2019, 07-02 Study Session MINUTES
SPOKANE VALLEY COUNCIL MEETING
STUDY SESSION
Spokane Valley City Hall Council Chambers
Spokane Valley, Washington
July 2, 2019
Attendance:
Councilmembers Staff
Rod Higgins, Mayor Mark Calhoun, City Manager
Pam Haley, Deputy Mayor Cary Driskell, City Attorney
Brandi Peetz, Councilmember Erik Lamb, Deputy City Attorney
Linda Thompson, Councilmember Mike Stone, Parks &Rec. Director
Ben Wick, Councilmember Mark Werner, Police Chief
Sam Wood, Councilmember Adam Jackson, Planning, Grants Engineer
Arne Woodard, Councilmember John Hohman,Deputy City Manager
Chelsie Taylor, Finance Director
Bill Helbig, City Engineer
Christine Bainbridge, City Clerk
Mayor Higgins called the meeting to order at 6:00 p.m.
ROLL CALL: City Clerk Bainbridge called the roll; all Councilmembers were present.
APPROVAL OF AGENDA: It was moved by Deputy Mayor Haley, seconded, and unanimously agreed
to approve the amended agenda.
ACTION ITEM:
1. Motion Consideration: Transportation Improvement Board(TIB)Potential Grant—Adam Jackson
It was moved by Deputy Mayor Haley and seconded to authorize the City Manager or designee to apply
for TIB grant projects as listed in Table 1. Table 1 projects include Urban Arterial Program Projects (1)
Mullan Road Preservation, Broadway to Mission, (2) Argonne/Montgomery Intersection Reconstruction;
and Sidewalk Program Projects(3)Park Road, Mission to Cataldo, and(4)Farr Road, 6th to 8111. After Mr.
Jackson went over the projects as shown in his PowerPoint, Mayor Higgins invited public comment. No
comments were offered. Vote by acclamation: in favor: unanimous; opposed: none. Motion carried.
NON-ACTION ITEMS:
2. Update by Visit Spokane—Meg Winchester,Jamie Rand
Visit Spokane President and CEO Ms.Meg Winchester,and Marketing Director Mr.Jamie Rand, explained
that tonight is an opportunity to show some of program results and discussion of where they are going in
the future. Mr. Rand talked about the visitor guide, which he said had been out-sourced but is now back
in-house and has increased to about 80 pages from approximately 48 pages previously; said it features
Liberty Lake and Spokane Valley will full spreads; he noted the map is a custom illustrated, tear-off map
and is designed for fun;he said they worked with staff from the Chamber of Commerce as well as Spokane
Valley staff to designate what spots to include on the map; said it should go to print this or next month with
an intended distribution of 10,000, primarily to hoteliers. Mr. Rand said that as outlined in their contract,
they wanted to give Spokane Valley its own website or at least its own domain, and said they purchased the
domain name VisitSpokaneValley.com, which he said is a more marketable domain and that so far it has
been very successful. He mentioned google search advertising and the associated data;that for social media
they are doing a lot to highlight the Crave festival, and said they have a partnership with Mr. Stebbins from
Crave and have placed advertisements in seven different publications including the Seattle Public News to
Council Study Session: 07-02-2019 Page 1 of 2
Approved by Council: 07-09-2019
promote the event. Mr. Rand said they previously did not have a means of capturing the actual data for
room nights so they are working with a company called Adara, which is a digital attribution company for
the hospitality industry, and that the data shows the number of rooms booked,how much spent on a room,
where the person is from, and whether they booked in Spokane, Spokane Valley or Liberty Lake. Ms.
Winchester said they have put some different programs together this year as they are starting from the
ground floor, and will use the data annually to study growth patterns.
There was discussion about the map with Councilmember Thompson noticing that there are not many
family focused restaurants. Mr. Rand explained that the food and beverage hits different segments, either
couples without kids, or people in the younger market of ages 23 to about 35; said activities are usually
more important to families as family travel is driven by what kids want and not what parents what. Mr.
