Arizona Travel Impacts
1998-2012p

Photo courtesy of Arizona Office of Tourism

June 2013

Prepared for the

Arizona Office of Tourism
Phoenix, Arizona

ARIZONA TRAVEL IMPACTS
1998-2012P

Arizona Office of Tourism

Primary Research Conducted By:
Dean Runyan Associates
Portland, Arizona

June 2013

EXECUTIVE SUMMARY
This report describes the economic impacts of travel to and through Arizona and the
state’s fifteen counties. The estimates of the direct impacts associated with traveler
spending in Arizona were produced using the Regional Travel Impact Model (RTIM)
developed by Dean Runyan Associates. The estimates for Arizona are generally
comparable to the U.S. Travel and Tourism Satellite Accounts produced by the Bureau
of Economic Analysis. The estimates of spending, earnings, employment and tax
receipts are also used as input data to derive estimates of other economic measures,
including gross domestic product (GDP) and secondary effects of the travel industry.

CONTINUING IMPROVEMENT IN THE ARIZONA TRAVEL INDUSTRY
The Arizona travel industry continued its moderate expansion in 2012. Although real
spending (adjusted for inflation) and travel-generated employment remain below their
pre-recession levels, both spending and employment levels improved – spending for the
third consecutive year and employment for the second year. Continuing improvement
in the broader economy should foster continued growth in the travel industry.

1



Spending. Total direct travel spending in Arizona was $19.3 billion in 2012.
Travel spending increased by 4.6 percent in current dollars compared to 2011.
Lodging sales, a primary component in total visitor spending, increased by 4.4
percent for the year – similar to the increases the preceding two years.1 Inflationadjusted (real) travel spending increased by 2.5 percent.



Travel Activity. Visitor air arrivals on domestic flights increased by 0.5 percent,
the same rate of increase as the preceding two years. Other indicators of room
demand and visitor volume also showed modest increases.



Employment. Travel-generated employment increased by 2.7 percent – an
addition of 4,200 jobs. This is the second consecutive year of employment
growth in the travel industry since the decline in employment associated with the
2008-2009 recession.



Secondary Impacts. The re-spending of travel-related revenues by businesses
and employees supported 139,000 additional jobs outside of the travel industry
with earnings of $5.6 billion.



GDP. The Gross Domestic Product of the travel industry was $7.6 billion in
2012. The travel industry and the microelectronics industry have been the top
two export-oriented industries in the state in recent years.

Taxable lodging sales as reported by the Arizona Department of Revenue.

THE ARIZONA TRAVEL INDUSTRY IS A LEADING EXPORT-ORIENTED INDUSTRY
Travel and tourism is one of the most important “export-oriented” industries in Arizona.
Spending by visitors generates sales in lodging, food services, recreation, transportation
and retail businesses – the “travel industry.” These sales support jobs for Arizona
residents and contribute tax revenue to local and state governments. Travel is especially
important in the non-metropolitan areas of the state, where manufacturing and traded
services are less prevalent.
Selected Arizona Export-Oriented Industries, 2012p
Travel

$5.3

Microelectronics

$4.6

Aerospace

$3.0

Agriculture

$1.5

Mining

$1.2
$0

$1

$2

$3

$4

$5

$6

Earnings in Billions
Note: Preliminary 2012 estimates by Dean Runyan Associates.
Agriculture includes food and beverage processing industries.

THE TRAVEL INDUSTRY GENERATES TAX BENEFITS FOR ARIZONA RESIDENTS
In 2012, the travel industry generated $1,080 in local, state and federal tax receipts for
each Arizona household.


In 2012, more than seven percent of all local and state tax revenues were
generated by the travel industry.



The tax revenue impacts of the Arizona travel industry are relatively more
important in non-urban counties (see graph).
State Transaction Privilege Taxes Generated
By Direct Travel Spending, 2012 FY

Maricopa & Pima

All Other Counties

0%

2%

4%

6%

8%

10%

Percent Travel-Generated

DEAN RUNYAN ASSOCIATES

ARIZONA TRAVEL IMPACTS, 1998-2012P
I. U.S. Travel
II. Arizona Travel
Summary of Arizona Travel
Travel Trends
Visitor Origin
Arizona Travel Industry Gross Domestic Product
Gross Domestic Product of Arizona Export-Oriented Industries
Direct, Secondary & Total Impacts

III. State and Local Government Revenue
IV. County Travel Impacts
Appendices
A.
B.
C.
D.
E.
F

2012 Travel Impact Estimates
Key Terms and Definitions
Regional Travel Impact Model
Travel Industry Accounts
Arizona Earnings and Employment by Industry Sector
Secondary Impacts Industry Groups

DEAN RUNYAN ASSOCIATES

page
1
5
6
7
9
10
11
12
17
23
45
46
51
52
53
64
65

PAGE I

List of Tables and Figures
page

I. US Travel
Annual Direct Travel Spending in U.S., 2000-2012p
Annual U.S. Travel Spending, 2008Q1-2012Q4
International Direct Travel Spending in U.S.
Overseas Arrivals to the U.S.
U.S. Travel Industry Employment, 2008Q1-2012Q4
U.S. Leisure & Hosp. Sector Average Weekly Hours, 2008-Q1 to 2012-Q4

2
2
3
3
4
4

II. Arizona Travel
Arizona Travel Trends, 1998-2012p
Arizona Direct Travel Spending, Real and Current Dollars
Air Passenger Visitor Arrivals to Arizona, US Air Carriers, 2000-2012
Arizona Lodging Sales, 2009-Q1 to 2012-Q4
Arizona Visitor Spending by Origin of Visitor (2009-2012)
International Visitor Spending in Arizona, 2000-2012p
Arizona Travel Industry Gross Domestic Product, 2012p
Arizona Gross Domestic Product, 2008-11 (Selected Export-Oriented Industries)
Total Employment and Earnings Generated by Travel Spending in Arizona, 2012p
Direct & Secondary Employment Generated by Travel Spending, 2012p (graph)
Direct & Secondary Earnings Generated by Travel Spending, 2012p (graph)
Direct & Secondary Employment Generated by Travel Spending, 2012p (table)
Direct & Secondary Earnings Generated by Travel Spending, 2012p (table)
Arizona Travel Impacts, 2002-2012p (detail)

III. State and Local Government Revenue

17

Arizona State & Local Tax Revenue, 2011-12 FY
Arizona Travel Industry State & Local Tax Revenues, 2011-12 FY
Arizona State & Local Tax Revenues, 2011-12 FY (table)
GDP and Tax Payments of Selected Arizona Industries, 2011
Tax Payments as Percent of GDP for Selected Arizona Industries, 2011
State Transaction Privilege Taxes Generated by Travel Spending, 2012 FY

IV. County Travel Impacts

17
18
19
20
20
21-22

23

Travel-Generated Earnings Shares, 2012p
Travel-Generated Employment and Earnings Shares by County, 2012p
County Impact Summary Tables
County Impact Detail Tables, 2002-2012p

PAGE II

7
8
8
8
9
9
10
11
12
14
14
15
15
16

24
25
26-30
31-44

DEAN RUNYAN ASSOCIATES

PREFACE
The purpose of this study is to document the economic significance of the travel
industry in Arizona from 1998 to 2012. These findings show the level of travel
spending by visitors traveling to and within the state, and the impact this spending
had on the economy in terms of earnings, employment and tax revenue.
Dean Runyan Associates prepared this study for the Arizona Office of Tourism.
Dean Runyan Associates has specialized in research and planning services for the
travel, tourism and recreation industry since 1984. With respect to economic
impact analysis, the firm developed and currently maintains the Regional Travel
Impact Model (RTIM), a proprietary computer model for analyzing travel economic
impacts at the state, regional and local level. Dean Runyan Associates also has
extensive experience in project feasibility analysis, market evaluation, survey
research and travel and tourism planning.
Many individuals and organizations provided data and assistance for this report.
State agencies include the Department of Revenue, Department of Commerce,
Gaming Commission and State Parks. Information was also provided by the College
of Business and Public Administration at the University of Arizona and the School of
Hotel and Restaurant Management at Northern Arizona University. Federal
agencies that provided essential data for this report include the Bureau of Economic
Analysis, the Department of Labor, the Department of Transportation, the U.S.
Forest Service, and the National Park Service.
Special thanks are due to Melissa Elkins, Research Manager for the Arizona Office of
Tourism. Without her support and assistance, this report would not have been
possible.
Dean Runyan Associates
833 SW 11th Ave., Suite 920
Portland, OR 97205
(503) 226-2973
info@deanrunyan.com
www.deanrunyan.com

DEAN RUNYAN ASSOCIATES

PAGE III

This page intentionally blank

I. U.S. TRAVEL

DEAN RUNYAN ASSOCIATES

PAGE 1

The national level data in this section focuses on visitor spending trends in current and real
dollars, international visitation to the U.S., and trends in travel-generated employment.
The following two graphs are derived from the Bureau of Economic Analysis Travel and
Tourism Satellite Accounts.1 Both graphs show direct tourism output for the United States
– spending by domestic and international visitors.

Annual Direct Travel Spending in U.S., 2000-12

Tourism Output (Billions)

$950
$900
$850

Real

$800
$750

Current

$700
$650
$600
$550
$500
00 01 02 03 04 05 06 07 08 09 10 11 12

Direct Travel Spending in U.S.

Real Tourism Output
(Billions)

2008-Q1 to 2012-Q4
Annualized Seasonally Adjusted in 2005 Dollars
$740
$720
$700
$680
$660
$640
$620
$600
$580
2008

2009

2010

2011

Spending by domestic
and international visitors
was $865 billion in 2012
in current dollars. This
represents a 5.4 percent
increase over 2011.
When adjusted for
changes in prices
(constant dollars),
spending increased by
2.8 percent – compared
to a 6.2 percent increase
from 2010 to 2011. In
real terms, tourism
output has still not
recovered from the steep
decline in 2008 and
2009.
Real travel spending has
increased in every
quarter since the first
quarter of 2009, with the
exception of 2012-3Q.
The average quarterly
rate of increase during
this period has been 0.8
percent. The average
quarterly rate of decrease
from 2008-Q1 to 2009Q2 was 2.8 percent.

2012

Year-Quarter

1

See http://www.bea.gov/industry/index.htm#satellite.

PAGE 2

DEAN RUNYAN ASSOCIATES

The following three graphs are concerned with international travel to the U.S. The first
graph is derived from the Bureau of Economic Analysis Travel and Tourism Satellite
Accounts and International Transactions.2 The following two graphs are derived from the
monthly international arrival data released by the Office of Travel and Tourism Industries. 3
International Direct Travel Spending in U.S.
Amounts in Real Dollars (Billions)
International Share of U.S. Internal Travel*
$135

International Share

Share

Spend

$125

15%

$115

10%

$105
$95

5%

$85

0%

$75
00

02

04

06

08

10

*Airfares for international flights on
U.S. air carriers are not included.

International Spending (Billion)

20%

In real dollars, spending by
international visitors in the U.S.
increased by 6.6 percent from
2011 to 2012 – the third
consecutive year of growth. The
international share of U.S. travel
spending in 2011 was 14.6
percent – compared to 11
percent in 2003.

Overseas Arrivals (Millions)

12p

35
30

Europe

Asia

04

06

Other

25

Some of the recent increase in
international visitor spending, has
been due to favorable exchange
rates with respect to the U.S. dollar.
Overseas arrivals to the U.S.
increased by 5.8 percent in 2011
and by 6.7 percent in 2012.
It should also be noted that the
increased share of international
spending in recent years is in part a
function of the relatively modest
sluggish growth of domestic travel
spending.

20
15
10
5
0
00

50

02

2010

2011

08

10

12p

2012

40
30

20
10
0
Q1

Q2

Q3

Q4

2

See www.bea.gov/international/index.htm for quarterly international estimates of travel and tourism exports
(travel to the U.S. by international visitors).
3

See http://tinet.ita.doc.gov/research/monthly/index.html.

DEAN RUNYAN ASSOCIATES

PAGE 3

The following two graphs show quarterly employment trends since 2008 for seasonally
adjusted data.* Travel-generated employment was at its lowest level in the first quarter of
2010 -- one year after the low point for real travel spending (see graph, page 2). This is
why employment is generally a lagging indicator of overall economic activity. One of the
reasons for this is that employers often adjust the length of work before making
employment decisions. The second graph indicates this -- the average hourly work week
was at its low-point in the first quarter of 2009 and began to increase one year before any
growth in employment.
U.S. Travel Industry Employment
Seasonally Adjusted at Annual Rates
2008-Q1 to 2012-Q4

6.0
Source: Bureau of Economic
Analysis Travel & Tourism
Satellite Accounts. Travel
industry employment includes
the travel-supported
component of
accommodations, food
services, transportation, retail
and recreation (including arts
and entertainment).

5.9
Millions of Jobs

5.8
5.7
5.6

5.5

2010-1

5.4
5.3
5.2

5.1
5.0
2008

2009

2010

2011

2012

U.S. Leisure & Hospitality Average Weekly Hours
Seasonally Adjusted, 2008-Q1 to 2012-Q4
Source: Bureau of Labor
Statistics Current Employment
Survey. The Leisure and
Hospitality sectors include all
businesses in recreation
(NAICS 71) and
accommodation and food
services (NAICS 72).

26.2
Average Weekly Hours

26.1
26.0
25.9
25.8

2009-1

25.7

25.6
25.5

*Seasonal adjustment permits
quarter to quarter trend analysis.

25.4
25.3
2008

PAGE 4

2009

2010

2011

2012

Nationally, actual employment and
hours worked in leisure and
hospitality are greatest in the 3rd
quarter.

DEAN RUNYAN ASSOCIATES

II. ARIZONA TRAVEL

DEAN RUNYAN ASSOCIATES

PAGE 5

The multi-billion dollar travel industry in Arizona is an important part of the state and local
economies. The industry is represented primarily by businesses in the leisure and
hospitality sector, transportation, and retail. The money that visitors spend on various
goods and services while in Arizona produces business receipts at these firms, which in
turn generate earnings and employment for Arizona residents. In addition, state and local
governments collect taxes that are generated from visitor spending. Most of these taxes are
imposed on the sale of goods and services to visitors, thus avoiding a tax burden on local
residents.
The economic impacts directly generated by visitor spending also contribute to significant
secondary impacts. A portion of the business receipts generated by visitor spending is
spent by businesses within Arizona for other goods and services (indirect impacts). Visitor
generated earnings are also spent by employees for goods and services produced in
Arizona (induced impacts).

SUMMARY OF ARIZONA TRAVEL


Total direct travel spending in Arizona was $19.3 billion in 2012. This represents a
4.6 percent increase over the preceding year in current dollars. In real dollars
(adjusted for inflation) Arizona travel spending increased by 2.5 percent over 2011.
Real travel spending is still below its peak prior to the 2007-2009 recession.



Lodging sales, a primary component of visitor spending, increased by 4.4 percent
from 2011 to 2012 following a 3.9 percent increase the preceding year and a 4.6
percent increase from 2009 to 2010.



Visitor air travel on domestic flights to Arizona destinations increased by 0.5 percent
in 2012, following similar increases the preceding two years. Air travel to Arizona
declined by 8 percent per year in 2008 and 2009.



Direct travel-generated employment was 161,300 in 2012. This represents an
addition of 4,200, an increase of 2.7 percent. This is the second consecutive year
that travel-generated employment has increased since the declines associated with
the 2008-2009 recession.



Although neither real (inflation-adjusted) travel spending nor employment has
recovered to their pre-recessionary levels, continuing improvement in the overall
economy should stimulate the travel industry. The overall pattern in Arizona is
similar to U.S. travel (see preceding section).



The Gross Domestic Product of the travel industry was $7.6 billion in 2012. The
travel industry and the microelectronics industry have been the top two exportoriented industries in the state in recent years.



The re-spending of travel-related revenues by businesses and employees creates
secondary impacts. In 2012, the secondary impacts were 139,000 jobs with $5.6
billion in earnings.

PAGE 6

DEAN RUNYAN ASSOCIATES

TRAVEL TRENDS
Total direct travel spending in Arizona was $19.3 billion in 2012. This represents a 4.6
percent increase over the preceding year in current dollars. Lodging sales, a primary
component of visitor spending, increased by 4.4 percent. 1 Most other commodities,
including transportation, increased by similar amounts.
This travel spending resulted in 4,200 additional jobs in the travel industry, an increase of
2.7 percent. This is the second consecutive year that travel-generated employment has
increased.
Following the steep decline in travel to Arizona brought on by the 2007-2009 recession,
travel activity in the state has shown moderate improvement over the past three years.
Although neither real travel spending (see graph, next page) nor employment have
recovered to their pre-recessionary levels, continuing improvement in general economic
conditions should stimulate the travel industry. The overall pattern in Arizona is similar to
the larger U.S. travel industry (see preceding section).

