July 2012

The Economic Impact of Tourism in Clark County, Ohio

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Clark County Tourism Summary

Clark County

Employment 4,271

Total Tourism ImpactClark County, Ohio

Taxes $41.8 million

Sales $326.2 million

Wages $79.8 million

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Overview

Tourism is an integral and driving component of the Clark County economy, sustaining 8.9% of salaried employment.

Visitors to Clark County generated business sales of $326 million, directly and indirectly, in 2011.

Tourism is a diverse composite of economic activities, including transportation, recreation, retail, lodging, and food & beverage sectors.

State Summary

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Key results

More than 440,000 jobs, with associated income of $10.5 billion, were sustained by visitors to Ohio last year.

These jobs represent 8.7% of total employment in Ohio – 1 in every 15.5 jobs in Ohio is sustained by the tourism economy.

Including indirect and induced impacts, tourism in Ohio generated $2.7 billion in state and local taxes and $2.6 billion in Federal taxes last year.

In the absence of the state and local taxes generated by tourism, each Ohio household would need to pay $600 to maintain the current level of government services.

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Key themes for 2011

The Ohio visitor economy continued to expand in 2011. Visitor spending within Ohio rose 6.5% after a 7.4% increase in 2010.

■ Visitor volumes rose for a second straight year, 181.5 million people travelled in Ohio in 2011 – a new high.

■ Growth in overnight visitation remains strong. Domestic overnight visitation grew 4.7% buoyed by strong hotel room demand growth of 6.4% in 2011.

■ Per trip spending rose as gas prices rose and hotels and other tourism providers start to recoup recessionary price cuts.

Visitor spending of $26.3 billion generated $40 billion in total business sales in 2011 as tourism dollars flowed through the Ohio economy.

Tourism taxes grew faster than overall state tax receipts.

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Growth in tourism sales

The tourism industry surpassed pre-recession highs.

Visitor spending increasing 6.5% and total sales (including indirect and induced impacts) increasing 5.5%.

Ohio registered over $40 billion in total tourism sales in 2011.

$34.9

$36.5

$38.3

$39.2

$35.8

$38.2

$40.3

$32

$33

$34

$35

$36

$37

$38

$39

$40

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2005 2006 2007 2008 2009 2010 2011

-10%

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TOTAL % Change

Total Tourism SalesUS$ Billions

Source : Tourism Economics

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Visitor spending by sector

Higher gas prices in 2011 increased the transportation share of tourism spending to 31%, just short of the 2008 high.

Food & beverage spending ranks second, capturing 26% of visitor spending.

The growth in overnight stays along with increasing room rates increased the share of spending on accommodations to 10%.

F&B26%

Retail15%

Trans31%

Air2%

Rec16%

Lodging10%

Visitor Spending By Sector

Source : Tourism Economics

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Total tourism sales

Business Day

Direct Indirect Induced Total2011 direct

sales growthAgriculture, Fishing, Mining - 189.9 69.5 259.4 0.0%Construction and Utilities - 445.8 181.7 627.5 0.0%

Manufacturing - 1,612.7 743.7 2,356.4 0.0%

Wholesale Trade - 53.7 39.5 93.2 0.0%

Air Transport 624.1 10.9 9.9 644.9 2.6%

Other Transport 2,758.8 451.3 191.9 3,402.0 6.8%

Retail Trade 3,846.1 215.1 868.5 4,929.7 4.6%

Gasoline Stations 4,569.9 14.7 54.5 4,639.1 14.6%

Communications - 457.4 197.4 654.8 0.0%

Finance, Insurance and Real Estate 972.4 1,324.1 904.4 3,200.8 5.7%

Business Services - 1,796.9 513.8 2,310.6 0.0%

Education and Health Care - 5.9 1,254.7 1,260.6 0.0%

Recreation and Entertainment 4,074.2 113.3 98.0 4,285.5 2.9%

Lodging 2,762.4 42.7 34.9 2,840.0 9.4%

Food & Beverage 6,727.6 116.1 330.9 7,174.6 3.9%

Personal Services - 175.1 299.5 474.6 0.0%

Government - 179.5 1,010.1 1,189.6 0.0%

TOTAL 26,335.5 7,205.1 6,802.6 40,343.3 6.5%

* Direct sales include cost of goods sold for retail sectors

Tourism Sales(US$ Million)

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All business sectors of the Ohio economy benefit from tourism activity directly and/or indirectly.

