The Economic Impact of Travel on Louisiana Parishes 2004

Transcription

1 The Economic Impact of Travel on Louisiana Parishes 2004 A Study Prepared for the Louisiana Office of Tourism by the Research Department of the Travel Industry Association of America Washington, D.C. August 2005

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3 Preface PREFACE This study was conducted by the research department of the Travel Industry Association of America (TIA) for the Louisiana Office of Tourism. The study provides preliminary 2004 and 2003 estimates of domestic and international traveler expenditures in Louisiana, as well as the employment, payroll income, and federal, state and local tax revenue directly generated by these expenditures. Additionally, this study provides estimates by parish for domestic travel expenditures and employment, payroll income, and state and local tax revenue directly generated by domestic expenditures. Travel Industry Association of America Washington, D.C. August 2005

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5 Table of Contents TABLE OF CONTENTS INTRODUCTION...1 EXECUTIVE SUMMARY TRAVEL IMPACT ON U.S. ECONOMY...3 DIRECT TRAVEL IMPACT ON THE UNITED STATES IN 2004 (PRELIMINARY)...9 TRAVEL IMPACT ON LOUISIANA TRAVEL EXPENDITURES...10 TRAVEL-GENERATED PAYROLL...12 TRAVEL-GENERATED EMPLOYMENT...14 TRAVEL-GENERATED TAX REVENUE DOMESTIC TRAVEL IMPACT ON LOUISIANA PARISHES...18 PARISH TABLES...20 APPENDICES...37 APPENDIX A: TRAVEL ECONOMIC IMPACT MODEL...38 APPENDIX B: GLOSSARY OF TERMS...42 APPENDIX C: TRAVEL-RELATED INDUSTRY MEASUREMENT...43 APPENDIX D: SOURCES OF DATA...46 APPENDIX E: TOP 5 INDUSTRIES BY PAYROLL AND EMPLOYMENT IN LOUISIANA, APPENDIX F: SHARE OF DOMESTIC TRAVEL EXPENDITURES IN THE SOUTH REGION BY STATE,

6 List of Tables LIST OF TABLES Table 1: U.S. Domestic Travel Expenditures by Primary Purpose of Trip... 4 Table 2: Travel Expenditures in the U.S Table 3: Travel-Generated Employment in the U.S., Table 4: Overall U.S. Economic Developments, Table 5: U.S. Travel Trends, p...8 Table 6: Travel Expenditures in Louisiana by Industry Sector, Table 7: Travel-Generated Payroll in Louisiana by Industry Sector, Table 8: Travel-Generated Employment in Louisiana by Industry Sector, Table 9: Travel-Generated Tax Revenue in Louisiana by Level of Government, Table 10: Domestic Travel Impact in Louisiana - Top 5 Parishes, Table A: Alphabetical by Parish, Table B: Ranking of Parishes by Expenditure Levels, Table C: Percent Distribution by Parish, Table D: Percent Change over Table E: Alphabetical by Parish,

7 Introduction INTRODUCTION This report presents preliminary 2004 and 2003 estimates of the impact of U.S. resident and international traveler spending in Louisiana, as well as the employment, payroll income and tax revenue directly generated by this spending. These estimates are produced through the County/City Travel Economic Impact Model, a computerized economic model producing estimates of travel spending at the county level, and its impact on employment, wage and salary (payroll) income and federal, state and local tax revenues. The County/City Travel Economic Impact Model is an extension of TIA's Travel Economic Impact Model (TEIM) initially developed in 1975 for the U.S. Department of the Interior to indicate the economic value of travel and tourism to states and parishes. The original TEIM has been revised substantially based upon more accurate and targeted input data available from governments and the private sector. The TEIM is based upon national travel surveys conducted by TIA and expenditure data developed by the Bureau of the Census, TIA, various federal agencies and national travel organizations each year. A description of the TEIM and the county impact model is provided in Appendix A. The following estimates of travel's economic impact in Louisiana are based upon the most recent version of the TEIM and data available from the U.S. Census Bureau and other sources, including international visitor statistics from OTTI/ITA, U.S. Department of Commerce. U.S. residents traveling in Louisiana includes both state residents and out-of-state visitors traveling away from home overnight in paid accommodations, or on day trips to places 50 miles or more away from home during Travel commuting to and from work; travel by those operating an airplane, bus, truck, train or other form of common carrier transportation; military travel on active duty; and travel by students away at school, are all excluded from the model. In addition, the payroll and employment estimates represent impact generated in the private sector and exclude public-supported payroll and employment. Starting in 2003, TIA s TravelScope has been modified to capture more information from traveling households. This resulted in an overall increase in travel volume and adjustment of the travel economic impact estimates. Based on this change, travel economic impact estimates for 2003 have been revised as well as Since additional data relating to travel and its economic impact in 2004 will become available subsequent to this study, TIA reserves the right to revise these estimates in the future. 1

8 Executive Summary EXECUTIVE SUMMARY Domestic and international travelers directly spent almost $10 billion in Louisiana during 2004, a 5.8 percent increase from Domestic and international travel-generated employees earned more than $2 billion in wage and salary income during 2004, up 2.6 percent compared to Domestic and international travel spending directly generated thousand jobs within Louisiana in 2004, up 1.1 percent from On average, every $82,204 spent in Louisiana by domestic and international travelers generated one job in Without these jobs, Louisiana s 2004 unemployment rate would have been 11.6 percent, or 5.9 percent higher than it was. Domestic and international traveler spending in Louisiana directly generated nearly $1.3 billion in tax revenue for federal, state and local governments in 2004, up 4.0 percent from

