Arizona 2012 Tourism Facts Year‐end Summary Arizona 2012 Tourism Facts Table of Contents 2012 Summary.............................................................. 3 Domestic Overnight Travel............................................ 4 Domestic Overnight Profile........................................ 5‐6 Non‐Residents vs. Residents ................................ 5 Leisure vs. Business.............................................. 6 Domestic Overnight Visitors by Region ........................ 7 Economic Impact of Travel in Arizona........................ 8‐9 Statewide Lodging ...................................................... 10 State & National Parks Visitation................................ 11 Air Visitors .................................................................. 12 2 Arizona 2012 Tourism Facts Direct Travel Spending ‐ 2001‐2012 This report summarizes the performance of the Arizona tourism industry in 2012. Areas high‐ lighted are: economic impact, visitation volume and profile data, lodging performance, National and State Park visitation volume and airport passenger traffic. 20.0 18.0 16.8 16.0 Billions 19.3 17.5 16.4 15.2 14.0 12.0 18.5 17.8 18.1 18.0 13.2 13.2 14.1 10.0 8.0 2012 Overnight Visitation Summary 6.0 4.0 2.0  Direct travel spending by all Arizona visitors increased 4.6 percent to $19.3 billion in 2012. 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012p Source: Arizona Travel Impacts, Dean Runyan Associates  Direct travel spending in Arizona generated $1.6 billion in local and state tax revenues and $1.0 billion in federal tax revenues dur‐ ing 2012. 2012 Arizona Overnight Visitation Domestic Resident, 25% Domestic Non‐Resident, 62%  Travel spending in Arizona generated a di‐ rect impact of 161,300 jobs with earnings of $5.4 billion in 2012.  Arizona hosted 38.1 million domestic and international overnight visitors, equal to roughly 104,000 visitors per day in 2012. International, 13% Source: Tourism Economics.; US Dept. of Commerce; Stats Canada; U of Arizona 2012 Arizona Overnight International Visitation  Domestic non‐residents made up the largest share of overnight visitors (62 percent) to Arizona with 23.8 million visitors in 2012. The second largest visitor segment was Ari‐ zona residents with 9.4 million overnight visitors, representing 25 percent of the mar‐ ket. Mexico, 68% Canada, 15%  13 percent of Arizona’s overnight visitation was made up of 5.0 million international overnight visitors in 2012. Overseas, 17% Source: US Department of Commerce; Stats Canada; U of Arizona 3 Arizona 2012 Tourism Facts Arizona Domestic Overnight ‐ Non‐Resident vs. Residents 2012 Arizona Domestic Overnight Travel Overnight Resident 28.6 27.7 27.7 28.9 30.6 Overnight Non‐Resident 33.5 33.8 32.4 30.0 31.8 32.8 33.1 35.0  The increase in total domestic overnight travel to Arizona was mostly due to a 1.5 percent in‐ crease in leisure visitors. These 27.4 million visitors represented 83 percent of all domestic overnight visitation to Arizona in 2012. 30.0 25.0 Million  In 2012, there were 33.1 million Arizona domestic overnight visi‐ tors, which is a increase of 1.0 percent. 