Sectors that serve the tourism industry, like business services, gain as suppliers to a dynamic industry.

Total tourism sales

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How visitor spending generates impact

• Lastly, the induced impact is generated when employees whose incomes are generated either directly or indirectly by tourism, spend those incomes in the state economy.

• Travelers create direct economic value within a discreet group of sectors (e.g. recreation, transportation). This supports a relative proportion of jobs, wages, taxes, and GDP within each sector.

• Each directly affected sector also purchases goods and services as inputs (e.g. food wholesalers, utilities) into production. These impacts are called indirect impacts.

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Total tourism employment

Direct Indirect Induced TotalAgriculture, Fishing, Mining - 2,443 851 3,295 Construction and Utilities - 1,692 350 2,041

Manufacturing - 3,968 1,652 5,620

Wholesale Trade - 302 219 521

Air Transport 3,034 44 40 3,118

Other Transport 29,645 4,197 1,559 35,402

Retail Trade 43,748 3,173 12,700 59,622

Gasoline Stations 11,914 187 681 12,781

Communications - 2,052 707 2,759

Finance, Insurance and Real Estate 6,981 8,596 5,111 20,688

Business Services - 16,982 5,209 22,191

Education and Health Care - 91 15,220 15,311

Recreation and Entertainment 58,690 3,034 1,855 63,579

Lodging 37,216 611 478 38,305

Food & Beverage 136,346 2,349 6,605 145,300

Personal Services - 2,336 5,564 7,900

Government - 921 518 1,439

TOTAL 327,574 52,980 59,317 439,872

Tourism Economy Employment

The tourism sector directly and indirectly supported 440,000 jobs, or 8.7% of all employment in Ohio last year.

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Tourism personal income

Business Day

Direct Indirect Induced TotalAgriculture, Fishing, Mining - 34 15 48.1 Construction and Utilities - 119.9 41.8 161.7

Manufacturing - 219.9 100.0 319.8

Wholesale Trade - 19.6 14.2 33.8

Air Transport 195.5 3.2 2.9 201.6

Other Transport 815.3 204.3 74.9 1,094.5

Retail Trade 844.1 82.7 330.2 1,257.0

Gasoline Stations 268.0 4.4 16.0 288.3

Communications - 110.2 40.3 150.5

Finance, Insurance and Real Estate 158.8 304.1 222.2 685.1

Business Services - 758.6 226.4 985.0

Education and Health Care - 2.8 617.6 620.4

Recreation and Entertainment 1,220.6 46.0 36.6 1,303.2

Lodging 899.3 14.5 11.2 925.0

Food & Beverage 2,074.5 34.7 97.8 2,207.0

Personal Services - 64.9 118.8 183.7

Government - 48.3 26.0 74.3

TOTAL 6,476.1 2,071.5 1,991.5 10,539.1

Tourism Labor Income (Compensation)(US$ Million)

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Tourism tax generation

Taxes of $5.3 billion were directly and indirectly generated by tourism in 2011.

State and local taxes alone tallied $2.7 billion.

Each household in Ohio would need to be taxed an additional $600 per year to replace the tourism taxes received by state and local governments.

Business Day

Total 2011 growth

Federal Taxes 2,581.8 3.8% Corporate 464.9 Indirect Business 236.1 Personal Income 789.3 Social Security 1,091.5

State Taxes 1,603.2 5.3% Corporate 395.9 Personal Income 319.3 Sales 758.8 State Social Security 57.7 Excise and Fees 71.4

Local Taxes 1,116.0 4.4% Personal Income 31.9 Sales 138.0 Property 724.2 Admissions 23.6 Lodging 131.8 Other Taxes and Fees 66.4 TOTAL 5,301.1 4.4%

Tourism-Generated Taxes(US$ Million)

Regional Summary

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Northeast36%

Southwest24%

Central23%

Northwest13%

Southeast4%

Tourism Sales by Region

■Including Cincinnati

■Including Cleveland

■Including Columbus

■Including Toledo

■Including Hocking Hills

Tourism Sales

Cleveland, Cincinnati and Columbus are anchors which influence the distribution of the tourism economy across Ohio.