9 2004 Travel Impact on U.S. Economy 2004 TRAVEL IMPACT ON U.S. ECONOMY The U.S. economy turned in its best performance in five years in 2004, with real GDP increasing 4.2 percent. Real disposable income and real personal consumption expenditures both rose significantly, 3.4 percent and 3.9 percent, respectively. The U.S. job market also improved during 2004 as annual average total nonfarm employment increased nearly 1.5 million from 2003 to million. This reduced the national unemployment rate to 5.5 percent, onehalf point lower than in The travel industry itself added 72 thousands jobs in 2004 as compared to The Consumer Price Index (CPI), an indicator of the level of price inflation, remained relatively moderate up 2.7 percent in 2004, while TIA s Travel Price Index increased 4.5 percent during the same period, primarily due to a significant increase in the price of gasoline. The total U.S. current account deficit rose to a record high of $666 billion in The U.S. travel industry, however, generated a $5.8 billion trade surplus for the country in Stimulated by the strong economy, domestic travel volume (total person-trips) increased 2.1 percent in 2004 and domestic travel expenditures rose even more at 6.8 percent. After three consecutive years of declines, international travel to the U.S. began to recover, reflecting appreciating currencies in many of the United States key origin markets. International traveler spending jumped nearly 16 percent from 2004, largely due to a sharp increase of international arrivals. U.S. Travel Volume in 2004 In 2004, total U.S. domestic person-trips were up 2.1 percent over 2003, according to TIA s TravelScope survey. Leisure person-trips grew at slower pace than in the past few years, rising 1.4 percent. Business/convention travel, however, began its long-awaited recovery, increasing 5.0 percent percent, the first increase posted since International visitors to the U.S. increased 11.8 percent in 2004 to 46.1 million. International travel to the U.S., however, remained 10.1 percent lower than its historical record set in Travel Expenditures in 2004 Domestic travelers spent more than $524.4 billion in the U.S. during 2004, an increase of 6.8 percent over International traveler expenditures in the U.S., excluding spending on international airfares purchased outside the U.S., increased more than twice as much, up 15.9 percent to total $74.8 billion in Combined domestic and international travel expenditures in the U.S. totaled $599.2 billion, 7.9 percent more than in In fact, 2004 travel expenditures were 8.8 percent higher than in 2001, the most challenging year ever in U.S. travel industry history. And, for the first time since 9/11, total U.S. travel expenditures exceeded the historical record of $580.8 billion set in Total domestic leisure travel spending reached $355.4 billion, up 5.3 percent over Spending by domestic business/convention travelers increased dramatically, up 10.1 percent to $169 billion. Domestic business travelers spending accounted for about one-third of total domestic travel spending in

10 2004 Travel Impact on U.S. Economy Change in Total Domestic and International Travel Spending in the U.S % 12% 8% 4% 0% -4% -8% % change from previous year 7.6% 7.9% 7.2% 6.3% 6.0% 4.5% 5.3% 2.8% 3.6% % -5.1% Sources: TIA, OTTI Table 1: U.S. Domestic Travel Expenditures by Primary Purpose of Trip U.S. Domestic U.S. Domestic Percent Change Travel Spending Travel Spending Over 2003 ($ Billions) ($ Billions) (%) Leisure Travelers $355.4 $ % Business Travelers $169.0 $ % Total $524.4 $ % Sources: TIA, OTTI Domestic travel spending on auto transportation jumped 12.4 percent over 2003, to $92.6 billion, reflecting the dramatic increase in gasoline prices during Total domestic air passenger enplanements were up 4.8 percent from 2003 and international air passenger enplanements jumped 13.9 percent in 2004, according to the Air Transport Association (ATA). In 2004, Amtrak reported a 2.6 percent increase in ridership. This growth in demand contributed to the 4.9 percent increase in public transportation expenditures in Domestic travel spending on lodging increased 7.0 percent over Hotel room demand (hotel room-nights sold) grew 5.4 percent, according to Smith Travel Research. 4

11 2004 Travel Impact on U.S. Economy Table 2: Travel Expenditures in the U.S Travel Spending Travel Spending Percent Change in The U.S. in The U.S. Over 2003 Industry Sector ($ Billions) ($ Billions) (%) Public Transportation $100.8 $ % Auto Transportation % Lodging % Foodservice % Entertainment % General Retail % Domestic Total $524.4 $ % International Total* $74.8 $ % Total $599.2 $ % Source: TIA * Total international traveler spending does not include international passenger fare payments, international traveler spending in the U.S. territories, and Canadian traveler spending not allocated to states. Travel Employment in 2004 Nearly 1.5 million jobs were added to the non-farm sector of the strengthening U.S. economy in 2004, a 1.1 percent up from 2003, according to the U.S. Bureau of Labor Statistics (BLS). This reduced the national unemployment rate fell to 5.5 percent from 6.0 percent in Employment generated by domestic and international traveler spending in the U.S. increased 1.0 percent during Examining just employment related to domestic travel expenditures, the greatest gain occurred in the entertainment/recreation sector, with employment up 1.1 percent. Employment related to auto transportation and lodging increased 0.8 percent each in Employment generated by domestic travel in the travel planning sector (i.e., the travel agent and travel arrangement industry), however, declined 4.1 percent in 2004, the most severe decline among all travel industry sectors. Employment in the public transportation sector (composed primarily of the airline industry) continued to decline as well, down 2.3 percent from

12 2004 Travel Impact on U.S. Economy Table 3: Travel-Generated Employment in the U.S., Travel-Generated Travel-Generated Percent Change Employment Employment Over 2003 Industry Sector (Thousands) (Thousands) (%) Public Transportation % Auto Transportation % Lodging 1, , % Foodservice 2, , % Entertainment 1, , % General Retail % Travel Planning % Domestic Travelers 6, , % International Travelers* % Total 7, , % Sources: TIA, BLS * Excludes jobs generated by international passenger fare payments, international traveler spending in the U.S. territories, and Canadian traveler spending not allocated to states. 6