Arizona Travel Trends, 1998-2012p
Spending
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012p

Earnings Employment

($Billion)

($Billion)

(Thousand)

11.8
12.7
13.7
13.2
13.2
14.1
15.2
16.8
17.8
18.1
18.0
16.4
17.5
18.5
19.3

3.4
3.6
3.9
3.8
3.8
4.0
4.3
4.6
4.9
5.2
5.1
4.9
4.9
5.1
5.4

152.7
157.9
160.0
153.2
151.1
154.4
158.5
164.8
168.5
168.0
165.2
156.3
154.3
157.1
161.3

4.2
3.4

2.7
0.4

Tax Revenue ($Million)
Local/State Federal
Total
966
750 1,717
1,043
804 1,847
1,120
853 1,973
1,078
788 1,865
1,111
800 1,911
1,176
843 2,019
1,254
917 2,171
1,364
982 2,346
1,424 1,049 2,474
1,459 1,095 2,554
1,444 1,074 2,518
1,364 1,033 2,397
1,421 1,057 2,477
1,529 1,008 2,536
1,578 1,051 2,628

Annual Percentage Change
11-12p
98-12p

4.6
3.6

3.2
3.6

4.3
2.4

3.6
3.1

Note: Estimates for 2012p are preliminary. The percentage change for 1998-2012p refers to
the average annual percentage change. These direct travel impacts do not include
secondary (indirect and induced) impacts. One-way visitor airfares are included. Total
earnings include wage and salary disbursements, other earned income and proprietor
income. Employment includes full- and part-time payroll employees and self-employed.

1

Taxable lodging sales as reported by Arizona Department of Revenue.

DEAN RUNYAN ASSOCIATES

PAGE 7

Arizona Direct Travel Spending
Real and Current Dollars

Travel Spending (Billions)

$22
$20

Real

$18
Current

$16

$14
$12
$10
00 01 02 03 04 05 06 07 08 09 10 11 12p

Air Passenger Visitor Arrivals to Arizona

In real dollars (adjusted for
inflation) Arizona travel
spending increased by 2.6
percent over 2011. In
contrast to 2011, there were
relatively small annual price
increases for lodging and
transportation. Real travel
spending is still below its peak
during 2005 through 2007.
Sources: Smith Travel Research, Energy
Information Administration, U.S.
Department of Transportation Origin
and Destination Survey, and Bureau of
Labor Statistics CPI-West Urban.

U.S. Air Carriers, 2000-2012
Visitor Air Arrivals (Millions)

8.5

Visitor air arrivals to Arizona
increased by 0.5 percent from
2011 to 2012, the same rate
of increase as the preceding
two years.

8.0

7.5
7.0

6.5
6.0

Sources: U.S. Department of
Transportation Origin and Destination
Survey and Dean Runyan Associates.

5.5
5.0
00 01 02 03 04 05 06 07 08 09 10 11 12

Arizona Taxable Lodging Sales
2009-Q1 to 2012-Q4

Hotel/Motel Taxable Sales
(Millions)

$800

2009

$700

2010

2011

2012

$600
$500
$400
$300
$200

Source: Arizona Department of
Revenue.

$100

$0

PAGE 8

Taxable lodging sales
increased by 4.4 percent
annually from 2011 to 2012.
This follows annual increases
of 3.9 percent and 4.6 percent
for the preceding two years.

Q1

Q2

Q3

Q4

DEAN RUNYAN ASSOCIATES

VISITOR ORIGIN
Out-of-state travelers generate more than three-fourths of the visitor impacts in Arizona.
Visitors from other states are the largest segment (almost 66 percent of spending), while
international travel, including day travel from Mexico, comprises approximately 16 percent
of visitor impacts.

Arizona Travel Impacts by Origin of Visitor, 2012p
Origin

Spending

Earnings Employment

Tax Receipts ($ Million)

($ Billion)

($ Billion)

(Thousand)

Local/State

Federal

3.7
10.6
2.8
17.1
2.2
19.3

0.8
3.1
0.6
4.5
0.9
5.4

29.9
97.4
20.7
148.0
13.4
161.3

328
998
231
1,557
20
1,578

166
657
98
921
130
1,051

Arizona
Other U.S.
International
All Visitors
Other Travel
Total Travel

Sources: Dean Runyan Associates, International Trade Administration and Bureau of Economic
Analysis (U.S. Dept. of Commerce), TNS TravelsAmerica visitor survey, Statistics Canada, Vera
Pavlakovich-Kochi and Alberta H. Charney, “Mexican Visitors to Arizona: Visitor Characteristics and
Economic Impacts, 2007-08” (Karl Eller College of Business and Public Administration, University of
Arizona) and Bureau of Transportation Statistics Border Crossing/Entry Data.

International Visitor Spending in Arizona, 2000-2012p
Spending in Real (2012) Dollars

International Share

20%

Share

$2.8

Spend

$2.7

15%

$2.6
$2.5

10%

$2.4

$2.3
5%

$2.2
$2.1

0%

$2.0
00

02

04

06

08

10

12p

Sources: See above chart for source of international estimates. See first
graph on preceding page for constant dollar estimates. Constant dollar
visitor spending does not include “Other Travel.”

DEAN RUNYAN ASSOCIATES

PAGE 9

ARIZONA TRAVEL INDUSTRY GROSS DOMESTIC PRODUCT
In concept, the Gross Domestic Product (GDP) of a particular industry is equal to gross
output (sales or receipts) minus intermediate inputs (the goods and services purchased from
other industries). GDP is always smaller than output or sales because GDP measures only
the “value added” of an industry and does not include the cost of the inputs that are also
necessary to produce a good or service. Alternatively, GDP can be thought of as the sum
of earnings, indirect business taxes (primarily excise and property taxes) and other
operating surplus (including profits). Estimates of travel spending and travel industry GDP
are shown in the chart below. Arizona travel industry GDP amounted to $7.6 billion in
2012. Arizona travel industry GDP represented 2.9 percent of the total Arizona GDP in
2012.
About 60 percent of all travel spending in Arizona is attributed to intermediate inputs and
goods resold at retail. Intermediate inputs cover a range of goods and services that are
purchased by travel industry businesses for the purpose of creating a product or service for
the traveler. For example, lodging establishments purchase cable television services.
Restaurants purchase food and beverages from vendors. In both cases, these inputs are
classified as the GDP of other industries. In addition, travel spending occurs at many retail
establishments where the goods purchased from the retailer are purchased as finished
goods from suppliers. These resold goods are also counted as products of other industries.
This would include motor fuel, groceries and most of the commodities sold at retail
establishments.2
Arizona Travel Industry Gross Domestic Product, 2012p
$20

$15

Billions

11.7

$5.4 Earnings

$10

$5

$0

$11.7 Inputs
$2.3 Surplus & Taxes

5.4

5.4

2.3

2.3

Spending ($19.3)

GDP ($7.6)

Sources: Dean Runyan Associates, Bureau of Economic
Analysis, and Minnesota Implan Group. Details may
not add to totals due to rounding.

2

About 38 percent of the $11.7 billion of inputs and goods resold are purchased from other Arizona
businesses.

PAGE 10

DEAN RUNYAN ASSOCIATES

GROSS DOMESTIC PRODUCT OF ARIZONA EXPORT-ORIENTED INDUSTRIES
Export-oriented industries are those industries that primarily market their products and
services to other regions, states or nations. 3 Agriculture, mining, and manufacturing are
the best examples of export-oriented industries. Clearly, there are cases in each of these
three sectors where the products are sold within the local or regional market. Nonetheless,
in general most businesses within these industries depend on export markets. The travel
industry is also an export-oriented industry because goods and services are sold to visitors,
rather than residents. The travel industry injects money into the local economy, as do the
exports of other industries.
Exports are not necessarily more important than locally traded goods and services.
However, diverse export-oriented industries in any economy are a source of strength – in
part because they generate income that contributes to the development of other local
services and amenities. Such industries characterize the “comparative advantage” of the
local economy within larger regional, national and global markets.
A comparison of the GDP’s of the leading export-oriented industries in Arizona is shown
below. Sufficient data for 2012 is not yet available for the comparison industries. As
noted, the figures for 2011 are estimated by Dean Runyan Associates.
Arizona Gross Domestic Product, 2008-2011
Selected Export-Oriented Industries
2008
2009
2010
2011

Agric./Food Proc.
Mining
Micro-Electronics
Aerospace

Travel
$0

$2

$4

$6

$8

Gross Domestic Product (Billions)
Sources: Dean Runyan Associates and Bureau of
Economic Analysis.

The travel industry and the microelectronics industry (NAICS 334) have been the leading
two export-oriented industries in the state in recent years.

3

See also pages 52 of Appendix A and page 66 of Appendix C.

DEAN RUNYAN ASSOCIATES

PAGE 11

DIRECT, SECONDARY AND TOTAL IMPACTS
Travel spending within Arizona brings money into many Arizona communities in the form
of business receipts. Portions of these receipts are spent within the state for labor and
supplies. Employees, in turn, spend a portion of their earnings on goods and services in
the state. This re-spending of travel-related revenues creates indirect and induced impacts.
To summarize:


Direct impacts represent the employment and earnings attributable to travel
expenditures made directly by travelers at businesses throughout the state.



Indirect impacts represent the employment and earnings associated with industries
that supply goods and services to the direct businesses (i.e., those that receive
money directly from travelers throughout the state).



Induced impacts represent the employment and earnings that result from purchases
for food, housing, transportation, recreation, and other goods and services made by
travel industry employees, and the employees of the indirectly affected industries.

Total Employment and Earnings Generated by
Travel Spending in Arizona, 2012p
Employment (Thousands)

Induced
101.8

Indirect
36.9

Earnings (Billions)

Induced
$4.1

Direct
161.3

Direct
$5.4

Indirect
$1.5

Note: Indirect and induced impacts estimated by Dean Runyan Associates
with Minnesota IMPLAN model. Total employment was 301,000. The
employment multiplier for 2012 is 1.86 (300/161). Total earnings were $11.0
billion. The earnings multiplier is 2.05 (($11.0/$5.4).

PAGE 12

DEAN RUNYAN ASSOCIATES

The impacts in this section are presented in terms of the employment and earnings of
eleven major industry groups. These industry groups are similar, but not identical to the
business service (or commodity) categories presented elsewhere in this report. (The
specific industries that comprise these major groups are listed in Appendix D.) Direct
travel impacts, such as those discussed in the first part of this section and the regional and
county impacts presented elsewhere in this report are found in the following industry
groups:


Accommodations & Food Services



Arts, Entertainment and Recreation



Retail Trade



Transportation

As is indicated in the following tables and graphs, the total direct employment and earnings
of these four industry groups is identical to the total direct employment and earnings
shown in the first part of this section. The only difference is that these industry groups
represent industry groupings (firms) rather than commodity or business service groupings.
The indirect and induced impacts of travel spending are found in all eleven-industry
groupings shown in the following tables and graphs. To summarize the primary secondary
impacts:


Professional Services (30,000 jobs and $1.8 billion earnings). Legal, medical,
educational and other professional services are utilized by travel businesses (indirect
effect) and by employees of these firms (induced effect).



Other Services (12,000 jobs and $384 million earnings). Employees of travelrelated businesses purchase services from various providers, such as dry cleaners
and repair shops. Similarly, travel businesses utilize a number of service providers,
such as laundry, maintenance and business services.



Government (22,000 jobs and $1.3 billion earnings). Employees of travel-related
businesses pay fees to attend public educational institutions and to operate motor
vehicles.



Finance, Insurance and Real Estate (10,000 jobs and $498 million earnings).
Employees and businesses use the services of financial institutions, insurers and real
estate businesses.

DEAN RUNYAN ASSOCIATES

PAGE 13

Direct and Secondary Employment
Generated by Travel Spending in Arizona, 2012p
Accomm. & Food Serv.
Arts, Entertain., Rec.
Retail Trade
Transportation
Prof. Services
Government
Other Services
Finance, Ins., & Real…
Construction
Mining & Manufacturing
Agric.& Food Processing

Direct

0

20

Secondary

40

60

80

100

Direct and Secondary Employment (Thousands)

Direct and Secondary Earnings
Generated by Travel Spending in Arizona, 2012p
Accomm. & Food Serv.
Transportation
Prof. Services
Government
Arts, Entertain., Rec.
Retail Trade
Construction
Finance, Ins., & Real Estate
Other Services
Mining & Manufacturing
Agric.& Food Processing

Direct

$0.0

$0.5

$1.0

Secondary

$1.5

$2.0

$2.5

$3.0

Direct and Secondary Earnings (Billions)
See notes at end of table on page 20.

Detailed estimates are reported in the following table. It should be emphasized that the
estimates of indirect and induced impacts reported here apply to the entire state of Arizona
and do not necessarily reflect economic patterns for individual counties, regions or subregions within the state. While total economic impacts can be calculated on a county or
regional level, such a detailed analysis is not included in this study. In general, geographic
areas with lower levels of aggregate economic activity will have smaller secondary impacts
within those same geographic boundaries.

PAGE 14

DEAN RUNYAN ASSOCIATES

Direct & Secondary Visitor-Generated Employment in Arizona, 2012p
(thousand jobs)

Industry Group
Accomm. & Food Serv.
Arts, Entertain., Rec.
Retail Trade
Transportation
Prof. Services
Government
Other Services
Finance, Ins., & Real Estate
Construction
Mining & Manufacturing
Agric.& Food Processing
All Industries

Direct
83
37
15
26
0
0
0
0
0
0
0
161

Secondary
Indirect Induced
4
8
5
2
3
17
5
4
8
22
1
21
5
7
4
7
1
9
1
2
1
1
37
102

Total
12
7
20
9
30
22
12
10
10
4
2
139

Grand
Total
95
45
35
35
30
22
12
10
10
4
2
300

Direct & Secondary Visitor-Generated Earnings in Arizona, 2012p
($ Million)

Industry Group
Accomm. & Food Serv.
Transportation
Prof. Services
Government
Arts, Entertain., Rec.
Retail Trade
Construction
Finance, Ins., & Real Estate
Other Services
Mining & Manufacturing
Agric.& Food Processing
All Industries

Direct
2,207
1,705
0
0
977
468
0
0
0
0
0
5,357

Secondary
Indirect Induced
72
164
122
36
516
1,236
84
1,172
195
55
12
139
48
558
174
324
185
199
108
177
32
35
1,549
4,096

Total
236
159
1,752
1,256
250
152
606
498
384
285
67
5,646

Grand
Total
2,443
1,863
1,752
1,256
1,227
620
606
498
384
285
67
11,003

Source: Dean Runyan Associates and Minnesota Implan Group.
Note: These industry groups are not equivalent to the categories used in the direct impact tables used in this
report. See Appendix D. Details may not add to totals due to rounding.

Detailed direct travel impacts for 2002 through 2012p are shown on the following page.

DEAN RUNYAN ASSOCIATES

PAGE 15

Arizona Direct Travel Impacts, 2002-2012p
2002 2004 2006 2008
Total Direct Travel Spending ($Billion)
Destination Spending
11.7 13.5 15.7 15.8
Other Travel*
1.5
1.7
2.1
2.1
Total Direct Spending
13.2 15.2 17.8 18.0
Visitor Spending by Type of Traveler Accommodation ($Billion)
Hotel, Motel
5.4
6.4
7.7
7.3
Private Home
2.5
3.0
3.5
3.8
Campground
0.5
0.5
0.5
0.6
Vacation Home
0.5
0.5
0.6
0.6
Day Travel
2.8
3.1
3.4
3.5
Destination Spending
11.7 13.5 15.7 15.8
Visitor Spending by Commodity Purchased ($Billion)
Accommodations
2.0
2.3
2.8
2.7
Food Service
2.4
2.8
3.1
3.2
Food Stores
0.7
0.8
0.8
0.9
Local Tran. & Gas
1.6
2.1
2.8
3.2
Arts, Ent. & Rec.
1.7
1.9
2.1
2.0
Retail Sales
2.3
2.4
2.5
2.3
Visitor Air Tran.
0.9
1.2
1.5
1.5
Destination Spending
11.7 13.5 15.7 15.8
Industry Earnings Generated by Travel Spending ($Billion)
Accom. & Food Serv.
1.5
1.7
2.0
2.1
Arts, Ent. & Rec.
0.7
0.8
0.9
0.9
Retail**
0.5
0.5
0.6
0.6
Ground Tran.
0.1
0.1
0.1
0.1
Visitor Air Tran.
0.4
0.5
0.6
0.6
Other Travel*
0.6
0.7
0.8
0.8
Total Direct Earnings
3.8
4.3
4.9
5.1
Industry Employment Generated by Travel Spending (Thousand Jobs)
Accom. & Food Serv.
74.9 78.5 83.5 83.0
Arts, Ent. & Rec.
33.5 36.4 38.5 37.3
Retail**
17.7 18.3 19.6 19.9
Ground Tran.
3.3
3.5
3.6
3.3
Visitor Air Tran.
7.2
7.7
8.2
7.8
Other Travel*
14.5 14.2 15.1 14.0
Total Direct Employment
151.1 158.5 168.5 165.2
Government Revenue Generated by Travel Spending ($Million)***
Local and State
1,111 1,254 1,424 1,444
Federal Tax Receipts
800
917 1,049 1,074
Total Direct Gov't Revenue
1,911 2,171 2,474 2,518

2010

2011 2012p

15.5
2.0
17.5

16.4
2.1
18.5

17.1
2.2
19.3

7.1
3.9
0.5
0.7
3.4
15.5

7.5
4.1
0.5
0.7
3.6
16.4

7.7
4.2
0.7
0.7
3.8
17.1

2.4
3.4
0.8
2.9
2.1
2.4
1.5
15.5

2.5
3.5
0.9
3.5
2.1
2.4
1.5
16.4

2.6
3.6
0.9
3.7
2.1
2.5
1.6
17.1

2.0
0.9
0.5
0.1
0.6
0.8
4.9

2.1
0.9
0.5
0.1
0.6
0.8
5.1

2.2
1.0
0.5
0.1
0.6
0.9
5.4

79.3 81.1
35.4 35.7
16.7 16.7
3.4
3.5
7.0
7.3
12.4 12.7
154.3 157.1

82.7
37.3
16.7
3.6
7.6
13.4
161.3

1,421 1,529
1,057 1,008
2,477 2,536

1,578
1,051
2,628

Details may not add to totals due to rounding.
*Other Travel includes resident air travel, travel arrangement services, and convention and trade shows. **Retail
includes gasoline.
***Local and State tax revenues include property taxes and taxes attributable to travel industry employees. These
tax receipts are not included in the county breakouts.

