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A new study says travelers spent $1.84 billion in Richmond.

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Kent Jennings Brockwell
Richmond.com
Wednesday, April 09, 2008

London. Paris. Amsterdam. Sydney. Richmond?

 

With more than 5.7 million people visiting the region annually, Richmond has become quite the hot spot for tourism, and more importantly, money spent by tourists, according to a new study.

 

A new economic impact study commissioned by the Richmond Metropolitan Convention and Visitors Bureau indicates that tourism spending in the Richmond Region has reached a substantial level in recent years and has proved to be a great boost for the local economy.

 

The tourism impact study, which was conducted by D.K. Shifflet & Associates and Global Insight, revealed that in 2006 travelers to the Richmond Region spent $1.84 billion on tourism-related products such as food and beverage, entertainment, shopping, lodging and transportation.

 

It should be no surprise to dining-happy Richmonders that food and beverage spending ranked first, accounting for 27 cents out of every dollar spent by visitors. Entertainment spending ranked second (23 cents out of every dollar) and shopping expenditures ranked third, accounting for 22 cents of every dollar. Lodging (16 cents out of every dollar) and transportation (11 cents out of every dollar) expenses closed out the study fourth and fifth, respectively.

 

More importantly, for every dollar spent, 76 cents stayed within the local economy.

 

And with tourism spending comes tourism jobs. The study says that Richmond tourism supported 25,990 jobs directly related to the travel industry and created $925 million in wages. That ranks travel and tourism eighth in Greater Richmond's primary industries, which employ 4.9 percent of the entire local labor force.

 

According to the Richmond Metropolitan Convention and Visitors Bureau, the purpose of the study was to determine the economic benefits and tax impacts generated by visitor spending in the Richmond region in 2006. For the study, travelers were defined as those who made an overnight trip or traveled in excess of 50 miles for a day trip.


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5 comments.
Richmond.com Article Feedback - Leave your comment today!

Thanks to John David for understanding. And to Katherine O'Donnell for supplying many real facts. Chris, I was just trying to understand a story that jumped between the notion of a "tourist destination" and the reality of business travelers (coming and going – I use the airport twenty times a year, for example), friends and family outnumbering history buffs, and finally, tourists. The headline was about tourism. In the end, the story is instead about travelers (many of whom already live here). And mom coming to visit is not a tourist. She's someone's mom and she'd visit Antarctica if that's where her kids were. Finally, why do you think more than half the new hotels are being built in Far Western Henrico? To serve the business travelers visiting companies in Innsbrook and West Creek. As much as I would like to think that they're here for history, these guests will have coffee at Starbucks, eat at Panera and take a cab to the airport. Business people (hotel developers) and not "tourism touters" will tell you who the out-of-towners really are. (That's also why the airport has record numbers.) Katherine knows this, too.


Richmond.com Article Feedback - Leave your comment today!

I think the main point here is that people are coming to Richmond -- business, pleasure, to catch a plane, whatever -- and SPENDING MONEY. No matter why or for how long, dollars are going into our community and jobs are being created. The term "tourism" may be confusing, but basically the idea (I think) is if you don't live here you're a tourist (or visiting) and the city wouldn't normally be getting your money. In fact, the last paragraph says "visitor spending"... Don't search for a negative.


Richmond.com Article Feedback - Leave your comment today!

Leisure travel comprises more of visitor spending than business travel. Leisure and business spending totaled $1.07 billion and $776 million respectively.

The Richmond Region is defined as the counties of Chesterfield, Hanover, Henrico and New Kent, and the City of Richmond.

The economic impacts reported in this study are based on traveler spending as reported in D.K. Shifflet & Associates Performance Monitor™ travel survey and Office of Travel and Tourism Industries data on international tourism.

Hotel occupancy and hotel profitability (RevPAR) in the Richmond Region remain at record highs.

According to a visitor intercept study conducted for RMCVB in 2006 by the Southeastern Institute of Research, after visiting friends and family (34%), history (22%) is the primary reason travelers want to visit the Richmond Region.

--Katherine O'Donnell
Director of Marketing
RMCVB


Richmond.com Article Feedback - Leave your comment today!

Definitely a misleading story. Do people really come to Richmond b/c it's a tourist destination? I don't think so. There is history here, yes. But putting it in the same line as London, Paris, Amsterdam, Sydney??? Come on...


facts please - Email this User
4/9/2008 at 9:26:34 AM
Richmond.com Article Feedback - Leave your comment today!

This "tourism" report is misleading and omits vital statistics:
•Every traveler from Charlottesville (or anywhere more than 50 miles away) who flies out of our airport is considered a tourist. I don't think so.
•Every business traveler who lands here is a tourist?
• Hotel room nights is the best indicator of tourism, minus business travelers.
• What comprises the Richmond region?



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