13 Overall U.S. Economic Developments, Table 4: Overall U.S. Economic Developments, Sector Nominal gross domestic product ($ billions) $10,469.6 $10,971.2 $11,734.3 Real gross domestic product ($ billions)* $10,048.8 $10,320.6 $10,755.7 Total retail sales ($ billions) $3,141.5 $3,275.4 $3,521.7 Real disposable personal income ($ billions)* $7,562.2 $7,741.8 $8,004.3 Real personal consumption expenditures $7,099.3 $7,306.6 $7,588.6 ($ billions)* Consumer price index** Travel Price Index** Non-farm payroll employment (millions) Unemployment rate (%) Percentage change from previous year Nominal gross domestic product 3.4% 4.8% 7.0% Real gross domestic product 1.6% 2.7% 4.2% Total retail sales 2.3% 4.3% 7.5% Real disposable personal income 3.1% 2.4% 3.7% Real personal consumption expenditures 2.7% 2.9% 3.9% Consumer price index 1.6% 2.3% 2.7% Travel Price Index -0.3% 2.4% 4.5% Non-farm payroll employment -1.1% -0.3% 1.1% Sources: U.S. Dept. of Commerce, U.S. Dept. of Labor, U.S. Census Bureau, TIA * Chained 2000 dollars ** Base period: =100 7

14 U.S. Travel Trends, Table 5: U.S. Travel Trends, p Category p Total U.S. resident person-trips (millions) 1, , , , ,163.9 Total international visitors (millions) U.S. travel expenditures ($ billions) $498.4 $479.0 $473.6 $490.9 $524.4 International travel expenditures in the U.S. * ($ billions) $82.4 $71.9 $66.7 $64.5 $74.8 Travel price index Travel-generated employment** (thousands) 7,701 7,596 7,366 7,260 7,332 Percentage change from previous year Total U.S. resident person-trips 1.0% 2.0% 0.4% 1.2% 2.1% Total international visitors 5.6% -8.4% -7.1% -5.4% 11.8% U.S. travel expenditures 6.7% -3.9% -1.1% 3.7% 6.8% International travel expenditures in the U.S. * 10.2% -12.8% -7.2% -3.3% 15.9% Travel price index 6.1% 1.1% -0.3% 2.4% 4.5% Travel-generated employment** 2.9% -1.4% -3.0% -1.4% 1.0% Sources: TIA, Office of Travel and Tourism Industries (OTTI)/International Trade Administration, BLS, BEA Note: * Total international traveler spending does not include international passenger fare payments, international traveler spending in the U.S. territories, and Canadian traveler spending not allocated to states. ** Includes employment generated by both domestic and international traveler expenditures 8

15 Direct Travel Impact on the United States in 2004 Direct Travel Impact in the United States in 2004 Direct Travel Impact on the United States in 2004 (Preliminary) Travel Expenditures $599.2 Billion Gross Receipts Tax Sales Tax Excise Tax Property Tax Business Receipts Corporate Taxes Payroll $163.3 Billion Payroll Taxes Tax Revenue $99.4 Billion Employees 7.3 Million Source: TIA Note: International visitor spending excludes international transportation payments on U.S. air carriers made outside of the U.S. 9

16 Travel Impact On Louisiana TRAVEL IMPACT ON LOUISIANA Travel Expenditures Domestic and international travelers in Louisiana spent nearly $10 billion on transportation, lodging, food, entertainment and recreation and incidentals during 2004, up 5.8 percent from Total domestic traveler expenditures increased 5.3 percent from 2003 to $9.5 billion. Domestic traveler spending on foodservice was the largest expenditure category, totaling nearly $2.4 billion, 25.1 percent of the state total. This represented an increase of 5.1 percent from The auto transportation sector brought in $1.9 billion during 2004, a 9.0 percent increase from This represents 20.1 percent of the state domestic total and reflects the rapid increase in gasoline prices. Domestic traveler spending on lodging increased 6.1 percent from 2003, to nearly $1.8 billion. Domestic Travel Expenditures in Louisiana by Industry Sector, 2004 Entertainment & Recreation 17.8% General Retail Trade 8.9% Public Transportation 9.4% Auto Transportation 20.1% Foodservice 25.1% Lodging 18.7% 1. Foodservice sector includes restaurants, grocery stores and other eating and drinking establishments. 2. Lodging sector consists of hotels and motels, campgrounds, and ownership or rental of vacation or second homes. 3. Public transportation sector comprises air, intercity bus, rail, boat or ship, and taxicab or limousine service. 4. Auto transportation sector includes privately-owned vehicles that are used for trips (e.g., automobiles, trucks, campers or other recreational vehicles), gasoline stations, and automotive rental. 5. General retail trade sector includes gifts, clothes, souvenirs, and other incidental retail purchases. 6. Entertainment and recreation sector includes such items as golf, skiing and gaming. 10

17 Travel Expenditures Table 6: Travel Expenditures in Louisiana by Industry Sector, Expenditures Total % of ($ millions) Domestic Total Public Transportation $ % Auto Transportation 1, % Lodging 1, % Foodservice 2, % Entertainment & Recreation 1, % General Retail Trade % Domestic 9, % International Total* $9, Expenditures Public Transportation $ % Auto Transportation 1, % Lodging 1, % Foodservice 2, % Entertainment & Recreation 1, % General Retail Trade % Domestic 9, % International Total* $9,418.6 Percentage change 2004 over 2003 Public Transportation 3.2% Auto Transportation 9.0% Lodging 6.1% Foodservice 5.1% Entertainment & Recreation 3.5% General Retail Trade 2.4% Domestic 5.3% International 17.0% Total* 5.8% Source: TIA Note: * Total domestic expenditures and percent change from previous year may not match those in parish tables due to rounding. 11

18 Travel Impact On Louisiana TRAVEL IMPACT ON LOUISIANA 2004 Travel-Generated Payroll Travel-generated payroll is the wage and salary income paid to employees directly serving travelers within the industry sectors from which these travelers purchase goods and services. One dollar of travel spending generates different amounts of payroll income within the various travel industry sectors depending on the labor content and the wage structure of each sector. Payroll (wages and salaries) paid by Louisiana travel-related firms and directly attributable to domestic and international traveler spending totaled $2 billion in 2004, up 2.6 percent from On average, every dollar spent by domestic and international travelers produced nearly 21 cents in wage and salary income for Louisiana residents during Although the foodservice industry posted the largest payroll generated by domestic traveler spending at $556.6 million, it only increased 0.3 percent from Payroll generated by domestic travelers in the entertainment & recreation sector ranked second with $526.6 million, up 3.6 percent from The lodging sector followed entertainment & recreation with $380.9 million, up 4.5 percent from 2003, the largest increase among seven industries investigated. Domestic Travel-Generated Payroll in Louisiana by Industry Sector, 2004 General Retail Trade 4.9% Entertainment Recreation& 26.9% Travel Planning 1.5% Foodservice 28.5% Public Transportation 13.7% Auto Transportation 5.1% Lodging 19.5% 12

