Tourism Produces Jobs In Every Industry Sector In Montana

The 10.8 million people traveling to Montana are bound to produce an impact on Montana’s economy. Recently released figures from The University of Montana’s Institute for Tourism and Recreation Research found that nonresident travel spending directly or indirectly supported jobs in every industry sector in Montana (Table 1).

Nineteen percent of the wholesale trade sector jobs, 10 percent of service sector jobs and 12 percent of retail jobs are supported by people who travel to Montana on vacation or business.

Full Story: http://news.umt.edu/2013/01/011113tjob.aspx

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The Economic Review of the Travel Industry in Montana 2012 Biennial Edition

EXECUTIVE SUMMARY

* In 2011, travel expenditures by nonresident visitors totaled over $2.77 billion, which generated $3.33 billion in total economic impact. Preliminary 2012 numbers show a total impact slightly over $4 billion in total economic impact.

* Over 10.5 million individual nonresident travelers visited Montana in 2011, up 1.6 percent from 2010. This amounts to 4.5 million nonresident travel groups (2.33 people per group). Preliminary estimates for 2012 show a 3 percent increase to 10.9 million nonresident travelers.

* In 2011, nonresident visitor spending directly generated over 28,000 travel jobs to Montana, and contributed to a total of over 38,800 jobs, leading to over $1.05 billion in total personal income for Montana residents. Preliminary 2012 estimates show a 5.7 percent increase in travel generated employment to exceed 41,000 jobs.

* Nonresident travel spending supports nearly 10 percent of the service sector jobs and 12 percent of retail jobs. It also directly or indirectly accounts for jobs in every other industry sector in Montana.

* Montana state and local governments received an estimated $281 million in taxes attributable to nonresident traveler spending; the federal government collected $270 million in taxes from nonresident spending.

* The nonresident travel industry in Montana comprises 6.2 percent of the state’s total employment, making it the fifth largest employer, following just behind construction (6.4% of total employment).

* Montana ranks 41st in the U.S. for tourist spending, but 6th in the nation in per capita tourist spending.

* Nonresident vacationers to Montana in 2011 came primarily from the U.S. (84%), while 12 percent came from Canada and five percent came from other foreign countries.

* Mountains and forests; Yellowstone National Park; and open space and uncrowded areas were the most frequent attractions for vacationers in Montana, while scenic driving and nature photography are the most popular activities.

* Airline passenger traffic increased 5.6 percent in 2010 to 2011. The overall increase from 2007 to 2011 was 5.9 percent.

* Amtrak ridership in 2011 decreased 17 percent from 2010 due to serious flooding in the spring and summer stopping train traffic for an extended period. Montana’s busiest station in Whitefish also had a 13 percent decrease in 2011. 2012 year-to-date figures are showing an increase in ridership.

* Room supply was up 0.8 percent, and room demand was up 5.3 percent in 2011. Occupancy rates increased the last two years, as did average daily rates, with an increase of 3.8 percent in 2011.

* Prices in the food service industry rose 2.5 percent in 2009, as opposed to the Consumer Price Index which decreased by 3.1 percent.

* Personal income in Montana’s arts, entertainment and recreation services industry increased 1.0 percent from 2010 to 2011, while the industry Gross Domestic Product by State increased 2.0 percent.

Authored by:
Kara Grau, M.S.
Norma Nickerson, Ph.D.
Jacob Jorgenson

Full Report: http://www.itrr.umt.edu/ecorev/EconomicReview2012.pdf