Tourism’s Economics Impact on Sussex County

Tourism’s Economics Impact

on Sussex County

May 2018

Table of contents

| Tourism Economics 2

1) Tourism Impact Summary and

Trends

Economic impact summary


In 2017, visitors spent $530 million in Sussex County. This

spending supported a total of $722 million in business

sales, 8,147 jobs, and $113 million in income.

Tourism supported $23 million of state taxes and $35

million in local taxes. Without tourism, every household

in Sussex County would have to contribute an

additional $1,098 annually to maintain the current level

of government services.

Detailed results are available in section 2.

Nominal dollars, millions

Visitor spending $530.4

Total economic output $722

Direct expenditures $530

Indirect and induced output $192

Total income $113

Direct income $78

Indirect and induced income $35

Total jobs 8,147

Direct jobs 6,395

Indirect and induced jobs 1,752

State Taxes and Revenue $23.2

Sales $18.6

Personal Income $2.1

Corporate $1.1

Social Security $0.4

Excise and Fees $1.0

Local Taxes and Revenue $35.3

Sales $0.3

Bed Tax $2.2

Excise and Fees $1.4

Property $31.4

Source: Tourism Economics

Tourism’s Impact on

Sussex County

7,934

7,896

6,395

4,686

4,569

4,151

2,609

2,572

1,733

1,361

1,221

1,200

912

545

Retail trade

Health care and social assistance

Tourism (direct employment)

Construction

Professional and technical services

Real estate

Finance and insurance

Manufacturing

Wholesale trade

Educational services

Transportation and warehousing

Management

Agriculture

Information

0 2 4 6 8 10

Jobs, 000'sNote that BEA 2016 estimates are used for other industries

Tourism is one of the largest

industries in Sussex County


Employment by industry in Sussex County

Sources: BEA; Tourism Economics

3.3%

11.6%

0.9%

1.9%

0.6%

1.3%

Wages

Jobs

0% 5% 10% 15% 20%

Direct Indirect Induced

Share of county total

4.8% of total county wages

14.7% of total county jobs

The tourism sector is a major

contributor to Sussex County’s

economy


The tourism sector sustains 14.7% of all

private sector jobs and 4.8% of all private

sector income in Sussex County

Tourism’s share of key local indicators

Sources: BEA; Tourism Economics

Visitor spending in Sussex County


Sussex County visitor spending by sector, 2017


Visitors to Sussex County spent $530

million in 2017

25%

29%21%

16%

9%

$134m of spending on lodging

$530m in total visitor spending

$153m of spending on food and beverage

$46m of spending on local transportation

$87m of spending on recreation

Dollars, millions and percent of total

$110m of spending on retail

Visitor spending has been steadily

increasing


Visitor spending reached $530 million in

2017, up from $461 million in 2012, a 15%

increase in five years

Visitor spending in Sussex County


$461$487 $493

$510 $522 $530

2012 2013 2014 2015 2016 2017

$0

$100

$200

$300

$400

$500

$600Dollars, millions

Tourism spending is changing with

prices


Low gasoline prices have reduced the

share of spending on transportation over

time

Visitor spending by category in Sussex County


10.1% 9.5% 9.3% 8.8% 8.9% 8.6%

16.2% 16.5% 16.6% 16.4% 16.6% 16.5%

21.7% 21.4% 21.2% 21.3% 21.1% 20.7%

28.5% 28.1% 27.9% 28.5% 28.9% 28.9%

23.4% 24.5% 25.1% 25.0% 24.5% 25.2%

2012 2013 2014 2015 2016 2017

0%

20%

40%

60%

80%

100%

Accommodation

F&B

Retail

Recreation

Transportation

Dollars, millions

2) Detailed Results

Tourism’s Impact on business

sales (1 of 2)


