ECONOMIC IMPACT ALABAMA TRAVEL INDUSTRY 2002

Transcription

1 ECONOMIC IMPACT ALABAMA TRAVEL INDUSTRY 2002 APRIL 15, 2003 SUBMITTED TO LEE SENTELL, DIRECTOR ALABAMA BUREAU OF TOURISM AND TRAVEL PAM SMITH PROJECT SPECIALIST FERNANDO SEDANO PROJECT SPECIALIST M. KEIVAN DERAVI, PH.D. PROJECT TECHNICAL CONSULTANT PROFESSOR OF ECONOMICS SCHOOL OF BUSINESS CENTER FOR BUSINESS AND ECONOMIC DEVELOPMENT AUBURN UNIVERSITY MONTGOMERY 600 SOUTH COURT STREET, SUITE 110 MONTGOMERY, AL TEL: (334) FAX: (334)

2 EXECUTIVE SUMMARY Analysis of state lodging tax revenues, Smith Travel Research data on hotel occupancy rates, and field intercept surveys were conducted to estimate the economic impact of tourism on for calendar year Based on the primary and secondary data, it is estimated that almost 18.3 million people visited the State of during The most visited counties in the state were Baldwin, Jefferson, Madison, Mobile, and Montgomery. The above counties accounted for 63 percent of the total number of visitors to the state. Travelers spent over $6.5 billion in. represents an increase of 7 percent over 2001 spending. Travel industry expenditures represent about three percent of s Gross State Product overall production in Over 139,000 jobs 7.4 percent of non-agricultural employment in were directly or indirectly attributable to the travel and tourism industry. The total impact of the travel and tourism industry on s earnings in 2002 is estimated at more than $2.6 billion. In 2002, over $417 million of state and local tax revenues were realized, primarily due to travel and tourism activities. Every $70,118 of travel-related expenditures creates one direct job in. For every $1 in s travel-related expenditures, the state retains a total of $0.41. In terms of travel and tourism activities, Baldwin and Jefferson counties are by far the largest beneficiaries. Seven counties account for 73 percent of all travel-generated employment: Baldwin, Jefferson, Madison, Mobile, Montgomery, Shelby, and Tuscaloosa.

3 TABLE OF CONTENTS EXECUTIVE SUMMARY...ii LIST OF TABLES AND GRAPHS...iv LIST OF APPENDICES...vi INTRODUCTION... 1 ESTIMATES OF THE NUMBERS OF VISITORS, HOTEL AND MOTEL OCCUPANCY RATES, AND AVERAGE ROOM RATES FOR THE STATE OF ALABAMA... 2 TRAVEL INDUSTRY EXPENDITURES IN ALABAMA... 3 TRAVEL-GENERATED EMPLOYMENT... 5 TRAVEL-GENERATED EARNINGS... 6 TRAVEL-GENERATED TAX REVENUE... 7 TRAVEL-GENERATED EMPLOYMENT: COUNTY-BY-COUNTY BASIS... 8 LODGING TAX SEASONAL AND DESIGNATED DEMOGRAPHIC AREA ANALYSES SEASONAL ANALYSIS DESIGNATED DEMOGRAPHIC AREA ANALYSIS NORTH ALABAMA TOURISM ASSOCIATION AREA ANALYSIS COUNTY-BY-COUNTY ANALYSIS COUNTIES WITH ANNUAL INCREASES COUNTIES WITH MONTHLY INCREASES FIELD-INTERCEPT SURVEY RESULTS FIELD-INTERCEPT SURVEY COMPREHENSIVE RESULTS iii

4 LIST OF TABLES TABLE ESTIMATED TOTAL NUMBER OF VISITORS FOR THE STATE OF ALABAMA AND SELECTED COUNTIES TABLE AVERAGE HOTEL OCCUPANCY RATES AND ROOM RATES FOR THE STATE OF ALABAMA AND SELECTED COUNTIES TABLE TRAVEL EXPENDITURES IN ALABAMA TABLE REAL RATES OF GROWTH IN TABLE TRAVEL EXPENDITURES BY CATEGORY TABLE TRAVEL-RELATED DIRECT EMPLOYMENT TABLE TRAVEL INDUSTRY TOTAL (IMPACT) EMPLOYMENT TABLE TRAVEL-RELATED DIRECT EARNINGS TABLE TRAVEL INDUSTRY TOTAL (IMPACT) EARNINGS TABLE GOVERNMENT REVENUE ASSOCIATED WITH TRAVEL INDUSTRY TABLE DIRECT TRAVEL-RELATED EMPLOYMENT BY COUNTY TABLE TOTAL (DIRECT AND INDIRECT) TRAVEL-RELATED EMPLOYMENT BY COUNTY TABLE TOTAL TRAVEL-RELATED EMPLOYMENT BY COUNTY: ORDERED BY SIZE iv

5 TABLE COUNTIES WITH LARGEST TOTAL EMPLOYMENT GROWTH IN 2002 TABLE TRAVEL-RELATED EARNINGS BY COUNTY TOTAL (DIRECT AND INDIRECT) GRAPH: LODGING TAXES BY QUARTER - STATE: TABLE RATIO OF COUNTIES' QUARTERLY TO ANNUAL LODGING TAX TABLE STATE LODGING TAX: MSA AS A PERCENT OF TOTAL STATE TABLE MSA STATE LODGING TAX BY DESIGNATED DEMOGRAPHIC AREAS TABLE TRAVEL-RELATED EXPENDITURES BY COUNTY TABLE ANNUAL STATE LODGING TAX TABLE COUNTIES WITH INCREASES IN STATE LODGING TAX LARGER THAN STATE GROWTH RATE TABLE PURPOSE OF TRIP, FIELD-INTERCEPT SURVEY RESULTS TABLE ACCOMMODATIONS, FIELD-INTERCEPT SURVEY RESULTS TABLE MODE OF TRANSPORTATION USED TO REACH EVENTS, FIELD-INTERCEPT SURVEY RESULTS TABLE AVERAGE EXPENDITURES WHILE ATTENDING EVENT, FIELD-INTERCEPT SURVEY RESULTS TABLE CHARACTERISTICS OF RESPONDENTS, FIELD-INTERCEPT SURVEY RESULTS v

6 TABLE OTHER ACTIVITIES PARTICIPATED IN WHILE IN THE AREA, FIELD-INTERCEPT SURVEY RESULTS TABLE METHOD BY WHICH EVENT/ATTRACTION BECAME KNOWN TO TRAVELER, FIELD-INTERCEPT SURVEY RESULTS LIST OF APPENDICES APPENDIX A: SMITH TRAVEL RESEARCH DATA APPENDIX B: FIELD-INTERCEPT SURVEY FORM FOR IN-STATE ATTRACTIONS APPENDIX C: COMPREHENSIVE SURVEY RESULTS FOR IN-STATE ATTRACTIONS APPENDIX D: SURVEY RESULTS FOR IN-STATE ATTRACTIONS BY COUNTY AND BY EVENT vi