Rand also noted that the map has gone through several edits and that everything listed has an illustration,
which means that space is tight. Councilmember Woodard asked about homelessness impacts on long term
and repeat bookings on 2"d and Division and 3rd and Division and the expansion on the downtown area and
if that has an impact on the bookings. Ms. Winchester said there is a concern voiced at times as a couple of
groups said they haven't felt safe, so we might have lost a business; said they are keeping an eye on this
and working with different entities on how Visit Spokane can help.Councilmember Wick suggested putting
a date on the map, of at least the year and Mr. Rand agreed that is a good idea. Ms. Winchester also
encouraged people to look at the website as it continues to grow. Mayor Higgins said they welcome the
obvious changes, and Council thanked Ms. Winchester and Mr. Rand for their update.
3. Advance Agenda—Mayor Higgins
There were no suggested changes to the Advance Agenda.
4. Council Comments—Mayor Higgins
Councilmember Wick extended congratulations to Councilmember Thompson for her appointment on the
Association of Washington Cities Board representing large cities on the east side of Washington.
5. City Manager Comments—Mark Calhoun
City Manager Calhoun had no additional comments.
6. Executive Session: Pending litigation—Mayor Higgins
It was moved by Deputy Mayor Haley,seconded and unanimously agreed to adjourn into executive session
for approximately fifteen minutes to discuss pending litigation and that no action will be taken upon return
to open session. Council adjourned into executive session at 6:29 p.m. At 6:39 p.m. Mayor Higgins
declared Council out of executive sessions, at which time it was moved by Deputy Mayor Haley, seconded
and unanimously agreed to adjourn. 1
s__, ta,.--- A- ) i)
-N.—
ATTEST:
ATTEST: L.R. Higgins;M 9 0 r
0,,,,,„„-„_44,.cuLtup-- boy
Christine Bainbridge, City Clerk
Council Study Session: 07-02-2019 Page 2 of 2
Approved by Council: 07-09-2019
,
r The Economic Impact of Tourism
in Spokane County
•
0. ; 2018 Analysis
44,,ir
r 1 '; June 2019
i
Prepared for: A TOURISM
' Lki p 0 ksne � ECONOMICS
AN OXFORD ECONOMICS COMPANY
1 . Introduction
Introduction and definitions How visitor spending generates
employment and income
This study measures the economic impact of tourism in Visitor spending flows through the Spokane regional
Spokane County. The study region is defined as Spokane County, economy and generates indirect benefits through supply
which has a population of 508,000, of which 220,000 residents, or chain and income effects.
43.3% of the total, live in the City of Spokane. Other key population
centers include the City of Spokane Valley with just under 96,000
residents, and Liberty Lake with a population of 10,400.The County Impact EffectEffecthas a total hotel inventory of at least 7,800 rooms across 72 Sector I7J A
properties. Downtown Spokane has about 3,200 rooms, and the City
of Spokane Valley hosts just over 1,000 hotel rooms. Transportation
Production
Visitors to Spokane include those who stayed in overnight
accommodations,and those travelers, including day trippers,whose Entertainment
trip to Spokane deviated from their normal routine. Impacts weref.` Jobs
measured in terms of business sales, employment, income, and tax Recreation Direct
revenues generated.
Indirect
pendin •
The total impact of tourism includes direct visitor spending, indirect Retail Induced Wages
impacts, and induced impacts. Direct visitor spending creates
economic value within specific visitor-related sectors such as lodging, Food & Beverage
recreation, and transportation.This supports a relative proportion of
jobs,wages, taxes, and GDP within each sector. Indirect benefits Taxes
accrue to those sectors that provide goods and services as inputs into Accorrimoriabons
production, such as food wholesalers, utilities, and financial or legal
services. induced benefits are generated when employees whose
income is driven directly or indirectly by tourism, spend a portion of
that income in the local regional economy.
I Tourism Economics 3
2. Key Findings
Key findings in 2018 Tourism drives jobs and income growth in
Spokane.
