Arizona 2009 Tourism Facts Year‐end Summary Arizona 2009 Tourism Facts Table of Contents 2009 Summary.............................................................. 3 Domestic Overnight Travel............................................ 4 Domestic Overnight Profile........................................ 5‐6 Non‐Residents vs. Residents ................................ 5 Leisure vs. Business.............................................. 6 Domestic Overnight Activities ...................................... 7 State of Arizona Jan Brewer, Governor Arizona Office of Tourism Economic Impact of Travel in Arizona...................... 8‐10 Statewide and County Total Direct Spending ...... 9 Trends: Total Direct Spending by County ........... 10 Sherry Henry, Director Melissa Elkins, Research Manager Address: 1100 W Washington St ,Ste 155 Phoenix, AZ 85007 Tel: (602) 364‐3700 Fax: (602) 364‐3701 E‐mail: research@azot.gov Web site: www.arizonaguide.com www.azot.gov Statewide Lodging ...................................................... 11 State & National Parks Visitation................................ 12 Air Visitors .................................................................. 13 Top Arizona Attractions by Visitation ......................... 14 2 Arizona 2009 Tourism Facts Direct Travel Expenditures ‐ 1998‐2009 This report summarizes the performance of the Arizona tourism industry in 2009. Areas high‐ lighted are: economic impact, visitation volume and profile data, lodging performance, National and State Park visitation volume, airport passen‐ ger traffic and top attractions in Arizona. 20.0 18.0 18.7 19.1 17.6 16.0 18.5 16.6 15.9 14.0 14.2 13.1 Billions 12.0 14.7 13.4 13.3 2001 2002 11.8 10.0 8.0 2009 Overnight Visitation Summary 6.0 4.0 2.0  Direct travel expenditures by all visitors to Arizona decreased ‐10.2 percent to $16.6 billion in 2009. 0.0 1998 1999 2000 2003 2004 2005 2006 2007 2008 2009p Source: Arizona Travel Impacts, Dean Runyan Associates  Direct travel spending in Arizona generated $1.3 billion in local and state tax revenues and $1.1 billion in federal tax revenues dur‐ ing 2009. 2009 Arizona Overnight Visitation Domestic Non‐Resident, 60%  Travel spending in Arizona generated a di‐ rect impact of 157,200 jobs with earnings of $4.7 billion in 2009.  Arizona hosted 35.3 million domestic and international overnight visitors, equal to roughly 97,000 visitors per day in 2009. Domestic Resident, 26% International, 14% Source: Tourism Economics.; US Dept. of Commerce; Stats Canada; U of Arizona 2009 Arizona Overnight International Visitation  Domestic non‐residents made up the largest share of overnight visitors (60 percent) to Arizona with 21.2 million visitors in 2009. The second largest visitor segment was Ari‐ zona residents with 9.3 million overnight visitors, representing 26 percent of the mar‐ ket. Mexico, 75% Canada, 11%  14 percent of Arizona’s overnight visitation was made up of the nearly 5 million interna‐ tional overnight visitors in 2009. Overseas, 14% Source: US Department of Commerce; Stats Canada; U of Arizona 3 Arizona 2009 Tourism Facts Arizona Domestic Overnight ‐ Non‐Resident vs. Residents 2009 Arizona Domestic Overnight Travel Overnight Resident 28.6 27.7 27.7 28.9 Overnight Non‐Resident 30.6 32.1 33.5 33.8 32.4 30.5 35.0  There was a substantial decline of ‐10.2 percent in overnight domes‐ tic business travel to Arizona in 2009, reflecting the hard‐hit meet‐ ings and conventions segment.  