7 INTRODUCTION The purpose of this study is to estimate the economic impact of the travel and tourism industry in for To that end, Auburn University Montgomery s Center for Business and Economic Development (CBED) greatly benefited from the valuable assistance received from the Bureau of Tourism and Travel (the Bureau). The Bureau provided all necessary information to complete this project, which included primary data, detailed monthly lodging tax data, copies of previously commissioned economic impact studies, and other relevant information and publications. State lodging tax data analyzed for this report was on a by month of expenditure basis. Specifically, this study used information obtained from a document published July 1999, entitled Impact of Travel on State Economies (The Research Department of the Travel Industry Association of America [TIA]). Any, and all, revisions in travel industry multipliers or adjustments in primary data by TIA have been incorporated into the 2002 report. The CBED staff is grateful that the Bureau made this important document available. Additional sources of information were used in preparing the 2002 economic impact study. Information on hotel occupancy rates and lodging revenue generation was obtained from Smith Travel Research. The results of 1,000 fieldintercept surveys that were conducted at locations and events throughout the state are also included. The survey questions used for these interviews were developed in coordination with the Bureau. Economic impact analysis was performed using a model developed by CBED. model, designed for the State of, uses industry multipliers developed by the Regional Input-Output Modeling System, United States Department of Commerce, Economic and Statistical Division, Bureau of Economic Analysis, Regional Economic Analysis Division. The Center for Business and Economic Development also benefited from numerous conversations with the director and staff of the Bureau of Tourism and Travel. Their evaluations and insightful suggestions made this study stronger in content and substance. The Center appreciates the assistance of Mr. Lee Sentell, Director of the Bureau of Tourism and Travel, and his staff for all their help throughout this project. 1

8 ESTIMATES OF THE NUMBER OF VISITORS, HOTEL AND MOTEL OCCUPANCY RATES, AND AVERAGE ROOM RATES FOR THE STATE OF ALABAMA The detailed information pertaining to hotel and motel occupancy rates, average room rates, room demand, and room revenue were obtained from Smith Travel Research (STR). information was available for only 22 counties in the state. According to STR, these counties are ones having more than four lodging establishments in the county which report their data to the research firm. STR data and the venue survey results were used in order to estimate the number of visitors for the State and for the counties included in the venue survey coverage area. More specifically, the room demand for calendar year 2002, the average number of nights staying in the area, and the average number of people in a party were used to estimate the total number of visitors who used the lodging establishments. Later, this data were adjusted to include the number of people who chose not to stay overnight. information was obtained from the venue survey research. The results are reported in Table 1, below, and Table 2, on page 3. TABLE 1 ESTIMATED TOTAL NUMBER OF VISITORS FOR THE STATE OF ALABAMA AND SELECTED COUNTIES COUNTY NUMBER OF TRAVELERS IN HOTEL & MOTEL ACCOMMODATIONS 2001* * 2002 TOTAL NUMBER OF VISITORS BALDWIN 3,255,075 3,230,958 1,053,119 1,045,316 JEFFERSON 2,527,581 2,441,003 1,610,069 1,554,919 MOBILE 2,470,945 2,280,281 1,438,090 1,327,124 MADISON 2,232,560 2,323,971 1,551,629 1,615,160 MONTGOMERY 1,175,668 1,208, , ,616 OTHER COUNTIES 6,595,809 6,792,675 4,305,367 4,407,392 STATE OF ALABAMA 18,257,638 18,277,825 10,670,729 10,682,527 * The 2001 estimates of visitor numbers appearing in this report may differ from 2001 values that appeared in the previous year s report, due to data revision by Smith Travel Research. Source: Smith Travel Research and Auburn University Montgomery Outreach. 2

9 TABLE 2 AVERAGE HOTEL OCCUPANCY RATES AND ROOM RATES FOR THE STATE OF ALABAMA AND SELECTED COUNTIES COUNTY AVERAGE OCCUPANCY RATE AVERAGE ROOM RATE ROOM SUPPLY (HOTELS & MOTELS) ANNUAL MONTHLY AVERAGE* (%) ($) BALDWIN (HOTELS ONLY) , ,581 JEFFERSON , ,751 MADISON , ,801 MOBILE , ,781 MONTGOMERY , ,435 STATE OF ALABAMA ,730,743 1,733,200 *Room Supply is the number of rooms available multiplied by the number of days in a month. Source: Smith Travel Research It is estimated that almost 18.3 million visitors made their travel destination in It is also estimated that Baldwin, Jefferson, Madison, Mobile, and Montgomery counties attracted the largest numbers of travelers. More specifically, approximately 63 percent of the travelers chose these counties as their destination. Smith Travel Research data is presented in Appendix A, page 39. TRAVEL INDUSTRY EXPENDITURES IN ALABAMA In 2002, travelers spent more than $6.5 billion in. represents an increase of 7 percent over 2001 spending, as shown in Table 3, below. TABLE 3 TRAVEL EXPENDITURES IN ALABAMA YEAR EXPENDITURES CHANGE 2002 $ 6,541,559,349 7% 2001 $ 6,120,850,646 1% 2000 $ 6,083,680,846 7% 1999 $ 5,677,438,119 5% 1998 $ 5,428,072, In order to compare the growth of travel industry expenditures to s overall economy, travel expenditures for 2001 and 2002 were adjusted for 3

10 inflation and then compared to the growth rates in the Gross State Product and the service sector. TABLE 4 REAL RATES OF GROWTH IN GROSS STATE TRAVEL YEAR PRODUCT SERVICES INDUSTRY % 1.5% 4.5% % 1.3% -1.2% % 2.2% 3.6% % 1.5% 1.9% As shown in Table 4, above, growth in the travel industry for 2002 is greater than growth in both the Gross State Product and the service industry. Documenting the travel industry s importance and its contribution to the state economy, this report notes that travel-related expenditures represent three percent of all statewide economic activities in. In Table 5, below, direct travel expenditures in are listed by category. serves to identify the industries most impacted by travel and tourism spending. TABLE 5 TRAVEL EXPENDITURES BY CATEGORY EXPENDITURES SHARE OF TOTAL LODGING FACILITIES $ 850,890,602 13% EATING AND DRINKING ESTABLISHMENTS $ 1,749,183,807 27% GENERAL RETAIL $ 665,854,121 10% ENTERTAINMENT $ 577,563,307 9% PUBLIC TRANSPORTATION $ 1,260,465,733 19% AUTO TRANSPORTATION $ 1,437,601,779 22% TOTAL $ 6,541,559, % The largest single travel expenditure was made on eating and drinking. category (food services in general) accounted for 27 percent of all the travel and tourism spending in the state. Transportation, lodging, and general retail trade were the next largest travel expenditure categories. Source: Bureau of Economic Analysis (BEA), U.S. Department of Commerce Auburn University Montgomery (AUM) Outreach. The numbers were revised by BEA and numbers were estimated by AUM Outreach. 4