Tourism is an integral part of the Spokane regional
economy, and the industry made significant contributions
to economic growth in 2018. . t _
I _
Visitors to Spokane spent$1.3 billion in 2018, which
generated a total of$2.0 billion in total business sales,
including indirect and induced impacts. f -i *'
M1,_
ili
Tourism in Spokane generated $357 million in tax ilL
revenues, including nearly $206 million in state and local $ ,, r ,
revenues, saving households in the County more than - fi I . 4. ;,: ,'-•; ; �� ' l a
$1,000 each. :.. f .�_
Including direct, indirect,and induced impacts, more than t ``c �`.
17,728 jobs were sustained by visitors to Spokane in 2018 .v + - r- ' ;- �.,; _
•
with total income of$548 million. ri. •
' 1. �,¢r� " ,
ll .
Approximately 5.9% (1 in 17) of all jobs in Spokane County 1� ` : ' •I ti ..
were sustained by tourism. li ,1
•
An estimated 30% of tourism-supported jobs were in the '�
food and beverage sector, 20%were in accommodations, -c - F
and 11%were in each retail and recreation.
I Tourism Economics 5
3. 2018 Trends
2018 Trends Spokane visitation and visitor spending
have expanded since 2014.
Spokane Visitor Volume and Spending
10.0 - =Volume, mils (L) - 1.4
Spend, $bill (R)
9.5 - - 1.3
9.0 - - 1.2
Visitor volume and spending
expanded in 2018, driven by 8.5 - - 1.1
employment and income growth
in broader Washington, and -- 111 - 1.0
neighboring states. 1
7.5 - - 0.9
An estimated 9.4 million visitors
spent$1.3 billion in 2018, 7.0 0.8
increases of 4.0% and 5.6% 2012 2013 2014 2015 2016 2017 2018
respectively from 2017.
Sources: Longwoods int',Tourism Economics
Spokane Visitor Volume and Spending
t
2013 2014 2015 2016 2017 2018
Visitor wlume, mils 8.06 8.00 8.41 8.76 9.07 9.44
change -0.3 -0.7 5.1 4.1 3.6 4.0
Visitor spending, $mils 1,097.3 1,088.2 1,133.0 1,188.1 1,255.1 1,328.0
change 1.5 -0.8 4.1 4.9 5.6 5.8
Tourism Economics 7
2018 Trends Revenue growth is well balanced between
room demand and room rate growth.
Room supply and demand in Spokane County are roughly balanced, With rising occupancy reflecting a tightening market, higher prices are
although demand growth is starting to pull away, as supply has playing more of a role to boost overall revenue growth. In 2018, higher
remained flat for two years. Overall, since 2014 demand growth has room rates accounted for more than half of the growth in revenues,
averaged 4.7% per year compared with 3.4% for supply. In 2018, room compared to about only a third of revenue growth in the prior three
demand expanded 2.5%while supply slightly contracted 0.1%. years.
Occupancy ticked up 1.7 ppt and ADR rose 3.0% on average.
Supply is Catching Up to Demand Volume and Prices Drive Revenues
Spokane County room demand and supply, indexed Jan 2014=100 Contribution to revenue growth, % ch year ago
120 - 14
—Supply ,, ADR
®Demand 7,.„,_,, 12 ': =Demand
115 - 10 Nr T Total Revenues
`.
Y 8 = - , •
110 il , ; ,
6 - - -$ 1 '. r1
� u
105 / _ "- ° 1 �I 1 ? I: "-
4 v �� i, y 1, � 71, 8
100 2 ' ` (;i ! 1 ' ' t 1 . 1 1 PIN '1' . II '? -
� ii° � { jr
95 i , i -2
14 15 16 17 18 15 16 17 18
Sources:STR, Tourism Economics Sources:STR, Tourism Economics
I Tourism Economics 8
2018 Trends Tourism employment growth in Spokane
County is outpacing that of overall job
growth.
Since 2010,tourism employment Spokane Tourism Jobs Outpace
has expanded faster than overall Employment, indexed 2010=100
jobs in Spokane County, and 125
both are keeping pace with the 0US
U.S. overall.
120 — —Washington
*Spokane County
Employment in the industry is _Spokane tourism
17% higher than it was in 2010. 115
fes:
The industry added more than 110 !`
200 jobs per year, averaging `
annual growth of 2.0% since 105
2010,faster than 1.6%for the
County overall, and the U.S. at 100
1.7% per year.