PAGE 16

DEAN RUNYAN ASSOCIATES

III. STATE AND LOCAL GOVERNMENT REVENUE
This section of the report provides an analysis of the state and local government
revenue supported by the travel industry. Most major sources of government
revenue, including sales, property and income taxes are included.
The pie chart below, adapted from the Bureau of the Census’ State and Local
Government Finance and other data sources, shows the main categories of tax
revenue in Arizona. About one-half of all state and local tax revenue in Arizona is
derived from sales or gross receipts taxes.1 Three-fourths of all sales taxes are
collected by the state. The next largest category is property taxes -- paid primarily
by homeowners and businesses to local governments.2 All income taxes (80
percent paid by individuals) are collected by the state.
Arizona State and Local Government Tax Revenues
Property
$7.4
35.5%

2011-12 Fiscal Year
(Billion)

License &
Other
$0.8
3.7%

Sales &
Gross
Receipts
$9.7
46.5%

Income
$3.0
14.3%
Sources: The 2011-12 fiscal year estimates of state and local tax revenues in Arizona
were prepared by Dean Runyan Associates from various sources, including the Bureau
of the Census (State and Local Government Finance), the Arizona Department of
Revenue, the Bureau of Economic Analysis and a selection of annual financial reports
for cities and counties. The state transaction privilege tax is designated as a general
sales tax. Over 90 percent of all property taxes are local. About 80 percent of all
income tax receipts are personal (vs. corporate). Selective sales taxes include taxes on
lodging, motor fuel, alcohol, tobacco and public utilities. Other taxes include license
taxes. State tax receipts comprise 60 percent of all state and local tax receipts.

The primary sources of travel industry tax revenue are:


Sales tax receipts generated by visitor spending. This includes local and
state sales taxes, lodging taxes, and motor fuel taxes. Other selective sales

1

The state transaction privilege tax is considered a sales tax in this report.
Businesses pay 62 percent of all property taxes in Arizona based on calculations by Dean Runyan
Associates from data reported by the Bureau of the Census, State and Local Government Finance and
Property Taxes on Business Capital, Ernst and Young (March 2006).
2

DEAN RUNYAN ASSOCIATES

PAGE 17

taxes (e.g., cigarettes, liquor) were not estimated separately from the general
sales tax.


Taxes paid by travel industry employees attributable to travel generated
earnings (sales, property and income taxes). The estimates for these taxes
were based primarily on the share of travel industry earnings in relation to
total personal income in the state.



Taxes paid by travel industry businesses attributable to travel generated
business receipts (property and income taxes). The estimates for these taxes
were based primarily on the share of travel industry earnings in relation to
total earnings in the state. Other business taxes, such as licenses and payroll
taxes, were not included.

The distribution of taxes generated by the travel industry for the 2011-12 fiscal year
is shown in the following pie chart. The categories are the same as the preceding
figure, with the exception that sales tax receipts are also distinguished between
those that are generated by visitor spending and those that are generated by the
spending of travel industry employees.
Arizona Travel Industry State and Local Government Tax Revenues
2010-12 Fiscal Year
(Million)
Income
$105
6.9%
Employee
Sales
$191
12.5%

Property
$171
11.2%

Other
$18
1.2%

Trav-Gen.
Sales
$1,038
68.2%

Source: Dean Runyan Associates. “Other” travel-generated tax revenue
includes gaming taxes.

Whereas slightly less than one-half of all state and local tax revenue in Arizona was
attributable to sales tax collections in the 2011-12 fiscal year, 81 percent of all travel
industry tax revenue was attributable to sales tax receipts from visitors (68.2 percent)
and the purchases of employees in the travel industry (12.5 percent). More than
two-thirds of all tax revenues supported by the travel industry was directly related to
visitor spending.
Travel industry state and local tax revenues are compared to total Arizona state and
local tax revenues in the following table. Because the travel industry generates a
relatively high proportion of sales tax revenues, it is associated with proportionately

PAGE 18

DEAN RUNYAN ASSOCIATES

more tax revenues than would be expected given the size of the industry, as
measured by earnings or gross domestic product. Whereas the earnings and GDP of
the travel industry are in the range of 3 percent of the state totals, travel industry tax
revenues represent more than 7 percent of all state and local tax revenues in
Arizona.
Arizona State and Local Tax Revenues
2011-12 Fiscal Year
($Million)

Sales & Gross Receipts
Income
Property
License & Other
Total Tax Receipts

Travel
Total Generated
9,710
1,230
2,980
100
7,410
170
780
20
20,880
1,520

Percent
Travel
12.7%
3.5%
2.3%
2.3%
7.3%

Source: Dean Runyan Associates and Bureau of the Census, State and
Local Government Finance.

The tax revenue benefits of the travel industry are also borne out in comparison
with other industries. This is illustrated in the table and figure below. The concept
of Gross Domestic Product was discussed earlier (page 11; see also appendix pages
49-50). The tax payment categories are defined as follows:


Indirect Business Taxes (IBT) include all property taxes, licenses, fees and
sales taxes paid by the firm to all levels of government. Business income
taxes are not included. Overall, sales taxes are the largest component. Even
though consumers normally paid these taxes at the point of sale, they are
defined as indirect business taxes in terms of GDP. Indirect Business Taxes
are an official category of Gross Domestic Product, as defined by the Bureau
of Economic Analysis.



Employee Property and Income Taxes (EPIT) include the state and local
property and income taxes paid by employees. These personal tax payments
are estimated by Dean Runyan Associates on the basis of industry earnings
and tax revenue data. EPIT is not an official category.

The tax payments generated by the travel industry in relation to Gross Domestic
Product are greater than all industries except retail trade. Retail trade tax payments
are especially high, of course, because of sales tax payments. However, in contrast
to the travel industry, the sales taxes paid by retail establishments are primarily taxes
on residents rather than visitors.

DEAN RUNYAN ASSOCIATES

PAGE 19

GDP and Tax Payments of Selected Arizona Industries
2011 Calendar Year
($Million)

Construction
Health Care
Manufacturing
Retail
Travel
All Industries

Indirect
Bus. Taxes
276
452
596
3,647
1,263
16,145

GDP
11,840
20,215
20,037
19,420
7,301
255,989

Employee Inc.
Sum of Bus. &
& Prop. Taxes Employee Taxes
226
502
343
795
323
919
476
4,123
133
1,396
5,853
21,998

Tax Payments as Percent of GDP for Selected Arizona Industries
2011 Calendar Year

Construction

IBT

Health Care

EPIT

Manufacturing
Retail
Travel
All Industries
0%

5%

10%

15%

20%

25%

Percent of Gross Domestic Product

Table and graph sources: Bureau and Economic Analysis and Dean Runyan Associates. Travel industry
and employee income and property tax payments estimated by Dean Runyan Associates. Other GDP
and Indirect Business Taxes estimated by Bureau of Economic Analysis. *Travel Industry Business &
Employee tax payments of $1,396 million are lower than the estimate on page 19 because business
income taxes are not included and because employee sales tax payments are included in the indirect
business taxes of other industries (especially retail trade). This is consistent with GDP accounting.

PAGE 20

DEAN RUNYAN ASSOCIATES

It is also important to recognize that the local and state tax revenues generated by
travel spending are proportionately more important for non-urban areas. There are
two reasons for this. First, the travel industry generally comprises a larger
proportion of the economy in non-urban areas. Second, counties and municipalities
impose special excise taxes on visitors (lodging, eating and drinking establishments,
auto rentals) that are disproportionately borne by visitors, rather than residents.
The first point is illustrated in the chart below, where the percentage of the state
transaction privilege tax generated by travel spending for two groups of counties is
displayed. Maricopa and Pima counties – the most urbanized counties in the state –
generate relatively lower tax impacts from visitor spending than do the less
urbanized counties in the state.
State Transaction Privilege Taxes Generated
By Direct Travel Spending, 2012 FY

Maricopa & Pima

All Other Counties

0%

5%

10%

15%

20%

Percent Travel-Generated

Source: Dean Runyan Associates and Arizona Department of Revenue.

Detailed estimates for each county are also shown. The visitor-related share of local
excise taxes would generally be somewhat higher, due to local taxes on lodging,
eating and drinking, and auto rentals, as noted above.

DEAN RUNYAN ASSOCIATES

PAGE 21

State Transaction Privilege Taxes Generated
by Direct Travel Spending, 2012 FY
Apache
Cochise
Coconino
Gila
Graham/Greenlee
La Paz
Maricopa
Mohave
Navajo
Pima
Pinal
Santa Cruz
Yavapai
Yuma
0%

10%

20%

30%

40%

Percent Travel-Generated

Source: Dean Runyan Associates and Arizona Department of Revenue.
These estimates represent the total state transaction privilege tax receipts
generated by travel spending. Counties and municipalities generally are
allocated a portion of these receipts based on resident population.
Other county and municipal excise taxes are also imposed on visitors.

To summarize this analysis of travel-generated state and local government revenue:


The travel industry accounted for more than seven percent of all state and
local tax revenues in Arizona in the 2011-12 fiscal year – more than twice
the industry proportion of statewide earnings and gross domestic product.



Most of the travel industry tax receipts are a result of visitor spending rather
than taxes on Arizona residents.



The proportion of tax receipts generated by the Arizona travel industry in
relation to industry GDP is twice as great as the statewide industry average.



The tax revenues generated by the travel industry are relatively more
important for the non-urban areas of the state as compared to the urbanized
areas of greater Phoenix and Tucson.

PAGE 22

DEAN RUNYAN ASSOCIATES

IV: COUNTY TRAVEL IMPACTS
1998-2012P

DEAN RUNYAN ASSOCIATES

PAGE 23

The analysis of travel impacts at the county level provides a valuable overview of
how the economic benefits of travel and tourism are distributed throughout the
state.
Urban areas, such as Maricopa County, tend to have highly developed travel
industry infrastructure consisting of large inventories of amusement and recreation
opportunities, commercial accommodations, and well-developed transportation
links. Hotel/motel guests are important to these areas and, hence, a large
proportion of travel expenditures are spent on overnight lodging.
In many of the less urbanized areas of Arizona, however, the economic significance
of travel and tourism is actually relatively more important. The infrastructure that
serves visitors to Maricopa County also serves local residents. Most of the spending
on recreation and food services in Maricopa county is by local residents. This is not
the case in most other less urbanized areas of the state – leisure and hospitality
businesses are generally much more dependent on visitor spending rather than local
residents.
In the graph below, the two most populous counties in Arizona, Maricopa and
Pima, are compared with the thirteen other counties in the state with respect to their
share of total employment – two-thirds of all travel-generated jobs in the state are in
the two most populous counties.
Distribution of Travel-Generated Employment, 2012p
Percent of State Direct Travel-Generated Employment

All other
33%
Maricopa &
Pima
67%

Source: Dean Runyan Associates, U.S. Bureau of Labor Statistics, and
U.S. Bureau of Economic Analysis. Total and travel-generated
employments estimates by Dean Runyan Associates.

PAGE 24

DEAN RUNYAN ASSOCIATES

However, as a group the less urbanized counties in the state actually have a higher
proportion of travel-generated employment in relation to the total employment of
the county. This is shown graphically below. Four percent of all employment in
Maricopa and Pima counties is travel-generated. By contrast, the proportion is more
than double in for the other Arizona counties.
Percent of Total Area Employment
that is Travel-Generated, 2012p
Maricopa & Pima

All other

0%

2%

4%

6%

8%

10%

Source: Dean Runyan Associates, U.S. Bureau of Labor Statistics,
and U.S. Bureau of Economic Analysis. Total and travel-generated
employment estimates by Dean Runyan Associates. Travelgenerate employment in Maricopa and Pima counties constitutes
4.0 percent of all employment in those counties. The comparable
figure for other Arizona counties is 9.2 percent.

In general, the employment and earnings estimates provided in the preceding
figures are probably the best measure at the county level of the relative importance
of travel and tourism for local economies. The following table provides estimates
for individual counties. Total employment includes all full-time and part-time wage
and salary employment and self-employment. Because total employment includes
all jobs, regardless of the hours worked, the average annual earnings of the job or
the number of individuals employed, this indicator is in some respects less useful
than earnings estimates. Nonetheless, the distribution of counties is similar for
earnings and employment.

DEAN RUNYAN ASSOCIATES

PAGE 25

Travel-Generated Employment and Earnings as Percent of Total, 2012p
Employment

Apache
Cochise
Coconino
Gila
Graham/Greenlee
La Paz
Maricopa
Mohave
Navajo
Pima
Pinal
Santa Cruz
Yavapai
Yuma
Arizona Total

Total
30,510
55,540
83,020
21,580
17,050
7,590
2,241,050
61,020
39,660
487,740
80,710
17,770
82,060
82,530
3,307,840

Travel
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

Earnings (Million)
Percent
Travel
5.2%
6.6%
13.1%
13.9%
5.7%
16.2%
3.8%
9.8%
8.7%
4.6%
6.9%
11.0%
9.9%
8.1%
4.9%

Total
$1,144
$2,843
$3,213
$793
$750
$345
$114,167
$2,277
$1,466
$21,424
$3,423
$790
$2,773
$3,765
$159,173

Travel
$32
$75
$282
$64
$14
$30
$3,558
$129
$80
$577
$135
$49
$179
$153
$5,357

Percent
Travel
2.8%
2.6%
8.8%
8.1%
1.8%
8.8%
3.1%
5.7%
5.4%
2.7%
4.0%
6.1%
6.5%
4.1%
3.4%

Source: Dean Runyan Associates, U.S. Bureau of Labor Statistics, and U.S. Bureau of Economic Analysis.
Total and travel-generated employment estimates by Dean Runyan Associates.
Note: Details may not add to totals due to rounding. Percentages calculated on unrounded numbers.

Detailed direct travel impact estimates for 1998 through 2012p can be found on the
following pages. As noted in the appendix to this report, county level estimates are
necessarily less reliable than the statewide estimates. Furthermore, estimates for the
smallest counties are less reliable than those for larger counties due to survey
sample sizes and other data limitations. For this reason, small changes in year-toyear estimates are less important than longer-term trends.

PAGE 26

DEAN RUNYAN ASSOCIATES

2012p Arizona County Travel Impacts
Travel Spending
Total
Visitor
Apache
Cochise
Coconino
Gila
Graham/Greenlee
La Paz
Maricopa
Mohave
Navajo
Pima
Pinal
Santa Cruz
Yavapai
Yuma
Arizona

Earnings

Related Travel-Generated Impacts
Employment Local Taxes State Taxes

Total Taxes

($Million)

($Million)

($Million)

(jobs)

($Million)

($Million)

($Million)

127
348
1,045
282
77
146
11,533
536
304
2,665
628
271
699
657
19,318

110
316
1,000
270
66
142
8,758
471
279
2,129
537
260
638
595
**

32
75
282
64
14
30
3,558
129
80
577
135
49
179
153
5,357

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

3.6
10.7
29.7
5.0
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
25.0
73.0
16.5
5.1
8.7
733.9
32.0
21.1
150.5
38.4
15.0
44.1
40.5
1,212.9

Details may not add to totals due to rounding.
Property taxes and sales taxes paid by travel industry employees not included in the county estimates due to data limitations. The local and state
tax estimates for the state of Arizona (Sections II and III of this report) include property taxes and the sales taxes paid by travel industry
employees.
**The sum of county visitor spending is less than statewide visitor spending because a portion of county ground transportation is allocated to
“other travel” at the county level. See appendix, page 46.

DEAN RUNYAN ASSOCIATES

PAGE 27

Arizona County Total Travel Spending, 1998-2012p
($ Millions)
Annual Percent Chg.