11 TRAVEL - GENERATED EMPLOYMENT In 2002, more than 93,000 jobs were directly attributable to the travel industry. These jobs were created in direct response to services demanded by travelers in the state. The employment industry breakdown is presented in Table 6, below. Table 6 indicates that the biggest beneficiaries of travel-related activities were eating and drinking establishments. sector accounted for 53 percent of all the travel-related jobs created in the state in Other industries that benefited strongly were lodging facilities and entertainment. TABLE 6 TRAVEL-RELATED DIRECT EMPLOYMENT PERSONS EMPLOYED SHARE OF TOTAL LODGING FACILITIES 18,959 20% EATING AND DRINKING ESTABLISHMENTS 49,399 53% GENERAL RETAIL 6,206 7% ENTERTAINMENT 11,123 12% PUBLIC TRANSPORTATION 2,590 3% AUTO TRANSPORTATION 5,017 5% TOTAL 93, % The job creation process, however, does not end with direct employment. Each job created by travel provided income for those employed in the above subsectors of the economy. income generated expenditures, which in turn, created additional demand for goods and services and, thus, more jobs in the state. indirect job creation is known as the multiplier effect or economic impact. Table 7 (page 6) shows the direct, indirect, and overall job impact of the travel industry on employment. According to Table 7, the 93,000 direct jobs led to the creation of more than 45,000 additional, or indirect, jobs in the state in

12 TABLE 7 TRAVEL INDUSTRY TOTAL (IMPACT) EMPLOYMENT DIRECT INDIRECT TOTAL (OTHER INDUSTRIES) LODGING FACILITIES 18,959 11,971 30,930 EATING AND DRINKING ESTABLISHMENTS 49,399 18,618 68,017 GENERAL RETAIL 6,206 2,759 8,965 ENTERTAINMENT 11,123 4,293 15,416 PUBLIC TRANSPORTATION 2,590 2,780 5,370 AUTO TRANSPORTATION 5,017 5,382 10,399 TOTAL 93,294 45, ,097 overall job creation impact of over 139,000 jobs is impressive. According to this analysis, 7.4 percent of all the non-agricultural employment in the State of in 2002 was directly and indirectly associated with the state s travel industry. * Furthermore, the analysis shows that every $70,118 in travel industry spending creates one direct job in. Finally, for every two direct jobs created, the economy indirectly creates one additional job. TRAVEL-GENERATED EARNINGS Travel expenditures in lead to employment, which in turn leads to additional earnings. Travel industry direct earnings for in 2002 are presented in Table 8, below. TABLE 8 TRAVEL-RELATED DIRECT EARNINGS EARNINGS SHARE OF TOTAL LODGING FACILITIES $ 294,833,593 20% EATING AND DRINKING ESTABLISHMENTS $ 606,092,189 40% GENERAL RETAIL $ 99,878,118 7% ENTERTAINMENT $ 200,125,686 13% PUBLIC TRANSPORTATION $ 195,311,092 13% AUTO TRANSPORTATION $ 100,856,087 7% TOTAL $1,497,096, % * The 2002 state non-agricultural employment was 1,886,700. information was provided by the Department of Industrial Relations Labor Market Division. 6

13 According to CBED s 2002 estimate, the travel industry was responsible for generating almost $1.5 billion in direct earnings in. The growth rate in direct travel-related earnings shows an increase of approximately 7 percent over Again, the biggest beneficiaries appear to be eating and drinking establishments and lodging facilities. The overall impact of travel expenditures on earnings is presented in Table 9, below. TABLE 9 TRAVEL INDUSTRY TOTAL (IMPACT) EARNINGS DIRECT INDIRECT TOTAL (OTHER INDUSTRIES) LODGING FACILITIES 294,833, ,981, ,815,422 EATING AND DRINKING ESTABLISHMENTS 606,092, ,297,391 1,079,389,580 GENERAL RETAIL 99,878,118 62,753, ,631,540 ENTERTAINMENT 200,125, ,649, ,775,274 PUBLIC TRANSPORTATION 195,311, ,752, ,063,789 AUTO TRANSPORTATION 100,856,087 86,625, ,481,381 TOTAL $1,497,096,765 $1,192,060,221 $2,689,156,986 The total impact of the travel industry on s earning power is estimated at more than $2.6 billion for includes direct earnings of almost $1.5 billion and an indirect impact of almost $1.2 billion. suggests that the industry was responsible for 3.5 percent of total earnings in the state in Additionally, every $1 in travel-related spending translates to $0.23 in direct earnings. The indirect impact is estimated to amount to an additional $0.18 in earnings, bringing the total to $0.41. suggests that for every $1 in travel-related expenditures, the state directly and indirectly retains $0.41 in earnings for its citizens. TRAVEL-GENERATED TAX REVENUE Table 10, on page 8, highlights the impact of travel-related industries on state and local government revenues. 7

14 TABLE 10 GOVERNMENT REVENUE ASSOCIATED WITH TRAVEL INDUSTRY YEAR STATE REVENUE LOCAL REVENUE TOTAL % CHANGE ,676, ,989, ,666, % ,339, ,465, ,804, % ,630, ,800, ,431, % ,958, ,535, ,493, % ,496,244 97,075, ,572, CBED estimates that in 2002, $417 million in tax revenues were realized, primarily due to travel-related activities. These revenues were in the form of income, sales, excise, property, and corporate income taxes. As a result, we estimate that every $1 in travel-related spending resulted in $0.05 and $0.02 in tax revenue for state and local governments, respectively. TRAVEL-GENERATED EMPLOYMENT: COUNTY-BY-COUNTY BASIS Total travel-generated employment in 2002 was distributed on a county-bycounty level on the basis of each county s share of total lodging expenditures. The results are reported in Tables 11, 12, 13 and 14. Table 15 shows travelrelated earnings by county. Table 11, on page 10, represents direct travel-generated employment for each county for 2001 and 2002, and the rate of annual change. Table 12, on page 12, represents travel-generated total employment (both direct and indirect) in each county for 2001 and 2002, and the rate of annual change. Table 13, on page 14, ranks the counties in, from greatest to least, based on the benefit received from travel-generated employment in the state. Table 14, on page 16, shows the 12 counties with the highest growth rate in travel-generated total employment. Table 15, on page 17, shows travel-related earnings by county, including the annual growth rate. Several conclusions can be drawn from the information presented in Tables 11 through 14, which are as follows: 8

15 Baldwin and Jefferson counties are, by far, the largest travel-concentrated counties in the state, accounting for 43 percent of all travel-related employment. Seven counties - Baldwin, Jefferson, Madison, Mobile, Montgomery, Shelby, and Tuscaloosa - account for 101,489 travel-related workers, or 73 percent of all travel-generated employment. Autauga, Clarke, Coffee, Elmore, Jackson, Lee, Macon, Marion, Montgomery, and Pike counties showed noticeable improvement in travel-related employment in However, the lion s share of travel and tourism activities remains heavily concentrated in only a handful of counties. Table 16, on page 20, provides the ratio of county quarterly-to-annual state lodging tax in Table 17, on page 21, shows the metropolitan statistical area (MSA) share of state lodging tax per MSA. Table 18, on page 22, shows the distribution of state lodging tax among designated demographic areas. Additional information on Tables 16 through 18, will be provided in the following section, on page 19. Table 19, on page 23, shows travel-related expenditures by county. Table 20, on page 26, contains annual state lodging tax data for 2001 and 2002 and provides the amount and percentage of annual change. Table 21, on page 28, lists counties with increases in state lodging tax larger than the state growth rate. 9

