Buncombe County Tourism Update Presentation to Leadership Asheville Class January 21, 2009 Kelly Miller, CDME

Overnight Leisure Visitation to Asheville Area

Visitor Spending Spending increases 24%.

Typical Asheville Visitor Typical visitors are: –Age: 50s –HH income: $100,000+ –College or post-graduate degree –No children in the home (i.e. empty nesters) –More than half employed full-time, 1/3 retired –Married & traveling as couple –Have Internet Access Information from 2007 Intercept Study & Cluster Study of Asheville Inquiry Database (06-07)

Anticipated Growth in Hotel Rooms Lodging Econometrics reported 36 percent growth in pipeline projects nationwide at the end of the 2007 that will come online in the next few years.

The Impact of Visitors

Economic Impact of Tourism (Direct & Indirect)

The Total Tax Visitors Pay on Accommodations 4%Occupancy Tax (3% for marketing & advertising and 1% for product development) Sales Tax (earmarked for state and 6.75% local government 10.75% Total Tax Paid on Lodging

Tax Returns to Local Government Buncombe County Government estimates that visitors to the Asheville area generate one third of all retail sales. Nearly $30 million goes back to local government in combined sales and property taxes that are the result of tourism.

Labor Impact More than 25,000 people are employed in hospitality- related jobs in Buncombe County. Estimated direct labor income impact is more than $473 million.

Tourism Builds Community $9,033,500 Tourism Product Funds Awarded through 2007

Projects Funded by Buncombe County Lodging Industry Occupancy Tax (2007 Cycle) ProjectAward Pack Square Park$1,500,000 Asheville Art Museum$1,000,000 The Health Adventure (Momentum)$1,000,000 Veteran’s War Memorial $67,000 Civil War Trails$16,500 TOTAL$3,583,500

Projects Funded by Buncombe County Lodging Industry Occupancy Tax (Previous Cycles) Project Date Awarded Award John B. Lewis Soccer Complex Azalea Park 2002 & 2004$800,000 Grove Arcade Public Market2002$500,000 Bonsai Garden - North Carolina Arboretum 2003$750,000 Asheville Visitor Center2003$750,000 Pack Square Park2004$500,000 The Health Adventure2004$500,000 TOTAL$3,800,000

Buncombe County Wayfinding Project $1,650,000 recommended by Tourism Product Development Committee and approved by BCTDA December 2007 to fund county-wide Wayfinding in partnership with: –City of Asheville –Weaverville –Woodfin –Black Mountain –Montreat –Buncombe County TDA Allocates $1.65 Million for Wayfinding

Wayfinding Update Working closely with NC DOT on established design guidelines and encroachment process for sign located on DOT roads in the county. Finalizing locations of pedestrian signs and kiosks and gateways. Fabrication will begin by end of the year.

Tourism Advertising Efforts $2.76 Million in Net Media

Sample Tourism Ad Campaigns Atlanta Campaign launched August 2007 Romance Campaign launched Fall 2007 Epicurean Campaign launched January 2008 New overall campaign to be launched late 2008

Current Economic Challenges

Lodging Forecast OccupancyADRRev Par %3.4%+0.4% %1.0%+-2.5% %2.1%+1.5%+

Thank You.