1998 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012p
Apache
83
104
99
97
101
115
122
123
147
119
120
126
127
Cochise
226
269
271
281
311
331
340
367
375
352
365
361
348
Coconino
639
704
667
713
758
812
845
885
939
879
938
998 1,045
Gila
195
218
213
221
228
248
260
269
260
245
256
269
282
Graham/Greenlee
36
44
40
41
42
49
62
65
67
52
61
69
77
La Paz
105
114
117
121
122
134
127
130
133
130
128
138
146
Maricopa
6,997 8,114 7,570 8,235 8,960 9,993 10,659 10,851 10,584 9,480 10,292 10,912 11,533
Mohave
310
351
377
408
422
459
516
504
515
478
511
528
536
Navajo
195
249
231
229
232
256
280
281
308
262
272
291
304
Pima
1,832 2,110 2,098 2,170 2,362 2,618 2,697 2,649 2,550 2,380 2,481 2,588 2,665
Pinal
222
252
272
285
320
362
417
480
526
497
580
636
628
Santa Cruz
242
280
289
280
299
302
281
284
282
294
261
239
271
Yavapai
372
469
477
497
510
573
613
640
651
584
613
661
699
Yuma
377
439
458
478
518
556
585
590
624
611
603
650
657
Arizona
11,832 13,716 13,180 14,055 15,188 16,809 17,802 18,118 17,960 16,364 17,479 18,467 19,318

11-12p
0.9
-3.4
4.7
5.1
10.9
6.3
5.7
1.4
4.6
3.0
-1.4
13.2
5.8
1.0
4.6

98-12p
3.1
3.1
3.6
2.7
5.9
2.4
3.6
4.0
3.2
2.7
7.7
0.8
4.6
4.1
3.8

Note: Details may not add to totals due to rounding. Percentages calculated on unrounded numbers.

PAGE 28

DEAN RUNYAN ASSOCIATES

Arizona County Travel-Generated Earnings, 1998-2012p
($ Millions)
Annual Percent Chg.

Apache
Cochise
Coconino
Gila
Graham/Greenlee
La Paz
Maricopa
Mohave
Navajo
Pima
Pinal
Santa Cruz
Yavapai
Yuma
Arizona

1998
20
50
189
50
8
23
2,200
85
48
401
54
44
105
86
3,363

2000
24
57
204
54
10
25
2,551
94
60
460
58
49
129
97
3,874

2002
24
59
195
54
9
26
2,431
104
57
479
65
52
133
103
3,792

2003
23
61
206
55
9
26
2,592
110
55
480
66
50
137
108
3,978

2004
23
67
221
56
9
26
2,814
110
56
517
73
54
139
118
4,283

2005
25
70
228
61
11
28
3,014
116
59
563
81
54
152
120
4,583

2006
27
73
240
65
14
27
3,281
133
66
580
94
52
165
131
4,947

2007
29
82
265
68
15
28
3,425
133
68
582
112
54
177
135
5,173

2008
32
84
283
66
15
29
3,298
136
76
556
122
54
180
144
5,075

2009
31
81
267
63
12
29
3,158
133
69
538
121
54
164
145
4,865

2010
30
81
262
60
12
29
3,247
127
71
538
126
50
162
143
4,939

2011 2012p
30
32
76
75
271
282
61
64
13
14
30
30
3,418 3,558
124
129
73
80
548
577
132
135
44
49
168
179
153
153
5,142 5,357

11-12p
5.8
-1.6
3.9
5.5
6.3
2.7
4.1
4.1
9.1
5.3
2.5
9.3
7.0
0.4
4.2

98-12p
3.4
3.0
2.9
1.8
3.9
2.0
3.5
3.0
3.7
2.6
6.8
0.8
3.9
4.2
3.6

Note: Details may not add to totals due to rounding. Percentages calculated on unrounded numbers.

DEAN RUNYAN ASSOCIATES

PAGE 29

Arizona County Travel-Generated Employment, 1998-2012p
($ Millions)
Annual Percent Chg.

1998
2000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 2012p
Apache
1,550
1,630
1,530
1,460
1,520
1,610
1,590
1,580
1,700
1,640
1,620
1,590
1,590
Cochise
3,690
3,930
3,800
3,760
3,930
4,030
4,110
4,380
4,340
4,120
4,070
3,820
3,660
Coconino
11,220 11,180 10,240 10,530 10,740 10,950 10,750 11,110 11,540 10,920 10,590 10,710 10,870
Gila
3,150
3,120
3,220
3,220
3,040
3,130
3,160
3,120
3,000
2,940
2,910
3,050
2,990
Graham/Greenlee
40
40
40
40
40
50
60
70
70
50
60
70
80
La Paz
1,500
1,420
1,350
1,350
1,290
1,350
1,200
1,220
1,230
1,230
1,190
1,230
1,230
Maricopa
84,020 87,700 77,850 80,880 83,780 87,470 89,530 90,130 87,910 82,290 81,630 83,330 86,000
Mohave
5,500
5,680
5,950
6,060
6,020
6,250
7,070
6,500
6,380
6,170
6,090
5,870
5,950
Navajo
3,430
3,940
3,420
3,280
3,140
3,200
3,360
3,300
3,570
3,190
3,250
3,330
3,440
Pima
21,230 23,030 22,900 22,890 24,140 25,200 25,100 23,870 22,220 21,820 21,450 21,580 22,340
Pinal
3,160
3,130
3,780
3,880
3,960
4,270
4,680
4,880
5,250
4,930
5,100
5,550
5,590
Santa Cruz
2,430
2,520
2,550
2,470
2,560
2,530
2,400
2,330
2,270
2,230
2,060
1,870
1,960
Yavapai
6,370
7,100
8,120
8,220
7,900
8,060
8,180
8,280
8,460
7,710
7,340
7,670
8,090
Yuma
4,800
4,950
5,590
5,540
5,700
5,840
6,200
6,040
6,110
6,130
6,060
6,540
6,660
Arizona
152,740 160,030 151,110 154,400 158,550 164,810 168,530 168,000 165,190 156,330 154,300 157,070 161,340
Note: Details may not add to totals due to rounding. Percentages calculated on unrounded numbers.

PAGE 30

11-12p
-0.1
-4.0
1.5
-1.9
4.1
-0.2
3.2
1.3
3.2
3.5
0.7
4.8
5.5
1.8
2.7

98-12p
0.2
-0.1
-0.2
-0.4
2.7
-1.4
0.2
0.6
0.0
0.4
4.2
-1.5
1.7
2.4
0.4

DEAN RUNYAN ASSOCIATES

Apache County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
92.6
91.5
109.1
Other Travel*
6.5
9.4
12.5
Total Direct Spending
99.1
100.9
121.6
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
48.4
43.9
55.6
Private Home
25.2
27.5
31.4
Campground
5.3
5.8
6.5
Vacation Home
10.0
10.4
11.2
Day Travel
3.7
3.8
4.4
Destination Spending
92.6
91.5
109.1
Visitor Spending by Commodity Purchased ($Million)
Accommodations
20.1
19.0
22.9
Food Service
23.4
23.4
27.5
Food Stores
7.7
8.0
8.6
Local Tran. & Gas
7.7
10.5
15.0
Arts, Ent. & Rec.
8.2
8.0
8.9
Retail Sales
25.4
22.6
26.2
Visitor Air Tran.
0.0
0.0
0.0
Destination Spending
92.6
91.5
109.1
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
15.0
14.5
17.0
Arts, Ent. & Rec.
3.6
3.5
4.0
Retail**
4.7
4.5
5.4
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
0.0
0.0
0.0
Other Travel*
0.4
0.5
0.7
Total Direct Earnings
23.7
23.1
27.2
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
1,050
920
1,020
Arts, Ent. & Rec.
170
300
250
Retail**
280
260
280
Ground Tran.
0
0
0
Visitor Air Tran.
0
0
0
Other Travel*
30
40
40
Total Direct Employment
1,530
1,520
1,590
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
3.3
3.1
3.7
State Tax Receipts
4.5
4.4
5.1
Total Direct Gov't Revenue
7.8
7.5
8.7

2008

2010

2011

2012p

132.6
14.4
147.0

106.9
12.8
119.7

110.4
15.9
126.2

110.3
17.0
127.4

36.9
33.7
43.7
12.0
6.2
132.6

49.3
34.1
6.9
12.1
4.6
106.9

47.4
38.0
7.4
12.6
4.9
110.4

46.0
38.8
7.7
13.0
4.9
110.3

25.4
31.4
15.5
27.8
9.9
22.5
0.0
132.6

22.2
28.5
9.3
15.7
8.3
23.1
0.0
106.9

21.3
28.9
9.9
19.5
8.3
22.6
0.0
110.4

20.9
29.1
9.9
20.1
8.2
22.1
0.0
110.3

19.7
4.7
6.7
0.0
0.0
0.8
31.9

21.3
3.9
4.7
0.0
0.0
0.5
30.3

21.0
3.8
4.8
0.0
0.0
0.5
30.0

22.7
4.0
4.6
0.0
0.0
0.5
31.8

1,010
330
320
0
0
50
1,700

1,100
290
210
0
0
20
1,620

1,090
270
220
0
0
20
1,590

1,100
270
210
0
0
20
1,590

3.9
5.8
9.7

3.6
5.2
8.8

3.6
5.5
9.1

3.6
5.6
9.1

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

DEAN RUNYAN ASSOCIATES

PAGE 31

Cochise County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
257.5
291.9
314.7
Other Travel*
14.0
19.4
25.3
Total Direct Spending
271.5
311.3
340.0
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
86.8
105.2
124.3
Private Home
44.3
51.0
57.2
Campground
7.0
7.8
8.6
Vacation Home
5.3
5.6
6.1
Day Travel
114.1
122.3
118.5
Destination Spending
257.5
291.9
314.7
Visitor Spending by Commodity Purchased ($Million)
Accommodations
28.9
34.7
41.6
Food Service
63.4
71.8
77.8
Food Stores
58.0
62.0
57.0
Local Tran. & Gas
20.2
30.2
40.6
Arts, Ent. & Rec.
18.3
20.5
22.0
Retail Sales
68.7
72.8
75.7
Visitor Air Tran.
0.0
0.0
0.0
Destination Spending
257.5
291.9
314.7
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
31.0
35.8
39.5
Arts, Ent. & Rec.
8.5
9.5
10.7
Retail**
18.0
19.5
20.1
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
0.0
0.0
0.0
Other Travel*
1.8
2.0
2.3
Total Direct Earnings
59.3
66.8
72.6
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
2,190
2,310
2,390
Arts, Ent. & Rec.
680
670
700
Retail**
840
860
890
Ground Tran.
0
0
0
Visitor Air Tran.
0
0
0
Other Travel*
100
100
120
Total Direct Employment
3,800
3,930
4,110
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
8.9
9.9
10.9
State Tax Receipts
11.1
12.4
13.2
Total Direct Gov't Revenue
20.0
22.3
24.0

2008

2010

2011

2012p

345.5
29.2
374.7

339.6
25.4
365.0

329.8
31.0
360.7

315.6
32.8
348.4

144.1
62.9
9.6
6.6
122.3
345.5

143.5
64.6
9.1
6.6
115.7
339.6

133.2
68.8
9.9
6.9
110.9
329.8

111.0
68.7
10.2
7.1
118.7
315.6

52.1
84.1
59.5
50.8
22.8
76.1
0.0
345.5

52.1
87.7
55.8
44.9
22.9
76.3
0.0
339.6

47.8
83.9
52.8
52.6
21.9
70.8
0.0
329.8

40.0
80.9
57.3
52.5
20.1
64.9
0.0
315.6

48.8
11.6
21.1
0.0
0.0
2.6
84.2

48.7
11.4
18.9
0.0
0.0
1.7
80.6

46.0
10.7
17.6
0.0
0.0
1.7
75.9

45.1
10.8
17.1
0.0
0.0
1.8
74.7

2,540
810
870
0
0
120
4,340

2,460
790
750
0
0
70
4,070

2,280
770
710
0
0
60
3,820

2,210
710
670
0
0
70
3,660

11.9
14.1
26.0

12.2
14.8
27.1

11.7
15.0
26.7

10.7
14.3
25.0

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

PAGE 32

DEAN RUNYAN ASSOCIATES

Coconino County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
651.7
730.4
813.2
Other Travel*
14.9
27.8
31.5
Total Direct Spending
666.7
758.2
844.6
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
422.7
477.6
537.9
Private Home
38.8
42.5
52.0
Campground
18.2
20.0
19.8
Vacation Home
25.0
27.0
29.3
Day Travel
147.1
163.2
174.1
Destination Spending
651.7
730.4
813.2
Visitor Spending by Commodity Purchased ($Million)
Accommodations
185.5
208.1
240.4
Food Service
153.1
171.7
185.3
Food Stores
36.5
41.0
42.0
Local Tran. & Gas
42.1
62.6
83.8
Arts, Ent. & Rec.
119.9
130.1
133.7
Retail Sales
107.5
110.8
113.4
Visitor Air Tran.
7.2
6.1
14.6
Destination Spending
651.7
730.4
813.2
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
116.9
131.1
141.9
Arts, Ent. & Rec.
51.4
55.8
59.9
Retail**
21.1
22.9
25.0
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
3.7
4.1
7.6
Other Travel*
2.1
7.4
5.4
Total Direct Earnings
195.3
221.3
239.8
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
6,390
6,560
6,280
Arts, Ent. & Rec.
2,720
2,940
3,140
Retail**
940
960
1,000
Ground Tran.
0
0
0
Visitor Air Tran.
80
80
150
Other Travel*
100
200
170
Total Direct Employment
10,240 10,740 10,750
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
18.1
20.5
22.9
State Tax Receipts
27.0
29.9
32.3
Total Direct Gov't Revenue
45.1
50.4
55.2

2008

2010

2011

2012p

902.8
36.7
939.4

902.6
35.1
937.8

956.6
41.5
998.1

999.7
44.9
1,044.6

602.3
53.5
24.7
31.6
190.6
902.8

600.9
57.5
23.6
31.6
189.0
902.6

637.6
61.9
25.1
33.1
198.9
956.6

670.3
63.1
26.3
34.0
206.0
999.7

276.7
205.6
48.4
108.6
139.8
116.0
7.7
902.8

273.8
215.2
48.2
95.5
138.2
118.3
13.4
902.6

291.6
221.5
50.8
118.6
140.0
120.5
13.7
956.6

307.9
232.1
52.4
126.3
143.7
123.5
13.7
999.7

174.8
65.8
27.8
0.0
5.8
8.7
282.8

162.1
63.7
24.6
0.0
5.9
5.8
262.1

169.6
63.2
25.4
0.0
6.6
6.5
271.3

181.4
61.4
25.8
0.0
6.4
6.9
281.9

6,930 6,500 6,820
3,170 2,880 2,600
1,090
950
980
0
0
0
120
110
120
230
160
190
11,540 10,590 10,710

7,100
2,470
980
0
120
200
10,870

25.4
35.7
61.1

26.2
37.4
63.6

28.3
41.5
69.8

29.7
43.3
73.0

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

DEAN RUNYAN ASSOCIATES

PAGE 33

Gila County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
208.4
221.4
250.5
Other Travel*
5.0
7.1
9.4
Total Direct Spending
213.4
228.5
260.0
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
38.5
41.7
55.5
Private Home
28.6
30.9
34.8
Campground
9.4
10.4
11.5
Vacation Home
11.1
11.8
12.7
Day Travel
120.8
126.5
136.0
Destination Spending
208.4
221.4
250.5
Visitor Spending by Commodity Purchased ($Million)
Accommodations
15.0
16.3
21.0
Food Service
36.3
38.4
43.3
Food Stores
16.7
17.9
18.6
Local Tran. & Gas
14.1
19.8
27.3
Arts, Ent. & Rec.
92.6
96.3
106.0
Retail Sales
33.7
32.7
34.4
Visitor Air Tran.
0.0
0.0
0.0
Destination Spending
208.4
221.4
250.5
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
18.2
19.4
22.6
Arts, Ent. & Rec.
27.9
28.8
32.8
Retail**
7.5
7.8
8.7
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
0.0
0.0
0.0
Other Travel*
0.3
0.4
0.5
Total Direct Earnings
53.9
56.4
64.6
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
1,290
1,230
1,280
Arts, Ent. & Rec.
1,550
1,440
1,480
Retail**
360
350
370
Ground Tran.
0
0
0
Visitor Air Tran.
0
0
0
Other Travel*
20
20
30
Total Direct Employment
3,220
3,040
3,160
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
3.7
3.9
4.7
State Tax Receipts
6.6
8.4
10.3
Total Direct Gov't Revenue
10.3
12.3
15.0