95 L
05 06 07 08 09 10 11 12 13 14 15 16 17 18
Sources: BEA, BLS, U.S. Census,Tourism Economics
I Tourism Economics g
4. Visitors and Spending
Visitor segmentation Most visitors to Spokane come for the day,
and come for leisure.
A total of 9.4 million visitors came Spokane Visitor Characteristics
to Spokane in 2018.
100% -
Domestic visitors accounted for90% _ Overnight lnt'I Bus.
nearly all visitor volume. Of (42.2%) (2.4%) (13.4%)
domestic visitation, 3.9 million 80% -
(42.2%) stayed overnight, and 70% -
5.3 million came for the day.
60% -
Most visitors to Spokane came 50% -
for leisure (86.6%). and 13.4% 40% Day Domestic Leis,
came for business. (57.8%) (97.6%) (86.6%)
30% -
International visitors amounted to 20% -
0.2 million in 2018, accounting for 10%
2.4% of total volume, but they
tend to spend more and 0%
accounted for nearly 9% of total Day/Overnight* Domesticllnt'I Business/Leis.*
spending,
Domestic overnight visitors spent Sources: Longwoods Intl,Tourism Economics
$180 per person per trip and Domestic only
accounted for 60% of total
domestic spending.
Tourism Economics 11
•
Composition of visitor spending Visitors to Spokane spend primarily on
food, retail, and lodging.
Spokane's variety of tourism offerings are reflected in the fact that most Visitor spending (excluding air) came primarily in food and beverage at
visitor spending comes in food and beverage, retail, and then lodging. 28.2%,followed by retail at 25.3%, lodging at 23.5%, local
Visitor spending on accommodations amounted to more than $301 transportation at 12.8%,and recreation at 10.3%.
million in 2018, and Spokane's many day visitors boosted spending in
other categories. The local share of visitor spending on air
transportation amounted to$42 million.
Spokane Visitor Spending by Category Spokane Visitor Spending Profile
$ Millions
Recreation
400 -
uz 2017
350 - ■2018
Local 10,3% Food and
300 - Transport 28.2% beverage
250 12.8%
200 - Per person
per trip
150 - — $136
100
23.5%
50 - '
r 253%
0 Lodging
F&B Retail Lodging Local Rec Air(local Retail
transport portion)
Sources: Longwoods Intl, Tourism Economics Sources: Longwoods Intl, Tourism Economics
Tourism Economics
12
Fuel price trends Fuel prices are expected to level off over
the next two years.
Gasoline price in Washington Gas Prices Rose in 2018
rose more than 12% in 2018, Washintgon gasoline price, all grades,dollars per gallon
after several years of decline.
5.0
Still, despite the increase, prices
are still at relatively low levels. —Retail price
4.5
A
—12-mo moving avg
The rising gas prices likely 4.0 A �,
reduced some spending other I
spending, and have potential to 3.5
undermine consumer confidence.
3.0 i .I r` 1
ir Looking forward, the Oxford r , :`,(
2.5
Economics forecast calls for oil
prices to remain below$60 per 2.0 - -
barrel out to 2022,which implies
gas prices in Spokane below 1.5 r , , I I ii I I i , ,
$3.50 per gallon for an extended 06 07 08 09 10 11 12 13 14 15 16 17 18 19
period.
Source: Energy Information Administration
I Tourism Economics 13
Visitor spending trends Visitor spending on food beverage
increased 6.9% in 2018.
Total visitor spending expanded
5.8% in 2018, a pick up from a
year earlier.
