Tourism generates substantial return on state investment
Industry provides 130,000 direct jobs as visitation continues upswing
BALTIMORE (Jan. 16) A study released today by the Maryland Office of Tourism Development, an agency of the Maryland Department of Business and Economic Development (DBED) reveals that tourism in Maryland is on the rise, with a 4.3 percent increase in spending from visitors to the State.
“Tourism continues to be a powerful economic engine for Maryland,” said DBED Secretary, Christian Johansson. “On average, spending from 166 visitors supports one job in Maryland – with 130,000 Marylanders directly employed in full-time tourism activities. The tourism industry not only creates and sustains jobs, it generates substantial tax revenue and business income.”
Maryland tourists and travelers spent $13.1 billion on travel expenses in 2010, based on The Economic Impact of Tourism in Maryland Tourism Satellite Account conducted by Tourism Economics, an Oxford Economics company. Transportation and food account for the largest share of visitor spending, followed by spending on lodging, shopping and entertainment. Total spending increased 4.3 percent from 2009.
While the results of a Tourism Satellite Account are only available on an annual basis, many performance metrics, including the Tourism Promotion Act tourism tax codes, are available more frequently. The Comptroller reported that the formula utilized in the Tourism Promotion Act generated $359.5 million in state sales tax revenue in Fiscal 2011, an increase of 5.1 percent from fiscal 2010, outperforming the 3.6 percent growth of overall sales tax revenue by 40 percent.
“As a small business owner, I scrutinize every aspect of business with an eye toward return on investment,” commented Greg Shockley, chair of the Maryland Tourism Development Board and owner of Shenanigan’s Irish Pub in Ocean City. “Revenues attributable to tourism were close to $360 million in Fiscal 2011, when the State invested $8.3 million in general funds for the Office of Tourism Development and the Maryland Tourism Development Board. That’s a return of $43 for every state dollar invested in tourism funding.”
The number of visitors traveling in the state has also been on the upswing. Maryland welcomed 32.2 million domestic visitors in 2010, an increase of 10.7 percent over 2009.
"This report is a testament to our strategic regional promotional efforts," said Margot Amelia, executive director of the Maryland Office of Tourism. “For the past several years, we have focused our marketing efforts on the key feeder markets of Washington, D.C., Philadelphia and Baltimore, including year-round communication through digital and traditional media, as well as vital consumer research to crystalize key messaging.”
Visitation in 2010 was 18.3 percent greater than 2007, when the state counted 27.2 million visitors. This 18.3 increase was substantially greater than the 1.1 percent growth factor in tourism across the nation and greater than the rate for other mid-Atlantic states.
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About Maryland tourism
The Maryland Office of Tourism is an agency of the Division of Tourism, Film and the Arts within the Maryland Department of Business and Economic Development. Recently reported visitor data shows that the state welcomed more than 32 million visitors in 2010. In 2010, visitors spent $13.1 billion on travel-related expenses – generating close to $1.9 billion in state and local taxes and providing 130,000 jobs to Maryland residents with a payroll of $4 billion.
