Economy sways tourism

Published 12:37 am Sunday, December 11, 2011

The Washington waterfront helps draw thousands of visitors to the city each year. (WDN File Photo/Vail Stewart Rumley)

Domestic tourism in Beaufort County during 2010 generated an economic impact of $66.97 million, according to a study.
That impact was a 4.71-percent change from 2009, according the study prepared for the N.C. Division of Tourism, Film and Sports Development by the US Travel Association. The study used the travel economic impact model.
In 2009 in Beaufort County, domestic tourism generated an economic impact of $63.96 million, a decline of 3.7 percent from 2008, according to a similar study. That decline was only the second time since 2001 the county saw a drop in the economic impact of domestic tourism in the county.
“In 2010, we saw an increase in visitors coming from closer destinations. People tended to take shorter vacations, exploring areas for a long weekend or day trips. Even the day trips equal an upswing in economic impact,” wrote Lynn Lewis, the city’s tourism-development director, in an email regarding the swing in domestic-tourism spending.
David Gossett looks at the effects of tourism spending from two points of view, one as a member of the Washington Tourism Development Authority and the other as show chairman of the East Carolina Wildlife Arts Festival and N.C. Decoy Carving Championships held each winter in Washington. The festival is organized by the East Carolina Wildfowl Guild, which is based in Washington.
Gossett addressed the increase in tourism spending in 2010 as compared to 2009.
“I don’t know that’s a significant increase. Of course, it’s up $2 million,” Gossett said Friday. “That’s a lot of money. I don’t know what percentage that would be, but it’s not a great percentage.”
As for the tourism spending in the past several years, Gossett said, “At least it’s holding its own. I think that’s the way we should look at it. It’s pretty much holding its own, and we all know — we hear it every day, every time we wake up — we hear about the economy. I am a little bit surprised it is holding its own to be honest with you.”
“Here in the county, there’s been no significant events, significant changes that could show a drastic increase or a drastic decrease,” Gossett said. “So, it is the economy. That’s absolutely true.”
In 2010, Beaufort County ranked 46 in travel impact among the state’s 100 counties, according to the study. During 2010 in the county, at least 440 jobs were directly attributable to travel and tourism. In the county during 2010, travel generated a payroll of $8.62 million.
State and local tax revenues from travel to the county totaled $7.88 million, which represents a $161.41 tax saving to each county resident, according to the study. Local tax receipts came to $4.24 million, with state tax receipts coming in at $3.64 million in 2010, according to the study.
Although the economic impact of domestic tourism increased in the county during 2010, the revenue generated by Washington’s 6-percent occupancy tax declined from fiscal year 2008-2009 to fiscal year 2009-2010, according to occupancy-tax data provided by the state.
In fiscal year 2009-2010, Washington’s occupancy tax generated $244,628 in gross revenue, with $237,295 going to the Washington Tourism Development Authority and $7,333 going to the city for administrative purposes. In fiscal year 2008-2009, the city’s occupancy tax generated $255,280 in gross revenue. Of that, the city retained $7,658 for administrative charges while the balance of $247,622 went to the WTDA.
Lewis offered an explanation for occupancy-tax collections dropping in fiscal year 2008-2009 when compared to fiscal year 2009-2010.
“The difference in occupancy-tax collections, that appears contrary to the tourism numbers reported by the N.C. Division of Tourism, related to the fire in Hyde County. Many of our hotels were occupied by forestry and relief workers in June, July and August (2008). An adjustment to ‘average’ summer numbers actually reflects an increase in occupancy tax collections for FY09-10,” she wrote in an email.
Gossett expects the influx of people into Beaufort County hotels and motels during and after Hurricane Irene to result in an increase in occupancy-tax revenues for September and October 2011 when compared to the same two months in “normal” years. Some hurricane victims stayed several weeks at hotels and motels in the county in the weeks after Irene hit the area.
For every $100 spent on lodging such as hotel and motel rooms, the city collects $6 in taxes. The occupancy-tax revenue for Washington’s 2007-2008 fiscal year was $256,838.
State law dictates that occupancy tax revenues be used on programs intended to bring more people for overnight stays to areas served by agencies like the WTDA. Washington retains 3 percent of the occupancy-tax revenue for WTDA administration while the WTDA receives the balance.
As far as Gossett is concerned, the continued sluggish economy is the main influencing domestic-tourism spending and occupancy-tax revenues in Beaufort County and Washington, respectively.
“Definitely. I think so. Definitely,” Gossett said.

How our neighbors fared

Hyde County
Domestic tourism impact in 2010: $30.9 million.
Domestic tourism impact in 2009: $27.7 million.
Percentage change from 2009 to 2010: 11.55 percent.
In 2010, Hyde County ranked 68 in travel impact among North Carolina’s 100 Counties.
More than 390 jobs in Hyde County were directly attributable to travel and tourism.
Travel generated a $5.92 million payroll in 2010.
State and local tax revenues from travel to Hyde County amounted to $3.35 million. This represents a $576.29 tax saving to each county
resident.
Martin County
Domestic tourism impact in 2010: $26.02 million.
Domestic tourism impact in 2009: $25.58 million.
Percentage change from 2009 to 2010: 1.72 percent.
In 2010, Martin County ranked 74 in travel impact among North Carolina’s 100 Counties.
More than 220 jobs in Martin County were directly attributable to travel and tourism.
Travel generated a $3.86 million payroll in 2010.
State and local tax revenues from travel to Martin County amounted to $2.22 million. This represents a $90.62 tax saving to each county resident.
Washington County
Domestic tourism impact in 2010: $12.48 million.
Domestic tourism impact in 2009: $11.73 million.
Percentage change from 2009 to 2010: 6.39 percent.
In 2010, Washington County ranked 89 in travel impact among North Carolina’s 100 Counties.
More than 90 jobs in Washington County were directly attributable to travel and tourism.
Travel generated a $1.65 million payroll in 2010.
State and local tax revenues from travel to Washington County amounted to $1.30 million. This represents a $98.31 tax saving to each county resident.
Source. N.C. Division of Tourism, Film and Sports Development.

About Mike Voss

Mike Voss is the contributing editor at the Washington Daily News. He has a daughter and four grandchildren. Except for nearly six years he worked at the Free Lance-Star in Fredericksburg, Va., in the early to mid-1990s, he has been at the Daily News since April 1986.
Journalism awards:
• Pulitzer Prize for Meritorious Public Service, 1990.
• Society of Professional Journalists: Sigma Delta Chi Award, Bronze Medallion.
• Associated Press Managing Editors’ Public Service Award.
• Investigative Reporters & Editors’ Award.
• North Carolina Press Association, First Place, Public Service Award, 1989.
• North Carolina Press Association, Second Place, Investigative Reporting, 1990.
All those were for the articles he and Betty Gray wrote about the city’s contaminated water system in 1989-1990.
• North Carolina Press Association, First Place, Investigative Reporting, 1991.
• North Carolina Press Association, Third Place, General News Reporting, 2005.
• North Carolina Press Association, Second Place, Lighter Columns, 2006.
Recently learned he will receive another award.
• North Carolina Press Association, First Place, Lighter Columns, 2010.
4. Lectured at or served on seminar panels at journalism schools at UNC-Chapel Hill, University of Maryland, Columbia University, Mary Washington University and Francis Marion University.

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