May 8, 2015 Tony D’Agostino Research Director, MOTT

May 8, 2015Tony D’Agostino

Research Director, MOTT

Economic Impact of Tourism on MA

Review of International and Overseas Travel to MA

Summary of Canadian visitation to Mid Atlantic states, New England states and MA

Focus on top Origin Provinces to Mid Atlantic states, New England state and MA

Expenditures….$18.5 BILLIONDomestic $16 Billion, Int’l $2.5 Billion

Volume….25 Million Domestic 22.9 Million, Int’l 2.1 Million

Jobs Supported….129,400 with $3.9 Billion P/R

State & Local Tax Revenues….$1.2 Billion

Economic Impact of Domestic and International Traveler to MA , CY2013

Travel Expenditures Domestic v. International2013p 2013p

($ Millions) % of total ($ Millions) % of total

Public Transportation $5,263.6 32.8% $300.2 12.2%

Auto Transportation 2,364.8 14.8% 35.4 1.4%

Lodging 3,327.8 20.8% 866.3 35.2%

Foodservice 3,135.0 19.6% 462.8 18.8%

Entertainment & Recreation 924.6 5.8% 194.3 7.9%

General Retail Trade 1,008.3 6.3% 598.8 24.4%

Total $16,024.1 100.0% $2,457.7 100.0%

Domestic Visitors Origin: Top States and Regions, 2013…… 23 MILLION TOTAL

Person Trips Share of all

Origin State to Massachusetts Person Trips

Massachusetts 7,250,000 33.1%

New York 2,412,000 11.0%

Connecticut 2,211,500 10.1%

New Hampshire 1,541,500 7.0%

Rhode Island 618,000 2.8%

All New England States 13,069,500 59.7%All Mid Atlantic States(NY,NJ,PA) 3,688,500 16.8%

Source:TNS, Travels America

Int’l Travel to U.S. & MA is considered an Export !!!

Travel Industry falls within SERVICE SECTOR

TRAVEL is FASTEST-GROWING INDUSTRY within the FASTEST-GROWING SECTOR of U.S. Exports

Int’l travel to U.S. accounted for 10% of all U.S. exports and generated a $74 Billion trade surplus

Overseas visitor data come from in-flight survey and compiled by U.S. Dept. of Commerce

Canadian visitor data come from StatsCanada

700,000

700,000

700,000

Origin of 2.1 Million Visitors

Canada

Europe

Other

…Quebec,Ontario, Nova Scotia

…PRC, Australia and South America

…western Europe

Generating $29 in state & local taxes

2013 Change 2013 2012 2012

(State/Territory) Visitation (000) (%) Market Share

Market share

change

Visitation (000)

Market

1 New York 9,804 5% 30.6 dn 9,315 31.3

2 Florida 7,209 10% 22.2 up 6,577 22.1

3 California 6,472 8% 20.2 flat 6,012 20.2

4Hawaiian Islands

3,172 12% 9.9 up 2,827 9.5

5 Nevada 2,915 5% 9.1 dn 2,768 9.3

6 Texas *** 1,570 17% 4.9 up 1,339 4.5

7 Guam 1,474 5% 4.6 dn 1,399 4.7

8 Illinois 1,442 3% 4.5 dn 1,399 4.7

9 Massachusetts 1,378 3% 4.3 dn 1,339 4.5

10 Pennsylvania 993 4% 3.1 dn 952 3.2

11 New Jersey 929 8% 2.9 flat 863 2.9

U.S. visitation from Overseas up 8% to 32,000,000

*** Texas passes Ma

2013 Rank

2012Visits Share

1 New York 4,263 18.8% competitive set

2 Florida 3,559 15.7%

3 Washington 2,933 12.9%

4 Michigan 1,612 7.1%

5 Nevada 1,587 7.0%

6 California 1,543 6.8%

7 Pennsylvania 975 4.3% competitive set

8 Maine 928 4.1% competitive set

9 Montana 776 3.4%

10 North Dakota 761 3.4%

11 Arizona 728 3.2%

12 Minnesota 696 3.1%

13 MA 691 3.0%

14 Vermont 667 2.9% competitive set

15 Virginia 652 2.9%

TOP 5 International Destinations

U.S., Mexico ,Cuba, U.K. and Dominican Republic

N.J.

Total = 678,000

Quebec

Ontario

Nova Scotia

New Brunswick

British Columbia

Alberta

Other

Quebec…302,000

Ontario…216,000

Nova Scotia…50,000

Visits from Quebec, Ontario and Nova Scotia to New England & Mid Atlantic statesCalendar Year 2011

New England / Mid Atlantic states New England

% of NE/MidAtl Mid Atlantic

% of NE/MidAtl

Quebec to … 2,650,000 1,422,000 54% 1,228,000 46%

Ontario to … 4,020,000 654,000 16% 3,336,000 83%

Nova Scotia to… 384,000 306,000 80% 78,000 20%

Mid Atl includes NY,NJ,PA

Canadian Visits to Mid Atlantic and New England States (1+ nights)Calendar Year 2011

VOLUME AND SHARE

New England / Mid Atl Massachusetts Vermont Maine

Quebec to … 2,650,000 302,000 11% 480,000 18% 347,000 13%

Ontario to … 4,020,000 216,000 5% 157,000 4% 114,000 3%

Nova Scotia to… 384,000 50,000 13% 7,000 2% 189,000 49%

Ontario is basically Toronto and is analogous to NYC for domestic travel to MA

Canadian Visits to Mid Atlantic and New England states (1+ nights)ALL CANADIAN visitors …not just from Quebec,Ontario and Nova Scotia