Tourism generated $530 million in

direct sales and supported $722

million in total business sales

Direct Indirect Induced Total

Agriculture, Fishing, Mining - $0.4 $0.2 $0.6

Construction and Utilities - $17.0 $3.5 $20.5

Manufacturing - $1.1 $0.1 $1.2

Wholesale Trade - $3.4 $2.6 $5.9

Air Transport - $0.0 $0.0 $0.0

Other Transport $7.6 $4.2 $1.4 $13.2

Retail Trade $110.0 $1.7 $6.7 $118.5

Gasoline Stations $35.2 $0.2 $0.5 $35.9

Communications - $6.9 $2.7 $9.6

Finance, Insurance and Real Estate $57.4 $31.8 $29.6 $118.8

Business Services - $33.6 $5.9 $39.5

Education and Health Care - $0.2 $13.1 $13.3

Recreation and Entertainment $87.5 $4.3 $1.6 $93.3

Lodging $79.4 $0.1 $0.0 $79.6

Food & Beverage $153.2 $2.1 $6.1 $161.3

Personal Services - $3.0 $3.6 $6.6

Government - $3.2 $0.7 $4.0

TOTAL $530.4 $113.2 $78.3 $722.0


Tourism industry generated business sales, millions

Tourism’s Impact on business

sales (2 of 2)


Food & Beverage

FIRE*

Retail Trade

Recreation and Entertainment

Lodging

Business Services

Gasoline Stations

Construction and Utilities

Education and Health Care

Other Transport

Communications

Personal Services

Wholesale Trade

Government

Manufacturing

Agriculture, Fishing, Mining

Air Transport

$0 $50 $100 $150 $200

Direct

Indirect

Induced

Tourism industry generated business sales, 2017


Dollars, millions*Finance, insurance and real estate

Tourism’s Impact on income (1

of 2)


Tourism generated $78 million in

local income and supported $113

million in total income

Direct Indirect Induced TotalAgriculture, Fishing, Mining - - - -

Construction and Utilities - $2.2 $0.4 $2.6

Manufacturing - $0.2 - $0.2

Wholesale Trade - $0.7 $0.5 $1.2

Air Transport - - - -

Other Transport $2.4 $1.3 $0.4 $4.1

Retail Trade $5.3 $0.4 $1.4 $7.1

Gasoline Stations - $0.1 $0.1 $0.2

Communications - $0.9 $0.2 $1.1

Finance, Insurance and Real Estate - $2.2 $1.0 $3.2

Business Services - $9.4 $1.7 $11.1

Education and Health Care - $0.1 $4.5 $4.6

Recreation and Entertainment $10.7 $0.6 $0.2 $11.5

Lodging $20.4 - - $20.4

Food & Beverage $39.0 $0.7 $1.5 $41.2

Personal Services - $1.1 $1.5 $2.6

Government - $1.3 $0.2 $1.5

TOTAL $77.8 $21.1 $13.8 $112.7


Tourism industry generated income, millions

Tourism’s Impact on income (2

of 2)


Food & Beverage

Lodging


Business Services

Retail Trade


Other Transport

FIRE*


Personal Services

Government

Wholesale Trade

Communications

Manufacturing

Gasoline Stations


Air Transport

$0 $20 $40 $60

Direct

Indirect

Induced

Tourism industry generated income, 2017


Dollars, millions*Finance, insurance and real estate

Tourism’s Impact on jobs (1 of 2)


Tourism generated 6,395 jobs

directly and supported 8,147 total

jobs

Direct Indirect Induced Total

Agriculture, Fishing, Mining - 4 2 6

Construction and Utilities - 62 12 74

Manufacturing - 7 1 8

Wholesale Trade - 18 14 32

Air Transport - - - -

Other Transport 189 36 13 238

Retail Trade 549 26 89 664

Gasoline Stations 58 3 8 69

Communications - 22 7 29

Finance, Insurance and Real Estate 238 275 99 612

Business Services - 355 72 427

Education and Health Care - 9 171 180

Recreation and Entertainment 2,424 124 31 2,579

Lodging 449 1 - 450

Food & Beverage 2,487 50 118 2,655

Personal Services - 25 61 86

Government - 33 4 37

TOTAL 6,395 1,050 702 8,147


Tourism industry generated employment

Tourism’s Impact on jobs (2 of 2)