31 percent of Arizona’s 2009 domestic overnight visitors reside here in Arizona, while another 35 percent are from the neighboring states of California, Texas, New Mexico, Washington and Colorado. 25.0 Millions  The decline in total domestic overnight travel to Arizona was mostly due to a ‐6.2 percent de‐ crease in non‐resident visitors. These 21.2 million visitors repre‐ sented 70 percent of all domestic overnight visitation to Arizona in 2009. The smaller decline in resi‐ dent visitation is consistent with closer‐to‐home and shorter trip travel patterns. ‐5.8% 30.0 20.0 21.3 22.5 23.5 23.7 19.7 19.0 19.0 20.0 8.9 8.7 8.7 8.9 9.3 9.7 10 10.1 2000 2001 2002 2003 2004 2005 2006 2007 22.6 21.2 ‐6.2% 9.8 9.3 ‐4.8% 2008 2009 15.0 10.0 5.0 0.0 Source: Tourism Economics Arizona Domestic Overnight ‐ Business vs. Leisure Overnight Business 35.0 28.6 27.7 27.7 28.9 30.6 Overnight Leisure 32.1 33.5 33.8 32.4 30.5 ‐5.8% 30.0 25.0 Millions  In 2009, there were 30.5 million Arizona domestic overnight visi‐ tors, which is a decline of ‐5.8 percent. 20.0 23.5 24.7 25.8 26.7 27.0 23.5 22.7 22.7 5.1 5.0 5.0 5.4 5.9 6.4 6.8 6.8 2000 2001 2002 2003 2004 2005 2006 2007 15.0 26.1 24.9 ‐4.7% 6.3 5.6 ‐10.2% 2008 2009 10.0 5.0 0.0 Source: Tourism Economics 4 Arizona 2009 Tourism Facts 2009 Arizona Domestic Overnight Visitors ‐ Non‐Residents vs. Residents  Non‐resident visitors to Arizona stay longer on average (4.4 nights) compared to the average 2.1 nights of our resident visitors.  Non‐resident visitors are slightly older (46.9 years) than our resident visitors, who average 46.6 years of age.  Non‐resident visitors have a higher average household income compared to resident visi‐ tors, at $81,400 compared to $66,900.  27 percent of non‐resident visitors travel by air, while 38 percent travel by auto. In contrast, 80 percent of resident visitors travel by auto. More non‐residents rent cars in Arizona (18 percent) compared to the 5 percent of resi‐ dents who travel in rental cars.  Non‐residents visitors primarily come to Ari‐ zona during Q1 & Q2 (January ‐ June) while resident visitors travel within Arizona more often during Q2 & Q3 (April ‐ September). Total Overnight Overnight Non‐Residents Overnight Residents 30.5 million 21.2 million 9.3 million 3.5 nights 4.4 nights 2.1 nights Average Travel Party Size 2.6 persons 2.5 persons 2.6 persons Purpose of Stay 39% VFR, 15% Touring & 8% Outdoors 41% VFR, 15% Touring, 8% Special Events & 6% Outdoors 36% VFR, 14% Touring & 13% Outdoors 46.8 years 46.9 years 46.6 years $76,000 $81,400 $66,900 51% Auto, 20% Air, 14% Rented Auto 38% Auto, 27% Air, 18% Rented Auto 80% Auto, 5% Rented Auto 68% Paid, 32% Non‐Paid 65% Paid, 35% Non‐Paid 70% Paid, 30% Non‐Paid 27% Q1, 25% Q2 29% Q1, 24% Q2, 24% Q4 28% Q3, 26% Q2 Visitors Average Length of Stay Average Age Average Household Income Mode of Transportation Accommodations Trip Quarter Source: Tourism Economics, Longwoods International 5 Arizona 2009 Tourism Facts 2009 Arizona Domestic Overnight Visitors ‐ Leisure vs. Business  Leisure visitors tend to stay longer when they visit Arizona (3.5 nights) compared to business visitors, who stay an average of 3.1 nights.  