1.0% 20.0 21.3 22.5 23.5 23.7 22.7 21.1 22.6 23.5 23.8 19.0 19.0 20.0 8.7 8.7 8.9 9.3 9.7 10.0 10.1 9.7 9.0 9.2 9.3 9.4 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1.1% 15.0 10.0 5.0 0.6% 0.0 Source: Tourism Economics  In 2012, the Arizona overnight do‐ mestic business travel segment continues to struggle reflecting a ‐1.7 percent decline over the previ‐ ous year. Arizona Domestic Overnight ‐ Business vs. Leisure Overnight Business 35.0 28.6 27.7 27.7 28.9 30.6 33.5 Overnight Leisure 33.8 32.4 30.0 31.8 32.8 33.1 1.0% 30.0 25.0 Million  28 percent of Arizona’s 2012 domestic overnight visitors reside here in Arizona, while another 34 percent reside from the following states: California, Texas, Nevada, New Mexico, Illinois, Florida, Wash‐ ington, New York and Colorado. 20.0 15.0 23.5 24.7 25.8 26.7 27.0 25.6 26.1 27.0 27.4 5.3 5.7 5.8 5.7 2009 2010 2011 2012 24.8 22.7 22.7 5.0 5.0 5.4 5.9 6.4 6.8 6.8 6.8 2001 2002 2003 2004 2005 2006 2007 2008 1.5% 10.0 5.0 0.0 Source: Tourism Economics 4 ‐1.7% Arizona 2012 Tourism Facts 2012 Arizona Domestic Overnight Visitors ‐ Non‐Residents vs. Residents  Non‐resident visitors to Arizona stay longer on av‐  Non‐resident visitors tend to be younger (45.4 years old) and have a higher average household erage (4.7 nights) compared to the average 2.5 income ($76,880) compared to resident visitors nights of our resident visitors. who are on average 46.6 years old with an average household income of $63,480.  Average party size for residents and non‐residents staying overnight in Arizona is the same at 2.8 per‐  While the majority of resident overnight visitors sons. (80%) travel by auto, 24% of non‐residents travel by air.  Visiting friends and relatives is the most common purpose of stay for both residents (40%) and non‐ residents (45%).  Q1 (Jan‐Mar) is the most visited time period. Total Overnight Overnight Non‐Residents Overnight Residents 33.1 million 23.8 million 9.4 million 3.8 nights 4.7 nights 2.5 nights 2.8 persons 2.8 persons 2.8 persons 43% VFR, 15% Business, 13% Touring, 8% Outdoors 45% VFR, 14% Touring, 15% Business, 7% Special Events, 6% Outdoors 40% VFR, 14% Business, 12% Outdoors, 11% Touring, 7% Special Events 45.8 years 45.4 years 46.6 years $72,340 $76,880 $63,480 47% Auto, 18% Air, 15% Rented Auto 35% Auto, 24% Air, 19% Rented Auto 80% Auto, 4% Bus, 3% Camper/RV, 4% Rented Auto 70% Paid 72% Paid 63% Paid 30% Non‐Paid 28% Non‐Paid 37% Non‐Paid $623 $792 $342 Visitors Average Length of Stay Average Travel Party Size Purpose of Stay Average Age Average Household Income Mode of Transportation Accommodations Trip Expenditures (excluding transportation to destination) Trip Quarter 28% Q1, 25% Q2, 28% Q1, 24% Q2 24% Q4 Source: Tourism Economics, Longwoods International 5 29% Q1, 25% Q3 Arizona 2012 Tourism Facts 2012 Arizona Domestic Overnight Visitors ‐ Leisure vs. Business  Leisure visitors to Arizona tend to stay longer (3.9  Business visitors have an average age of 46.8 years, nights) compared to business visitors who stay an which is older than leisure visitors who have an average of 3.4 nights in Arizona. average age of 45.5 years.  Leisure visitors have an average travel party size of  Nearly half of overnight leisure visitors and 34 per‐ 2.9 persons compared to business visitors with 2.0 cent of overnight business visitors use their own persons in their travel party. auto to travel. More business travelers (29%) fly compared to leisure travelers (17%).  