Food & Beverage


Lodging

Retail Trade

FIRE*

Business Services

Other Transport


Personal Services

Gasoline Stations


Government

Wholesale Trade

Communications

Manufacturing


Air Transport

0 500 1,000 1,500 2,000 2,500 3,000

Direct

Indirect

Induced

Tourism industry generated employment, 2017


Jobs*Finance, insurance and real estate

Tourism’s Impact on taxes (2 of

2)


Tourism supported a total of $35

million in local government

revenue

Direct Indirect/Induced Total Total

Federal $33.5 $15.0 $48.5 State Revenues $23.2

Personal Income $12.1 $5.5 $17.7 Sales $18.6

Corporate $2.9 $1.7 $4.7 Bed Tax -

Indirect business $2.2 $1.1 $3.3 Personal Income $2.1

Social Security $16.2 $6.6 $22.8 Corporate $1.1

Social Security $0.4

State and Local $41.0 $15.7 $58.5 Excise and Fees $1.0

Sales $13.0 $3.2 $18.9 Property -

Bed Tax $2.2 - $2.2

Personal Income $1.5 $1.2 $2.1 Local Govt. Revenues $35.3

Corporate $0.7 $0.4 $1.1 Sales $0.3

Social Insurance $0.3 $0.1 $0.4 Bed Tax $2.2

Excise and Fees $1.6 $0.8 $2.4 Personal Income -

Property $21.7 $9.9 $31.4 Corporate -

Total $74.5 $30.6 $107.0 Social Security -

Source: Tourism Economics Excise and Fees $1.4

Property $31.4

Total $58.5


Tourism supported

tax revenues, millions

Tourism supported tax revenue, millions

3) Methodology

How tourism generates impact


Tourism spending flows through the

economy and generates economic benefit

through multiple channels

Our analysis of tourism’s impact on Sussex County starts with actual

spending by tourists, but also considers the downstream effects of this

injection of spending into the local economy. To determine the total

economic impact of tourism in Sussex County, we input tourism

spending into a model of Sussex County’s economy created in

IMPLAN. This model calculates three distinct types of impact: direct,

indirect, and induced.

How tourism spending flows through the

economy and generates economic benefits

▪ Travelers create direct economic value within a

discreet group of sectors (e.g. recreation,

transportation). This supports a relative proportion of

jobs, wages, taxes, and GDP within each sector.

▪ Each directly affected sector also purchases goods and

services as inputs (e.g. food wholesalers, utilities) into

production. These impacts are called indirect impacts.

▪ Lastly, the induced impact is generated when

employees whose wages are generated either directly

or indirectly by tourism, spend those wages in the local

economy.

The impacts on business sales, jobs, wages, and taxes are calculated

for all three levels of impact.

ACCOMODATION

CATERING, ENTERTAINMENT

RECREATION, TRANSPORTATION

&OTHER TRAVEL RELATED SERVICES

PRINTING/PUBLISHING, UTILITIES

FINANCIAL SERVICES, SANITATION SERVICES

FURNISHINGS AND EQUIPMENT SUPPLIERS,

SECURITY SERVICES, RENTAL CAR MANUFACTURING,

TRANSPORTATION ADMINISTRATION, TOURISM

PROMOTION, SHIP BUILDING, AIRCRAFT MANUFACTURING,

RESORT DEVELOPMENT, GLASS PRODUCTS, IRON/STEEL

T&

T D

IRE

CT

T&

T IN

DIR

EC

T

T&

T IN

DU

CE

D

OV

ER

ALL T

&T IM

PA

CT

FOOD & BEVERAGE SUPPLY, RETAILERS

BUSINESS SERVICES, WHOLESALERS, COMPUTERS,

UTILITIES, MANUFACTURERS, HOUSING, PERSONAL SERVICES

Illustrating the concepts

Travel & Tourism Industry

■ The direct effect of visitor spending

Travel & Tourism Economic Impact

The flow-through effect of T&T all demand

across the economy

■ Expands the focus to measure the

overall impact of T&T on all sectors of

the economy

ACCOMMODATION

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Tourism’s Economics Impact on Sussex County

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