19 Travel-Generated Payroll Table 7: Travel-Generated Payroll in Louisiana by Industry Sector, Payroll Total ($ millions) % of Domestic Total Public Transportation $ % Auto Transportation % Lodging % Foodservice % Entertainment & Recreation % General Retail Trade % Travel Planning* % Domestic 1, % International 93.3 Total** $2, Payroll Public Transportation $ % Auto Transportation % Lodging % Foodservice % Entertainment & Recreation % General Retail Trade % Travel Planning* % Domestic 1, % International 82.3 Total ** $1,997.3 Percentage change 2004 over 2003 Public Transportation 1.2% Auto Transportation 1.6% Lodging 4.5% Foodservice 0.3% Entertainment & Recreation 3.6% General Retail Trade 0.5% Travel Planning* 0.0% Domestic 2.2% International 13.5% Total** 2.6% Source: TIA Notes: *Refers to payroll income that goes to travel agents, tour operators, and other travel service employees who arrange passenger transportation, lodging, tours and other related services; ** Total domestic payroll and percent change from previous year may not match those in parish tables due to rounding. 13

20 Travel Impact On Louisiana TRAVEL IMPACT ON LOUISIANA Travel-Generated Employment Travel and tourism have been important to the Louisiana economy due to the large number of businesses and jobs supported. These jobs include a large number of executive and managerial positions, as well as service-oriented occupations. During 2004, domestic and international traveler spending in Louisiana generated thousand jobs, up 1.1 percent against On average, every $82,204 spent by domestic and international travelers in Louisiana directly supported one job in It is important to note that these thousand travel-related jobs composed 6.3 percent of total non-agricultural employment in Louisiana during Without these jobs generated by domestic and international travel, Louisiana s 2004 unemployment rate of 5.7 percent would have been 5.9 percentage points higher than it was, or 11.6 percent of the labor force. The foodservice sector, including restaurants and other eating and drinking places, provided more jobs generated by domestic traveler spending than any other industry sector, accounting for 49 thousand jobs, 42.2 percent of the state domestic total. The labor-intensiveness of these businesses and the large proportion of travel expenditures spent on food service contribute to the importance of this sector. The entertainment & recreation sector ranked second with 25.6 thousand jobs generated by domestic traveler spending in Entertainment Recreation& 22.1% Domestic Travel-Generated Employment in Louisiana by Industry Sector, 2004 General Retail Trade 4.8% Travel Planning 1.1% Public Transportation 6.2% Auto Transportation 4.2% Lodging 19.4% Foodservice 42.2% 14

21 Travel-Generated Employment Table 8: Travel-Generated Employment in Louisiana by Industry Sector, Employment Total (thousands) % of Domestic Total Public Transportation % Auto Transportation % Lodging % Foodservice % Entertainment & Recreation % General Retail Trade % Travel Planning* % Domestic % International 5.2 Total** Employment Public Transportation % Auto Transportation % Lodging % Foodservice % Entertainment & Recreation % General Retail Trade % Travel Planning* % Domestic % International 4.6 Total** Percentage change 2004 over 2003 Public Transportation -1.5% Auto Transportation -1.2% Lodging 1.2% Foodservice 0.7% Entertainment & Recreation 1.2% General Retail Trade 0.5% Travel Planning* 0.0% Domestic 0.7% International 11.8% Total** 1.1% Source: TIA Notes: * Refers to jobs created in travel arrangement firms such as travel agencies, wholesale and retail tour companies, and other travel-related service businesses; ** Total domestic employment and percent change from previous year may not match those in parish tables due to rounding. 15

22 Travel Impact On Louisiana TRAVEL IMPACT ON LOUISIANA Travel-Generated Tax Revenue Travel tax receipts are the federal, state and local tax revenues attributable to travel spending in Louisiana. Travel-generated tax revenue is a significant economic benefit, as governments use these funds to support the travel infrastructure and help support a variety of public programs. Domestic and international traveler spending in Louisiana generated nearly $1.3 billion tax revenue for federal, state and local governments during 2004, up 4.0 percent from Each dollar spent by domestic and international travelers in Louisiana produced 13 cents for federal, state and local tax coffers. Domestic traveler spending in Louisiana generated $576.3 million in tax revenue for the federal government, up 2.4 percent from Domestic traveler spending in Louisiana also generated $408.9 tax revenue for the state treasury through state sales and excise taxes, and taxes on personal and corporate income, up 4.4 percent from Local governments in Louisiana directly benefited from travel as well. During 2004, domestic traveler spending generated $226.0 million in sales and property tax revenue for localities, up 4.6 percent from Domestic Travel-Generated Tax Revenue in Louisiana by Level of Government, 2004 Local 18.7% Federal 47.6% State 33.8% 16

23 Travel-Generated Tax Revenue Table 9: Travel-Generated Tax Revenue in Louisiana by Level of Government, Tax Revenue Total ($ millions) % of Domestic Total Federal $ % State % Local % Domestic 1, % International 56.9 Total $1, Tax Revenue Federal $ % State % Local % Domestic 1, % International 49.5 Total $1,219.9 Percentage change 2004 over 2003 Federal 2.4% State 4.4% Local 4.6% Domestic 3.5% International 14.9% Total 4.0% Source: TIA 17

