Athens-Clarke County Budget Hearing Presentation February 2015

$ million direct tourist spending $9.53 mil. state tax revenue $7.11 mil. A-CC tax revenue 2,510 local Athens jobs $50.53 mil. payroll Source: US Travel Association, 2013 calendar year

Source: U.S. Travel Association, based on average 2013 spending in Georgia’s Historic Heartland region

Spending On: Spent in A-CC per day : State Tax Collected per day (4%) A-CC Sales Tax Collected per day (3%) Hotel-Motel Tax Collected per day (7%) Food (45%) $313,320$12,533$9,400 Transportation (21%) $146,454$5,858$4,394 Shopping (13 %) $93,360$3,734$2,801 Lodging (13 %) $92,749$3,710$2,782$6,492 Entertainment (8 %) $56,505$2,260$1,695 Total $702,387$28,095$21,072$6,492 Source: US Travel Association, 2013 calendar year

$407 Tax relief, each ACC household

Source: B. Bynum Boley, Ph.D., Assistant Professor, UGA Natural Resources, Recreation and Tourism (NRRT)

Athens budget includes ~$86,000 in-kind free rent from Classic Center B. Bynum Boley, Ph.D., Assistant Professor, UGA Natural Resources, Recreation and Tourism (NRRT) Average = $2.05 mil. Athens = $800,000

B. Bynum Boley, Ph.D., Assistant Professor, UGA Natural Resources, Recreation and Tourism (NRRT) Average ROI = $236 Athens = $320 Athens, GA

80% of all corporate relocations occurred after the CEO took a trip there. Tourism Planning & Community Quality of Place- Paul Vallee, Tourism Vancouver

$1 spent on advertising generates $3 - $4 in tax revenue ALONE

Michigan Gov. Rick Snyder, on why he invested an additional $10 million in state funding for the campaign in 2011, despite facing a $1.4 billion budget deficit and cuts to core state programs. “It brought in more tax revenue than it has cost our state.” Council on State Governments, March-April

 Colorado governor defunded tourism budget from $12 million to $0 in early 1990s  The state suffered a 30% loss of market share in just two years  Dropped from 1 st to 17 th in summer resort segment  Cumulative losses over 10 years: ◦ > $1 billion in revenue ◦ > $100 million in tax revenue ◦ > 20,000 jobs Colorado Tourism Budget Cut from $12 million to $0 From 1 st to 17 th in summer resort segment 30% market share $1 billion revenue $100 million tax revenue 20,000 jobs

Long-term losses are hard to rebound from: Al White, head of the Colorado Tourism Office. “It’s been 18 years since we went dark in 1993, and we still haven’t gotten back to the national market share we had.” ---New York Times, July 11, 2011

FY05FY08*FY14FY 15 (projected) FY 16 (projected) 10 yr. % Change FY05-FY14 Hotel-Motel Tax (CVB Budget) $441,320$609,658$712,439$714,000$785, % Booked Future Room Nights 14,25656,29363,97165,50067, % Actualized/ Consumed Room Nights 19,35030,37158,21358,00060, % Occupancy % % Avg. Daily Rate $72.63$87.14$92.74$96.00$ % *Banner Year/Pre-Recession

 Sports Tournaments & Arena Sports, new market  Development of new, responsive design website  Customer Relationship Management system from top DMO industry vendor  More tradeshows  Increased advertising budget

Travel Marketing & Promotion Increased visitor spending Increased visitor trips New jobs and tax revenue

B. Bynum Boley, Ph.D., Assistant Professor, UGA Natural Resources, Recreation and Tourism (NRRT)

B. Bynum Boley, Ph.D., Assistant Professor, UGA Natural Resources, Recreation and Tourism (NRRT)

 Florida Governor Rick Scott proposes 11% increase in tourism budget for FY16. Florida already ranks #2 in tourism budget, second only to Hawaii.  Florida continues to increase tourism budget because it WORKS to provide more revenue across sectors.

 Colorado governor defunded tourism budget from $12 million to $0 in early 1990s  The state suffered a 30% loss of market share in just two years  Dropped from 1 st to 17 th in summer resort segment  Cumulative losses over 10 years: ◦ > $1 billion in revenue ◦ > $100 million in tax revenue ◦ > 20,000 jobs

Travel Marketing Promotion Increased Visitor Trips Increase d Visitor Spending New Jobs & Tax Revenue

 New/increased earnings will be used to further market our destination and to assure we are providing client services needed to compete.  Retained earnings will be used to build out street-level offices and information center for visitors.