Growth was [ed by food and Spokane Visitor Spending by Category
beverage, followed by lodging at :low III .Ir,1_
5.2%, and recreation at 5.1%. 201748
2013 2014 2015 2016 2017 2018 %Ch
Retail spending expanded 3.0%, Food and beverage 276.4 278.2 296.8 319.2 339.0 362.6 6.9%
and higher gas prices boosted Retail 288.2 283.4 293.0 304.4 316.4 326.0 3.0%
spending on local transportation. Accommodations 232.9 233.2 254.6 270.0 286.6 301.6 5.2%
Local transportation 153.3 148.9 138.3 136.5 147.9 164.2 11.0%
An estimated$41.9 million of Recreation 110.8 109.2 114.4 120.7 125.5 131.8 5.1%
spending on air travel stayed Air transport (local portion) 35.6 35.4 35.9 37.2 39.7 41.9 5.6%
local, and generated jobs and Total 1,097.3 1,088.2 1,133.0 1,188.1 1.,255.1 1,328.0 5.8%
income in the region. 1.5% -0.8% 4.1% 4.9% 5.6% 5.8%
I Tourism Economics
14
5. Economic impacts
Tourism sales Direct visitor spending amounted to $1 .3
billion in 2018.
Direct visitor spending of$1.3 Gross Output (Business Sales)
billion generated $0.3 billion in
indirect impacts and$0.4 billion (US$ Million)
in induced impacts. .,i r-.='i1 '641pr'-. 12 ,- H1,1. --11 li !HAI
Agriculture,Fishing,Mining - 0.6 0.3 0.9
Adding direct, indirect, and Construction and Utilities - 23.1 9.7 32.8
induced impacts together, the Manufacturing - 7.3 4.6 11.9
total economic impact sums to Wholesale Trade - 17.8 18.1 35.9
$2.0 billion in 2018. Air Transport(local) 41.9 1.0 1.3 44.3
Other Transport 43.8 15.8 7.0 66.7
Retail Trade 314.6 7.0 37.1 358.6
Gasoline Stations 73.3 0.4 1.3 75.0
Communications - 30.8 13.3 44.0
Finance,Insurance and Real Estate 30.2 92.3 123.7 246.3
Business Services - 90.4 29.0 119.4
Education and Health Care . 0.6 75.8 76.5
Recreation and Entertainment 104.0 8.5 4.8 117.3
Lodging 402.2 OA 0.3 402.8
Food&Beverage 303.6 9.8 22.7 336.0
Personal Services 14.4 9.6 10.5 34.6
Government - 21.5 15.9 37.4
TOTAL i 1,328.0 336.9 375.4 2,040.4
*Direct sales include cost of goods sold for retail and wholesale trade sectors
[Tourism Economics 16
Tourism sales Indirect benefits came primarily in finance,
real estate, and insurance, and business
services.
Gross Output byIndustryF&B:Food and Beverage
I' LFIRE:Finance,Insurance,Real Estate
million Bus.Services:Business Services
Gas:Gasoline Stations
450 - Other Transp:Other Transportation
Manu.: Manufacturing
400 - ■ Induced Personal Sent.:Personal Services Significant indirect
Comm:Communication benefits
350 - Indirect
111 I"
300 - ■ Direct
250 -
200 -
150 -
1100 -
50 - ■ 1I - - •
0
ic as to W co = C cn a L 4' .
2 -2 CY 0) Q o c3 0) O E 0
ns (� Q E 0
0 �- tE c6 os CLO cn
-0 H c ai 0 F-' CU O
0 -ow
u IL Q U
CO
rY 0 't
i Tourism Economics 17
Tourism employment intensity Tourism accounts for a significant portion of
by industry employment in several industries.
Direct visitor spending accounts Tourism Employment Intensity by Industry
for nearly all employment in Spokane County, direct jobs as a share of total by industry, %
lodging, at almost 98%.
Tourism's employment intensity Lodging 97'8
in other industries is significant as
well, at nearly 30% of recreation Recreation 29.5
and almost 27% of food and
beverage employment. More than
4% of retail jobs were supported Food &bev.visitor spending.
Overall, direct tourism jobs Retail 14.3
account for 4.1% of all jobs in
Spokane County.
Total ®4 'C
Economy
0 20 40 60 80 100
Source: Tourism Economics
I Tourism Economics 18
Tourism employment Tourism-supported employment amounted
to more than 17,728 jobs in 2018.
Direct visitor spending sustained
nearly 12,500 jobs in 2018, or Employment impacts
4.1% of all jobs in the County.