24 2004 Domestic Travel Impact On Louisiana Parishes 2004 DOMESTIC TRAVEL IMPACT ON LOUISIANA PARISHES During 2004, domestic travelers spent more than $9.5 billion while traveling in Louisiana, up 5.3 percent from These expenditures directly generated nearly $2 billion in wages and salaries, thousand jobs and $635 million in tax revenue for the state treasury and local governments. Travel expenditures occurred throughout all the sixty-four parishes in Louisiana. The top five parishes in Louisiana received more than $6.8 billion in direct domestic travel expenditures, 71.7 percent of the state total. Spending by domestic travelers in the top five parishes generated over $1.5 billion in payroll income (77.2 percent) and 90.4 thousand jobs (77.9 percent) in Additionally, domestic traveler expenditures in these top five parishes generated $437 million in tax revenue for the state treasury and the local governments during 2004, 68.8 percent of the state total. Domestic Travel Impact on Top 5 Parishes Orleans Parish, which includes the city of New Orleans, led all parishes in travel expenditures, payroll income and jobs directly generated by domestic visitor spending in U.S. resident traveler expenditures in Orleans Parish reached nearly $4.4 billion, accounting for 45.9 percent of the state total. These expenditures generated more than $1 billion in payroll income and over 63.5 thousand jobs for parish residents. Jefferson Parish, located adjacent to New Orleans, ranked second with $945 million in domestic travel spending in 2004, representing 9.9 percent of the state total. The payroll income and jobs directly attributable to domestic traveler spending reached $181 million and almost 10 thousand jobs. East Baton Rouge Parish posted almost $640 million in domestic expenditures to rank third. These expenditures generated nearly $116 million in payroll as well as nearly 6.2 thousand jobs for parish residents. Caddo Parish received nearly $509 million from domestic travelers, 5.3 percent of the state total. These travel expenditures benefited parish residents with more than $104 million in wages and salaries and nearly 5.2 thousand jobs. Bossier Parish ranked fifth with more than $367 million from domestic visitors. This spending generated $103 million in payroll and more than 5.6 thousand jobs. 18

25 Top Five Parishes Table 10: Domestic Travel Impact in Louisiana - Top 5 Parishes, Travel Impact State & Local Expenditures Payroll Employment Tax Revenue Parish ($ millions) ($ millions) (thousands) ($ millions) Orleans $4,376.5 $1,005.2 $63.5 $275.5 Jefferson East Baton Rouge Caddo Bossier Five Parish Total $6,837.1 $1,509.4 $90.4 $437.1 State Total $9,539.4 $1,956.4 $116.1 $635.0 Share Of Top 5 Parishes 71.7% 77.2% 77.9% 68.8% 2003 Travel Impact Orleans $4,118.3 $975.8 $62.6 $261.4 Jefferson East Baton Rouge Caddo Bossier Five Parish Total $6,485.0 $1,475.2 $89.7 $418.2 State Total $9,055.0 $1,915.0 $115.3 $607.9 Share Of Top 5 Parishes 71.6% 77.0% 77.8% 68.8% Percentage Change 2004 over 2003 Orleans 6.3% 3.0% 1.4% 5.4% Jefferson 3.3% 0.1% -1.5% 2.4% East Baton Rouge 3.7% 0.5% -1.1% 2.8% Caddo 3.3% 0.2% -1.4% 2.4% Bossier 7.2% 3.9% 2.3% 6.3% Five Parish Total 5.4% 2.3% 0.8% 4.5% State Total 5.3% 2.2% 0.7% 4.5% Source: TIA 19

26 2004 Domestic Travel Impact On Louisiana Parishes PARISH TABLES The following tables list the results of the Parish Economic Impact Component of the TIA s Travel Economic Impact Model for Louisiana in 2004 and estimates for The estimates presented are for direct domestic travel expenditures and related economic impact. Table A shows the parishes listed alphabetically, with 2004 travel expenditures, travel-generated payroll and employment, and state tax revenue and the local tax revenue for each. Table B ranks the parishes in order of 2004 travel expenditures from highest to lowest. Table C shows the percent distribution for each impact measure in Table D shows the percent change in 2004 over 2003 estimates for each of the measures of economic impact. Table E shows the parishes listed alphabetically, with 2003 travel expenditures, travel-generated payroll and employment, and state tax revenue and local tax revenue shown for each. 20

27 Table A: Alphabetical by Parish, Domestic Travel Impact on Louisiana Table A: Alphabetical by Parish, 2004 State Tax Local Tax Expenditures Payroll Employment Receipts Receipts County ($ Millions) ($ Millions) (Thousands) ($ Millions) ($ Millions) ACADIA $32.21 $ $1.89 $0.60 ALLEN ASCENSION ASSUMPTION AVOYELLES BEAUREGARD BIENVILLE BOSSIER CADDO CALCASIEU CALDWELL CAMERON CATAHOULA CLAIBORNE CONCORDIA DE SOTO EAST BATON ROUGE EAST CARROLL EAST FELICIANA EVANGELINE FRANKLIN GRANT IBERIA IBERVILLE JACKSON JEFFERSON JEFFERSON DAVIS

28 Table A: Alphabetical by Parish, Domestic Travel Impact on Louisiana Table A: Alphabetical by Parish, 2004 (Continued) State Tax Local Tax Expenditures Payroll Employment Receipts Receipts County ($ Millions) ($ Millions) (Thousands) ($ Millions) ($ Millions) LAFAYETTE LAFOURCHE LASALLE LINCOLN LIVINGSTON MADISON MOREHOUSE NATCHITOCHES ORLEANS 4, , OUACHITA PLAQUEMINES POINTE COUPEE RAPIDES RED RIVER RICHLAND SABINE SAINT BERNARD SAINT CHARLES SAINT HELENA SAINT JAMES SAINT JOHN THE BAPTIST SAINT LANDRY SAINT MARTIN SAINT MARY SAINT TAMMANY TANGIPAHOA TENSAS

29 Table A: Alphabetical by Parish, Domestic Travel Impact on Louisiana Table A: Alphabetical by Parish, 2004 (Continued) State Tax Local Tax Expenditures Payroll Employment Receipts Receipts County ($ Millions) ($ Millions) (Thousands) ($ Millions) ($ Millions) TERREBONNE UNION VERMILION VERNON WASHINGTON WEBSTER WEST BATON ROUGE WEST CARROLL WEST FELICIANA WINN STATE TOTALS $9, $1, $ $ C2005 TIA 23