The majority of overnight leisure visitors (51%) are in Arizona to visit friends and relatives. Touring,  The average spending for overnight leisure visitors outdoor activities, and special events are other top is $609 compared to $668 for business travelers. reasons for visiting the state. Total Overnight Overnight Leisure Overnight Business 33.1 million 27.4 million 5.7 million 3.8 nights 3.9 nights 3.4 nights 2.8 persons 2.9 persons 2.0 persons 43% VFR, 15% Business, 13% Touring, 8% Outdoors 51% VFR, 15% Touring, 9% Outdoors, 8% Special Event 69% General Business 31% Conference/ Convention 45.8 years 45.5 years 46.8 years $72,340 $70,520 $86,020 47% Auto, 18% Air, 15% Rented Auto 49% Auto, 17% Air, 34% Auto, 29% Air, 14% Rented Auto 20% Rented Auto Accommodations 70% Paid 30% Non‐Paid 67% Paid 33% Non‐Paid 87% Paid 13% Non‐Paid Trip Expenditures $623 $609 $668 28% Q1, 24% Q2 32% Q1, 22% Q2, 24% Q4 25% Q4 Visitors Average Length of Stay Average Travel Party Size Purpose of Stay Average Age Average Household Income Mode of Transportation (excluding transportation to destination) Trip Quarter 28% Q1, 24% Q2 Source: Tourism Economics, Longwoods International 6 Arizona 2012 Tourism Facts 2012 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 Domes‐ tic Overnight travelers by Arizona Region. North Central Northern Phoenix & Central Tucson & Southern West Coast Counties by Region Gila, Graham, Greenlee, and Yavapai Apache, Coconino, and Navajo Maricopa and Pinal Cochise, Pima, and Santa Cruz La Paz, Mohave, and Yuma Visitors* Average Length of Stay Average Travel Party Size Purpose of Stay Average Age Average HH Income Mode of Transportation Accommodations Trip Expenditures (excluding transportation to destination) Trip Quarter Total Overnight North Central Overnight Northern Overnight Phoenix & Central Overnight Tucson & Southern Overnight West Coast Overnight 33.1 million 4.5 million 5.8 million 16.7 million 7.0 million 4.2 million 3.8 nights 4.1 nights 3.6 nights 4.4 nights 4.6 nights 4.2 nights 2.8 persons 2.9 persons 3.0 persons 2.5 persons 2.6 persons 3.0 persons 43% VFR, 15% Business, 13% Touring, 8% Outdoors 32% VFR, 26% Touring, 17% Outdoors 33% VFR, 24% Touring, 14% Outdoors 51% VFR, 19% Business, 8% Touring 49% VFR, 15% Business, 12% Touring, 8% Special Event 35% VFR, 14% Touring, 14% Outdoors, 12% Business 45.8 years 48 years 44.8 years 47.1 years 46.5 years 41.2 years $72,340 $74,490 $70,220 $75,570 $71,350 $73,100 47% Auto, 18% Air, 15% Rented Auto 51% Auto, 15% Air, 13% Rented Auto 54% Auto, 15% Rented Auto, 14% Air 45% Auto, 26% Air, 17% Rented Auto 50% Auto, 21% Air, 14% Rented Auto 48% Auto, 12% Rented Auto, 12% Air 70% Paid, 30% Non‐Paid 74% Paid, 26% Non‐Paid 73% Paid, 27% Non‐Paid 60% Paid, 40% Non‐Paid 64% Paid, 36% Non‐Paid 77% Paid, 23% Non‐Paid $623 $769 $587 $710 $780 $803 28% Q1, 24% Q2 25% Q1‐Q4 29% Q2, 26% Q3 32% Q1, 25% Q4 33% Q1, 25% Q2 27% Q1, 25% Q4 Phoenix, Los Angeles, Tucson, Albuquerque, Las Vegas Phoenix, Los Angeles, Tucson, Albuquerque, Las Vegas Los Source: Tourism Economics & Longwoods Phoenix, International Top Origin DMAs Angeles, Tucson, New York, San Diego, Albuquerque 7 8% Special Event, Los Angeles, Phoenix, Los Phoenix, Los Tucson, *For Angeles, SF Bay Angeles, San Chicago, Area, Seattle, San Diego, New York, Albuquerque, SF Diego Las Vegas Bay Area Arizona 2012 Tourism Facts Direct Travel Spending 2001‐2012 The Economic Impact of Travel in Arizona 20.0 18.0 16.8 16.0  Travel is an important contributor to the vitality of both the state and local economies. In 2012, total direct travel spending in Arizona was $19.3 billion, which generated 161,300 direct jobs paying $5.4 billion in earn‐ ings. Billions 10.0 4.0 2.0 0.