2008

2010

2011

2012p

248.6
11.0
259.6

246.1
9.5
255.6

257.0
11.7
268.7

269.9
12.4
282.3

42.6
37.6
12.8
13.6
142.0
248.6

40.8
38.5
12.2
13.3
141.2
246.1

41.1
41.5
13.3
14.0
147.1
257.0

48.4
42.6
13.7
14.3
151.0
269.9

18.0
43.2
20.2
32.6
102.2
32.4
0.0
248.6

17.0
45.4
20.1
28.8
101.7
33.1
0.0
246.1

16.8
46.4
21.2
35.6
103.5
33.5
0.0
257.0

18.9
49.0
21.7
37.9
108.1
34.3
0.0
269.9

23.3
32.8
9.0
0.0
0.0
0.6
65.7

21.3
30.4
8.1
0.0
0.0
0.4
60.1

21.7
30.5
8.3
0.0
0.0
0.3
60.7

23.8
31.6
8.3
0.0
0.0
0.4
64.1

1,190
1,390
380
0
0
30
3,000

1,060
1,500
330
0
0
20
2,910

1,070
1,620
340
0
0
20
3,050

1,130
1,510
330
0
0
20
2,990

4.4
10.0
14.4

4.5
10.3
14.8

4.7
10.9
15.6

5.0
11.5
16.5

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

PAGE 34

DEAN RUNYAN ASSOCIATES

Graham & Greenlee Counties
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
35.9
36.7
54.0
Other Travel*
4.0
5.5
7.5
Total Direct Spending
39.9
42.3
61.5
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
14.5
14.1
27.1
Private Home
15.2
16.1
18.9
Campground
1.4
1.6
1.8
Vacation Home
0.6
0.7
0.7
Day Travel
4.2
4.3
5.5
Destination Spending
35.9
36.7
54.0
Visitor Spending by Commodity Purchased ($Million)
Accommodations
4.9
4.8
9.1
Food Service
10.4
10.6
14.5
Food Stores
3.8
3.9
4.6
Local Tran. & Gas
3.8
5.2
8.2
Arts, Ent. & Rec.
3.4
3.3
4.4
Retail Sales
9.6
8.9
13.3
Visitor Air Tran.
0.0
0.0
0.0
Destination Spending
35.9
36.7
54.0
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
5.2
5.2
7.9
Arts, Ent. & Rec.
1.8
1.8
2.4
Retail**
2.0
2.0
2.9
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
0.0
0.0
0.0
Other Travel*
0.2
0.3
0.4
Total Direct Earnings
9.3
9.3
13.6
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
470
440
630
Arts, Ent. & Rec.
230
280
410
Retail**
100
90
130
Ground Tran.
0
0
0
Visitor Air Tran.
0
0
0
Other Travel*
10
20
20
Total Direct Employment
800
830 1,190
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
0.9
0.9
1.4
State Tax Receipts
2.0
2.0
2.7
Total Direct Gov't Revenue
2.9
2.9
4.1

2008

2010

2011

2012p

57.7
9.3
67.0

53.1
8.0
61.1

59.0
10.0
69.1

65.8
10.8
76.6

27.1
21.7
2.0
0.8
6.0
57.7

22.2
22.3
1.9
0.8
5.9
53.1

24.8
24.8
2.0
0.9
6.5
59.0

30.7
25.3
2.1
0.9
6.9
65.8

9.9
15.4
5.2
10.3
4.4
12.5
0.0
57.7

8.0
15.4
5.2
9.0
4.1
11.5
0.0
53.1

8.7
16.5
5.6
11.5
4.3
12.3
0.0
59.0

11.0
18.0
5.8
12.5
4.6
13.8
0.0
65.8

9.2
2.5
3.0
0.0
0.0
0.5
15.2

7.3
2.1
2.5
0.0
0.0
0.3
12.1

7.9
2.1
2.7
0.0
0.0
0.3
13.0

8.4
2.2
2.9
0.0
0.0
0.3
13.8

640
430
120
0
0
30
1,220

480
330
100
0
0
20
930

490
320
110
0
0
20
940

520
320
110
0
0
20
980

1.5
2.8
4.2

1.4
2.7
4.1

1.5
3.1
4.6

1.8
3.4
5.1

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail
includes gasoline.

DEAN RUNYAN ASSOCIATES

PAGE 35

La Paz County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
115.4
119.6
123.0
Other Travel*
1.9
2.8
3.7
Total Direct Spending
117.3
122.4
126.7
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
13.8
12.5
8.4
Private Home
10.7
11.7
13.2
Campground
24.3
26.2
28.6
Vacation Home
14.1
14.8
15.8
Day Travel
52.5
54.5
57.0
Destination Spending
115.4
119.6
123.0
Visitor Spending by Commodity Purchased ($Million)
Accommodations
10.7
11.1
10.4
Food Service
20.4
20.9
21.4
Food Stores
10.5
11.1
11.2
Local Tran. & Gas
8.5
11.7
15.3
Arts, Ent. & Rec.
46.0
46.5
46.6
Retail Sales
19.3
18.3
18.0
Visitor Air Tran.
0.0
0.0
0.0
Destination Spending
115.4
119.6
123.0
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
8.8
9.0
8.9
Arts, Ent. & Rec.
12.7
12.8
13.4
Retail**
4.2
4.3
4.5
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
0.0
0.0
0.0
Other Travel*
0.1
0.1
0.2
Total Direct Earnings
25.7
26.2
27.0
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
600
560
520
Arts, Ent. & Rec.
540
520
470
Retail**
200
200
200
Ground Tran.
0
0
0
Visitor Air Tran.
0
0
0
Other Travel*
10
10
10
Total Direct Employment
1,350
1,290
1,200
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
2.4
2.5
2.5
State Tax Receipts
3.7
4.4
4.8
Total Direct Gov't Revenue
6.1
6.9
7.3

2008

2010

2011

2012p

129.2
4.2
133.4

124.3
3.6
127.9

133.4
4.5
137.9

141.8
4.7
146.5

6.6
14.5
31.2
16.7
60.1
129.2

4.4
14.2
30.5
16.2
59.0
124.3

5.3
16.4
32.3
17.0
62.4
133.4

10.6
16.3
33.2
17.4
64.3
141.8

10.1
22.5
12.4
18.9
47.7
17.6
0.0
129.2

8.7
22.9
12.1
16.3
46.7
17.6
0.0
124.3

9.1
24.2
13.0
20.6
48.2
18.2
0.0
133.4

10.8
25.9
13.3
22.1
50.7
18.9
0.0
141.8

9.8
14.0
4.9
0.0
0.0
0.2
28.9

10.0
14.3
4.2
0.0
0.0
0.1
28.7

10.7
14.5
4.4
0.0
0.0
0.1
29.7

10.5
15.3
4.5
0.0
0.0
0.1
30.5

520
480
210
0
0
10
1,230

530
470
180
0
0
10
1,190

550
480
190
0
0
10
1,230

530
500
190
0
0
10
1,230

2.5
4.9
7.5

2.5
5.1
7.6

2.7
5.5
8.2

2.9
5.8
8.7

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

PAGE 36

DEAN RUNYAN ASSOCIATES

Maricopa County
Travel Impacts, 2002-2012p
2002
2004
2006
2008
2010
2011
Total Direct Travel Spending ($Million)
Destination Spending
6,033
7,056
8,247
8,034 7,968 8,342
Other Travel*
1,536
1,904
2,412
2,550 2,324 2,570
Total Direct Spending
7,570
8,960 10,659 10,584 10,292 10,912
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
3,304
3,928
4,754
4,451 4,342 4,516
Private Home
1,541
1,803
2,071
2,139 2,209 2,307
Campground
222
213
167
150
107
126
Vacation Home
186
205
231
254
258
268
Day Travel
781
908
1,025
1,041 1,053 1,125
Destination Spending
6,033
7,056
8,247
8,034 7,968 8,342
Visitor Spending by Commodity Purchased ($Million)
Accommodations
1,157
1,347
1,705
1,630 1,397 1,465
Food Service
1,284
1,501
1,706
1,687 1,811 1,878
Food Stores
208
235
241
252
250
267
Local Tran. & Gas
614
776
960
1,007
989 1,118
Arts, Ent. & Rec.
916
1,035
1,123
1,059 1,075 1,098
Retail Sales
1,069
1,152
1,246
1,141 1,195 1,226
Visitor Air Tran.
785
1,011
1,266
1,257 1,250 1,290
Destination Spending
6,033
7,056
8,247
8,034 7,968 8,342
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
822
961
1,119
1,185 1,141 1,189
Arts, Ent. & Rec.
394
446
506
499
496
496
Retail**
173
191
214
207
193
203
Ground Tran.
76
88
101
95
105
112
Visitor Air Tran.
395
475
565
542
571
623
Other Travel*
572
653
776
770
741
795
Total Direct Earnings
2,431
2,814
3,281
3,298 3,247 3,418
Industry Employment Generated by Travel Spending (Thousand Jobs)
Accom. & Food Serv.
36.2 38,870 41,570
41.6
39.6
40.5
Arts, Ent. & Rec.
13.6 15,700 16,480
16.6
15.3
15.3
Retail**
5.8
6,120
6,460
6.3
5.8
5.8
Ground Tran.
2.5
2,640
2,770
2.6
2.7
2.8
Visitor Air Tran.
7.0
7,420
7,820
7.4
6.7
7.0
Other Travel*
12.8 13,030 14,430
13.4
11.6
11.9
Total Direct Employment
77.9 83,780 89,530
87.9
81.6
83.3
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
242
282
329
313
311
327
State Tax Receipts
258
296
338
329
344
377
Total Direct Gov't Revenue
500
578
667
642
655
703

2012p
8,758
2,775
11,533
4,676
2,368
245
275
1,194
8,758
1,541
1,981
293
1,197
1,134
1,260
1,351
8,758
1,228
551
210
114
623
832
3,558
41.3
16.2
5.8
2.9
7.2
12.5
86.0
338
395
734

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations, resident air travel, travel arrangement services, and
convention and trade shows. **Retail includes gasoline.

DEAN RUNYAN ASSOCIATES

PAGE 37

Mohave County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
344.0
387.0
468.4
Other Travel*
32.8
34.5
47.4
Total Direct Spending
376.8
421.5
515.8
All Overnight
Hotel, Motel
103.1
112.2
145.7
Private Home
101.0
118.2
142.0
Campground
15.6
17.2
19.1
Vacation Home
27.9
31.1
35.7
Day
96.5
108.2
126.0
Destination Spending
344.0
387.0
468.4
Visitor Spending by Commodity Purchased ($Million)
Accommodations
46.9
55.4
71.9
Food Service
90.4
102.1
121.7
Food Stores
31.2
36.0
40.2
Local Tran. & Gas
30.7
46.5
68.3
Arts, Ent. & Rec.
72.3
78.8
89.3
Retail Sales
65.8
68.3
77.0
Visitor Air Tran.
6.7
0.0
0.0
Destination Spending
344.0
387.0
468.4
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
45.4
52.1
63.3
Arts, Ent. & Rec.
32.8
35.7
42.3
Retail**
14.9
16.5
19.9
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
2.5
0.0
0.0
Other Travel*
8.3
5.6
7.3
Total Direct Earnings
103.8
110.0
132.8
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
2,940
3,050
3,550
Arts, Ent. & Rec.
2,050
2,120
2,540
Retail**
600
610
710
Ground Tran.
0
0
0
Visitor Air Tran.
60
0
0
Other Travel*
300
240
270
Total Direct Employment
5,950
6,020
7,070
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
8.0
9.0
10.9
State Tax Receipts
15.2
17.0
20.0
Total Direct Gov't Revenue
23.2
26.0
30.9

2008

2010

2011

2012p

450.5
64.3
514.7

459.8
51.4
511.2

467.9
60.2
528.1

470.8
64.7
535.5

112.4
153.7
21.2
38.3
124.8
450.5

120.9
154.0
20.2
37.5
127.2
459.8

121.8
156.6
21.9
39.3
128.2
467.9

119.5
159.4
22.6
40.3
129.0
470.8

57.8
118.5
42.5
79.5
82.3
69.8
0.0
450.5

56.4
129.4
43.1
72.2
84.8
73.9
0.0
459.8

57.2
127.1
43.6
85.5
82.4
72.0
0.0
467.9

56.6
128.6
43.8
88.4
81.8
71.5
0.0
470.8

62.6
41.0
20.0
0.0
0.0
12.5
136.0

61.5
38.8
18.2
0.0
0.0
8.2
126.8

60.9
37.0
17.9
0.0
0.0
8.2
124.1

57.7
45.0
17.6
0.0
0.0
8.9
129.2

3,200
2,030
680
0
0
470
6,380

3,150
1,990
630
0
0
310
6,090

3,040
1,910
620
0
0
310
5,870

2,770
2,250
610
0
0
320
5,950

9.7
18.9
28.6

10.3
20.3
30.6

10.6
21.2
31.8

10.6
21.4
32.0

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

PAGE 38

DEAN RUNYAN ASSOCIATES

Navajo County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
220.2
217.1
260.0
Other Travel*
10.8
15.2
20.1
Total Direct Spending
231.0
232.3
280.0
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
114.2
102.7
128.5
Private Home
36.9
40.9
48.1
Campground
13.1
14.2
16.4
Vacation Home
35.4
38.0
41.7
Day Travel
20.6
21.4
25.2
Destination Spending
220.2
217.1
260.0
Visitor Spending by Commodity Purchased ($Million)
Accommodations
45.8
44.1
52.9
Food Service
53.5
53.2
63.4
Food Stores
15.5
16.3
18.0
Local Tran. & Gas
15.8
21.4
31.4
Arts, Ent. & Rec.
27.7
27.5
30.9
Retail Sales
61.8
54.6
63.4
Visitor Air Tran.
0.0
0.0
0.0
Destination Spending
220.2
217.1
260.0
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
35.0
34.1
40.1
Arts, Ent. & Rec.
10.6
10.5
12.3
Retail**
10.3
9.8
11.8
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
0.0
0.0
0.0
Other Travel*
1.0
1.2
1.5
Total Direct Earnings
57.0
55.5
65.7
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
2,260
2,050
2,120
Arts, Ent. & Rec.
610
590
670
Retail**
490
430
490
Ground Tran.
0
0
0
Visitor Air Tran.
0
0
0
Other Travel*
60
70
80
Total Direct Employment
3,420
3,140
3,360
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
6.5
6.1
7.3
State Tax Receipts
9.8
9.7
11.4
Total Direct Gov't Revenue
16.2
15.8
18.6

2008

2010

2011

2012p

285.6
22.5
308.1

252.6
19.2
271.8

267.3
23.5
290.8

279.4
24.9
304.4

141.3
53.9
17.2
45.6
27.7
285.6

113.6
51.6
16.6
45.2
25.6
252.6

117.8
57.0
17.8
47.3
27.5
267.3

128.0
58.0
16.5
48.6
28.3
279.4

60.4
69.3
20.2
39.7
32.0
64.0
0.0
285.6

50.2
65.3
19.0
32.2
29.7
56.1
0.0
252.6

51.6
67.6
20.2
40.3
30.3
57.2
0.0
267.3

55.5
70.8
20.5
42.3
30.6
59.7
0.0
279.4

48.6
13.3
12.7
0.0
0.0
1.3
75.8

47.8
12.7
10.1
0.0
0.0
0.7
71.3

49.3
12.7
10.6
0.0
0.0
0.7
73.2

53.6
14.8
10.8
0.0
0.0
0.7
79.9

2,320
680
510
0
0
70
3,570

2,240
570
410
0
0
30
3,250

2,330
550
420
0
0
30
3,330

2,370
610
430
0
0
30
3,440

7.9
12.1
20.0

7.0
11.5
18.6

7.4
12.6
20.0

7.9
13.2
21.1

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

DEAN RUNYAN ASSOCIATES

PAGE 39

Pima County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
1,782
1,987
2,241
Other Travel*
316
375
456
Total Direct Spending
2,098
2,362
2,697
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
808
924
1,074
Private Home
328
375
423
Campground
23
25
56
Vacation Home
36
39
43
Day Travel
587
624
645
Destination Spending
1,782
1,987
2,241
Visitor Spending by Commodity Purchased ($Million)
Accommodations
308
339
420
Food Service
412
471
526
Food Stores
116
128
134
Local Tran. & Gas
188
236
294
Arts, Ent. & Rec.
159
175
188
Retail Sales
465
469
468
Visitor Air Tran.
134
170
210
Destination Spending
1,782
1,987
2,241
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
251
282
320
Arts, Ent. & Rec.
65
71
80
Retail**
78
81
86
Ground Tran.
24
27
30
Visitor Air Tran.
5
5
10
Other Travel*
56
50
54
Total Direct Earnings
479
517
580
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
12,900 13,790 14,630
Arts, Ent. & Rec.
3,960
4,550
4,550
Retail**
3,050
3,050
3,120
Ground Tran.
800
820
830
Visitor Air Tran.
140
130
220
Other Travel*
2,040
1,800
1,750
Total Direct Employment
22,900 24,140 25,100
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
41.1
45.0
53.9
State Tax Receipts
78.2
86.1
95.0
Total Direct Gov't Revenue
119.4
131.1
148.9

2008

2010

2011

2012p

2,043
506
2,550

2,023
458
2,481

2,074
515
2,588

2,129
536
2,665

903
451
36
47
605
2,043

900
450
29
47
597
2,023

927
467
31
49
599
2,074

947
467
32
51
633
2,129

349
475
132
279
173
411
223
2,043

320
509
129
272
175
414
204
2,023

328
521
132
306
178
404
203
2,074

331
540
137
318
179
422
200
2,129

304
76
80
25
12
59
556

300
76
73
28
11
51
538

307
76
73
29
11
53
548

329
76
75
30
11
57
577

12,740 12,510 12,650
3,860 4,040 4,070
2,880 2,590 2,580
680
710
730
250
210
200
1,800 1,390 1,340
22,220 21,450 21,580

13,250
4,180
2,580
750
200
1,380
22,340

47.3
85.5
132.8

47.0
90.3
137.4

49.3
97.2
146.4

50.1
100.4
150.5

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations, resident air travel, travel arrangement services, and
convention and trade shows. **Retail includes gasoline.