30 Table B: Ranking Of Parishes By Expenditure Levels, Domestic Travel Impact on Louisiana Table B: Ranking of Parishes by Expenditure Levels, 2004 State Tax Local Tax Expenditures Payroll Employment Receipts Receipts County ($ Millions) ($ Millions) (Thousands) ($ Millions) ($ Millions) ORLEANS $4, $1, $ $ JEFFERSON EAST BATON ROUGE CADDO BOSSIER LAFAYETTE CALCASIEU OUACHITA ALLEN SAINT TAMMANY TANGIPAHOA RAPIDES AVOYELLES TERREBONNE SAINT MARY SAINT LANDRY ASCENSION LAFOURCHE WEST BATON ROUGE SAINT BERNARD IBERIA WEBSTER MADISON VERMILION SAINT CHARLES LIVINGSTON NATCHITOCHES

31 Table B: Ranking Of Parishes By Expenditure Levels, Domestic Travel Impact on Louisiana Table B: Ranking of Parishes by Expenditure Levels, 2004 (Continued) State Tax Local Tax Expenditures Payroll Employment Receipts Receipts County ($ Millions) ($ Millions) (Thousands) ($ Millions) ($ Millions) ACADIA SAINT JOHN THE BAPTIST SAINT MARTIN LINCOLN PLAQUEMINES WASHINGTON IBERVILLE SABINE VERNON JEFFERSON DAVIS WEST FELICIANA RICHLAND EVANGELINE BEAUREGARD MOREHOUSE DE SOTO CONCORDIA UNION ASSUMPTION SAINT JAMES POINTE COUPEE BIENVILLE EAST CARROLL CLAIBORNE JACKSON FRANKLIN CALDWELL

32 Table B: Ranking Of Parishes By Expenditure Levels, Domestic Travel Impact on Louisiana Table B: Ranking of Parishes by Expenditure Levels, 2004 (Continued) State Tax Local Tax Expenditures Payroll Employment Receipts Receipts County ($ Millions) ($ Millions) (Thousands) ($ Millions) ($ Millions) WINN RED RIVER CATAHOULA CAMERON LASALLE TENSAS WEST CARROLL EAST FELICIANA GRANT SAINT HELENA STATE TOTALS $9, $1, $ $ C2005 TIA 26

33 Table C: Percent Distribution By Parish, Domestic Travel Impact on Louisiana Table C: Percent Distribution by Parish, 2004 State Tax Local Tax County Expenditures Payroll Employment Receipts Receipts ACADIA 0.34% 0.16% 0.16% 0.46% 0.26% ALLEN 1.73% 2.28% 2.04% 1.21% 1.47% ASCENSION 0.76% 0.44% 0.48% 1.00% 0.52% ASSUMPTION 0.11% 0.06% 0.06% 0.14% 0.11% AVOYELLES 1.03% 1.16% 1.07% 0.61% 0.69% BEAUREGARD 0.15% 0.10% 0.09% 0.19% 0.48% BIENVILLE 0.09% 0.06% 0.06% 0.12% 0.29% BOSSIER 3.85% 5.27% 4.84% 4.12% 4.71% CADDO 5.33% 5.33% 4.46% 5.85% 4.71% CALCASIEU 3.19% 3.79% 3.39% 3.42% 3.58% CALDWELL 0.08% 0.05% 0.05% 0.09% 0.21% CAMERON 0.05% 0.03% 0.04% 0.05% 0.12% CATAHOULA 0.05% 0.04% 0.05% 0.05% 0.12% CLAIBORNE 0.09% 0.07% 0.07% 0.10% 0.20% CONCORDIA 0.12% 0.07% 0.08% 0.15% 0.24% DE SOTO 0.14% 0.08% 0.08% 0.19% 0.20% EAST BATON ROUGE 6.71% 5.94% 5.30% 7.22% 5.09% EAST CARROLL 0.09% 0.05% 0.06% 0.13% 0.09% EAST FELICIANA 0.04% 0.03% 0.04% 0.04% 0.10% EVANGELINE 0.16% 0.11% 0.12% 0.19% 0.25% FRANKLIN 0.08% 0.06% 0.07% 0.07% 0.10% GRANT 0.03% 0.03% 0.03% 0.03% 0.13% IBERIA 0.43% 0.31% 0.33% 0.51% 0.32% IBERVILLE 0.21% 0.15% 0.14% 0.26% 0.37% JACKSON 0.08% 0.05% 0.06% 0.08% 0.09% JEFFERSON 9.91% 9.24% 8.58% 9.64% 8.44% JEFFERSON DAVIS 0.18% 0.11% 0.13% 0.24% 0.18% 27

34 Table C: Percent Distribution By Parish, Domestic Travel Impact on Louisiana Table C: Percent Distribution by Parish, 2004 (Continued) State Tax Local Tax County Expenditures Payroll Employment Receipts Receipts LAFAYETTE 3.51% 2.84% 2.64% 4.02% 2.71% LAFOURCHE 0.69% 0.41% 0.42% 0.89% 0.48% LASALLE 0.04% 0.03% 0.04% 0.04% 0.09% LINCOLN 0.24% 0.19% 0.23% 0.28% 0.25% LIVINGSTON 0.36% 0.16% 0.16% 0.48% 0.53% MADISON 0.42% 0.16% 0.15% 0.68% 0.26% MOREHOUSE 0.15% 0.11% 0.12% 0.17% 0.17% NATCHITOCHES 0.34% 0.26% 0.29% 0.41% 0.51% ORLEANS 45.88% 51.38% 54.73% 41.01% 47.69% OUACHITA 1.92% 1.71% 1.50% 1.94% 1.54% PLAQUEMINES 0.23% 0.19% 0.17% 0.27% 0.73% POINTE COUPEE 0.10% 0.06% 0.07% 0.12% 0.11% RAPIDES 1.23% 0.91% 0.88% 1.42% 1.00% RED RIVER 0.05% 0.03% 0.04% 0.07% 0.08% RICHLAND 0.18% 0.10% 0.11% 0.25% 0.15% SABINE 0.20% 0.12% 0.12% 0.22% 0.85% SAINT BERNARD 0.44% 0.27% 0.28% 0.55% 0.27% SAINT CHARLES 0.37% 0.24% 0.25% 0.43% 0.22% SAINT HELENA 0.02% 0.02% 0.03% 0.02% 0.07% SAINT JAMES 0.11% 0.07% 0.08% 0.12% 0.07% SAINT JOHN THE BAPTIST 0.30% 0.24% 0.26% 0.34% 0.27% SAINT LANDRY 0.87% 0.49% 0.53% 1.17% 1.04% SAINT MARTIN 0.25% 0.15% 0.13% 0.30% 0.58% SAINT MARY 0.96% 1.04% 0.99% 0.68% 0.68% SAINT TAMMANY 1.71% 1.17% 1.18% 2.17% 1.98% TANGIPAHOA 1.31% 0.63% 0.64% 1.76% 0.94% TENSAS 0.04% 0.04% 0.04% 0.04% 0.17% 28