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012p Source: Arizona Travel Impacts, Dean Runyan Associates Travel Employment ‐ 2012 EMPLOYMENT Direct Secondary 161,300 139,000 300,300 TOTAL DIRECT EMPLOYMENT BY SECTOR 1. Accommodation & Food Services 2. Arts, Entertainment & Recreation 3. Retail Trade 4. Transportation (Air/Ground) 82,700 37,300 16,700 11,200 DIRECT PAYROLL $5.4 B TOTAL PAYROLL $11.0 B Source: Arizona Travel Impacts, Dean Runyan Associates Direct Travel Spending ‐ 2012 FEDERAL STATE/LOCAL 13.2 13.2 14.1 6.0  Taxes generated by the travel indus‐ try are primarily paid by visitors rather than residents. In 2012, 70 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. TAX REVENUE 17.5 16.4 8.0  Arizona visitors staying overnight in paid lodging accounted for 45 per‐ cent of all visitor spending in 2012. SPENDING 19.3 15.2 14.0 12.0 18.5 17.8 18.1 18.0 Visitor Spending by Type of Traveler Accommodation 2012p $19.3 B ($Billions) Private Home, 4.2, 25% $2.628 B $1.051 B $1.578 B Campground, 0.7, 4% Day Travel, 3.8, 22% Hotel/Motel, 7.7, 45% Source: Arizona Travel Impacts, Dean Runyan Associates Source: Arizona Travel Impacts, Dean Runyan Associates 8 Vacation Home, 0.7, 4% Arizona 2012 Tourism Facts Arizona Travel Impacts ‐ 2001‐2012p Year Spending Earnings Employment ($billion) ($billion) (thousand) 13.2 3.8 2001 13.2 3.8 2002 14.1 4.0 2003 15.2 4.3 2004 16.8 4.6 2005 17.8 4.9 2006 18.1 5.2 2007 18.0 5.1 2008 16.4 4.9 2009 17.5 4.9 2010 18.5 5.1 2011 2012p 19.3 5.4 Annual Average Percentage Change 11-12p 4.6% 4.2% Tax Revenues ($million) Local/State Federal Total 153.2 151.1 154.4 158.5 164.8 168.5 168.0 165.2 156.3 154.3 157.1 161.3 1,078 1,111 1,176 1,254 1,364 1,424 1,459 1,444 1,364 1,421 1,529 1,578 788 800 843 917 982 1,049 1,095 1,074 1,033 1,057 1,008 1,051 1,865 1,911 2,019 2,171 2,346 2,474 2,554 2,518 2,397 2,477 2,536 2,628 2.7% 3.2% 4.3% 3.6% Source: Arizona Travel Impacts, Dean Runyan Associates Arizona County Travel Impacts 2012p County Apache Cochise Coconino Gila Graham/Greenlee La Paz Maricopa Mohave Navajo Pima Pinal Santa Cruz Yavapai Yuma Arizona Spending ($million) 127 348 1,045 282 77 146 11,533 536 304 2,665 628 271 699 657 19,318 Earnings Employment Local Taxes State Taxes ($million) 32 75 282 64 14 30 3,558 129 80 577 135 49 179 153 5,357 (jobs) 1,590 3,660 10,870 2,990 980 1,230 86,000 5,950 3,440 22,340 5,590 1,960 8,090 6,660 161,340 Source: Arizona Travel Impacts, Dean Runyan Associates * Property taxes and sales taxes paid by travel industry employees not included. 9 Total Taxes ($million) ($million) ($million) 3.6 10.7 29.7 5 1.8 2.9 338.5 10.6 7.9 50.1 11.7 5.0 15.6 14.3 507.2 5.6 14.3 43.3 11.5 3.4 5.8 395.5 21.4 13.2 100.4 26.7 10.0 28.5 26.2 705.7 9.1 25 73.0 16.5 5.1 8.7 733.9 32 21.1 150.5 38.4 15 44.1 40.5 212.9 Arizona 2012 Tourism Facts Arizona Occupancy Rates ‐ 2001‐2012 80% US Mountain Region Arizona 70% 2012 Arizona Lodging  The performance of the Arizona lodging in‐ dustry continued to improve from the de‐ cline that started due to the recession that started late 2007. 