16 TABLE 11 DIRECT TRAVEL-RELATED EMPLOYMENT BY COUNTY COUNTY RATE OF GROWTH AUTAUGA % BALDWIN 23,321 24,340 4% BARBOUR % BIBB % BLOUNT % BULLOCK % BUTLER % CALHOUN 1,306 1,161-11% CHAMBERS % CHEROKEE % CHILTON % CHOCTAW % CLARKE % CLAY 8 8 0% CLEBURNE % COFFEE % COLBERT % CONECUH % COOSA % COVINGTON % CRENSHAW % CULLMAN % DALE % DALLAS 1,635 1,583-3% DEKALB % ELMORE % ESCAMBIA % ETOWAH 1,092 1,034-5% FAYETTE % FRANKLIN % GENEVA % GREENE % HALE % HENRY % HOUSTON 1,899 1,926 1% JACKSON % 10

17 TABLE 11 (CONTINUED) DIRECT TRAVEL-RELATED EMPLOYMENT BY COUNTY COUNTY RATE OF GROWTH JEFFERSON 16,581 15,703-5% LAMAR % LAUDERDALE % LAWRENCE % LEE 1,928 2,221 15% LIMESTONE % LOWNDES % MACON % MADISON 6,937 6, % MARENGO % MARION % MARSHALL % MOBILE 7,871 7,779-1% MONROE % MONTGOMERY 5,569 6,379 15% MORGAN 1,723 1,609-7% PERRY % PICKENS % PIKE % RANDOLPH % RUSSELL % SHELBY 3,232 3,344 3% ST. CLAIR % SUMTER % TALLADEGA % TALLAPOOSA % TUSCALOOSA 3,751 3,568-5% WALKER % WASHINGTON % WILCOX % WINSTON % OUT OF STATE* 2,186 2,251 3% STATE TOTAL 92,530 93,294 1% * Hotel and motel chains based outside of pay lump sum lodging taxes for all their facilities. Therefore, a county employment distribution for those facilities cannot be determined. 11

18 TABLE 12 TOTAL (DIRECT AND INDIRECT) TRAVEL-RELATED EMPLOYMENT BY COUNTY COUNTY RATE OF GROWTH AUTAUGA % BALDWIN 34,771 36,291 4% BARBOUR % BIBB % BLOUNT % BULLOCK % BUTLER % CALHOUN 1,948 1,731-11% CHAMBERS % CHEROKEE % CHILTON % CHOCTAW % CLARKE % CLAY % CLEBURNE % COFFEE % COLBERT % CONECUH % COOSA % COVINGTON % CRENSHAW % CULLMAN 1,229 1,174-4% DALE % DALLAS 2,438 2,360-3% DEKALB % ELMORE 886 1,132 28% ESCAMBIA % ETOWAH 1,628 1,541-5% FAYETTE % FRANKLIN % GENEVA % GREENE % HALE % HENRY % HOUSTON 2,831 2,872 1% JACKSON % 12

19 TABLE 12 (CONTINUED) TOTAL (DIRECT AND INDIRECT) TRAVEL-RELATED EMPLOYMENT BY COUNTY COUNTY RATE OF GROWTH JEFFERSON 24,722 23,412-5% LAMAR % LAUDERDALE 1,091 1,125 3% LAWRENCE % LEE 2,875 3,311 15% LIMESTONE % LOWNDES % MACON % MADISON 10,343 10, % MARENGO % MARION % MARSHALL 1,359 1, % MOBILE 11,735 11,597-1% MONROE % MONTGOMERY 8,303 9,510 15% MORGAN 2,570 2,398-7% PERRY % PICKENS % PIKE % RANDOLPH % RUSSELL % SHELBY 4,819 4,985 3% ST. CLAIR % SUMTER % TALLADEGA % TALLAPOOSA % TUSCALOOSA 5,592 5,319-5% WALKER % WASHINGTON % WILCOX % WINSTON % OUT OF STATE* 3,260 3,356 3% STATE TOTAL 137, ,097 1% * Hotel and motel chains based outside of pay lump sum lodging taxes for all their facilities. Therefore, a county employment distribution for those facilities cannot be determined. 13

20 TABLE 13 TOTAL TRAVEL-RELATED EMPLOYMENT BY COUNTY ORDERED BY SIZE COUNTY 2002 SHARE OF TOTAL BALDWIN 36, % JEFFERSON 23, % MOBILE 11, % MADISON 10, % MONTGOMERY 9, % TUSCALOOSA 5, % SHELBY 4, % OUT OF STATE* 3, % LEE 3, % HOUSTON 2, % MORGAN 2, % DALLAS 2, % CALHOUN 1, % ETOWAH 1, % MARSHALL 1, % CULLMAN 1, % ELMORE 1, % LAUDERDALE 1, % LIMESTONE % COLBERT % AUTAUGA % RUSSELL % TALLADEGA % PIKE % DEKALB % ST. CLAIR % BUTLER % WALKER % CHILTON % COFFEE % DALE % CLARKE % ESCAMBIA % JACKSON % BARBOUR % COVINGTON % TALLAPOOSA % MARENGO % SUMTER % 14

21 TABLE 13 (CONTINUED) TOTAL TRAVEL-RELATED EMPLOYMENT BY COUNTY ORDERED BY SIZE-2002 COUNTY 2002 SHARE OF TOTAL MACON % MONROE % CHAMBERS % CONECUH % LAWRENCE % BIBB % MARION % FRANKLIN % CHEROKEE % WILCOX % RANDOLPH % BLOUNT % WINSTON % CHOCTAW % GENEVA % HENRY % BULLOCK % FAYETTE % PICKENS % PERRY % COOSA % CLEBURNE % LAMAR % HALE % CRENSHAW % GREENE % CLAY % WASHINGTON % LOWNDES % STATE TOTAL 139, % * Hotel and motel chains based outside of pay lump sum lodging taxes for all their facilities. Therefore, a county employment distribution for those facilities cannot be determined. 15

22 TABLE 14 COUNTIES WITH LARGEST TOTAL EMPLOYMENT GROWTH IN 2002* COUNTY RATE OF GROWTH ELMORE 886 1,132 28% CLARKE % COFFEE % MACON % JACKSON % LEE 2,875 3,311 15% MONTGOMERY 8,303 9,510 15% MARION % AUTAUGA % PIKE % WALKER % BARBOUR % * In order to be included in the list, job growth had to involve 20 or more jobs. Counties with growth percentages in this range, involving less than 20 jobs, included Choctaw, Clay, Coosa, Crenshaw, Greene, and Hale. 16