Relative to the size of their economies, tourism is still of significant importance to the Northwest and Southeast regions.

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Tourism Employment

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Tourism Wages

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Southwest Ohio Detail

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Southwest Ohio Tourism Impact

County Sales Employment Wages TaxesAdams 29,074,506$ 475 7,466,149$ 3,719,547$

Brown 44,400,609 766 11,063,749 5,901,276

Butler 900,231,839 11,701 233,140,534 115,230,020

Champaign 45,692,272 922 11,559,575 5,838,281

Clark 326,214,817 4,271 79,835,086 41,774,782

Clermont 534,349,774 6,553 126,161,202 69,313,211

Clinton 81,469,282 851 20,471,176 10,465,197

Darke 63,338,113 1,426 16,773,241 8,112,104

Fayette 72,872,517 824 19,618,634 9,346,771

Greene 471,656,731 6,471 125,349,042 60,735,388

Hamilton 4,260,111,946 41,357 1,118,386,883 571,548,379

Highland 43,372,465 1,027 11,590,608 5,548,118

Miami 211,558,458 2,884 58,949,658 27,176,183

Montgomery 1,652,101,610 19,191 413,842,797 211,690,859

Preble 52,847,190 1,147 15,860,359 6,769,011

Warren 993,075,833 10,657 260,904,908 127,571,918

Southwest Ohio 9,782,367,962 110,524 2,530,973,601 1,280,741,045

* Includes Direct, Indirect and Induced impacts. Sales includes cost of goods sold for retail sectors.

Total Tourism Impact*

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Hamilton

Montgomery

Warren

Butler

Clermont

Greene

ClarkMiamiClintonFayette

DarkePreble

ChampaignBrownHighlandAdams

Total Tourism Sales: $9.8 billion

Southwest Ohio Tourism Sales

Total tourism sales tallied $9.8 billion in Southwest Ohio in 2011, up 5.1% from 2010.

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Tourism Share of Total Employment

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Southwest Ohio Tourism Employment

At nearly 9% of all employment, tourism is an important part of the Southwest Ohio economy.

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Southwest Ohio Tourism Wages

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Clark County Detail

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Tourism Sales Trend

■Business ■Day

2009 2010 2011Clark County sales trend:

Sales volume (US$ Million) 306.8 312.0 326.2

Sales growth (% year) -6.2% 1.7% 4.6%

Sales trend for the wider region and state:

Southwest Ohio sales growth (% year) -8.6% 7.4% 5.1%

Ohio sales growth (% year) -8.8% 6.9% 5.6%

Recent Trend in Tourism Sales (Output)

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Tourism Sales

■Business ■Day

Visitors generated $326 million in business activity in Clark County in 2011.

In addition to direct tourism industries, the manufacturing sector and business services sectors are important tourism beneficiaries as suppliers.

Direct* Indirect Induced Total

Agriculture, Fishing, Mining - 1,534,450 563,583 2,098,033

Construction and Utilities - 3,602,217 1,473,821 5,076,038

Manufacturing - 13,031,454 6,033,619 19,065,074

Wholesale Trade - 433,940 320,150 754,090

Transportation 20,525,209 3,734,421 1,637,216 25,896,846

Retail Trade 67,798,908 1,857,521 7,488,067 77,144,496

Communications - 3,695,941 1,601,301 5,297,242

Finance, Insurance and Real Estate 24,837,453 10,699,100 7,337,550 42,874,103

Business Services - 14,519,426 4,168,438 18,687,863

Education and Health Care - 47,599 10,179,431 10,227,030

Recreation and Entertainment 21,820,666 915,328 795,134 23,531,128

Lodging 19,770,036 344,794 283,154 20,397,984

Food & Beverage 58,050,832 938,515 2,684,689 61,674,036

Personal Services - 1,415,286 2,429,621 3,844,907

Government - 1,450,621 8,195,326 9,645,946

TOTAL 212,803,104 58,220,613 55,191,101 326,214,817

% change 09 - 10 2.2% 1.0% 0.7% 1.7%

% change 10 - 11 5.4% 2.1% 3.8% 4.6%

* Direct sales includes cost of goods sold for retail sectors

Tourism Sales (Output)(US$)

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Tourism Sales

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Tourism Employment

Tourism supports 1 in every 11 salaried jobs in Clark County.