60% 50% 40% 30% 20%  Arizona’s 2012 lodging occupancy rate of 57.5 percent was relatively flat, showing a slight increase of 0.3 percent over 2011. Compared to the U.S., the occupancy rate was 61.4 percent which grew at a faster rate with a 2.5 percent increase over 2011. Meanwhile, the Mountain region’s occu‐ pancy rate of 59.2 percent trended similarly to Arizona, with a slight increase of 0.2 per‐ cent over 2011. 10% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Smith Travel Research Arizona Average Daily Rate (ADR) ‐ 2001‐2012 $115 US Mountain Region Arizona $110 $105 $100 $95 $90  Looking at Average Daily Rate (ADR), Ari‐ zona’s ADR increased 1.8 percent over 2011 to $97.10. Comparatively, the U.S. and Mountain region’s ADR both increased at a faster rate at 6.8 percent and 3.6 percent. $85 $80 $75 $70 $65 $60 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Smith Travel Research Mountain Region States Arizona Lodging Performance 2012 (% Change) 8.0% US Mountain Region Arizona 7.0% MT ID 6.0% WY NV 5.0% UT CO 4.0% AZ NM 3.0% 2.0% Source: U.S. Census Bureau 1.0% 0.0% Supply Demand Source: Smith Travel Research 10 Occ ADR RevPAR Arizona 2012 Tourism Facts Arizona National Park Visitation ‐ 2001‐2012 13.0 12.5 12.0 11.5 11.5 11.0 12.5 12.4 12.4 11.5 11.7 11.9 11.7 11.6 11.5 11.8 11.5 Top Visited National Parks 2012: 1. Grand Canyon NP 2. Glen Canyon NRA 3. Lake Mead NRA 4. Canyon de Chelly NM 5. Petrified Forest NP 10.5 10.0 Millions Arizona’s National Parks welcomed 11,507,404 visitors in 2012, with a ‐7.8 percent decline from 2011. 9.5 9.0 8.5 8.0 7.5 7.0 6.5 6.0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: National Park Service Arizona State Park Visitation ‐ 2001‐2012 2.75 2.50 2.25 2.54 2.41 2.29 2.24 2.28 2.00 2.19 2.26 2.27 2.25 2.31 2.34 2.35 2.18 2.17 2.06 Top Visited Arizona State Parks 2012: 1. Catalina SP 2. Lost Duchman SP 3. Kartchner Caverns SP 4. Dead Horse Ranch SP 5. Picacho Peak SP 1.75 1.50 Millions There were 2,170,077 visitors to Ari‐ zona’s State Parks in 2012 with a de‐ cline of 5.2 percent from 2011. 1.25 1.00 0.75 0.50 0.25 0.00 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Arizona State Parks 11 Arizona 2012 Tourism Facts 2012 Air Visitors to Arizona 2012 Air Visitors to AZ ‐ Market Share of Top Origin States*  According to Dean Runyan Associ‐ ates, over one‐half of all travel spending by visitors to Arizona is attributable to visitors that trav‐ eled by air.  59 percent of Arizona’s domestic air visitors come from the top ten origin states, as shown on the right. 19 percent of air visitors come from California, 7 percent from Texas and 6 percent from Illinois.  Reflecting the current state of the airline industry, in 2012, there were approximately 6.7 million out‐of‐state visitors to Arizona ar‐ riving by air. This number ex‐ cludes Arizona residents returning home and anyone simply making a connection at an Arizona airport. Source: DIIO *Non‐Stop Out of State Air Visitors to Arizona ‐ 2001‐2012* 9.0 8.0 7.0 Millions 6.0 7.09 6.47 6.58 7.42 7.74 7.91 7.17 6.59 6.60 6.77 6.72 6.15 5.0 4.0 3.0 2.0 1.0 ‐ 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: DIIO *Non‐Stop 12