23 TABLE 15 TRAVEL-RELATED EARNINGS BY COUNTY TOTAL (DIRECT AND INDIRECT) COUNTY RATE OF GROWTH AUTAUGA 13,840,964 16,527,587 19% BALDWIN 634,161, ,594,775 11% BARBOUR 7,008,917 7,865,587 12% BIBB 4,525,073 4,544, % BLOUNT 2,279,302 2,188,522-4% BULLOCK 1,017, ,392-17% BUTLER 11,438,336 11,738,665 3% CALHOUN 35,519,843 33,470,507-6% CHAMBERS 6,841,832 4,834,053-29% CHEROKEE 2,890,181 2,910,606 1% CHILTON 10,809,028 10,351,095-4% CHOCTAW 1,118,363 1,304,486 17% CLARKE 6,810,744 9,040,337 33% CLAY 212, ,690 15% CLEBURNE 654, ,509-23% COFFEE 7,197,716 9,425,756 31% COLBERT 15,822,842 16,613,139 5% CONECUH 4,643,380 4,650, % COOSA 444, ,778 15% COVINGTON 9,491,248 7,747,511-18% CRENSHAW 313, ,471 8% CULLMAN 22,411,850 22,698,944 1% DALE 8,612,074 9,271,202 8% DALLAS 44,462,532 45,626,353 3% DEKALB 13,847,735 13,581,452-2% ELMORE 16,167,875 21,889,032 35% ESCAMBIA 10,113,412 8,827,280-13% ETOWAH 29,683,096 29,795, % FAYETTE 1,164, ,708-28% FRANKLIN 2,936,298 3,251,346 11% GENEVA 1,178,666 1,091,509-7% GREENE 203, ,067 46% HALE 306, ,059 13% HENRY 958,821 1,062,534 11% HOUSTON 51,627,427 55,518,856 8% JACKSON 6,962,500 8,708,768 25% 17

24 TABLE 15 (CONTINUED) TRAVEL-RELATED EARNINGS BY COUNTY 2002 TOTAL (DIRECT AND INDIRECT) COUNTY RATE OF GROWTH JEFFERSON 450,886, ,624, % LAMAR 498, ,332-26% LAUDERDALE 19,906,628 21,755,699 9% LAWRENCE 4,407,992 4,596,486 4% LEE 52,429,735 64,008,019 22% LIMESTONE 16,524,031 17,478,558 6% LOWNDES 29,917 10,441-65% MACON 4,251,835 5,436,467 28% MADISON 188,640, ,577,905 6% MARENGO 7,049,757 7,162,069 2% MARION 3,210,806 3,847,762 20% MARSHALL 24,783,352 26,336,070 6% MOBILE 214,034, ,210,384 5% MONROE 5,864,204 4,844,879-17% MONTGOMERY 151,438, ,858,698 21% MORGAN 46,865,747 46,368,181-1% PERRY 868, ,365-17% PICKENS 876, ,420-6% PIKE 11,875,176 13,866,060 17% RANDOLPH 2,290,250 2,256,443-1% RUSSELL 15,302,243 15,730,852 3% SHELBY 87,886,378 96,380,835 10% ST. CLAIR 11,706,199 12,880,963 10% SUMTER 5,644,733 6,212,357 10% TALLADEGA 17,672,382 15,548,853-12% TALLAPOOSA 7,182,201 7,705,344 7% TUSCALOOSA 101,995, ,836,244 1% WALKER 9,495,920 10,919,415 15% WASHINGTON 261, ,804-14% WILCOX 2,960,190 2,693,970-9% WINSTON 2,231,349 1,939,214-13% OUT OF STATE 59,450,385 64,879,934 9% STATE TOTAL 2,516,202,142 2,689,156,986 7% 18

25 LODGING TAX-SEASONAL AND DESIGNATED DEMOGRAPHIC AREA ANALYSES SEASONAL ANALYSIS - Quarterly lodging tax collections were used to gain insight into the seasonal travel-related activities in each county and at the state level. The results are reported in the graph shown below and in Table 16, on page 20. The graph below, titled Lodging Tax by Quarter-State, illustrates the ratio of the state s quarterly lodging tax collection to its annual lodging tax. According to the graph, the combined second and third quarter period (April through September) appears to be the strongest travel-related season, with almost 60 percent of all state lodging taxes collected during this period. graph also indicates that the first quarter (January through March) and the fourth quarter (October through December) were the least active travel and tourism periods, with 20.3 percent and 19.8 percent, respectively, of state lodging taxes collected during these periods. LODGING TAX BY QUARTER-STATE % 30% 25% 20% 15% 10% 5% 0% 30.0% 29.9% 20.3% 19.8% 1st Q 2nd Q 3rd Q 4th Q Table 16 represents the quarterly fluctuations for the six counties in the state that have the highest levels of travel and tourism. Baldwin County shows the most seasonality in travel and tourism activities. Three-quarters (75 percent) of all 2002 lodging taxes in this county were collected in the second and third quarters. In the second quarter, 35 percent was collected, while the third quarter accounted for 40 percent. Of the six major travel destinations in the state, all showed variations due to seasonality. Baldwin, Madison, Mobile, and Montgomery counties show increased activity in the second and third quarters. Tuscaloosa exhibited increased activity during the second, third, and fourth quarters, while Jefferson showed increased activity in the second quarter. 19

26 TABLE 16 RATIO OF COUNTIES QUARTERLY TO ANNUAL LODGING TAX * 1 ST QUARTER 2 ND QUARTER 3 RD QUARTER 4 TH QUARTER BALDWIN 16% 35% 40% 10% JEFFERSON 23% 28% 25% 24% MADISON 22% 27% 28% 23% MOBILE 21% 34% 24% 21% MONTGOMERY 23% 27% 30% 21% TUSCALOOSA 20% 27% 27% 26% *Quarterly ratios total 100 percent in each row when added horizontally. DESIGNATED DEMOGRAPHIC AREA ANALYSIS - In order to analyze area differences that may exist in terms of travel and tourism activities in, state lodging tax collections were grouped by Metropolitan Statistical Areas (MSAs). At present, there are eleven MSAs in. These MSAs, and their counties, are as follows: ANNISTON AUBURN-OPELIKA BIRMINGHAM DECATUR DOTHAN FLORENCE GADSDEN HUNTSVILLE MOBILE MONTGOMERY TUSCALOOSA CALHOUN LEE JEFFERSON, SHELBY, ST. CLAIR, AND BLOUNT LAWRENCE AND MORGAN DALE AND HOUSTON LAUDERDALE AND COLBERT ETOWAH LIMESTONE AND MADISON MOBILE AND BALDWIN AUTAUGA, ELMORE, AND MONTGOMERY TUSCALOOSA The state lodging tax share, presented by MSA and designated demographic areas, is found in Tables 17 (page 21) and 18 (page 22). Table 17 shows the state lodging tax share of each MSA relative to the total lodging tax for the state. information can be summarized as follows: 86 percent of all the lodging tax in the state is collected in these 11 MSAs. The Mobile MSA is largest in terms of travel-related spending. MSA was second, Huntsville MSA was third, and Montgomery MSA was fourth in terms of travel-related spending. 20