Business visitors have an average age of 47.7 years which is older than leisure visitors, who have an average age of 46.2 years.  Leisure visitors have an average travel party size of 2.7 persons compared to business visi‐ tors with 1.7 persons in their travel party.  54 percent of leisure visitors travel by auto compared to 34 percent of business visitors. Air travel also plays an important role with 32 percent of business visitors and 18 percent of leisure visitors traveling by air. Visitors Average Length of Stay Average Travel Party Size Purpose of Stay Average Age Average Household Income Mode of Transportation Accommodations Trip Quarter Total Overnight Overnight Leisure Overnight Business 30.5 million 24.9 million 5.6 million 3.5 nights 3.5 nights 3.1 nights 2.6 persons 2.7 persons 1.7 persons 39% VFR, 15% Touring & 8% Outdoors 48% VFR, 18% Touring, 10% Outdoors & 10% Special Event 71% General Business & 29% Conference/ Convention 46.8 years 46.2 years 47.7 years $76,000 $72,200 $93,100 51% Auto, 20% Air, 14% Rented Auto 54% Auto, 18% Air, 12% Rented Auto 34% Auto, 32% Air, 20% Rented Auto 68% Paid, 32% Non‐Paid 66% Paid, 34% Non‐Paid 86% Paid, 14% Non‐Paid 27% Q1, 25% Q2 26% Q1, 25% Q2 31% Q1, 26% Q3 Source: Tourism Economics, Longwoods International 6 Arizona 2009 Tourism Facts 2009 Arizona Domestic Overnight Visitors by Region  Domestic Overnight visitation to Arizona’s regions varies in terms of visitor demographics, trip timing and origin region. The data shown in the table below provides an analysis of Arizona Domestic Overnight travelers by Arizona Region.  The map to the right depicts Arizona’s five regions, the dark orange area represents Northern Arizona, the green area North Central Arizona, the purple area Phoenix & Central, the blue area Tucson & Southern and the light orange area the West Coast. Visitors Average Length of Stay Average Travel Party Size Purpose of Stay Average Age Average HH Income Mode of Transportation Accommodations Trip Quarter Top Origin DMAs Total Overnight North Central Overnight Northern Overnight Phoenix & Central Overnight Tucson & Southern Overnight West Coast Overnight 30.5 million 4.0 million 6.1 million 14.0 million 6.7 million 3.0 million 3.5 nights 2.6 nights 2.6 nights 3.5 nights 3.4 nights 2.8 nights 2.6 persons 2.8 persons 2.9 persons 2.8 persons 2.2 persons 2.7 persons 39% VFR, 15% Touring, 8% Outdoors 32% Touring, 30% VFR, 16% Outdoors 30% VFR, 28% Touring, 16% Outdoors 47% VFR, 10% Touring, 10% Special Event 45% VFR, 11% Business, 11% Touring 33% VFR, 17% Touring, 14% Outdoors 46.8 years 49.2 years 45.3 years 47.7 years 48.8 years 43.1 years $76,000 $77,020 $69,650 $81,700 $80,110 $79,860 51% Auto, 20% Air, 14% Rented Auto 60% Auto, 15% Rented Auto, 13% Air 62% Auto, 13% Air, 12% Rented Auto 43% Auto, 29% Air, 17% Rented Auto 53% Auto, 22% Air, 15% Rented Auto 63% Auto, 12% Rented Auto, 10% Air 68% Paid, 32% Non‐Paid 71% Paid, 29% Non‐Paid 72% Paid, 28% Non‐Paid 63% Paid, 37% Non‐Paid 61% Paid, 39% Non‐Paid 72% Paid, 28% Non‐Paid 27% Q1, 25% Q2 28% Q2, 26% Q1 28% Q2, 27% Q3 31% Q1, 26% Q4 31% Q1, 27% Q4 32% Q1, 26% Q3 Phoenix, Los Angeles, San Diego, Sacra‐ mento, Chicago Los Angeles, Phoenix, San