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Governor Kaine Announces Tourism Economic Impact Figures for 2006
~ Visitor spending brings $17.7 billion into Virginia ~

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September 25 , 2007 

Governor Kaine Announces Tourism Economic Impact Figures for 2006

~ Visitor spending brings $17.7 billion into Virginia ~

RICHMOND – Governor Timothy M. Kaine today announced that visitor spending in Virginia reached $17.7 billion in 2006, a 7.2 percent increase over 2005.  Tourism, one of Virginia’s largest industries, provided 208,200 jobs for Virginians in 2006 and generated $706.8 million in state taxes and $503 million in local tax revenue.

The Virginia Tourism Corporation released the 2006 statewide tourism economic impact figures at the state’s tourism conference.  Virginia receives its annual economic impact data from the Travel Industry Association of America.

“Virginia’s tourism industry continues to post annual increases in revenue that help fuel our economy,” said Governor Kaine.  “This economic impact data is a positive measurement of our success and reinforces that tourism is a thriving industry in Virginia.”

Tourism revenue increased on the local level, with Virginia’s localities collecting $503 million in tourism-related taxes in 2006, a 6.1 percent increase from 2005.  State taxes from the industry rose 4.7 percent from 2005 and federal taxes derived from travelers’ spending in Virginia increased 3.8 percent, from $1.15 billion in 2005 to $1.20 billion in 2006.

“Virginia is one of the nation’s top states for tourism revenue and we are proud of the positive impact our industry has on the state’s economy,” said Alisa Bailey, president and CEO of the Virginia Tourism Corporation.  “Research shows that every dollar we invest in tourism marketing brings in five dollars in state and local taxes, for a 5:1 return on investment,” said Bailey.  “We will continue to work with our tourism partners to market Virginia as an outstanding destination and bring in even more tourism dollars to our state.”

Other noteworthy increases for 2006 include: lodging, up 6.7 percent; foodservice, up 6.6 percent; entertainment and recreation, up 4.4 percent; and general retail trade attributable to tourism, up 4.9 percent.  Virginia posted a 5.4 percent growth in travelers’ spending in public transportation and a 12.0 percent increase on auto transportation spending.

Research from the Virginia Tourism Corporation shows that the $706.8 million tourism generates in state tax revenue could pay for the education of more than 80,000 Virginia students, 1,900 miles of roadways – the distance from Virginia Beach to Denver, or salaries and benefits for 11,500 state police officers.  If earmarked, the $503 million in local taxes from tourism could pay for the annual wages of all local fire protection employees or the salaries of approximately 11,000 elementary and secondary school teachers.

For more information about state and local tourism impact, go to www.vatc.org.  For information about Virginia’s travel destinations and trip planning resources, visit www.Virginia.org or call 1-800-932-5827 to request a 2007 Virginia Travel Guide. 

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