27 In terms of travel-related growth among MSAs in 2002, the areas showing growth were Auburn-Opelika (14 percent), Montgomery (14 percent), and Mobile (6 percent). In Table 18, MSAs are combined to form Designated Demographic Areas. These are as follows: NORTHERN AREA CENTRAL AREA SOUTHERN AREA DECATUR, FLORENCE, AND HUNTSVILLE ANNISTON, AUBURN-OPELIKA, BIRMINGHAM, GADSDEN, MONTGOMERY, AND TUSCALOOSA DOTHAN AND MOBILE Table 18 shows the lodging tax share of each area relative to the state. These results can be summarized as follows: The Southern Area has the largest lodging tax share, with 36.2 percent of the state s total. The Central Area is a close second, in terms of travel and tourism activities, with 36.1 percent of the state s total. The Northern Area is ranked third in comparison to the Central and Southern areas, with a 13.4 percent share of the state s travel and tourism activities. TABLE 17 STATE LODGING TAX: MSA AS A PERCENT OF TOTAL STATE MSAS ANNISTON 1.8% 1.8% 1.8% AUBURN-OPELIKA 2.0% 2.0% 2.3% BIRMINGHAM 21.1% 21.2% 19.3% DECATUR 2.4% 2.4% 2.3% DOTHAN 2.4% 2.3% 2.3% FLORENCE 1.7% 1.7% 1.7% GADSDEN 1.4% 1.4% 1.3% HUNTSVILLE 9.6% 9.5% 9.4% MOBILE 31.8% 32.0% 33.9% MONTGOMERY 6.7% 6.8% 7.8% TUSCALOOSA 3.6% 3.8% 3.6% 21

28 TABLE 18 MSA STATE LODGING TAX BY DESIGNATED DEMOGRAPHIC AREAS AREAS NORTHERN 13.8% 13.6% 13.4% CENTRAL - TOTAL 36.7% 37.1% 36.1% CENTRAL - ANNISTON, 27.9% 28.3% 26.0% BIRMINGHAM, GADSDEN, AND TUSCALOOSA CENTRAL AUBURN-OPELIKA AND MONTGOMERY 8.8% 8.8% 10.1% SOUTHERN 34.2% 34.3% 36.2% 22

29 TABLE 19 TRAVEL-RELATED EXPENDITURES BY COUNTY COUNTY RATE OF CHANGE AUTAUGA 32,674,734 39,322,961 20% BALDWIN 1,497,083,179 1,669,256,641 12% BARBOUR 16,546,138 18,714,056 13% BIBB 10,682,461 10,811,685 1% BLOUNT 6,198,945 5,998,710-3% BULLOCK 2,401,908 2,011,383-16% BUTLER 27,002,785 27,929,006 3% CALHOUN 82,009,670 77,883,841-5% CHAMBERS 16,151,696 11,501,333-29% CHEROKEE 8,439,773 8,566,043 1% CHILTON 25,517,162 24,627,656-3% CHOCTAW 2,640,151 3,103,674 18% CLARKE 16,078,306 21,509,057 34% CLAY 501, ,174 16% CLEBURNE 1,545,744 1,193,207-23% COFFEE 16,991,841 22,426,058 32% COLBERT 44,748,388 47,351,708 6% CONECUH 10,961,752 11,064,736 1% COOSA 1,048,264 1,210,501 15% COVINGTON 24,654,187 20,282,461-18% CRENSHAW 740, ,679 9% CULLMAN 61,426,359 62,700,899 2% DALE 20,330,753 22,058,338 8% DALLAS 104,963, ,555,673 3% DEKALB 38,830,389 38,382,231-1% ELMORE 38,167,935 52,079,083 36% ESCAMBIA 23,875,003 21,002,147-12% ETOWAH 83,395,602 84,366,365 1% FAYETTE 2,750,028 1,985,965-28% FRANKLIN 6,931,797 7,735,707 12% GENEVA 2,782,508 2,596,953-7% GREENE 303, ,305 47% HALE 724, ,734 14% HENRY 2,263,514 2,528,015 12% HOUSTON 121,878, ,092,231 8% JACKSON 19,238,432 24,252,259 26% JEFFERSON 1,058,130,150 1,076,995,852 2% LAMAR 1,176, ,348-26% 23

30 TABLE 19 (CONTINUED) TRAVEL-RELATED EXPENDITURES BY COUNTY COUNTY RATE OF CHANGE LAUDERDALE 57,140,593 62,937,736 10% LAWRENCE 11,794,136 12,394,880 5% LEE 123,772, ,289,918 23% LIMESTONE 45,370,870 48,367,958 7% LOWNDES 70,627 24,841-65% MACON 10,037,421 12,934,616 29% MADISON 529,831, ,775,041 7% MARENGO 16,642,550 17,040,224 2% MARION 9,074,444 10,959,865 21% MARSHALL 69,826,545 74,782,937 7% MOBILE 505,277, ,448,489 6% MONROE 13,843,784 11,527,091-17% MONTGOMERY 369,153, ,755,277 7% MORGAN 128,920, ,551, % PERRY 2,050,391 1,721,054-16% PICKENS 3,160,714 3,003,953-5% PIKE 28,034,047 32,990,571 18% RANDOLPH 5,406,655 5,368,602-1% RUSSELL 36,124,414 37,427,345 4% SHELBY 207,475, ,312,352 11% ST. CLAIR 27,635,137 30,646,797 11% SUMTER 13,325,672 14,780,638 11% TALLADEGA 41,719,666 36,994,327-11% TALLAPOOSA 16,955,215 18,332,801 8% TUSCALOOSA 240,783, ,671,269 2% WALKER 22,417,272 25,979,820 16% WASHINGTON 616, ,482-14% WILCOX 6,988,201 6,409,579-8% WINSTON 5,267,605 4,613,839-12% OUT OF STATE 140,346, ,349,003 10% STATE TOTAL 6,120,850,646 6,541,559,349 7% 24

31 NORTH ALABAMA TOURISM ASSOCIATION AREA ANALYSIS A comparison of tourism growth between the North Tourism Association (NATA) area and the State of is provided below. TOTAL EXPENDITURES GROWTH NATA AREA 1,126,436,047 1,189,737,547 6% STATE OF ALABAMA 6,120,850,646 6,541,559,349 7% PERCENTAGE OF STATE TOTAL 18% 18% TRAVEL-RELATED EMPLOYMENT GROWTH TOTAL DIRECT AND INDIRECT NATA AREA 22,119 21,860-1% STATE OF ALABAMA 137, ,097 1% PERCENTAGE OF STATE TOTAL 16% 16% DIRECT NATA AREA 14,834 14,662-1% STATE OF ALABAMA 92,530 93,294 1% PERCENTAGE OF STATE TOTAL 16% 16% TRAVEL-RELATED EARNINGS GROWTH NATA AREA 403,404, ,647,718 5% STATE OF ALABAMA 2,516,202,142 2,689,150,512 7% PERCENTAGE OF STATE TOTAL 16% 16% 25

