Tourism & Business Services The role of services in job-creation Traded versus locally focused services traded: tourism; producer services; port & some other transport services locally focused: retail, consumer services mixed markets: wholesale, health, government

Employment Change Northwest States Total Change : 2,150,801

Share of Employment Change, Pacific Northwest

Share of PNW Total Employment

Pacific Northwest Employment Change ,517 jobs or +12.9%

PNW Total Employment

PNW Share of Earnings by Industry

Tourism ? What is a tourist? Versus a “recreator?” Tough to measure. Varies by state, government agency, local promotional agencies (e.g. Chambers) The National Travel Survey - Bureau of Transportation Services 1997 Shares of Total Tourist Travel: IdahoOregonWashington Nonresident54.5%48.0%36.3% Resident45.5%52.0%63.7% Total100.0%100.0%100.0%

Source: Washington State Travel Impacts, January 2011

Alaska Hawaii

Alaska Hawaii

AlaskaHawaii

> 1 - More Washington to the state than travel here < 1 - Less Out of state travel to WA than travel by Washingtonians

Characteristics of Northwest Tourists Trip Main Purpose Means of Transportation Income: Idaho & Oregon: $25K-$50 K; Washington > $50 K

Tourist Expenditures Predominantly: lodging, meals, fuel/travel costs, souvenirs Level/capita inversely related to distance: Out-of-state at least $100/person/day; instate ca. $50/day Seasonality of local tourism - fiscal impacts; role in regional development Business versus tourist/leisure travel outlays

Washington State Average Travel Spending Source: Washington State Travel Impacts, Jan 2011

Positioning the travel industry: Source: Washington State Travel Impacts, January 2011

Tourism in the Northwest put in Perspective WA CTED Report: $15 Billion but out of a $300 Billion Local Economy: ? 3rd Largest Industry Status No national “superstar” destinations, but a lot of hot spots--Oregon Coast, Culture like the Ring Cycle, Skiing, National Parks, and The Museum of Flight Subergions with relatively strong non-business tourism dependence - amenity counties, Interstate corridors, federal lands, cities (see Map in Atlas)

Port of Seattle Recent Cargo History Source: Port of Seattle TEU = Twenty-Foot Equivalent Unit Cargo Container

Major West Coast Port TEU’s TEU = Twenty Foot Equivalent Unit (Cargo container) Source: American Association of Port Authorities

Total Vessel Trade by Port

Port of Seattle Cruise Ship Passengers Source: Port of Seattle Cruise Seattle 2014 Fact Sheet

Sea-Tac Airport Passenger Statistics 2012 – 33,223,111 passengers

A New Big Kid on the Block: Amazon Part of the Non-store retailer industry, that also includes REI & Nordstrom Diversifying into selling everything – space on the “cloud,” books & diverse retail, a wide variety of services Current Seattle area employment about 20,000, about 40% that of Microsoft, including a large research & development staff Growing rapidly, with huge real estate investment and construction impacts

Amazon South Lake Union Footprint Seattle Times Jan. 25, 2014

Producer Services Why the rapid growth? (1) Growth in intermediate demands (2) Growth in final demands (3) Slow productivity improvement (4) Trade in Services & Import Substitution An An overview of some key trends - Atlas: shows the concentrated nature of these services--but their growth is as rapid in rural as the urban Northwest.

Washington State Producer Services Average Growth All Industries

Washington State Producer Services Source: Census County Business Patterns and Nonemployer Statistics

2011 Wage & Salary and Self- Employment Producer Services

Reasons for Producer Service Locations

Startups are driven by a vision of business opportunities

Niche Examples

Most Companies are dynamic in changing their services, driven by changes in IT and a variety of related factors

Demand & Competitive Advantage Demand: It is predominantly related to the lack of expertise by clients, by their infrequent need for the service, the need for 3rd party info, and a host of other non-cost related reasons. Competitive Advantage: Created by firms pursuing the flip-side of demand forces: Differentiation, specialization, niching, collaboration, use of specialized subcontractors, etc. Not Cost.

Producer Services have considerable Nonlocal Markets, but….

Producer Service Businesses have Bifurcated Markets: They Tend to be Local or Export

Recognition of Producer Services as a Part of the Economic Base Historic metro concentration Recent rural deconcentration Role in “Edge Cities” The “New Economy.” --Producer Services as a progenitor to the New Economy: –now multimedia, online retail,.com, –.org,.edu; telemedicine, teleservices, tele?; content providers; media conduits; delivery agents, etc.

The Traded-Dimension of Producer Service Businesses is Expanding Over Time Localized firms mirror the trend for Lone Eagles/High Fliers

Face to Face Communication Is Key and is Not Diminishing in Its Importance

Implications for Settlements for the New Economy ? Will IT fuel decentralization of work? ? Or, will the power of agglomerations ?continue? To win out? ? What will happen to Edge Cities? Central Cities? What difference does it make where we focus on….Friday Harbor, Roslyn, Enterprise, Driggs, Missoula, Bellevue, Bend, Beaverton, Darrington, Sun City, Corvallis New Points?

So, where is Tourism, Producer Services and Other Services Headed in the Northwest? Will we just be more urbanized? What will the impact of Growth Management Policies be on Geographical development Trends? Can regions really affect the “drivers” of their development? If not, what other forces are at play?

Old Slides Follow Left in for reference purposes only

Pacific Northwest Employment Change ,381 jobs or +14.7%

Pacific Northest Employment Change ,084 jobs or -3.7%

Shares of Wage & Salary + Proprietor Income (Excludes farms)

Share of Total Employment Washington, Oregon & Idaho