Procurement News Notice |
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| PNN | 2656 |
| Work Detail | The results of an "Economic Impact of the Putnam County Tourism and Travel Industry" study were reported to the Putnam County Convention and Visitor Bureau (CVB) Board of Directors after it engaged Certec, Inc. last year to quantify expenditures, employment and tax generated by the CVB and the county's tourism-related industry. Jim Carr, president of Certec, reviewed outcomes of the 2015 study that will be used as a benchmark to evaluate future CVB results. According to the report, "Economic benefits begin when a traveler to Putnam County, either an Indiana resident or an out-of-state visitor, spends money in the county," with typical purchases including lodging, food, gas, souvenirs, event fees, entertainment and retail goods. Carr said more than 397,000 "destination travelers" visited Putnam County in 2015 -- people here for a specific reason. In addition, nearly 505,000 "pass-through travelers" visited -- people on one of Putnam County's many state roads or interstates who stopped to visit a venue, eat a meal or make a purchase. Carr explained tourism's financial "ripple effect" through the local economy, as businesses earning the initial revenue spend it on wages, goods and services and taxes. The process repeats through rounds of spending until the impact becomes insignificantly small. According to the report, "The total economic impact of Putnam County tourism is the combination of the direct expenditures and the multiplier effect expressed in terms of spending, jobs, wages and taxes." Carr reported that in 2015 purchases made by travelers in Putnam County accounted for $59.6 million, with the multiplier increasing total economic impact for the year to $83.2 million. Food and beverage accounted for 32 percent of purchases; shopping was more than 27 percent; transportation and lodging were 14 and 13 percent, respectively; and admission fees and souvenirs each totaled seven percent. For years, Certec, based in Versailles, Ky., has undertaken tourism impact studies for counties in Indiana and the Midwest. In his presentation, Carr said "Many have the idea that tourism revenue goes solely to the service and retail sectors to support only low-wage jobs. The economic benefits to Putnam County are more widespread, supporting sectors such as banking, insurance, real estate, agriculture, education, and manufacturing. As anticipated, "lodging guests," those who stay overnight in Putnam County, accounted for the majority of purchases. Including their lodging costs, these visitors' purchases totaled nearly 35 percent of the $59.6 million in direct expenditures. Individuals in the county for "day trips" accounted for the second largest share of spending, contributing 29 percent of the total. Those "visiting friends/family" contributed 23 percent, "attraction visitors" in the county for events accounted for seven percent, and campers were six percent. Carr noted that the volume of traffic on Interstate 70 also makes an important contribution via food, beverage, gas and other retail purchases. Tourism stimulates industries such as agriculture, fishing, food processing, brewing, construction and appliance, furniture and linen manufacture. "For example, demand for hotel rooms can create demand for contractors' services, which generates secondary demand for steel, bricks, lumber, tile, glass, plumbing, HVAC, carpet, and other goods," Carr said. Demand for restaurant meals creates business for producers and packagers of foods, butchers, dairies and ultimately for manufacturers of farm implements and fertilizers." In 2015, 998 full-time jobs were due to expenditures made in Putnam County's tourism and travel industry, representing more than six percent of all county jobs. The report states, "Tourism produces a wide range of jobs in addition to the frontline personnel such as desk clerks, waiters and ticket takers. More than one-third of the jobs resulting from tourism spending were found in high-wage occupations of professional and technical, managerial, sales, construction, craftsman and operatives." A portion of visitor expenditures are used by Putnam County businesses to pay employees, and the report states that every dollar spent by visitors in 2015 produced an average of 20 cents in wage and salary income. Total wage and salary income related to the direct purchases of Putnam County visitors was nearly $11.7 million. Tourism expenditures resulted in nearly $19.6 million in 2015 tax revenue -- $8.5 million in personal, corporate, social security, gas, and airline tax went to the federal government. $7.2 million benefited Indiana coffers via sales and excise taxes and on individual and corporate income. Inside Putnam County, nearly $3.9 million was collected via property, business and lodging tax. During the time of the survey process, visitors from 16 states were identified in the sample of travel parties, with Indiana, Illinois and Ohio representing the largest places of origin. Michigan, Kentucky, Missouri, Wisconsin, Georgia and New York rounded out the top half. Sampling was undertaken in the fall, and DePauw football and parent events, the Covered Bridge Festival, Cataract Falls, local restaurants, shops and museums, and agritourism venues such as orchards/farms were reported as most-visited. In addition to surveying visitors, Certec collected data from Putnam County hotels/motels, bed & breakfast providers, attractions/venues, campgrounds, and retail stores. "As we launch new tourism initiatives around the county, we are eager to measure results," CVB Executive Director Nancy Mark said. "Putnam County is rich with events, interesting people doing interesting things, history, music, the equestrian arts, and neighboring counties with equally fascinating reasons for guests to travel here and enjoy what we can enjoy every day. This study provides a baseline for tourism's economic impact on the county, and we will monitor results monthly and undertake a similar study every few years to evaluate outcomes of new programs and new partnerships," she said. |
| Country | United States , Northern America |
| Industry | Travel & Tourism |
| Entry Date | 03 Sep 2016 |
| Source | http://www.bannergraphic.com/story/2332016.html |