Diego, Las Vegas, Seattle Phoenix, Los Angeles, Tuc‐ son, New York, Albuquerque Phoenix, Los Phoenix, Los Los Angeles, Tuc‐ Angeles, Tucson, Angeles, Tucson, son, New York, Sacramento, San Albuquerque, San San Francisco, Diego Francisco Seattle Source: Tourism Economics & Longwoods International 7 Arizona 2009 Tourism Facts Direct Travel Spending 1998‐2009 The Economic Impact of Travel in Arizona 20.0 18.0 16.0 18.5 16.6 15.9 14.0 14.2 13.1 12.0 Billions  Travel is an important contributor to the vitality of both the state and local economies. In 2009, total direct travel spending in Arizona was $16.6 billion, which generated 157,200 direct jobs paying $4.7 billion in earn‐ ings. 19.1 18.7 17.6 14.7 13.4 13.3 2001 2002 11.8 10.0 8.0 6.0 4.0 2.0  Arizona visitors staying overnight in paid lodging accounted for 41 per‐ cent of all visitor spending in 2009. 0.0 1998 FEDERAL STATE/LOCAL 2003 2004 2005 2006 2007 2008 2009p Travel Employment ‐ 2009 EMPLOYMENT Direct Secondary 157,200 135,000 292,200 TOTAL DIRECT EMPLOYMENT BY SECTOR 1. Accommodation & Food Services 2. Arts, Entertainment & Recreation 3. Retail Trade 4. Transportation 83,300 39,800 18,700 15,400 DIRECT PAYROLL $4.7 B TOTAL PAYROLL $9.6 B Source: Arizona Travel Impacts, Dean Runyan Associates Direct Travel Expenditures ‐ 2009 TAX REVENUE 2000 Source: Arizona Travel Impacts, Dean Runyan Associates  Taxes generated by the travel indus‐ try are primarily paid by visitors rather than residents. In 2009, 79 percent of the visitor spending in Ari‐ zona was by non‐Arizona residents. This new money imported into the state economy means the tax reve‐ nue generated by travel spending is a net benefit to Arizona residents. EXPENDITURES 1999 Visitor Spending by Type of Traveler Accommodation 2009p $16.6 B ($Billions) Day Travel $3.3, 22% $2.391 B $1.085 B $1.306 B Hotel/Motel $6.3, 41% Vacation Home $0.6, 4% Source: Arizona Travel Impacts, Dean Runyan Associates Private Home $4.5, 29% Campground $0.6, 4% Source: Arizona Travel Impacts, Dean Runyan Associates 8 Arizona 2009 Tourism Facts Arizona Travel Impacts ‐ 1998‐2009p Year Tax Revenues ($Mln) Spending Earnings Employment ($Bln) ($Bln) 1998 11.8 3.2 1999 13.1 3.5 2000 14.2 3.8 2001 13.4 3.7 2002 13.3 3.6 2003 14.7 4.0 2004 15.9 4.3 2005 17.6 4.5 2006 18.7 4.9 2007 19.1 5.0 2008 18.5 4.9 2009p 16.6 4.7 Annual Percentage Change 08-09p -10.2% -5.8% 98-09p 3.1% 3.5% (Thousand) Local/State Federal Total 148.8 158.1 163.3 153.3 148.2 158.2 163.0 168.8 172.0 170.0 166.8 157.2 941 1,043 1,138 1,082 1,101 1,211 1,287 1,399 1,464 1,501 1,421 1,306 630 702 744 777 825 912 988 1,081 1,176 1,213 1,154 1,085 1,571 1,746 1,882 1,859 1,926 2,122 2,275 2,479 2,640 2,713 2,575 2,391 -5.7% 0.5% -8.1% 3.0% -6.0% 5.1% -7.1% 3.9% Source: Arizona Travel Impacts, Dean Runyan Associates Arizona County Travel Impacts ‐ 2009p County Apache Cochise Coconino Gila Graham/Greenlee La Paz Maricopa Mohave Navajo Pima Pinal Santa Cruz Yavapai Yuma Arizona Related Travel-Generated Impacts Travel Spending Earnings Employment Local Taxes State Taxes Total Taxes ($Mln) ($Mln) (jobs) ($Mln) ($Mln) ($Mln) 125 331 891 217 36 180 10,308 406 256 1,950 422 270 624 577 16,594 30 82 269 57 10 30 2,996 104 65 524 113 50 180 144 4,654 1,700 4,340 11,130 2,560 930 1,290 84,200 4,780 3,010 22,290 4,670 1,960 8,410 5,940 157,210 3.0 11.5 26.9 2.6 0.9 2.1 282.4 8.7 5.7 40.5 8.2 5.3 14.0 14.4 426.2 5.0 12.2 35.0 6.0 1.6 7.7 336.4 16.9 9.9 76.3 16.1 8.6 21.2 21.8 574.8 8.1 23.6 61.9 8.6 2.5 9.8 618.8 25.6 15.7 116.8 24.3 13.9 35.1 36.2 1,000.9 * Source: Arizona Travel Impacts, Dean Runyan Associates * Property taxes and sales taxes paid by travel industry employees not included. 