spent In Arizona
Average Arizona Resident 2.3 nights
Average Non-Resident 4.0 nights
Source: Longwoods International, 2016 data
SIZE OF TRAVEL PARTY
2.2
2.2
0.8
0.7
0.00 1.00 2.00 3.00 4.00
Arizona
U.S. Norm
Average Number of People
Adults Children
Total = 3.0
Total = 2.9
Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
AGE
14
24
20
13
13
16
13
23
20
17
13
14
0 5 10 15 20 25
18-24 25-34 35-44 45-54 55-64
65+
Percent
Arizona U.S. Norm
Average Arizona = 43.6 Average U.S. Norm = 43.8
Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
AGE
14
18
19
16
14
19
14
26
21
13
12
14
0 10 20 30
18-24 25-34 35-44 45-54 55-64
65+
Percent
AZ Residents Non-Residents
Average AZ Resident = 45.7 Average Non-Resident = 42.9
Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
CHILDREN IN HOUSEHOLD
49
25
30
19
52
22
26
19
0 20 40 60
No children under 18
Any child between 13-17
Any child between 6-12
Any child under 6
Percent Arizona U.S. Norm
Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
HOUSEHOLD INCOME
7
16
19
23
35
6
16
17
22
39
0 10 20 30 40
$150K+
$100-$149.9K
$75-$99.9K
$50-$74.9K
<$49.9K
Percent Arizona U.S. Norm
Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
6
17
21
16
29
11
5
14
17
17
34
13
0 10 20 30 40
More than 1 year in advance
6-12 months
3-5 months
2 months
1 month or less
Did not plan anything in advance
Percent
Arizona U.S. Norm
LENGTH OF TRIP PLANNING Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
19
17
16
15
15
13
12
11
10
16
15
11
14
8
8
9
9
10
0 5 10 15 20
Hotel or resort Online travel agencies
Airline/commercial carrier Advice from relatives or friends
Auto club/AAA Travel agent/company
Travel company websites Destination websites
Social Media
Percent
Arizona U.S. Norm
TRIP PLANNING INFORMATION SOURCES Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
19
17
16
15
15
13
12
11
10
16
15
11
14
8
8
9
9
10
0 5 10 15 20
Hotel or resort Online travel agencies
Airline/commercial carrier Advice from relatives or friends
Auto club/AAA Travel agent/company
Travel company websites Destination websites
Social Media
Percent
Arizona U.S. Norm
TRIP PLANNING INFORMATION SOURCES Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
21
20
19
15
13
10
7
6
6
5
4
19
13
16
9
6
9
5
5
3
2
2
0.0 5.0 10.0 15.0 20.0 25.0
Hotel or resort Airline/commercial carrier
Online travel agencies Travel company websites
Auto club/AAA Travel agent/company
Destination websites 800/888 number
Lodging sharing websites Visitors' bureau/gov …
Travel/ski show or …
Percent Arizona U.S. Norm
METHOD OF BOOKING Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
ACCOMMODATIONS 30
25
22
21
9
7
7
6
5
5
5
2
5
23
17
25
21
5
4
3
3
4
3
3
2
5
0 10 20 30 40
Resort hotel Motel
Home of Friend/Relative Other Hotel
Bed & Breakfast Campground/Trailer Park/RV …
Time Share Country Inn/Lodge
Rented … Own Home/Condo/Apt/2nd …
Rented Cottage/Cabin Boat/Cruise Ship
Other
Percent
Arizona U.S. Norm
Source: Longwoods International, 2016 data
SEASON OF TRIP
26
25
24
25
0 10 20 30 40
January-March
April-June
July-September
October-December
Percent
Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
ACTIVITIES AND EXPERIENCES 32
20
20
18
17
16
15
14
10
9
9
9
9
8
8
33
11
20
13
7
15
11
11
10
5
7
6
5
6
5
0 5 10 15 20 25 30 35
Shopping National/State Park
Fine Dining Landmark/Historic Site
Hiking/Backpacking Swimming
Casino Museum
Bar/Nightclub Camping Theater
Spa Art Gallery
Zoo Brewery
Percent Arizona U.S. Norm Source: Longwoods International, 2016 data
ACTIVITIES AND EXPERIENCES (CONT.) 8
8
7
7
6
6
6
6
6
5
5
5
5
5
5
4
9
6
5
14
5
5
2
4
4
4
3
3
3
2
0 5 10 15 20 25 30 35
Golf Theme Park
Fishing Business Meeting Beach/Waterfront
Dance Fair/Exhibition/Festival
Mountain Climbing Winery
Conference/Convention Biking
Pro/College Sports Rock/Pop Concert
Educational Seminar Tennis
Percent Arizona U.S. Norm Source: Longwoods International, 2016 data
29
23
21
14
9
9
8
8
7
7
6
6
21
20
18
11
5
6
6
5
5
3
3
3
0 10 20 30
Historic Places Family Reunion
Cultural Activities/Attractions Exceptional Culinary Experiences
Eco-Tourism Winery Tours/Tasting
Brewery Tours/Beer Tasting Traveling with Grandchildren
Wedding Religious Travel Medical Tourism
Agritourism
Percent
Arizona U.S. Norm
ACTIVITIES OF SPECIAL INTEREST Base: Overnight Person-Trips
Source: Longwoods International, 2016 data
2017 ARIZONA WINE TOURISM STUDY
https://tourism.az.gov/sites/default/files/documents/files/AHRRC-AZWineTourismStudy-2017-report_07-18-17.pdf
ARIZONA WINE TOURISM STUDY RESULTS
$56.2 Million Economic Output
$3.6 Million State & Local Taxes
640 Jobs
Source: Alliance Bank Business Outreach Center at NAU, 2017
FY17 ADVERTISING EFFECTIVENESS
1.70%
4.40%
2.20%
1.10% 1.20%
Chicago San Francisco Seattle Other National Total
Incremental Travel %
Source: Strategic Marketing and Research Insights, 2017
$829 Million in ad-influenced travel
revenue
FY17 ADVERTISING EFFECTIVENESS
7% 5%
8%
12%
Unaware 1 medium 2 media 3-4 media
Media Overlap Impact (AZ Visit %)
FY17 ADVERTISING EFFECTIVENESS
Source: Strategic Marketing and Research Insights, 2017
3.87
3.37
3.61
3.47
3.48
3.78
3.74
3.65
3.12
3.32
3.12
3.10
3.38
3.29
A good place to retire
A good place to relocate a business
A good place to attend college
A good place to start a business
A good place to start a career
A good place to live
A good place to purchase a vacation home
Arizona is...
Unaware
Ad-Aware
ECONOMIC DEVELOPMENT IMAGE
Source: Strategic Marketing and Research Insights, 2017