Sources of Local Tourism-Related Economic Impact Data
Introduction | Local Tax Commissioners | Auditor of Public Accounts | Virginia Department of Taxation - Taxable Sales Reports | Smith Travel Research | Travel Research Vendors | Universities
Introduction
Currently the VTC contracts with the US Travel Association (formerly TIA) to estimate the economic contribution of tourism to the state of Virginia and its localities. These estimates can be found on the VTC’s website by following the link below:
http://virginiascan.yesvirginia.org/localspending/
Although local level data is provided by the VTC, communities are still encouraged to collect their own local level data in addition to that provided by the VTC. Local level data collected through various sources can provide a more “real-time” sense of how a locality is progressing throughout the year. Several sources of data are provided below to guide a community in the process of collecting their own “real-time” data.
There are many other avenues that can also assist a locality in determining the economic impact of tourism for themselves. Actual data sources, vendors, and universities are all capable of providing this type of assistance to localities. Budgeting for research needs to be a priority for any community truly focused on attracting more people, getting them to stay longer and getting them to spend more money in their community.
Local Tax Commissioners
Officials in this office should be able to tell you how many businesses paid their sales tax in a given locality, and even how much was paid, in total, for all establishments of a certain class (i.e. lodging, restaurants). By collecting these figures over time, the trend will begin to reflect how the business environment is progressing throughout the year and beyond. Available data from local tax commissioners should include lodging, restaurant, and admission taxes collected. Local tax commissioners should be one of the first steps in getting information on the current fiscal status of your locality. The department of Taxation maintains a list of phone numbers and addresses of each local tax commissioner. Search for “Where to File” to find the list of local Commissioners of Revenue across the state: http://www.tax.virginia.gov
Auditor of Public Accounts
Exhibit B-2 of the Comparative Report of Local Governments provides annual data on the taxes collected within each locality across the state. These figures are compiled on a fiscal year basis.
http://www.apa.state.va.us/ComparativeReport.cfm
Virginia Department of Taxation - Taxable Sales Reports
An additional source of local data is the quarterly taxable sales report released by the Virginia Department of Taxation. While the local tax commissioner can provide information on the amount of taxes collected, the taxable sales reports provide the actual sales amounts by business categories. You can find these reports online at the following website address:
http://www.virginia.edu/coopercenter/vastat/taxablesales/tax_sales.html
In general, the two most important business categories for the tourism industry are restaurant sales (NAICS Code 722) and hotel/motel sales (NAICS Code 721). There is a code file list available at the following website which details all business categories contained within the taxable sales reports: ftp://ftp.virginia.edu/pub/cps/tax_sales/tscode.html
Together, these resources will provide you with the most current economic impact information available for your locality. Combining the Department of Taxations’ taxable sales reports and the actual taxes collected from the commissioners offices and comparing them to the previous year should give a locality a “real-time” feel for their current economic situation based on the actual sales and tax collections in their locality.
Additional Ideas
Since lodging plays such an important role in determining the impact of tourism on a local community, it would be advantageous to create relationships with local lodging suppliers. Information gained from them, whether it’s in the form of anecdotal evidence or real hard numbers, is just as important as any other data source. Some items to request might include: occupancy rates, future bookings/reservations, markets of origin, what information their guests request frequently, etc.
Smith Travel Research
Smith travel Research, a leading lodging industry research company, can provide monthly and annual lodging data for many regions across the state. Local data may be available for your region and would include the following analyses:
- Room Demand –Reflects the percent change in the number of rooms sold
- Room Supply – Reflects the percent change in the number of rooms available
- Room Rates – Reflects the average cost per room
- Room Revenues – Reflects the percent change in the amount of revenue collected per available room
- Occupancy Percent – Reflects the percent change in both the supply and demand for rooms
Travel Research Vendors
Many research firms make their living supplying localities, attractions, and hotels with valuable custom research solutions. Whether you are looking to estimate the economic contribution of tourism for your community, conducting feasibility studies for proposed projects or need help designing a marketing plan, here are some vendors who can assist you with such endeavors. The list below is just a sampling of research firms that are well-known throughout the industry and who can assist you with your own custom research needs:
Alan Newman Research http://www.anr.com/
Dean Runyan & Associates http://www.deanrunyan.com/
D.K. Shifflett http://www.dksa.com/
Davidson- Peterson Associates http://www.dpaonline.com/dpaonline.html
Global Insight http://www.globalinsight.com/EconomicFinancialData
Longwoods International http://www.longwoods-intl.com/
Matrix Marketing Rearch Group http://www.matrixresearch.net/
Randall Travel Marketing http://www.rtmnet.com/
Smith Travel Research http://www.smithtravelresearch.com
Southeastern Institute of Research http://www.sirresearch.com
Tourism Economics http://www.tourismeconomics.com/
TNS (formerly NFO/Plog) http://www.tns-us.com
Tourism Industries http://tinet.ita.doc.gov
US Travel Association http://www.ustravel.org
Universities
Many universities across the Commonwealth have tourism, economics, or recreation related programs. Professors at these universities can assist in the development of a research program for your community or project.
Several localities use these resources when analyzing their marketing programs, estimating economic impacts and developing projections for future events. A list of all Virginia Universities can be found at the following link:
http://www.virginia.gov/cmsportal2/education_4096/schools,_libraries_and_museums_4101/colleges_and_universities_4356/index.html
For more information, please contact Sean McCarthy, Research Director, Virginia Tourism Corporation at (804) 545-5549
