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Economic Impact Report

ECONOMIC IMPACT
ALABAMA TRAVEL INDUSTRY 2005

April 17, 2006

Submitted to Lee Sentell, Director
Alabama Tourism Department

Center for Business and Economic Development
Auburn University Montgomery
600 South Court Street, Suite 110
Montgomery, AL 36104
Tel: (334) 244-3700   Fax: (334) 244-3718

Executive Summary

• Analysis of state lodging tax revenues, Smith Travel Research data on hotel occupancy rates, and field intercept surveys were conducted to estimate the economic impact of tourism on Alabama for calendar year 2005.
• Based on the primary and secondary data, it is estimated that over 21.8 million people visited the State of Alabama during 2005.
• The most visited counties in the state were Baldwin, Jefferson, Madison, Mobile, and Montgomery.
• The above counties accounted for 63 percent of the total number of visitors to the state.
• Travelers spent almost $7.6 billion in Alabama. This represents an increase of 3 percent over 2004 spending.
• Travel industry expenditures represent about three percent of Alabama's Gross State Product — overall production — in 2005.
• Over 159,650 jobs — 8.2 percent of non-agricultural employment in Alabama — were directly or indirectly attributable to the travel and tourism industry.
• The total impact of the travel and tourism industry on Alabama's earnings in 2005 is estimated at more than $3.2 billion.
• In 2005, almost $580 million of state and local tax revenues were realized, primarily due to travel and tourism activities.
• Every $70,735 of travel-related expenditures creates one direct job in Alabama.
• For every $1 in Alabama's travel-related expenditures, the state retains a total of $0.43.
• In terms of travel and tourism activities, Baldwin and Jefferson counties are by far the largest beneficiaries.
• Seven counties account for 73 percent of all travel-generated employment: Baldwin, Jefferson, Madison, Mobile, Montgomery, Shelby, and Tuscaloosa.

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