9 Arizona 2009 Tourism Facts State Transaction Privilege Taxes Generated By Direct Travel Spending, 2009p The impact of traveler spending is relatively more important to Arizona’s rural counties than urban counties. Source: Dean Runyan Associates and Arizona Department of Revenue Arizona County Total Direct Spending, 1998‐2009p (millions) Source: Arizona Travel Impacts, Dean Runyan Associates 10 Arizona 2009 Tourism Facts Arizona Lodging Performance 2009 (% Change) Mountain Region States 10.0% US MT Arizona 5.0% ID NV Mountain Region WY UT AZ 0.0% CO NM ‐5.0% Source: U.S. Census Bureau ‐10.0% 2009 Arizona Lodging ‐15.0%  The performance of the lodging industry in 2009 was a reflection of the current recession which started late 2007. ‐20.0% ‐25.0% Supply Demand Occ ADR RevPAR Source: Smith Travel Research  Demand for lodging in Arizona decreased ‐7.5 percent over 2008 compared to the US de‐ crease of ‐5.8 percent and the Mountain re‐ gion decrease of ‐7.7 percent. Arizona Occupancy Rates ‐ 2000‐2009 80% US Mountain Region Arizona 70% 60%  Despite the decline in room demand, Arizona’s room supply increased 4.8 percent in 2009. The US and Mountain Region also witnessed increases of 3.2 percent and 3.3 percent re‐ spectively. 50% 40% 30% 20%  Decreased room demand and increased room supply in 2009 drove decreases in occupancy rates in Arizona lodging. Statewide occupancy decreased an average of ‐11.8 percent for the year to a rate of 53.3 percent. The occupancy rate for both the U.S. and Mountain region declined to ‐8.7 percent and ‐10.6 percent. 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Smith Travel Research Arizona RevPAR ‐ 2000‐2009 $70 US Mountain Region Arizona $65  Due to the decline in demand, the Average Daily Rate (ADR) for Arizona in 2009 decreased ‐11.9 percent over 2008 to $95.01. The U.S. and Mountain region ADR also declined ‐8.8 percent and ‐12.8 percent. $60 $55 $50  The average RevPAR decreased ‐22.3 percent to a rate of $50.63 for Arizona. For the U.S. and Mountain region, RevPAR declined ‐16.7 percent and ‐22.1 percent. $45 $40 2000 2001 2002 2003 Source: Smith Travel Research 11 2004 2005 2006 2007 2008 2009 Arizona 2009 Tourism Facts Arizona National Park Visitation ‐ 1998‐2009 14.0 Arizona’s National Parks welcomed 11,785,054 visitors in 2009, an increase of 1.9 percent from 2008. 13.5 13.0 12.5 13.3 13.1 13.1 12.4 12.0 11.5 11.0 11.5 11.5 2002 2003 11.7 11.7 2004 2005 11.9 11.5 11.6 11.8 2008 2009 2.34 2.35 Millions 10.5 10.0 9.5 9.0 8.5 8.0 Top Visited National Parks 2009: 1. Grand Canyon NP 2. Glen Canyon NRA 3. Lake Mead NRA 4. Canyon de Chelly NM 5. Saguaro NP 7.5 7.0 6.5 6.0 1998 1999 2000 2001 2006 2007 Source: National Park Service Arizona State Park Visitation ‐ 1998‐2009 2.75 2.50 2.25 2.54 2.41 2.29 2.28 2.24 2.00 2.19 2.26 2.27 2.25 2.31 1.75 Top Visited Arizona State Parks 2009: 1. Slide Rock SP 2. Lake Havasu SP 3. Patagonia Lake SP 4. Catalina SP 5. Kartchner Caverns SP 1.50 Millions There were 2,348,958 visitors to Ari‐ zona’s State Parks in 2009 with an in‐ crease of 0.3 percent from 2008. 