T5)17(117.4'. li i,dsita.- ', 1 i� `,11 t r 'i .
Including indirect and induced Agriculture,Fishing,Mining - 6 4 9
jobs, a total of 17,728 jobs were Construction and Utilities - 80 37 117
sustained by tourism in 2018, Manufacturing - 27 10 37
accounting for 5.9% of all jobs in Wholesale Trade - 79 81 160
Spokane County. Air Transport(local) 115 3 4 121
Other Transport 547 122 64 734
Retail Trade 1,415 88 428 1,931
Gasoline Stations 106 6 17 129
Communications - 173 53 227
Finance,Insurance and Real Estate 79 448 371 898
Business Services - 783 292 1,075
Education and Health Care - 18 765 783
Recreation and Entertainment 1,713 199 75 1,987
Lodging 3,446 4 2 3,451
Food&Beverage 4,715 189 339 5,243
Personal Services 356 86 138 581
Government - 113 132 245
TOTAL 12,492 2,425 2,811 17,728
1 Tourism Economics 19
Tourism employment Indirect and induced benefits accrue to
other industries across the economy.
Tourism Employment by Industry
Thousands
6.0
5.0 ® [educed Indirect
4.0
■ Direct
3.0
2.0
1.0 K1
U a) c� U- i� cu L`3 E cv
0 = H is
CO'
0 2 _ ai U - Cl) "0 N
C( U
0
0 TD
D Ll! o
0..
I Tourism Economics 20
Tourism income Tourism sustained a total of more than
$548 million in income in Spokane County
in 2018.
Visitors and theft spending Labor Income (Compensation)
sustained$322 million in direct
income earned, primarily in food _ (US$ Million)
and beverage, lodging, and retail J3 rect Indirect Induced: Total
Agriculture,Fishing,Mining - _ 0.1 0.1 0.2
When including indirect and Construction and Utilities - 4.4 2.0 6.4
induced benefits across other Manufacturing - 1.3 0.5 1.8
industries, a total of$548.5 Wholesale Trade - 5.3 5.4 10.6
million in income was earned in Air Transport(local) 6.8 0.2 0.2 7.2
the County in 2018. Other Transport 13.8 5.1 1.9 20.8
Retail Trade 39.8 2.7 13.1 55.6
Gasoline Stations 3.4 0.2 0.6 4.2
Communications - 8.4 2.5 10.8
Finance,insurance and Real Estate 5.4 16.8 15.3 37.5
Business Services - 40.9 13.3 54.2
Education and Health Care - 0.3 44.0 44.3
Recreation and Entertainment 26.4 2.2 1.2 29.8
Lodging 104.1 0.1 0.1 104.2
Food&Beverage 111.7 4.7 7.8 124.3
Personal Services 11.0 4.7 6.0 21.7
Government - 8.9 6.0 14.9
TOTAL 322.4 106.3 119.8 548.5
!Tourism Economics 21
Tourism tax revenue generation Nearly $206 million in state and local taxes
were generated in 2018.
Total tourism generated tax Tax Revenues Generated
revenues amounted to $360
million in 2018.
2018, $millions
Of this, nearly$206 million
accrued at the state and local Federal 151.4
level. Personal Income 47.8
Corporate 17.3
State tax revenues included Indirect business 21.1
$88.4 million in sales tax. Social Security 65.2
State 105.1
Local tax revenues included Sales 88.4
$28.4 million in sales tax
Social Security 4.2
revenues and$7.4 million in bed
Other Taxes and Fees 12.5
taxes.
Local 100.8
State and local tax revenues Sales 28.4
helped to relieve $1,018 in tax Lodging 7.4
burden for each household in Property 58.6
Spokane County. Other Taxes and Fees 6.3
TOTAL 357.3
I Tourism Economics 22
Spokane tourism in context When taken together as an industry,
tourism is the 8th largest employer in the
Spokane region.