32 TABLE 20 ANNUAL STATE LODGING TAX COUNTY DOLLAR INC./DECR. CHANGE AUTAUGA 154, ,653 31,388 20% BALDWIN 7,003,223 8,236,184 1,232,961 18% BARBOUR 78,118 88,353 10,235 13% BIBB 52,374 53, % BLOUNT* 32,662 31,607-1,055-3% BULLOCK 11,776 9,861-1,915-16% BUTLER 125, ,462 4,294 3% CALHOUN ± 525, ,509 27,778 5% CHAMBERS 76,968 54,808-22,160-29% CHEROKEE* 41,025 41, % CHILTON 120, ,273-4,199-3% CHOCTAW 12,944 15,217 2,273 18% CLARKE 75, ,549 25,640 34% CLAY 2,459 2, % CLEBURNE 7,578 5,850-1,728-23% COFFEE 82, ,904 26,390 32% COLBERT* 220, ,267 12,825 6% CONECUH 53,743 54, % COOSA 5,139 5, % COVINGTON 106,774 87,840-18,934-18% CRENSHAW 3,630 3, % CULLMAN* 306, ,924 6,361 2% DALE 95, ,142 8,156 8% DALLAS 495, ,516 16,958 3% DEKALB* 198, ,147-2,290-1% ELMORE 187, ,334 68,204 36% ESCAMBIA 117, ,970-14,085-12% ETOWAH* 417, ,266 4,859 1% FAYETTE 13,483 9,737-3,746-28% FRANKLIN* 42,077 46,957 4,880 12% GENEVA 13,642 12, % GREENE 2,336 3,432 1,096 47% HALE 3,516 4, % HENRY 11,098 12,394 1,296 12% HOUSTON 575, ,637 48,222 8% The state lodging tax rate is 4 percent, except for counties in the NATA area. * Denotes the North Tourism Association area counties with a 5 percent rate. ± Denotes areas where local lodging tax data were used for the economic model due to inconsistent trends in state lodging tax data. These inconsistencies result from the Department of Revenue collection procedures that allow tax revenues from lodging establishments with out-of-state corporate offices to be categorized as "out-of-state" revenues, rather than as revenues collected from the county in which the lodging establishment is located. 26

33 TABLE 20 (CONTINUED) ANNUAL STATE LODGING TAX COUNTY DOLLAR INC./DECR CHANGE JACKSON* ± 120, ,454 24,270 20% JEFFERSON ± 5,066,126 4,851, ,172-4% LAMAR 5,768 4,297-1,471-26% LAUDERDALE* 274, ,672 27,879 10% LAWRENCE* 63,166 66,384 3,218 5% LEE 584, , ,638 23% LIMESTONE* 226, ,956 14,930 7% LOWNDES % MACON 49,212 63,416 14,204 29% MADISON* 2,557,097 2,740, ,123 7% MARENGO 81,595 83,545 1,950 2% MARION* 46,011 55,570 9,559 21% MARSHALL* ± 372, ,174-13,488-4% MOBILE 2,342,154 2,472, ,585 6% MONROE 67,873 56,515-11,358-17% MONTGOMERY ± 1,657,177 2,027, ,537 22% MORGAN* 646, ,088-1, % PERRY 9,957 8,358-1,599-16% PICKENS 10,143 9, % PIKE 137, ,747 24,301 18% RANDOLPH 26,508 26, % RUSSELL 170, ,703 6,151 4% SHELBY 970,553 1,072, ,150 11% ST. CLAIR 135, ,255 14,765 11% SUMTER 64,711 71,777 7,066 11% TALLADEGA 195, ,056-22,105-11% TALLAPOOSA 83,128 89,882 6,754 8% TUSCALOOSA 1,116,124 1,134,146 18,022 2% WALKER 109, ,374 17,466 16% WASHINGTON 3,023 2, % WILCOX 33,615 30,832-2,783-8% WINSTON* 31,975 28,007-3,968-12% OUT OF STATE 688, ,744 68,653 10% STATE TOTAL 29,220,488 31,593,150 2,372,662 8% The state lodging tax rate is 4 percent, except for counties in the NATA area. * Denotes the North Tourism Association area counties with a 5 percent rate. ± Denotes areas where local lodging tax data were used for economic model due to inconsistent trends in state lodging tax data. These inconsistencies result from the Department of Revenue collection procedures that allow tax revenues from lodging establishments with out-of-state corporate offices to be categorized as "out-of-state" revenues, rather than as revenues collected from the county in which the lodging establishment is located. 27

34 COUNTY-BY-COUNTY ANALYSIS In 2002, as shown in Table 21, below, several counties experienced an increase in state lodging tax revenues from There were 28 counties that had a state lodging tax growth rate equal to or larger than the overall state rate of 8 percent. TABLE 21 COUNTIES WITH INCREASES IN STATE LODGING TAX LARGER THAN STATE GROWTH RATE COUNTY INCREASE GREENE 47% ELMORE 36% CLARKE 34% COFFEE 32% MACON 29% LEE 23% MONTGOMERY 22% MARION 21% AUTAUGA 20% JACKSON 20% PIKE 18% BALDWIN 18% CHOCTAW 18% CLAY 16% WALKER 16% COOSA 15% HALE 14% BARBOUR 13% HENRY 12% FRANKLIN 12% SUMTER 11% ST. CLAIR 11% SHELBY 11% LAUDERDALE 10% CRENSHAW 9% DALE 8% HOUSTON 8% TALLAPOOSA 8% 28

35 COUNTIES WITH ANNUAL INCREASES The following is a summary for each county that experienced an increase in state lodging tax from 2001 to Local organizations provided the reasons for increases. Autauga County a 20 percent increase ($ 31,388) was attributed to the many meetings and conventions held in the area, including those that occurred at the Legends at Capitol Hill Conference Center. Also contributing to the increase were tourists coming to the area to fish, and out-of-town construction crews staying in area motels while working on the construction of the Tenaska and Southern Company power plants. Baldwin County an 18 percent increase ($ 1,232,961) was attributed to increased marketing of area attractions by the local convention and visitors bureau and to changes in the regulations regarding the extended stay exemption for state lodging tax. The lodging tax exemption for rooms, lodging, or accommodations supplied for a period of 30 continuous days, or more, in any one place, changed to a length of stay of 180 continuous days, or more, in any one place. The tax rule change affected the snowbirds who come to stay for extended periods in the area s accommodations during the winter months. Barbour County a 13 percent increase ($ 10,235) was attributed to numerous fishing tournaments that occurred in the area, including a B.A.S.S. Bassmasters fishing tournament in May 2002, two Dixie Youth World Series baseball tournaments, several state swim meets, and to irregular payments of lodging tax by a local establishment. Butler County a 3 percent increase ($ 4,294) was partially attributed to increased numbers of Interstate 65 travelers who stayed in the county s motels while passing through the area. Calhoun County a 5 percent increase ($ 27,778) was attributed to numerous archery tournaments, including the ASA Regional Archery Tournament in March 2002, the Anniston Army Depot Making Tracks and Enduring Freedom 5K Run/Walk, also held in March 2002, many area convention and business meetings, and to outof-town construction crews who stayed in local motels while working on projects in the county. Colbert County a 6 percent increase ($ 12,825) was attributed to out-of-town construction workers staying in area motels while working on industrial expansion and pipeline projects. Good attendance at the Hellen Keller and the Miracle Worker play also contributed to the increase. 29