PAGE 40

DEAN RUNYAN ASSOCIATES

Pinal County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
252.2
290.0
368.1
Other Travel*
19.8
30.2
48.8
Total Direct Spending
272.1
320.2
416.9
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
24.7
25.4
33.8
Private Home
102.7
120.9
156.2
Campground
35.4
39.1
43.3
Vacation Home
33.6
39.5
52.4
Day Travel
55.8
65.1
82.4
Destination Spending
252.2
290.0
368.1
Visitor Spending by Commodity Purchased ($Million)
Accommodations
26.5
29.1
36.7
Food Service
76.5
87.9
111.7
Food Stores
24.7
28.4
33.3
Local Tran. & Gas
22.5
33.9
51.8
Arts, Ent. & Rec.
41.4
46.1
55.9
Retail Sales
60.7
64.6
78.7
Visitor Air Tran.
0.0
0.0
0.0
Destination Spending
252.2
290.0
368.1
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
32.5
37.0
47.2
Arts, Ent. & Rec.
19.3
21.6
27.4
Retail**
11.9
13.3
16.9
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
0.0
0.0
0.0
Other Travel*
1.4
1.6
2.6
Total Direct Earnings
65.2
73.4
94.2
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
2,030
2,170
2,500
Arts, Ent. & Rec.
1,150
1,170
1,390
Retail**
520
540
670
Ground Tran.
0
0
0
Visitor Air Tran.
0
0
0
Other Travel*
80
80
120
Total Direct Employment
3,780
3,960
4,680
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
5.7
6.4
7.9
State Tax Receipts
12.0
13.8
17.2
Total Direct Gov't Revenue
17.8
20.2
25.2

2008

2010

2011

2012p

456.2
69.3
525.6

511.2
69.1
580.3

551.9
84.5
636.4

537.1
90.7
627.8

37.1
199.9
48.2
67.4
103.6
456.2

34.6
240.0
46.0
75.0
115.7
511.2

42.2
255.2
49.8
78.5
126.1
551.9

36.7
244.8
51.3
80.6
123.8
537.1

42.3
140.1
42.3
73.7
66.2
91.6
0.0
456.2

40.6
168.1
47.4
72.8
74.8
107.6
0.0
511.2

44.3
176.5
50.5
91.6
77.3
111.7
0.0
551.9

42.8
172.1
49.3
91.9
74.5
106.6
0.0
537.1

62.9
34.1
21.0
0.0
0.0
3.8
121.8

66.7
35.7
21.5
0.0
0.0
2.6
126.4

70.9
36.1
22.6
0.0
0.0
2.5
132.1

72.8
38.6
21.4
0.0
0.0
2.6
135.4

2,990
1,270
820
0
0
180
5,250

2,790
1,400
790
0
0
130
5,100

3,010
1,570
840
0
0
130
5,550

3,020
1,650
790
0
0
130
5,590

9.5
20.7
30.2

11.1
24.7
35.9

12.1
27.1
39.2

11.7
26.7
38.4

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

DEAN RUNYAN ASSOCIATES

PAGE 41

Santa Cruz County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
284.8
293.7
273.5
Other Travel*
3.9
5.7
8.0
Total Direct Spending
288.7
299.4
281.5
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
26.3
31.0
36.3
Private Home
22.6
25.6
29.0
Campground
0.9
1.0
1.1
Vacation Home
0.9
1.0
1.2
Day Travel
234.0
235.1
206.0
Destination Spending
284.8
293.7
273.5
Visitor Spending by Commodity Purchased ($Million)
Accommodations
11.3
13.0
15.6
Food Service
36.5
39.3
39.6
Food Stores
100.6
105.1
91.8
Local Tran. & Gas
10.6
15.1
19.1
Arts, Ent. & Rec.
7.6
8.5
9.1
Retail Sales
118.2
112.6
98.5
Visitor Air Tran.
0.0
0.0
0.0
Destination Spending
284.8
293.7
273.5
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
16.3
17.8
18.5
Arts, Ent. & Rec.
3.8
4.2
4.7
Retail**
31.2
31.3
28.1
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
0.0
0.0
0.0
Other Travel*
0.2
0.3
0.5
Total Direct Earnings
51.5
53.6
51.8
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
1,050
1,110
1,070
Arts, Ent. & Rec.
270
260
330
Retail**
1,210
1,160
970
Ground Tran.
0
0
0
Visitor Air Tran.
0
0
0
Other Travel*
10
20
30
Total Direct Employment
2,550
2,560
2,400
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
5.4
5.4
5.2
State Tax Receipts
10.0
10.2
9.6
Total Direct Gov't Revenue
15.4
15.6
14.8

2008

2010

2011

2012p

272.9
9.5
282.4

252.1
8.4
260.6

228.6
10.4
239.0

259.6
11.0
270.6

39.0
33.1
1.3
1.3
198.2
272.9

35.6
34.5
1.2
1.3
179.6
252.1

28.9
36.1
1.3
1.3
161.0
228.6

31.2
37.6
1.4
1.4
188.1
259.6

16.9
41.1
92.9
23.2
9.3
89.5
0.0
272.9

15.4
41.0
83.7
19.7
9.1
83.2
0.0
252.1

12.3
37.2
76.1
21.9
8.1
73.0
0.0
228.6

12.9
41.4
88.5
24.6
8.5
83.6
0.0
259.6

21.2
5.1
27.3
0.0
0.0
0.6
54.1

21.0
4.8
23.9
0.0
0.0
0.3
50.1

18.6
4.2
21.2
0.0
0.0
0.3
44.4

19.1
5.3
23.8
0.0
0.0
0.3
48.6

1,000
340
900
0
0
30
2,270

980
330
730
0
0
20
2,060

880
320
660
0
0
20
1,870

910
310
720
0
0
10
1,960

5.1
9.4
14.5

4.9
9.4
14.3

4.5
8.9
13.4

5.0
10.0
15.0

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

PAGE 42

DEAN RUNYAN ASSOCIATES

Yavapai County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
449.8
472.9
562.5
Other Travel*
27.5
37.5
50.1
Total Direct Spending
477.3
510.4
612.7
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
173.5
176.4
233.0
Private Home
49.7
56.9
69.8
Campground
10.0
10.8
5.4
Vacation Home
17.0
19.0
21.9
Day Travel
199.6
209.8
232.4
Destination Spending
449.8
472.9
562.5
Visitor Spending by Commodity Purchased ($Million)
Accommodations
83.4
85.8
115.0
Food Service
87.0
91.5
108.8
Food Stores
31.7
34.2
36.9
Local Tran. & Gas
29.0
41.0
58.9
Arts, Ent. & Rec.
144.1
147.7
162.6
Retail Sales
74.6
72.4
79.9
Visitor Air Tran.
0.0
0.2
0.5
Destination Spending
449.8
472.9
562.5
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
57.7
59.9
73.5
Arts, Ent. & Rec.
55.5
56.8
65.5
Retail**
14.8
15.3
17.8
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
0.0
0.1
0.2
Other Travel*
5.5
6.4
7.8
Total Direct Earnings
133.5
138.6
164.9
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
3,330
3,050
3,280
Arts, Ent. & Rec.
3,840
3,880
3,840
Retail**
650
630
740
Ground Tran.
0
0
0
Visitor Air Tran.
0
0
0
Other Travel*
310
340
320
Total Direct Employment
8,120
7,900
8,180
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
10.5
10.9
13.6
State Tax Receipts
17.3
19.5
23.7
Total Direct Gov't Revenue
27.8
30.4
37.3

2008

2010

2011

2012p

594.6
56.1
650.6

562.9
49.7
612.6

603.7
57.4
661.0

637.6
61.6
699.2

234.4
77.0
13.0
24.2
246.0
594.6

208.7
77.3
12.6
23.8
240.5
562.9

225.6
85.4
13.3
25.0
254.4
603.7

248.9
87.2
14.0
25.6
261.9
637.6

121.3
113.7
41.5
73.6
166.3
77.8
0.4
594.6

104.4
115.3
40.5
63.2
161.3
77.3
0.8
562.9

111.4
121.2
43.4
79.9
166.8
80.0
1.0
603.7

124.1
127.6
44.5
85.1
172.3
82.1
1.8
637.6

83.8
68.9
19.1
0.0
0.3
8.0
180.1

73.7
65.4
16.6
0.0
0.3
6.3
162.2

78.0
66.3
17.4
0.0
0.3
5.6
167.6

85.8
69.6
17.6
0.0
0.4
5.9
179.3

3,530
3,850
780
0
10
300
8,460

3,040
3,400
650
0
10
230
7,340

3,200
3,590
680
0
10
190
7,670

3,470
3,730
680
0
10
190
8,090

14.0
24.6
38.7

13.4
24.6
37.9

14.5
27.0
41.5

15.6
28.5
44.1

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

DEAN RUNYAN ASSOCIATES

PAGE 43

Yuma County
Travel Impacts, 2002-2012p
2002
2004
2006
Total Direct Travel Spending ($Million)
Destination Spending
441.0
487.4
541.8
Other Travel*
17.4
30.7
43.6
Total Direct Spending
458.4
518.0
585.4
Visitor Spending by Type of Accommodation ($Million)
Hotel, Motel
80.2
101.0
134.5
Private Home
49.0
58.8
68.4
Campground
45.6
51.6
64.5
Vacation Home
32.2
35.1
39.5
Day Travel
233.9
240.8
234.9
Destination Spending
441.0
487.4
541.8
Visitor Spending by Commodity Purchased ($Million)
Accommodations
38.8
46.9
63.2
Food Service
77.0
85.2
97.4
Food Stores
66.8
71.5
68.8
Local Tran. & Gas
25.9
38.1
54.7
Arts, Ent. & Rec.
87.7
97.3
115.8
Retail Sales
143.0
139.2
132.4
Visitor Air Tran.
1.8
9.2
9.6
Destination Spending
441.0
487.4
541.8
Industry Earnings Generated by Travel Spending ($Million)
Accom. & Food Serv.
36.9
42.1
50.4
Arts, Ent. & Rec.
34.8
38.3
47.2
Retail**
30.1
30.8
31.0
Ground Tran.
0.0
0.0
0.0
Visitor Air Tran.
0.4
2.9
0.2
Other Travel*
1.3
3.5
2.6
Total Direct Earnings
103.4
117.6
131.5
Industry Employment Generated by Travel Spending (Jobs)
Accom. & Food Serv.
2,220
2,380
2,650
Arts, Ent. & Rec.
2,110
2,040
2,280
Retail**
1,190
1,120
1,150
Ground Tran.
0
0
0
Visitor Air Tran.
10
60
10
Other Travel*
60
100
110
Total Direct Employment
5,590
5,700
6,200
Government Revenue Generated by Travel Spending ($Million)
Local Tax Receipts
10.8
11.7
13.1
State Tax Receipts
16.9
19.4
22.1
Total Direct Gov't Revenue
27.7
31.0
35.3

2008

2010

2011

2012p

569.9
53.7
623.6

553.1
49.5
602.6

592.4
57.9
650.3

595.4
61.4
656.8

140.2
78.6
72.5
43.7
234.9
569.9

131.9
79.1
74.9
44.3
222.9
553.1

155.8
89.2
80.3
46.4
220.8
592.4

151.4
86.3
74.5
47.6
235.7
595.4

66.8
103.8
72.9
68.4
121.1
124.4
12.4
569.9

61.0
107.6
69.1
60.3
122.6
120.2
12.3
553.1

68.9
115.3
69.1
77.5
133.0
116.4
12.3
592.4

65.8
115.8
73.2
78.1
127.3
123.3
12.0
595.4

58.0
50.7
31.5
0.0
0.3
3.3
143.7

62.1
50.0
27.7
0.0
0.7
2.7
143.3

68.2
53.3
27.4
0.0
0.9
2.9
152.6

69.2
51.8
28.3
0.0
0.8
3.0
153.2

2,790
2,060
1,110
0
10
130
6,110

2,840
2,140
970
0
10
90
6,060

3,150
2,330
950
0
20
90
6,540

3,060
2,550
940
0
20
100
6,660

13.3
22.7
36.0

13.2
23.6
36.8

14.3
26.0
40.3

14.3
26.2
40.5

Details may not add to totals due to rounding.
*Other Travel includes ground transportation to other Arizona destinations and travel arrangement services. **Retail includes
gasoline.

PAGE 44

DEAN RUNYAN ASSOCIATES

APPENDICES

APPENDIX A

2012 TRAVEL IMPACT ESTIMATES

APPENDIX B

KEY TERMS AND DEFINITIONS

APPENDIX C

REGIONAL TRAVEL IMPACT MODEL

APPENDIX D

TRAVEL INDUSTRY ACCOUNTS

APPENDIX E

ARIZONA EARNINGS AND EMPLOYMENT BY INDUSTRY
SECTOR

APPENDIX F

INDUSTRY GROUPS

DEAN RUNYAN ASSOCIATES

PAGE 45

APPENDIX A

2012 TRAVEL IMPACT ESTIMATES
This appendix provides a brief overview of the methodology, terminology and
limitations of the travel impact and visitor volume estimates.

REVISIONS TO 2012 REPORT
There are three revisions of note in this year’s report:


All spending and related impacts were revised to reflect new survey
data and a new methodology.



“Other travel” now includes convention and trade show impacts (for
Maricopa and Pima county only) and a portion of ground transportation
expenditures, as well as resident air travel and travel arrangement
services.



There were revisions relating to estimates of federal travel-generated tax
revenue for air travel.

DIRECT IMPACTS
The estimates of the direct impacts associated with traveler spending in Arizona
were produced using the Regional Travel Impact Model (RTIM) developed by Dean
Runyan Associates. The input data used to detail the economic impacts of the
Arizona travel industry were gathered from various local, state and federal sources.
Travel impacts consist of estimates of travel spending and the employment,
earnings, and state and local taxes generated by this spending. These estimates are
also broken out by type of traveler accommodation and by the type of business in
which the expenditures occur.

GROUND TRANSPORTATION ESTIMATES
The methodology for estimating and allocation ground transportation expenditures
has been revised in this report. County level estimates of destination or visitor
spending include now only a portion of the ground transportation expenditures for
travel that occur in the county. The remaining portion is included in “other travel”
as it represents transportation costs for travel to another destination within Arizona.
State level estimates of visitor spending include all of these expenditures for ground
transportation.

SECONDARY (INDIRECT AND INDUCED) IMPACTS
Direct impacts are reported for all counties within Arizona. Secondary employment
and earnings impacts over and above direct impacts are reported at the state level
only for the year 2012. These indirect and induced impacts are generated from the
direct impacts produced by the RTIM, discussed above, and an input-output model

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of the Arizona economy prepared by the Minnesota IMPLAN Group, Inc. Indirect
impacts represent the purchases of goods and services from other firms by
businesses that directly receive expenditures from travelers. Hotels, for example,
purchase maintenance services from independent contractors. Induced impacts
represent the purchase of goods and services by employees whose earnings are in
part derived from travel expenditures. The sum of the direct, indirect and induced
impacts equals the total impact of all spending by visitors in the state. The
“multiplier” refers to the ratio of the total impacts to the direct impacts for
employment or earnings. A description of the methodology used to estimate
secondary impacts can be found in the Appendix.

PRELIMINARY ESTIMATES
Preliminary estimates for 2012 were prepared at the state and county level. These
estimates take advantage of the most current available data. However, because fullyear data was not available in all cases, these estimates are subject to subsequent
revision as additional information relating to travel and its economic impact in 2012
becomes available.

GROSS DOMESTIC PRODUCT
An estimate of the Gross Domestic Product (GDP) of the Arizona travel
industry based on the RTIM direct travel impacts is also provided in this report.
The GDP of an industry is equal to gross output (sales or receipts) minus
intermediate inputs (the goods and services purchased from other industries).
GDP is always less than output or sales because GDP measures only the
“value added” of an industry and does not include the cost of the inputs that
are also necessary to produce a good or service. GDP is a useful concept
because it permits comparisons of the economic contributions of different
industries.
The relationship between spending and gross domestic product is illustrated in
the figure below. Examples of inputs are the food or accounting services that
restaurants purchase from suppliers. “Goods resold” are the commodities that
retail establishments purchase from manufacturers or wholesale trade
businesses and resell with a markup. These inputs or goods are not counted as
the GDP of the restaurant or retail industry because their value was created in
other industries (agriculture, accounting, manufacturing).

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Relationship Between Spending and Gross Domestic Product

Inputs/Goods Resold
Operating Surplus
Indirect Taxes
Labor Income

Spending

GDP

It is for this reason that “travel spending” – as measured from surveys of visitors
– is not the best measure of the travel industry’s real economic contribution.
This is because some visitor spending is actually counted as the GDP of other
industries (e.g., agriculture, accounting, manufacturing). Furthermore, these
other industries may or may not be located within the geographic area of
interest. If the farm were located within the region of interest, then the GDP of
the local farm would be included as an indirect or secondary effect. If not
(e.g., a manufacturing firm in another state or country), then that portion of
GDP is not counted.
The preceding graph also shows the three main components of GDP. For most
industries, labor income (essentially equivalent to earnings in this report) is the
primary component of GDP. This is true of the travel industry. A second
component is the tax payments that businesses make to government, such as
sales, excise and property taxes. In the case of excise taxes, businesses are
essentially a collection agency for the government. The final component,
operating surplus, represents the income and payments (e.g., dividends,
interest) to other stakeholders of the firm.
The concept of GDP also illustrates that with small geographic units of analysis
(e.g., counties), earnings, employment, and tax revenues are the best measures
of the economic value of the travel industry to the local economy. Small area
measures of GDP are less reliable and much of the operating surplus may leak
out of the local economy anyway. Indirect effects are also generally less in
smaller economies.

