|
|  |
|
|
 Michigan Tourism Spending Estimated at $15 billion for 2000
Using a combination of tourism satellite accounting methods and the Michigan Tourism Economic Impact Model (MITEIM), Daniel Stynes has updated statewide tourism spending and impact estimates for the year 2000. Estimates of tourism’s economic significance to the state vary depending on what one chooses to count.
The estimates for 2000 begin with $8.8 billion in out-of-pocket spending on trips of 50 miles or more to Michigan destinations. This estimate does not include the airline or travel arrangements sectors, which are part of the travel industry but serve travelers leaving as well as coming to the state. Including all air travel and related spending, adds another $3.2 billion, bringing the total near TIA’s estimate of $12 billion. However, TIA also includes imputed rents on the use of seasonal homes and pro-rated vehicle operating costs. These items are not included in MSU’s $12 billion estimate. Adding these and some en route expenses of pass-through travelers brings the total to $15 billion in traveler spending within Michigan. This still does not include tourism investments in airports, hotels, and other infrastructure, and it also excludes all expenses related to travel that are made near home, such as luggage, boats, recreational vehicles, and other equipment.
Stynes provides further details about the $8.8 billion in direct out-of-pocket spending by travelers in Michigan. Visitors staying in hotels, motels and B&B’s are the most important travel segment in terms of spending, accounting for 41% of the total. Visitors staying with friends and relatives spend 29% of the total, and day trips and stays in seasonal homes each account for 13%.
The $8.8 billion in tourism spending supports 161,000 direct jobs in tourism-related sectors, paying $2.8 billion in wages and salaries (personal income) and contributing $4.4 billion in direct value added to the state economy. Tourism spending supports 51,000 jobs in restaurants, 36,000 in retail trade, 34,000 in hotels, and 7,000 in amusement and entertainment sectors.
The overall state tourism sales multiplier for Michigan in 1999 was 1.57. This means for every dollar of direct sales from tourism, another $.57 in secondary sales is generated as the tourism dollars circulate through the state economy. Secondary effects result in an additional $4 billion in sales, 48,000 jobs, $1.5 billion in personal income and $2.5 billion value added. Total impact of tourism spending on the state economy in 2000 was 209,000 jobs, $4.3 billion in personal income and $6.9 billion value added. This represents about 2% of the state economy in terms of value added and income and 4% of all jobs.
The report also makes some initial estimates of the relative size of several outdoor recreation market segments relative to tourist spending. Outdoor recreation trips account for about 20% of tourist spending in Michigan. After adjusting for considerable overlaps among activities, golf, camping, fishing, boating, hunting, and state/national park visits each account for $200-$280 million in Michigan travel spending, while snowmobiling and downhill skiing each add another $110 million.
The complete report may be downloaded in Acrobat format from: www.prr.msu.edu/miteim/MichiganSatExec.pdf.
This report is part of a program to make regular estimates of the size and economic significance of tourism and outdoor recreation in the state. An important element of the program is to obtain reliable estimates that are consistent with standard economic accounts, draw from a variety of sources, and can be added up in a consistent fashion across counties, CVB’s and particular travel market segments. Efforts to estimate tourist activity, spending and impacts at the county and CVB level will be summarized here next month.
|
|
|