35 Table C: Percent Distribution By Parish, Domestic Travel Impact on Louisiana Table C: Percent Distribution by Parish, 2004 (Continued) State Tax Local Tax County Expenditures Payroll Employment Receipts Receipts TERREBONNE 1.01% 0.68% 0.72% 1.28% 0.74% UNION 0.12% 0.06% 0.06% 0.15% 0.33% VERMILION 0.39% 0.20% 0.19% 0.53% 0.43% VERNON 0.18% 0.12% 0.13% 0.23% 0.33% WASHINGTON 0.21% 0.12% 0.12% 0.28% 0.26% WEBSTER 0.42% 0.24% 0.23% 0.58% 0.55% WEST BATON ROUGE 0.45% 0.29% 0.31% 0.62% 0.36% WEST CARROLL 0.04% 0.03% 0.04% 0.04% 0.06% WEST FELICIANA 0.18% 0.14% 0.16% 0.22% 0.30% WINN 0.06% 0.06% 0.07% 0.06% 0.12% STATE TOTALS % % % % % C2005 TIA 29

36 Table D: Percent Change Over Domestic Travel Impact on Louisiana Table D: Percent Change over 2003 State Tax Local Tax County Expenditures Payroll Employment Receipts Receipts ACADIA 9.24% 5.89% 4.21% 8.18% 8.53% ALLEN 1.39% -1.72% -3.28% 0.40% 0.73% ASCENSION 5.37% 2.14% 0.53% 4.35% 4.69% ASSUMPTION 3.75% 0.57% -1.02% 2.74% 3.07% AVOYELLES 0.36% -2.72% -4.25% -0.61% -0.29% BEAUREGARD -7.20% % % -8.10% -7.80% BIENVILLE 1.11% -1.99% -3.54% 0.13% 0.45% BOSSIER 7.22% 3.93% 2.29% 6.18% 6.52% CADDO 3.34% 0.17% -1.41% 2.33% 2.66% CALCASIEU 5.01% 1.79% 0.18% 3.99% 4.33% CALDWELL -2.31% -5.30% -6.80% -3.25% -2.94% CAMERON -0.85% -3.89% -5.41% -1.81% -1.49% CATAHOULA -1.94% -4.94% -6.45% -2.89% -2.58% CLAIBORNE 2.96% -0.20% -1.77% 1.96% 2.29% CONCORDIA 0.71% -2.38% -3.93% -0.27% 0.05% DE SOTO 4.57% 1.36% -0.24% 3.55% 3.89% EAST BATON ROUGE 3.68% 0.50% -1.09% 2.68% 3.01% EAST CARROLL 3.83% 0.64% -0.95% 2.82% 3.15% EAST FELICIANA -1.25% -4.27% -5.79% -2.20% -1.89% EVANGELINE 2.13% -1.00% -2.56% 1.14% 1.47% FRANKLIN 1.77% -1.35% -2.91% 0.78% 1.11% GRANT 0.00% 0.00% 0.00% 0.00% 0.00% IBERIA -1.71% -4.73% -6.23% -2.67% -2.35% IBERVILLE 2.61% -0.53% -2.10% 1.62% 1.95% JACKSON 1.39% -1.71% -3.27% 0.41% 0.73% JEFFERSON 3.28% 0.11% -1.47% 2.27% 2.60% JEFFERSON DAVIS -1.45% -4.47% -5.98% -2.41% -2.09% 30

37 Table D: Percent Change Over Domestic Travel Impact on Louisiana Table D: Percent Change Over 2003 (Continued) State Tax Local Tax County Expenditures Payroll Employment Receipts Receipts LAFAYETTE 4.84% 1.63% 0.02% 3.83% 4.16% LAFOURCHE 5.01% 1.79% 0.18% 3.99% 4.32% LASALLE -3.01% -5.99% -7.47% -3.96% -3.65% LINCOLN 6.66% 3.39% 1.76% 5.63% 5.97% LIVINGSTON 1.68% -1.44% -3.00% 0.69% 1.02% MADISON 5.51% 2.27% 0.65% 4.48% 4.82% MOREHOUSE 1.91% -1.21% -2.77% 0.92% 1.25% NATCHITOCHES 6.70% 3.42% 1.79% 5.66% 6.00% ORLEANS 6.27% 3.01% 1.38% 5.24% 5.58% OUACHITA 8.24% 4.92% 3.26% 7.19% 7.54% PLAQUEMINES 3.94% 0.76% -0.84% 2.93% 3.27% POINTE COUPEE 3.32% 0.15% -1.43% 2.32% 2.65% RAPIDES 4.82% 1.60% 0.00% 3.80% 4.13% RED RIVER 1.13% -1.97% -3.52% 0.15% 0.47% RICHLAND 1.42% -1.69% -3.25% 0.43% 0.76% SABINE -0.95% -3.98% -5.50% -1.91% -1.59% SAINT BERNARD 3.31% 0.14% -1.44% 2.30% 2.63% SAINT CHARLES 5.77% 2.53% 0.91% 4.74% 5.08% SAINT HELENA 0.00% 0.00% 0.00% 0.00% 0.00% SAINT JAMES 0.00% 0.00% 0.00% 0.00% 0.00% SAINT JOHN THE BAPTIST 5.90% 2.65% 1.03% 4.87% 5.21% SAINT LANDRY 58.51% 59.50% 72.10% 56.97% 57.48% SAINT MARTIN -2.19% -5.19% -6.69% -3.14% -2.83% SAINT MARY 6.48% 3.22% 1.58% 5.45% 5.79% SAINT TAMMANY 1.72% -1.39% -2.95% 0.74% 1.06% TANGIPAHOA 6.06% 2.81% 1.19% 5.03% 5.37% TENSAS 0.00% 0.00% 0.00% 0.00% 0.00% 31