With more than 12,000 direct Spokane County Jobs by Industry in 2018
jobs, tourism is the 8th largest (Thousands)
employer in the Spokane region. Business services
Retail
When taken together as an FIRE
industry, tourism employs more
1100
people than state gov't, Local govt
education, and information. Construction
Manufacturing
Food
Tourism minimimmi
State gov't
Education ■ on=
Arts/entert/rec
Accommodation
Information IN
0 10 20 30 40
Sources: BEA, BLS, U.S. Census,Tourism Economics
Tourism Economics 23
5. City Level Economic Impact Details
Summary table: City Economic
Impacts
Direct Total Total S&L Tax
Spending Impact Total Income Revenues
$mils $mils Jobs $mils $mils
._ - i
• 1
Spokane County 1,328.0 2,040.4 • 17,728 548.5 1. 205.9
City of Spokane 656.9 1,044.5 9,150 283.6 107.5
City of Spokane Valley 212.4 314.9 H 2,6231, 80.4 • 31.6
-z -- - -1
I
City of Liberty Lake 241 35.2 304i 10.1 13.4 j
Source: Tourism Economics
5. City of Spokane
Visitor spending trends - City► of Visitor spending in Spokane expanded
Spokane 4.8% in 2018.
Total visitor spending expanded
4.8% in 2018, a rate slower than
that of the previous year.
Growth was led primarily by food City of Spokane Visitor Spending by Category
and beverage at 6.2%,followed $Millions.
by accommodations at 4.3%, and 2017-18
then recreation at 3.9%. 2013 2014 2015 2016 2017 2018 %Ch
Food and beverage 131.1 136.9 157.1 173.8 187.9 199.5 6,2%
Retail spending expanded 1.3%, Retail 125.7 127.3 141.6 151.0 159.3 161.4 1.3%
and as at the County level, higher Accommodations 94.4 102.1 128.8 142.2 155.6 162.3 4.3%
gas prices boosted spending on Local transportation 64.2 64.6 63.7 64.4 71.6 79.5 11.0%
local transportation. Recreation 39.9 40.6 45,7 49.5 52.2 54.3 3.9%
Total 455.3 471.5 536.8 580.9 626.7 656.9 4.8%
0.4% 3.6% 13.8% 8.2% 7.9% 4.8%
I Tourism Economics 27
Tourism sales -- City of Spokane Direct visitor spending amounted to $657
million in in the City of Spokane in 2018.
Direct visitor spending of$657 Gross Output (Business Sales)
million generated$188 million in
indirect impacts and $204 million (US$ Million)
in induced impacts. F=.,ur=r:,: ii,•rThri., firio , ,-,.ii G„,-
Agriculture,Fishing,Mining - 0.3 0.1 0.5
Adding direct, indirect, and Construction and Utilities - 12.6 5.3 17.8
induced impacts together,the Manufacturing - 4.0 2.5 6.5
total economic impact sums to Wholesale Trade • - 9.7 9.8 19.5
just over$1.0 billion in 2018. Air Transport(local) - 0.6 0.7 1.3 '
Other Transport 21.2 8.6 3.8 33.7
Retail Trade 155.8 3.8 20.2 179.7
Gasoline Stations 35.5 0,2 0.7 36.4
Communications - 16.7 7.2 24.0
Finance,Insurance and Real Estate 16.0 502 67.3 133.6
Business Services - 49.2 15.8 65.0
Education and Health Care - 0.3 41.3 41.6
Recreation and Entertainment 42,8 4.6 2.6 50.1
Lodging 216.3 0.2 0.1 216.7
Food&Beverage 163.3 5.3 12.3 181.0
Personal Services 5.9 5.2 5.7 16.9
Government - 11.7 8.7 20.3
TOTAL 656.9 183.3 204.3 1,044.5
*Direct sales include cost of goods sold for retail and wholesale trade sectors
I Tourism Economics
28
Tourism employment - City of Tourism-supported employment amounted
Spokane to more than 9,150 jobs in the City of
Spokane in 2018.
Direct visitor spending sustained
just over 6,300 jobs in 2018, or Employment Impacts
3.7% of all jobs in the City.