Direct Indirect Induced TotalAgriculture, Fishing, Mining - 24 8 33

Construction and Utilities - 16 3 20

Manufacturing - 39 16 55

Wholesale Trade - 3 2 5

Transportation 269 41 16 326

Retail Trade 528 32 129 689

Communications - 20 7 26

Finance, Insurance and Real Estate 177 82 49 308

Business Services - 167 51 219

Education and Health Care - 1 148 149

Recreation and Entertainment 500 29 18 547

Lodging 320 6 5 331

Food & Beverage 1,387 23 64 1,474

Personal Services - 23 54 76

Government - 9 5 14

TOTAL 3,182 515 575 4,271

% change 09 - 10 -5.0% -4.6% -4.6% -4.9%

% change 10 - 11 -0.6% -0.5% -0.9% -0.7%

Tourism Employment

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Tourism Employment

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Tourism Wages

Tourism generated personal income of $80 million in 2011.

Direct Indirect Induced TotalAgriculture, Fishing, Mining - 256,485 111,537 368,023

Construction and Utilities - 905,957 315,361 1,221,318

Manufacturing - 1,666,261 757,749 2,424,010

Wholesale Trade - 148,307 107,770 256,076

Transportation 5,999,314 1,571,205 588,911 8,159,430

Retail Trade 8,475,922 658,928 2,621,083 11,755,933

Communications - 833,435 304,805 1,138,240

Finance, Insurance and Real Estate 3,994,613 2,306,619 1,685,756 7,986,988

Business Services - 5,753,343 1,717,182 7,470,525

Education and Health Care - 21,371 4,673,222 4,694,593

Recreation and Entertainment 6,610,013 350,253 278,220 7,238,486

Lodging 6,331,133 109,881 85,307 6,526,321

Food & Beverage 17,640,605 262,856 740,600 18,644,061

Personal Services - 490,775 899,280 1,390,055

Government - 364,797 196,229 561,026

TOTAL 49,051,600 15,700,473 15,083,014 79,835,086

% change 09 - 10 -2.5% -5.0% -5.0% -3.5%

% change 10 - 11 2.0% 2.6% 1.8% 2.1%

Tourism Income (Compensation)(US$)

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Tourism Wages

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Tourism Tax Generation

The tourism industry generated $42 million in taxes in 2011.

Tourism generated $21 million in state and local taxes.

■ $13 million in state taxes

■ $8 million in local taxes

Total

Federal Taxes 20,910,278

State Taxes 12,966,499

Local Taxes 7,898,005

TOTAL 41,774,782

Tourism-Generated Taxes(US$)

33

Methodological Notes

Visitor spending data are derived from several sources including:

Longwoods International survey of travelers

Longwoods International survey of accommodations

Statistics Canada data on spending in Ohio

Office of Travel & Tourism Industries estimates of overseas visits to Ohio

Economic data are compiled by industry from the Bureau of Economic Analysis and Bureau of Labor Statistics. These provide industry detail on employment, value added, and wages by industry.

The economic impact analysis uses an IMPLAN (www.implan.com) input-output model for the state of Ohio which tracks spending by visitors to industries and among industries and households. This estimates indirect (supply chain) impacts and induced (income effect) impacts as wages are spent in the state economy.

34

About Tourism Economics

Tourism Economics, headquartered in Philadelphia, is an Oxford Economics company dedicated to providing high value, robust, and relevant analyses of the tourism sector that reflects the dynamics of local and global economies. By combining quantitative methods with industry knowledge, Tourism Economics designs custom market strategies, project feasibility analysis, tourism forecasting models, tourism policy analysis, and economic impact studies.

Our staff have worked with over 100 destinations to quantify the economic value of tourism, forecast demand, guide strategy, or evaluate tourism policies.

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