36 Conecuh County a 1 percent increase ($ 505) was partially attributed to a new truck stop/travel center at Evergreen s Interstate 65 exit. Several motels located near the travel center provide potential lodging for the truck drivers who stop there. Cullman County a 2 percent increase ($ 6,361) was attributed to numerous sports tournaments that occurred in the county, to family reunions and weddings that brought out-of-town guests to the area, and to the start of collection of state lodging tax by the Cullman County Parks and Recreation Department for its campgrounds and cabins. Dale County an 8 percent increase ($ 8,156) was attributed to increased numbers of car travelers who stayed in local motels as they passed through the county, to the Dixie Bells state softball playoffs, to major construction projects that brought out-oftown construction workers to the area, and to local events such as an air show in May 2002 and golf tournaments in June and July of Dallas County a 3 percent increase ($ 16,958) was partially attributed to numerous reunions, weddings, and graduations that occurred in May 2002, and to irregularities in payment of state lodging tax by local establishments during several months of Elmore County a 36 percent increase ($ 68,204) was attributed to numerous area fishing tournaments that occurred throughout 2002, to Frontier Days at Fort Toulouse in November 2002 and to area constructions projects, including a new Wal- Mart Supercenter, that brought out-of-town construction workers to the county. Etowah County a 1 percent increase ($ 4,859) was attributed to many area events, such as the second annual Southern Thunder Dragboat Race and in July 2002, the 450-mile Yard Sale in August 2002, Attalla Heritage Day and Noccalula Falls Blue Grass in the Park and Children s Hoedown in October 2002 and the Christmas on the Rocks light display at Noccalula Falls in November/December Franklin County a 12 percent increase ($ 4,880) was attributed to local events such as the USSA Baseball tournaments held in April, June, and August of 2002, the Watermelon in August 2002, and to high school football playoff games that occurred in November Henry County a 12 percent increase ($ 1,296) was attributed to out-of-town construction crews coming to the area while working on projects such as the construction of a new Fred s store. A tornado in November 2002 brought many outof-town people to the area, such as Red Cross personnel and additional construction crews. Houston County an 8 percent increase ($ 48,222) was attributed to numerous sporting events that brought out-of-town teams and visitors to the area, many large 30

37 conferences, and to out-of-town workers coming to the county due to a scheduled maintenance shutdown at Farley Nuclear Plant. Jackson County a 20 percent increase ($ 24,270) was attributed to numerous fishing tournaments held throughout the year and to local construction projects that brought out-of-town workers to the area. Lauderdale County a 10 percent increase ($ 27,879) was attributed to many large conferences held at the Florence Conference Center, to fishing tournaments, and to numerous local events, such as the Florence Wagon Works Celebration, Recall LaGrange, Arts Alive, the Helen Keller, and the W.C. Handy Music. Lee County a 23 percent increase ($ 134,638) was attributed to the opening of the Hilton Garden Inn in late 2001, to area construction projects that brought out-of-town construction crews to the area, to a Dixie Youth Baseball state tournament in August 2002, and to Auburn University home football games. A 36 percent increase in November 2002 was attributed to the -Auburn football game being played in Auburn that year. Limestone County a 7 percent increase ($ 14,930) was attributed to out-of-town construction crews coming to the county to prepare for the reopening of the Unit One reactor of Browns Ferry Nuclear Plant and to increased numbers of Interstate 65 travelers staying in the county s motels as they drove through the area. Madison County a 7 percent increase ($ 183,123) was attributed to many events held in the area during the year, such as the Huntsville Ham Fest amateur radio gettogether, the Christian Congregation of Jehovah s Witnesses Convention, and to home football games at A&M University. Marengo County a 2 percent increase ($ 1,950) was attributed to numerous meetings, conventions, and family reunions held during the year that brought in additional overnight lodgers to stay in area motels. Mobile County a 6 percent increase ($ 130,585) was attributed to numerous conventions held in downtown Mobile, to the many Mobile Tricentennial events held during the year, to the annual Mardi Gras celebration, and to the China! 7000 years of Innovation exhibit at the Gulf Coast Exploreum. Montgomery County a 22 percent increase ($ 370,537) was attributed to many local meetings, conventions, and events held during the year that brought out-of-town guests to the area, such as the Hyundai plant ground breaking ceremony. Other events bringing visitors to the area included the American Business Women s Association meeting in April 2002, the Travel Media Showcase tradeshow in June 2002, and to other events related to the construction of the Hyundai plant in the county. 31

38 Pike County an 18 percent increase ($ 24,301) was attributed to out-of-town workers staying in area motels while working on the construction of a Wal-Mart distribution center in Brundidge. Russell County a 4 percent increase ($ 6,151) was attributed to overflow lodgers who stayed at area motels while attending graduation ceremonies and other events at the military base in Fort Benning, Georgia or while attending sporting events at Auburn University. Local events, such as the East Motorspeedway Race in November 2002 and the Night of Lights in December 2002, also contributed to the increase. Shelby County an 11 percent increase ($ 102,150) was attributed to many events that brought out-of-town guests to the county, including the Montevallo Madness Soccer Tournament in April, the B.A.S.S. Bassmasters Classic fishing tournament in July, the GC Cycling Stage Race in August, and to overflow lodgers who attended the race events at the Talladega Superspeedway. Ongoing construction projects also contributed to the increase. St. Clair County an 11 percent increase ($ 14,765) was attributed to area construction projects, such as a Wal-Mart store project in Pell City, that brought outof-town workers to the county. Tallapoosa County an 8 percent increase ($ 6,754) was attributed to the many fishing tournaments that were held in the area during 2002, to overflow lodgers who attended the race events at the Talladega Superspeedway, to local events, such as band competitions and an Oktoberfest celebration, and to local construction projects. Tuscaloosa County a 2 percent increase ($ 18,022) was attributed to many conventions that occurred during 2002, to the Governor s One-Shot Turkey Shoot in March 2002, and to University of home football games and other sporting events which brought out-of-town sports fans and athletes to the area. Walker County a 16 percent increase ($ 17,466) was partially attributed to a tornado that occurred during the first quarter of Many out-of-town workers from the American Red Cross and other relief agencies came to the area, as well as numerous work crews who assisted with clean-up and rebuilding. COUNTIES WITH MONTHLY INCREASES Chambers County a 25 percent increase in October 2002 was attributed to a Bass Fishing League tournament. Chilton County a 28 percent increase in January 2002 and a 27 percent increase in September 2002 were attributed to increased numbers of highway travelers staying at motels located at the Interstate 65 exits in the county and to out-of-town 32