Percentage of Destination Totals

Mid Atlantic New England Massachusetts Vermont Maine

Auto 3,889,000 77% 2,260,000 78% 384,000 56% 569,000 86% 848,000 90%

Air 846,000 17% 303,000 10% 170,000 25% 28,000 4% 33,000 3%

Bus 175,000 3% 192,000 7% 108,000 16% 28,000 4% 24,000 3%

Other 125,000 2% 141,000 5% 28,000 4% 34,000 5% 40,000 4%

Only 20% of domestic visitors to MA came by AIR

Canadian Visits to Mid Atlantic and New England States (1+ nights)

Percentage of State Totals

Mid/Atl New England Massachusetts Vermont Maine

Business/Convention 439,000 9% 192,000 7% 107,000 16% 16,000 2% 27,000 3%

Visits Frnds/Rltvs 769,000 15% 413,000 14% 109,000 16% 105,000 16% 99,000 10%

Holiday/Vacation 3,155,000 62% 1,964,000 68% 390,000 58% 510,000 77% 652,000 69%

Other 694,000 14% 332,000 11% 71,000 10% 33,000 5% 169,000 18%

5,057,000 2,901,000 677,000 664,000 947,000

Domestic Traveler Main purpose…47% VFR

Canadian Visits to Mid Atlantic and New England States (1+ nights)Percentage of State Totals


Shopping 3,727,000 74% 2,106,000 73% 499,000 74% 399,000 60% 739,000 78%

Sightsee 2,302,000 46% 1,417,000 49% 429,000 63% 256,000 39% 408,000 43%

Visit Frnds/Rltvs 1,485,000 29% 796,000 27% 219,000 32% 185,000 28% 206,000 22%

Outdoor Activity/Sports 1,211,000 24% 916,000 32% 139,000 21% 273,000 41% 295,000 31%

Historic Sites 1,386,000 27% 763,000 26% 312,000 46% 108,000 16% 177,000 19%

Night Club 986,000 19% 445,000 15% 155,000 23% 78,000 12% 116,000 12%

National/State Park 855,000 17% 568,000 20% 111,000 16% 142,000 21% 132,000 14%

Museum/Art Gallery 988,000 20% 535,000 18% 237,000 35% 67,000 10% 123,000 13%

Theme Park 431,000 9% 236,000 8% 27,000 4% 29,000 4% 126,000 13%

Cultural Event 675,000 13% 245,000 8% 97,000 14% 39,000 6% 51,000 5%

5,057,000 2901000 678000 663000 947000

Canadian Visits to U.S. and New England States (1+ nights)


Mid/Atl New England Massachusetts Vermont

Camping 330,000 7% 278,000 10% 19,000 3% 95,000 14%

Cottage/Cabin 106,000 2% 153,000 5% 10,000 1% 67,000 10%

Hotel/Motel 3,106,000 61% 1,655,000 57% 433,000 64% 310,000 47%

Friends/Relatives 596,000 12% 292,000 10% 100,000 15% 64,000 10%

OTHER 489,000 10% 314,000 11% 86,000 13% 71,000 11%

Not Stated 431,000 9% 208,000 7% 30,000 4% 55,000 8%

5,058,000 2,900,000 678,000 662,000 100%

Domestic visitors stay at friend or family just over 40%Paid Accommodations also just over 40%

Canadian Visits to U.S. and New England States (1+ nights)



Under 12 281,000 6% 183,000 6% 29,000 4% 37,000 6% 75,000 8%

12 - 19 343,000 7% 147,000 5% 34,000 5% 35,000 5% 51,000 5%

20 - 34 551,000 11% 322,000 11% 100,000 15% 74,000 11% 78,000 8%

35 - 54 1,499,000 30% 894,000 31% 206,000 30% 205,000 31% 286,000 30%

55 or older 2,111,000 42% 1,178,000 41% 249,000 37% 273,000 41% 416,000 44%

Not Stated 271,000 5% 177,000 6% 60,000 9% 38,000 6% 41,000 4%

5,056,000 2,901,000 678,000 662,000 947,000

Domestic visitors have higher % in 20-54 ages and lower % in 19 and under ages



One Night 1,590,000 31% 728,000 25% 128,000 19% 182,000 27% 231,000 24%

2 - 6 Nights 3,147,000 62% 1,874,000 65% 472,000 70% 429,000 65% 596,000 63%

7 - 13 Nights 261,000 5% 253,000 9% 65,000 10% 46,000 7% 103,000 11%

14+ Nights 59,000 1% 46,000 2% 14,000 2% 6,000 1% 18,000 2%

Total 1+ Nights 5,057,000 100% 2,901,000 100% 679,000 100% 663,000 100% 948,000 100%

Average nights 2.9 3.2 3.7 2.8 3.3

Domestic overnights average just under 4 nights

Canadian Visits to Mid Atlantic and New England States (1+ nights)



Q1 825,000 16% 311,000 11% 87,000 13% 103,000 16% 75,000 8%

Q2 1,272,000 25% 654,000 23% 184,000 27% 150,000 23% 186,000 20%

Q3 1,967,000 39% 1,416,000 49% 299,000 44% 282,000 43% 526,000 56%

Q4 993,000 20% 521,000 18% 108,000 16% 128,000 19% 160,000 17%

5,057,000 100% 2,902,000 678,000 663,000 947,000

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Q 1 Q 2 Q 3 Q 4

Domestic visitor

Canadian visitor

Quarterlies from provinces not available!!

Growth of travel to U.S. from Canada slowing…to MA???

Canadian visitor profile similar to Domestic Visitor …Purpose and length of stay are different

MA competes with other New England and Mid Atlantic states

Economic Impact of Canadian visitor to MA fits in between Domestic and Overseas visitor

Current MA market share of top origin provinces is fairly small

Travel Spending in MA is a big business

We must work it like playing a pinball machine

Documents

May 8, 2015 Tony D’Agostino Research Director, MOTT