38 Table D: Percent Change Over Domestic Travel Impact on Louisiana Table D: Percent Change Over 2003 (Continued) State Tax Local Tax County Expenditures Payroll Employment Receipts Receipts TERREBONNE 5.17% 1.95% 0.34% 4.15% 4.49% UNION 1.19% -1.92% -3.47% 0.20% 0.53% VERMILION 10.59% 7.20% 5.50% 9.51% 9.87% VERNON -0.88% -3.92% -5.44% -1.85% -1.53% WASHINGTON 4.89% 1.67% 0.06% 3.87% 4.20% WEBSTER 5.29% 2.06% 0.45% 4.27% 4.61% WEST BATON ROUGE 1.27% -1.84% -3.39% 0.28% 0.61% WEST CARROLL 0.00% 0.00% 0.00% 0.00% 0.00% WEST FELICIANA 4.44% 1.23% -0.37% 3.42% 3.76% WINN 0.00% 0.00% 0.00% 0.00% 0.00% STATE TOTALS 5.35% 2.16% 0.66% 4.36% 4.63% C2005 TIA 32

39 Table E: Alphabetical By Parish, Domestic Travel Impact on Louisiana Table E: Alphabetical by Parish, 2003 State Tax Local Tax Expenditures Payroll Employment Receipts Receipts County ($ Millions) ($ Millions) (Thousands) ($ Millions) ($ Millions) ACADIA $29.49 $ $1.75 $0.55 ALLEN ASCENSION ASSUMPTION AVOYELLES BEAUREGARD BIENVILLE BOSSIER CADDO CALCASIEU CALDWELL CAMERON CATAHOULA CLAIBORNE CONCORDIA DE SOTO EAST BATON ROUGE EAST CARROLL EAST FELICIANA EVANGELINE FRANKLIN GRANT IBERIA IBERVILLE JACKSON JEFFERSON JEFFERSON DAVIS

40 Table E: Alphabetical By Parish, Domestic Travel Impact on Louisiana Table E: Alphabetical by Parish, 2003 (Continued) State Tax Local Tax Expenditures Payroll Employment Receipts Receipts County ($ Millions) ($ Millions) (Thousands) ($ Millions) ($ Millions) LAFAYETTE LAFOURCHE LASALLE LINCOLN LIVINGSTON MADISON MOREHOUSE NATCHITOCHES ORLEANS 4, OUACHITA PLAQUEMINES POINTE COUPEE RAPIDES RED RIVER RICHLAND SABINE SAINT BERNARD SAINT CHARLES SAINT HELENA SAINT JAMES SAINT JOHN THE BAPTIST SAINT LANDRY SAINT MARTIN SAINT MARY SAINT TAMMANY TANGIPAHOA TENSAS

41 Table E: Alphabetical By Parish, Domestic Travel Impact on Louisiana Table E: Alphabetical by Parish, 2003 (Continued) State Tax Local Tax Expenditures Payroll Employment Receipts Receipts County ($ Millions) ($ Millions) (Thousands) ($ Millions) ($ Millions) TERREBONNE UNION VERMILION VERNON WASHINGTON WEBSTER WEST BATON ROUGE WEST CARROLL WEST FELICIANA WINN STATE TOTALS $9, $1, $ $ C2005 TIA 35

42

43 Appendices APPENDICES 37

44 Appendix A: Travel Economic Impact Model Appendix A: Travel Economic Impact Model Introduction The Travel Economic Impact Model (TEIM) was developed by the research department at TIA (formerly known as the U.S. Travel Data Center) to provide annual estimates of the impact of the travel activity of U.S. residents on national, state and county economies in this country. It is a disaggregated model comprised of 16 travel categories. The TEIM estimates travel expenditures and the resulting business receipts, employment, personal income, and tax receipts generated by these expenditures. The TEIM has the capability of estimating the economic impact of various types of travel, such as business and vacation, by transport mode and type of accommodations used, and other trip and traveler characteristics. The County Impact Component of the TEIM allows estimates of the economic impact of travel at the county and city level. Definition of Terms There is no commonly accepted definition of travel in use at this time. For the purposes of the estimates herein, travel is defined as activities associated with all overnight trips away from home in paid accommodations and day trips to places 50 miles or more, one way, from the traveler's origin. The TEIM definition includes all overnight trips regardless of distance away from home, but excludes day trips to places less than 50 miles away from home. The word tourism is avoided in this report because of its vague meaning. Some define tourism as all travel away from home while others use the dictionary definition that limits tourism to personal or pleasure travel. The travel industry, as used herein, refers to the collection of 16 types of businesses that provide goods and services to the traveler or potential traveler at the retail level (see Glossary of Terms). With the exception of Amtrak and second home ownership and rental, these business types are defined by the Office of Management and Budget in the 1997 North American Industry Classification System (NAICS) and well as in its predecessor, the 1987 Standard Industrial Classification System (SIC). In each case, the relevant NAICS and SIC codes are included. A travel expenditure is assumed to take place whenever a traveler exchanges money for an activity considered part of his/her trip. Total travel expenditures are separated into 16 categories representing traveler purchases of goods and services at the retail level. One category, travel agents, receives no travel expenditures as these purchases are allocated to the category (i.e. air transportation) actually providing the final good or service to the traveler. Travel expenditures are allocated among states by simulating where the exchange of money for goods or service actually took place. By their nature, some travel expenditures are assumed to occur at the traveler's origin, some at his/her destination, and some enroute. 38