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COMPARISON WITH OTHER EXPORT-ORIENTED INDUSTRIES
Export-oriented industries are those industries that primarily market their
products and services to other regions, states or nations. Agriculture,
extractive industries, and manufacturing are the best examples of goods
producing export-oriented industries. Many professional services (e.g.,
engineering, architecture, law) are also traded in export markets. The travel
industry is also an export-oriented industry because goods and services are
sold to visitors, rather than residents. The travel industry injects money into
the local economy, as do the exports of other industries.
Exports are not necessarily more important than locally traded goods and
services. However, diverse export-oriented industries in any economy are a
source of strength – in part because they generate income that contributes to
the development of other local services and amenities. Such industries
characterize the “comparative advantage” of the local economy within larger
regional, national and global markets.
For the purposes of this report, we have defined five major export-oriented
industries in Arizona.


Aerospace. This industry comprises establishments engaged in aerospace
product and parts manufacturing.



Microelectronics. This industry includes establishments that manufacture
computers, communications equipment and similar products and
components that utilize integrated circuits. This is the largest manufacturing
subsector (NAICS 334).



Food. The food group encompasses parts of two major industry categories:
agriculture, and food manufacturing or processing.



Mining. This industry is comprised primarily of copper mining companies.



Travel. A portion of the transportation, retail, leisure, and hospitality
industries as estimated in this report.

Comparisons with these industries are more meaningful for the travel industry
than comparisons with non-export oriented industries (e.g., health care, retail
trade, government) where industry growth is largely a function of population
and demographic factors. See Appendix C for a list of Arizona industries.

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INTERPRETATION OF IMPACT ESTIMATES
Users of this report should be aware of several issues regarding the interpretation of
the impact estimates contained herein:


The estimates contained in this report are based on the most current data
available and supersede all previous estimates of travel impacts.



The estimates in this report are expressed in current dollars unless otherwise
noted.



The employment estimates in this report are estimates of the total number of
full and part-time jobs directly generated by travel spending, rather than the
number of individuals employed. Both payroll and self-employment are
included in these estimates. Caution should therefore be used in comparing
these estimates with other employment data series.



In general, estimates of small geographic areas (e.g., rural counties) are less
reliable than estimates for regions or metropolitan counties. Trend analysis
and comparisons of counties with relatively low levels of travel related
economic activity should therefore be interpreted cautiously.



The estimates of travel impacts published in this report will necessarily differ
somewhat from estimates generated from different models, methodologies
and data sources. Nonetheless, it should be emphasized that all credible
estimates of direct travel impacts at the state level, including those of Dean
Runyan Associates, are of similar magnitude.

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APPENDIX B
KEY TERMS AND DEFINITIONS
Commodity: A classification of a product or service, such as lodging or food service.
An establishment or industry may produce more than one commodity.
Direct Impacts: Employment, earnings and tax receipts directly generated by travel
spending, as distinguished from secondary and total impacts.
Earnings: Earnings include wage and salary disbursements, other earned income or
benefits, and proprietor income. Only the earnings attributable to travel expenditures
are included.
Employment: Industry employment (jobs) associated with travel-generated earnings.
Includes both full-time and part-time positions, and salaried or self-employed
individuals. Employment is reported as an average for a time period, typically annual.
(Unless otherwise noted, the employment estimates refer to establishment or industry
employment at place of work, not the employment status or residence of the
individual.)
Federal Taxes: Federal taxes include the motor fuel excise tax, airline ticket taxes,
and personal income and payroll taxes.
Industry: A classification of business or government establishments based on their
primary technological process. (See NAICS Appendix table.)
Local Taxes (counties only): Lodging, sales and auto rental taxes imposed by cities,
counties and other regional tax jurisdictions in Arizona. Passenger Facility Charges
attributable to visitors (a fee imposed on airline tickets) are included in counties with
airports. Property taxes are not included.
Local and State Taxes (state): All local and state taxes reported for counties plus
property taxes attributable to travel industry businesses and employees and sales and
income taxes attributable to travel industry employees.
Other spending: Other spending includes spending by residents on ground and air
transportation for travel to other destinations, spending on travel arrangement
services, and convention/ trade shows.
Private Home: Unpaid overnight accommodations of friends and relatives.
Receipts: Travel expenditures less the sales and excise taxes paid by the consumer.
State Taxes (counties only): Lodging, motor fuel, and business and personal income
taxes imposed by the state of Arizona.
Total Impacts: The sum of Direct and Secondary impacts.
Travel spending: The sum of visitor and other spending related to travel.
Visitor spending: All spending on goods & services by visitors at the destination.
Also referred to as destination spending.

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PAGE 51

APPENDIX C
REGIONAL TRAVEL IMPACT MODEL
PRIMARY DATA SOURCES
Room Demand,
Visitor Surveys,
Population,
Inventory/Use of
Campsites &
Second Homes,
Visitor air
arrivals

Visitor Volume
(Travel Party Days by
Type of
Accommodation)

ECONOMIC IMPACTS OF TRAVEL

Accommodation
Sales,
Visitor Surveys,
Airfares

Note: Receipts equals
Spending less
POS Taxes

Ratio of
Earnings to
Receipts for
relevant
Industry

Average
Annual
Earnings per
job for
relevant
industry

PAGE 52

Visitor Spending

Point of Sale Taxes

(Type of
Accommodation and
Type of Commodity)

(Sales and Excise Taxes
associated with Visitor
Spending)

Business Receipts
(not reported)

Business Taxes
(Taxes on business
income or receipts)

Earnings
(By Industry)

Employment
(By Industry)

Personal Taxes
(Local, state and
federal income and
payroll taxes)
Note: Most estimates of taxes
are based on implicit tax rates
applied to visitor spending,
business receipts, and
employee earnings. Lodging
tax receipts reflect actual tax
collections.

DEAN RUNYAN ASSOCIATES

APPENDIX D
TRAVEL INDUSTRY ACCOUNTS: A COMPARISON OF THE
REGIONAL TRAVEL IMPACT MODEL AND
TRAVEL & TOURISM SATELLITE ACCOUNTS
An economic account is a method for displaying inter-related information about a
set of economic activities. A travel industry account is a method to report different
types of related information about the purchase of goods and services by visitors.
The Bureau of Economic Analysis (BEA), which now provides annual and quarterly
estimates of travel and tourism at the national level, describes a Travel and Tourism
Satellite Account (TTSA) as “present(ing) a rearrangement of information from the
National Income and Product Accounts, from the industry accounts, and from other
sources so that travel and tourism activities can be analyzed more completely than
is possible in the structure of the traditional national economic accounts.”1
Similarly, the RTIM has been developed by Dean Runyan Associates to estimate
travel spending, earnings, employment, and tax receipts at the state, county, and
regional levels. These initial findings can, in turn, be used as input data for deriving
estimates of other economic measures, such as value-added and indirect effects.
This appendix provides an overview of the Regional Travel Impact Model (RTIM)
and travel and tourism satellite accounts (TTSAs). Although there is no single or
absolute form of a TTSA, the one developed by the Bureau of Economic Analysis
(BEA) will be the basis of the analysis here. The definitions, framework, and
estimating methods used for the U.S. BEA TTSA follow, as closely as is practicable,
the guidelines for similar travel satellite accounts that were developed by the World
Tourism Organization (WTO) and the Organization for Economic Co-operation and
Development (OECD).
The primary focus is on the direct impacts of visitor spending. Visitors are defined
as persons that stay overnight away from home, or travel more than fifty miles oneway on a non-routine trip. Only the expenditures related to specific trips are
counted as visitor spending. Other travel related expenditures such as the
consumption of durable goods (e.g., recreational vehicles or sporting equipment) or
the purchase of vacation homes are not considered.
While such a definition of the travel industry (i.e., the trip related expenditures of
visitors) is conservative, it is also in keeping with the notion of the travel industry as
being an export-oriented industry for specific local communities. That is, visitors
are important to regions because they inject money into the local economy. This
focus on the export-oriented nature of the travel industry for local communities
becomes blurred if the industry is defined so as to include non-trip related
expenditures.
1

Peter D. Kuhbach, Mark A. Planting, and Erich H. Strassner, “U.S. Travel and Tourism Satellite
Accounts for 1998-2003,” Survey of Current Business 84 (September 2004): 43-59.

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PRIMARY CONCEPTS, CATEGORIES & DATA REQUIREMENTS
There are three primary types of information that are measured and/or estimated in a
travel industry account. The first is a measure of the travel industry in terms of both
the characteristics of the business firms that sell travel goods and services and the
characteristics of consumers that purchase travel industry goods and services. The
second is a measure of the demand segments that consume travel industry goods
and services. For example, the distinction between business and leisure travel is a
measure of demand segments. The third is a measure of the components of
economic output associated with the travel industry. The employee earnings
generated by visitor spending is one such component. Travel-generated tax receipts
are another. These three categories of information represent different aspects of the
accounting ledger – they represent different ways of viewing or analyzing the travel
industry.
The bulk of this paper will discuss these three types of information in terms of their
conceptual foundations, the data requirements, and some of the more salient issues
that users of this information should be aware of. There will also be some
discussion of indirect and induced effects in that these effects can be reasonably
estimated from the direct travel industry accounts. These secondary (versus direct)
effects describe the relationship of the travel industry to other sectors of the larger
economy.
The intent of this discussion will be to provide a general overview of the process of
constructing travel industry accounts and the underlying similarity between the
RTIM and a TTSA. More technical issues are generally placed in footnotes.

TRAVEL INDUSTRY
Defining the travel industry is probably the most critical and data intensive effort
involved in developing a travel industry account. It is an exercise in matching
supply (sellers of goods and services) with demand (the travelers that purchase those
particular goods and services). It is complicated by the fact that no single industrial
classification scheme provides a valid measure of the travel industry.2 There are
only three significant industrial classifications (Accommodations [NAICS 721],
Scheduled Passenger Air Transportation [NAICS 481111] and Travel Arrangement and
Reservation Services [NAICS 5615]) that primarily sell travel industry goods and
services.3 Firms in other industries (retail, recreation, transportation) provide goods
and services to both travelers and other types of consumers.
Because of this, most satellite accounts, as well as the RTIM, incorporate at least
some information about the expenditures of visitors in order to define the supply of
2

The North American Industrial Classification System (NAICS) is the current standard in the United
States.
3
Even these industries are not purely travel. For example, the accommodations industry provides
services to local residents (food service and meeting rooms). Passenger airlines also ship cargo on
the same planes that carry passengers. Fortunately, it is usually possible to make adjustments for
these non-travel components through the use of additional data.

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DEAN RUNYAN ASSOCIATES

visitor industry firms. For example, if there is an estimate of visitor-days and an
estimate of how much the average visitor spends on food services per day, then an
estimate of visitor spending on food services can be calculated. In most cases, this
will be only a fraction of all food service sales in that residents are a larger market
for most restaurants.4
The industry sectors that are usually matched to visitor spending in this way are:
accommodations (NAICS 721), food service (722), arts, entertainment and
recreation (71), and retail trade (44-45). A portion of transportation business is also
part of the travel industry for obvious reasons.
In the case of the transportation sector, the definition and measurement of the travel
industry component is more complicated because most transportation spending by
visitors involves travel to and from the destination, rather than travel at or within the
destination market. This is not an issue if the geographic scope of the travel industry
market includes the origin and destination of travel. National travel industry
accounts thus include all domestic passenger air transportation in the travel
industry. The issue is more complicated at the state or regional level, however.
Suppose, for example, that the focus of a travel industry account is the state of
Arizona. How should the purchase of a round trip airline ticket by a Chicago
resident traveling to Phoenix be treated in that only some of the economic impact of
this spending will occur in Arizona? A reasonable approach would be to allocate
only a portion of this spending (and related payroll, taxes, etc.) to Arizona and
ignore the remainder for the purpose of creating a travel industry account for
Arizona. However, if this procedure were followed for every state, the sum of the
state accounts would be less than the national travel account. The state accounts
would be additive if outbound air travel from each state were included. However,
this is methodologically inconsistent with the construction of a national account,
which does not include outbound travel as a component of domestic tourism
demand. The approach used in the RTIM is to make a distinction between the
visitor industry, that includes only visitor demand, and the travel industry, which
includes visitor demand and that portion of outbound travel that can be attributed to
the resident economy. For example, the passenger air transportation employment in
Arizona can be divided between three groups of travelers: inbound, outbound, and
pass-through. Only that employment attributable to inbound travel is part of the
Arizona visitor industry. Employment attributable to outbound and pass-through
travelers is included with the larger travel industry.5

4

The proportion can vary enormously among regions and localities, however. In many popular
visitor destinations, the primary market for food service will be visitors. It should also be noted that
even with reliable visitor survey data, there is still the issue of how to translate spending on food
service commodities to the supply of food service by industry. As indicated in the footnote above,
food service is also supplied by the accommodation industry.
5
The same issue arises with travel agencies and reservation services (NAICS 5615). Most of these
services are probably related to outbound travel and are treated as such in the RTIM.

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PAGE 55

The following two tables display the specific industries that are included in the
travel industry for the BEA’s national TTSA and the RTIM. Although not identical,
the industries are equivalent with only a few exceptions.6
Bureau of Economic Analysis Tourism Industries
Distribution of Travel-Generated Compensation
in United States, 2007
Accommodation & Food Services
Traveler accommodations
Food services and drinking places

38.1%
21.5%
16.6%

Transportation
Air transportation
Rail transportation
Water transportation
Interurban bus transportation
Interurban charter bus transportation
Urban transit systems & other tran.
Taxi service
Automotive equipment rental & leasing
Automotive repair services
Parking lots and garages
Toll highways

23.3%
15.4%
0.4%
1.2%
0.3%
0.2%
1.7%
1.0%
2.0%
0.8%
0.2%
0.1%

Recreation
Scenic and sightseeing transportation
Motion pictures and performing arts
Spectator sports
Participant sports
Gambling
All other recreation and entertainment

11.2%
0.4%
1.1%
2.3%
2.4%
3.0%
2.0%

Retail & Nondurable Goods Production
Petroleum refineries
Industries producing nondurable PCE
commodities, excluding petroleum refineries
Wholesale trade & tran. services
Gasoline service stations
Retail trade services, excluding
gasoline service stations

16.2%
0.6%
4.4%
4.2%
1.3%
5.8%

Travel Arrangement

7.3%

All other industries

2.2%

Total Tourism Compensation

100.0%

Source: Adapted from Eric S. Griffith and Steven L. Zemanek, “U.S. Travel and
Tourism Satellite Accounts for 2005-2008,” Survey of Current Business (June
2009): 37, table 6.
6

The major exception is that the BEA includes the production of consumer non-durables that are
sold through retail outlets. This is not a major component and would be even less so at the level of
the state.