1.25 1.00 0.75 0.50 0.25 0.00 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: Arizona State Parks 12 2008 2009 Arizona 2009 Tourism Facts 2009 Air Visitors to Arizona  According to Dean Runyan Associ‐ ates, Arizona is above average in terms of the importance of passen‐ ger air travel to the state’s visitor industry. Over one‐half of all travel spending by visitors to Arizona is attributable to visitors that trav‐ eled by air. 2009 Air Visitors to AZ ‐ Market Share of Top Origin States* WA 4.8% NV 3.1% NY 3.8% IL 6.1% CO 5.2% CA 20.0%  Nearly 60 percent of Arizona’s do‐ mestic air visitors come from the top ten origin states. 20 percent of air visitors come from California, 7 percent from Texas and 6 percent from Illinois. Air visitors traveling within Arizona only make up 0.1 percent of the total air volume to Arizona. PA 3.1% AZ 0.1% TX 6.8% FL 3.4% Source: OAG Aviation Solutions *Non‐Stop Out of State Air Visitors to Arizona ‐ 1999‐2009* 10.0 9.0 8.75 8.0 7.86 7.0 7.04 Millions  Reflecting the current state of the airline industry, in 2009, there were 8.1 million out‐of‐state visi‐ tors to Arizona arriving by air. This number excludes Arizona residents returning home and anyone simply making a connection at an Arizona airport. This was a decline of ‐5 percent from 2008. MN 3.6% 7.36 7.00 6.0 8.93 8.30 8.48 8.05 7.17 6.67 5.0 4.0 3.0 2.0 1.0 0.0 1999 2000 2001 2002 2003 2004 Source: OAG Aviation Solutions *Non‐Stop 13 2005 2006 2007 2008 2009 Arizona 2009 Tourism Facts Top Arizona Attractions by Visitation ‐ 2009 Top 25 Private Attractions Attraction Tempe Town Lake London Bridge Chase Field The Phoenix Zoo Jobing.com Arena U of Phoenix Stadium U.S. Airways Center Desert Botanical Garden WestWorld of Scottsdale Reid Park Zoo Tombstone ASU Sun Devil Stadium Rawhide Western Tow Wildlife World Zoo & Aquarium Arizona Science Center Grand Canyon Railway Arizona Temple and Visitors' Center Scottsdale Center for the Performing Arts Phoenix Art Museum Arizona Snowbowl Heard Museum Tucson Museum of Art & Historic Block Pima Air & Space Museum Verde Canyon Railroad Lowell Observatory Top 25 Natural Attractions Visitation 2.8 million 2.5 million 2.1 million 1.4 million 1.2 million 1.2 million 1.1 million 640,000 600,000 536,000 500,000 430,000 428,000 410,000 364,000 289,000 271,000 236,000 201,000 180,000 180,000 176,000 145,000 89,000 80,000 Source: Reporting Entities 14 Attraction Visitation Grand Canyon NP South Mountain Park Glen Canyon NRA Lake Mead NRA Canyon de Chelly Saguaro NP Petrified Forest NP Montezuma Castle NM Lake Pleasant RP Lake Havasu SP Organ Pipe Cactus NM Grand Canyon West Skywalk Slide Rock SP Wupatki NM Patagonia Lake SP Sunset Crater Volcano NM Catalina SP Dead Horse Ranch SP Tohono Chul Park Kartchner Caverns SP Walnut Canyon NM Tuzigoot NM Hubbell Trading Post NHS Buckskin Mountain SP Coronado National Forest 4.3 million 2.0 million 1.6 million 1.6 million 826,000 664,000 632,000 580,000 436,000 368,000 326,000 292,000 259,000 233,000 214,000 177,000 175,000 171,000 156,000 144,000 128,000 106,000 102,000 100,000 97,000