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RTIM Travel Impact Industries Matched to NAICS
Travel Impact Industry

NAICS Industry (code)

Accommodation & Food Services
Accommodation (721)
Food Services and Drinking Places (722)
Arts, Entertainment & Recreation
Performing Arts, Spectator Sports (711)
Museums (712)
Amusement, Gambling (713)
Scenic and Sightseeing Transportation (487)
Retail
Food & Beverage Stores (445)
Gasoline Stations (447)
Clothing and Clothing Accessories Stores (448)
Sporting Goods, Hobby, Book, and Music Stores (451)
General Merchandise Stores (452)
Miscellaneous Store Retailers (453)
Ground Transportation
Interurban and rural bus transportation (4852)
Taxi and Limousine Service (4853)
Charter Bus Industry (4855)
Passenger Car Rental (532111)
Parking Lots and Garages (812930)
Air Transportation
Scheduled Air Passenger Transportation (481111)
Support Activities for Air Transportation (4881)
Administrative/Support Services
Travel Arrangement and Reservation Services (5615)
Convention and Trade Show Organizers (56192)
Source: Dean Runyan Associates

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DEMAND SEGMENTS
The distinction between inbound and outbound travel has already been discussed in
the previous section and in terms of the concepts of the visitor industry and the
travel industry. Three other types of demand segments that are related exclusively
to the visitor industry will be discussed here. The first two demand categories are
reported by the BEA in their national TTSA. They are: leisure versus business
travel, and resident versus non-resident travel. The third demand category is
typically reported in the RTIM: type of traveler accommodation. These three
demand categories will be discussed in turn.
The distinction between leisure versus business travel is useful for several reasons.
Economists like to distinguish between personal consumption expenditures on the
one hand and business expenditures on the other. Indeed, this distinction is central
for the National Income and Product Accounts (NIPAs). Those in the travel industry
are more likely to be interested in this distinction because leisure travelers represent
a more “marketable” segment because their travel choices are less determined by
economic and business factors. Futhermore, business and leisure travelers tend to
have different spending profiles. The availability of this information in either a state
or regional TTSA or RTIM is essentially dependent on the availability of survey data
(as it is at the national level). It should be noted, however, that such estimates are
considerably less reliable for smaller geographic areas because of the limitations of
survey data. Even at the state level, year-to-year changes in the composition of this
demand segment should be interpreted in conjunction with other data.
The distinction between resident versus non-resident travel is fundamental to a
national TTSA because it mirrors the distinction between the domestic economy and
international transactions. Non-resident travel in the United States is considered an
export in the official international transaction accounts.7 The distinction is
obviously also important because it is based on different political, legal, and
currency regimes – factors that in themselves influence travel behavior. At the level
of the state or region, the distinction between resident and nonresident travel is less
important, although it is often reported.8 There are at least two reasons why this
distinction is less useful at state and regional levels.
First, there is considerably less of an economic rationale for distinguishing resident
and non-resident travel at the level of the state, or any other political jurisdiction
within the United States, than there is at the national level. States do not maintain
interstate trade balance sheets that chart the flow of goods and services across state
boundaries. From an economic point of view, the administration of the tax system
is the primary, if only, reason for this distinction. In the case of travel and tourism,

7

Conversely, the spending of U.S. visitors in other countries is treated as an import in the
international transaction accounts.
8
The issues discussed with regard to the reliability of survey data for leisure versus business travel
also applies to this category

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the evaluation of the tax impacts of resident versus nonresident travel might also be
important.9
Second, travel is behaviorally defined by length of distance from home (usually at
least 50 miles one-way), trip purpose (non-routine), and/or the use of an overnight
accommodation away from home. Rarely is domestic travel defined by virtue of
crossing a geographic boundary.10 The operators of tourist attractions in local
communities are generally less interested in the origin of visitors than in the revenue
that they generate for their businesses. In terms of the economic impacts at the
local level, the distinction between in-state residents, out-of-state residents and
international visitors may not be relevant other than for the purpose of marketing.
However, other geographic characteristics of the visitor (e.g., distance traveled, the
specific area of origin) are generally more useful measures of the visitor market than
whether the visitor is a resident or nonresident.
Finally, the distinction among different types of traveler accommodations is
generally reported in the RTIM. Typically, these categories are:


Visitors who stay in hotels, motels, B&Bs., and similar lodging facilities



Visitors who stay at campsites



Visitors who stay in the private homes of friends or relatives



Visitors who stay in vacation or second homes



Visitors who do not stay in overnight accommodations on their trip away
from home (day visitors).

These distinctions can be useful because estimates of economic impacts are often
used for different purposes. The total of all accommodation types, of course, is an
estimate of the total magnitude of the visitor industry. Visitors who stay in
commercial lodging such as hotels and motels are most likely to have the greatest
economic impact on a person-day basis. These visitors are also more likely to be
influenced by marketing efforts. In urban areas, a large proportion will represent
business travel. In other words, the type of accommodation category can be used in
conjunction with other types of data to analyze the market characteristics of visitors.

9

Nonresident visitors who pay taxes in their destination state represent an unambiguous gain for the
state. This effect is less clear for resident travelers within the state.
10
In essence, state level travel impact estimates really represent an aggregation of smaller geographic
units, such as counties or regions. Populous states with large landmasses (e.g., California or Texas)
will have a higher proportion of resident travel than small states (e.g., Rhode Island or Delaware).

DEAN RUNYAN ASSOCIATES

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COMPONENTS OF INDUSTRY OUTPUT
Because both the RTIM and the TTSA are empirically linked to NAICS industry
accounts, it is possible to provide estimates of different components of economic
output. The major economic components most often estimated are:11


Travel spending (Gross Output)



Value-added (Gross Product)



Earnings (labor income)



Indirect business taxes (sales, excise, property taxes & fees).

The relationship of these components is shown below. As indicated, the valueadded of a particular industry (the bar on the right) is equal to gross output (travel
spending) minus the intermediate inputs used by travel industry businesses to
produce the good or service. Restaurants, for example, prepare and serve the food
products that are purchased from suppliers. Airlines purchase or lease airplanes
from other firms. These intermediate inputs are not counted as part of the valueadded of the travel industry. They are counted as value-added in other industries
(e.g., agriculture, aerospace manufacturing).
Components of Industry Output

Inputs/Goods Resold
Operating Surplus
Indirect Taxes
Labor Income

Output (Spending)

Value-Added

The distinction between gross output and value-added is probably even more
important at the state or regional level. This is because the intermediate inputs that
are purchased from other industries are even more likely to be purchased from
businesses located in different regions or states. For example, the economic impact
11

There are some small differences between the BEA TTSA and the RTIM in what these components
include. The BEA allocates proprietor income to Operating Surplus, the RTIM allocates it to Labor
Income. The RTIM does not have an estimate of property taxes in indirect taxes. Overall, property
taxes on businesses are a relatively small proportion of indirect taxes.

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of air passenger travel in the state of Hawaii should not include the purchase of
airplanes manufactured in other parts of the world. Travel industry value-added is a
more meaningful measure of the true economic impact of visitor spending in
Hawaii because a portion of the economic impact of visitor spending in the state
will actually occur elsewhere.12
Value-added can also be viewed in terms of the distribution or payout of industry
receipts, exclusive of those paid to other firms for intermediate inputs. Some of the
receipts are distributed to labor as wages, benefits, and proprietor income. Some
receipts are paid to government as indirect taxes. These taxes are called “indirect”
because most of them are actually paid by consumers in the form of sales or excise
taxes.13 The remainder leaves gross operating surplus. Out of gross operating
surplus various payments are made in the form of dividends, interest, and other
payments, or retained by the firm. The sum of these three broad categories of
payments is equal to travel industry value-added. To summarize:
Value-added = Spending less intermediate goods & services, or
Value-added = Labor Income plus indirect business taxes plus gross
operating surplus.
The RTIM is similar to the TTSA in that it also provides estimates of these
components of economic output. Travel spending, earnings, and tax impacts are
generally provided at the state or regional level. Value-added is generally reported
at the state-level only (sometimes referred to as Travel Industry Gross State Product).
At the level of the state, travel industry value-added or GSP is an important measure
– more economically meaningful than travel spending.14 For smaller geographic
areas, however, the rationale for reporting value-added is less clear. First, there are
real data limitations and data costs in deriving these estimates. Second, the most
important components of value added for the travel industry are earnings and tax
receipts. Because the travel industry is relatively labor intensive and because a
large proportion of travel industry goods and services are subject to excise and sales
taxes, these two components of value-added (labor income and indirect taxes) are
relatively high for the travel industry. The local effects of gross operating surplus are
generally less important and certainly much more difficult to assess than are
earnings and tax impacts. The relevance of earnings and tax receipts is also in
keeping the export-oriented emphasis of the travel industry: earnings and tax
receipts are more likely to stay in the local economy than is operating surplus.

12

It should also be noted the value of the intermediate inputs used by travel industry firms will not
necessarily disappear if the travel industry stops buying them. Aerospace firms will shift their
production to other users (e.g., military). Agriculture will seek new markets for their products.
13
Other taxes included here are property taxes, business franchise taxes, and other fees. Income
taxes are not included, because they are paid out of operating surplus.
14
It is also possible to compare different industries with respect to their value-added. It is more
difficult and less useful to compare industries on the basis of sales.

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PAGE 61

INDIRECT, INDUCED AND SECONDARY EFFECTS
To this point, the discussion of travel industry accounts has referred only to the
direct output components. That is, the ripple effects of the re-spending of
travel industry receipts throughout the larger economy have not been
analyzed. The structure of both the TTSA and the RTIM permit such analysis.


Indirect effects refer to the intermediate inputs used to produce the final
product or service, providing that those inputs are themselves produced
within the designated geographic area.



Induced effects refer to the purchase of goods and services by
employees that are attributable to direct and indirect impacts. These
induced impacts are derived from economic data that describe the
purchasing patterns of households. For example, employees of all the
designated export-oriented industries will spend their income on food,
household durables, health care, and so on.



The sum of indirect and induced impacts is sometimes referred to as the
secondary effect. These secondary impacts may be as great or greater
than the direct impact alone.



The ratio of the total effects (direct plus either indirect, induced, or
secondary) to the direct effects is the multiplier.

The BEA reports the indirect components of economic output. This is
equivalent to domestic travel spending less the goods and services imported
from abroad to meet domestic demand. For travel, these imports would
include souvenirs manufactured in China and petroleum extracted in Saudi
Arabia. The indirect output multiplier for 2002 was 1.76. The ratio of
domestic travel spending to travel industry value-added was 1.88. The
difference reflects the intermediate inputs for travel imported from abroad.
At the state level, these indirect output multipliers are typically lower because
relatively more of the intermediate inputs are purchased from outside of the
state. At the county or metropolitan level, the multipliers are generally even
lower for the same reason. Furthermore, the estimates are usually less reliable
because of the data limitations of the regional input-output model used to
estimate the indirect effects.
The BEA does not report induced effects – the effect of household spending of
the direct and indirect labor income. Typically, these induced effects will be
larger than the indirect effects at the state or regional level, in part because
they are based on both the direct and indirect components.15 As with indirect
effects, the induced effects will also tend to be lower for smaller economic
areas and the reliability of the estimates will be less.
15

The induced effects can be estimated with the Implan model maintained by the Minnesota Implan
Group.

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Secondary effects should be interpreted cautiously. These effects describe the
relationship of economic transactions at a point in time. These relationships
will not necessarily remain constant with a change in direct economic output.
This is because all economic resources have alternative uses. Because of this,
it is often difficult to determine the effect of an increase or decrease in visitor
spending on the larger economic system over time.

THE REGIONAL TRAVEL IMPACT MODEL AND TRAVEL & TOURISM SATELLITE
ACCOUNTS COMPARED
This appendix has provided an overview of Dean Runyan Associates RTIM and
the Bureau of Economic Analysis’ domestic TTSA. These travel industry
accounts are similar in terms of how they define the travel industry and the
measures of the industry that are reported. The differences stem largely from
their different levels of analysis – the BEA provides estimates at the national
level only, while the RTIM’s are typically constructed on a state or regional
level. Because of this geographic focus, the RTIM provides a distinction
between the visitor industry and the travel industry. The RTIM also provides
measures of all of the components of economic output and secondary effects at
the state or large region level. At smaller units of analysis, however, the
emphasis is on earnings and tax receipts generated by travel spending as these
are the most reliable and meaningful measures of the economic impact of
travel at the local level.

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APPENDIX E
Arizona Earnings and Employment by Industry Sector, 2011
Earnings
Industry Sector
Primarily Export-Oriented
Agriculture, Forestry, Fishing and related
Mining
Manufacturing

**Travel
Primarily Non Export-Oriented
Construction
Utilities
Wholesale trade
Retail trade
Real estate and rental and leasing
Management of companies and enterprises
Administrative and waste services
Other services, except public administration
Government and government enterprises
Mixed
Transportation and warehousing
Information
Finance and insurance
Professional and technical services
Educational services
Health care and social assistance
Leisure and Hospitality
Arizona Total**

($Billion)

Percent Employment
of Total
(Thousand)

16.1
1.6
1.2
13.3
5.1

10.1%
1.0%
0.7%
8.4%

Percent
of Total

3.2%

223
42
20
161
157

6.9%
1.3%
0.6%
5.0%

4.9%

81.1
8.8
1.6
8.3
12.6
4.2
2.2
9.0
5.7
28.7

51.1%
5.5%
1.0%
5.2%
7.9%
2.7%
1.4%
5.7%
3.6%
18.1%

1,724
159
12
109
356
196
30
258
163
440

53.4%
4.9%
0.4%
3.4%
11.0%
6.1%
0.9%
8.0%
5.1%
13.6%

61.7
5.0
2.9
10.7
12.8
2.7
19.9
7.7
158.9

38.8%
3.1%
1.8%
6.7%
8.1%
1.7%
12.5%
4.9%
100.0%

1,280
92
47
203
209
70
349
310
3,228

39.7%
2.8%
1.5%
6.3%
6.5%
2.2%
10.8%
9.6%
100.0%

**Travel is not included in the sub and grand totals because it is also represented in other sectors (primarily leisure
and hospitality, transporation, and retail trade).

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APPENDIX F
Industry Groups
Accomm. & Food Serv.
Eating & Drinking
Hotels and Lodging Places
Agric. & Food Proc.
Agricultural- Forestry- Fishery Services
Animal and Marine Fats and Oils
Blended and Prepared Flour
Bottled and Canned Soft Drinks & Water
Bread- Cake- and Related Products
Canned and Cured Sea Foods
Canned Fruits and Vegetables
Canned Specialties
Cattle Feedlots
Cereal Preparations
Cheese- Natural and Processed
Chewing and Smoking Tobacco
Chewing Gum
Chocolate and Cocoa Products
Cigarettes
Cigars
Commercial Fishing
Condensed and Evaporated Milk
Confectionery Products
Cookies and Crackers
Cotton
Cottonseed Oil Mills
Creamery Butter
Dairy Farm Products
Dehydrated Food Products
Distilled Liquor- Except Brandy
Dog- Cat- and Other Pet Food
Feed Grains
Flavoring Extracts and Syrups- N.E.C.
Flour and Other Grain Mill Products
Fluid Milk
Food Grains
Food Preparations- N.E.C
Forest Products
Forestry Products
Frozen Fruits- Juices and Vegetables
Frozen Specialties
Fruits
Grass Seeds

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Agric. & Food Proc.
Greenhouse and Nursery Products
Hay and Pasture
Hogs- Pigs and Swine
Ice Cream and Frozen Desserts
Landscape and Horticultural Services
Macaroni and Spaghetti
Malt
Malt Beverages
Manufactured Ice
Meat Packing Plants
Miscellaneous Crops
Miscellaneous Livestock
Oil Bearing Crops
Other Meat Animal Products
Pickles- Sauces- and Salad Dressings
Potato Chips & Similar Snacks
Poultry and Eggs
Poultry Processing
Prepared Feeds- N.E.C
Prepared Fresh Or Frozen Fish Or Seafood
Ranch Fed Cattle
Range Fed Cattle
Rice Milling
Roasted Coffee
Salted and Roasted Nuts & Seeds
Sausages and Other Prepared Meats
Sheep- Lambs and Goats
Shortening and Cooking Oils
Soybean Oil Mills
Sugar
Sugar Crops
Tobacco
Tobacco Stemming and Redrying
Tree Nuts
Vegetable Oil Mills- N.E.C
Vegetables
Wet Corn Milling
Wines- Brandy- and Brandy Spirits
Arts, Entertain., Rec.
Amusement and Recreation Services- N.E.C.
Bowling Alleys and Pool Halls
Commercial Sports Except Racing
Membership Sports and Recreation Clubs
Motion Pictures
Other Nonprofit Organizations
Racing and Track Operation
Theatrical Producers- Bands Etc.
Water Transportation

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Construction
Maintenance and Repair Oil and Gas Wells
Maintenance and Repair Other Facilities
Maintenance and Repair- Residential
New Farm Structures
New Government Facilities
New Highways and Streets
New Industrial and Commercial Buildings
New Mineral Extraction Facilities
New Residential Structures
New Utility Structures
Finance, Real Estate
Banking
Credit Agencies
Insurance Agents and Brokers
Insurance Carriers
Owner-occupied Dwellings
Real Estate
Security and Commodity Brokers
Government
Commodity Credit Corporation
Federal Electric Utilities
Federal Government - Military
Federal Government - Non-Military
Local Government Passenger Transit
Other Federal Government Enterprises
Other State and Local Govt Enterprises
State & Local Government - Education
State & Local Government - Non-Education
State and Local Electric Utilities
U.S. Postal Service
Misc. Manf.
Includes all utilities, mining and manfacturing industries
not elsewhere classified

Misc. Services
Advertising
Beauty and Barber Shops
Computer and Data Processing Services
Detective and Protective Services
Domestic Services
Electrical Repair Service
Equipment Rental and Leasing
Funeral Service and Crematories
Laundry- Cleaning and Shoe Repair
Miscellaneous Personal Services
Miscellaneous Repair Shops
Other Business Services
Personnel Supply Services
Photofinishing- Commercial Photography
Portrait and Photographic Studios
Services To Buildings
Watch- Clock- Jewelry and Furniture Repair

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Prof. Services
Accounting- Auditing and Bookkeeping
Business Associations
Child Day Care Services
Colleges- Universities- Schools
Doctors and Dentists
Elementary and Secondary Schools
Engineering- Architectural Services
Hospitals
Job Trainings & Related Services
Labor and Civic Organizations
Legal Services
Management and Consulting Services
Nursing and Protective Care
Other Educational Services
Other Medical and Health Services
Religious Organizations
Research- Development & Testing Services
Residential Care
Social Services- N.E.C.
Retail Trade
Apparel & Accessory Stores
Building Materials & Gardening
Food Stores
Furniture & Home Furnishings Stores
General Merchandise Stores
Miscellaneous Retail
Wholesale Trade
Transportation
Air Transportation
Arrangement Of Passenger Transportation
Automobile Parking and Car Wash
Automobile Rental and Leasing
Automobile Repair and Services
Automotive Dealers & Service Stations
Local- Interurban Passenger Transit
Motor Freight Transport and Warehousing
Railroads and Related Services
Transportation Services

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