( - _ - 1 �'. ffL .i-f i*...-".-'
.-" .- ' 7 11-thfir- ` ��y,R�f� _ ^e�.J -.fir ..y. T4..
tint i®I( C I Il.e... .� .. ...�i � ifl! �FOtaI�
Including indirect and induced Agriculture,Fishing,Mining - 3 2 5
jobs, a total of 9,150 jobs were Construction and Utilities - 44 20 63
sustained by tourism in 2018, Manufacturing - 15 6 20
accounting for 5.3% of all jobs in Wholesale Trade - 43 44 87
the City of Spokane. Air Transport(local) - 2 2 3
Other Transport 265 67 35 367
Retail Trade 701 48 233 981
Gasoline Stations 51 3 10 64
Communications - 94 29 123
Finance,Insurance and Real Estate 42 244 202 487
Business Services - 426 159 585
Education and Health Care - 10 416 426
Recreation and Entertainment 705 108 41 854
Lodging 1,854 2 1 1,857
Food&Beverage 2,536 103 184 2,824
Personal Services 147 47 75 269
Government - 62 72 133
TOTAL 6,301 1,320 1,529 9,150
I Tourism Economics 29
Tourism income - City of Tourism sustained a total of $284 million in
Spokane income in the City of Spokane in 2018.
Visitors and their spending Labor Income (Compensation)
sustained $161 million in direct
income earned. (US$ Million)
Irl Tfii^� r-,( hir, ,I ,•., , it lir ii ., , .1,711j
When including indirect and Agriculture,Fishing,Mining - 0.1 0.0 0.1
induced benefits across other Construction and Utilities - 2.4 1.1 3.5
industries, a total of$283.6 Manufacturing - 0.7 0.3 1.0
million in income was earned in Wholesale Trade - 2.9 2.9 5.7
the City of Spokane in 2018. Air Transport(local) - 0.1 0.1 0.2
Other Transport 6.6 2.8 1.0 10.4
Retail Trade 19.6 1.5 7.1 28.1
Gasoline Stations 1.7 0.1 0.3 2.1
Communications - 4.5 1.3 5.9
Finance,Insurance and Real Estate 2.9 9.1 8.3 20.2
Business Services - 22.1 7.2 29.3
Education and Health Care - 0.2 23.8 24.0
Recreation and Entertainment 10.8 1.2 0.6 12.6
Lodging 55.6 0.1 0.0 55.7
Food& Beverage 59.7 2.6 4.2 66.5
Personal Services 4.5 2.5 3.3 10.3
Government - 4.8 3.2 8.1
TOTAL 161.4 57.5 64.8 283.6
I Tourism Economics 30
Tourism tax revenue generation Nearly $108 million in state and local taxes
were generated in 2018.
Total tourism-generated tax
revenues amounted to $185 Tax Revenues Generated
million in 2018. Of this, $107.5
million accrued at the state and 2018, $millions
local level. - __ 1ia�531.
State tax revenues included Federal 77.5
$45.2 million in sales tax. Local Personal income 24.5
tax revenues included $15.9 Corporate 8.8
million in sales tax revenues and Indirect business 10.8
$4.5 million in bed taxes. Social Security 33.4
State and local tax revenues State 53.8
helped to relieve $1,162 in tax Sales 45.2
burden for each household in the Social Security 2.2
City of Spokane.
Other Taxes and Fees 6.4
Local tourism-generated tax - Local 53.7
revenues of$53.7 million would
account for 28.4% of the City's Sales 15.9
general fund if all revenues were Lodging 4.5
directed to the GF, and would Property 30.0
fund 90% of the police budget, Other Taxes and Fees 3.2
Fire 1.3 times over, or Parks and TOTAL 185.0
Rec 3.8 times over.
I Tourism Economics 31
5. City of Spokane Valley
Visitor spending trends - City of Visitor spending increased 4.8% in
Spokane Valley Spokane Valley in 2018.
Total visitor spending expanded
4.8% in 2018.
Growth was led by food and City of Spokane Valley Visitor Spending by Category
beverage at 6.5%, followed by
recreation at 4.3%, and then &ilk Millions
accommodations at 3.7%. 2097-18
2013 2014 2015 2016 2017 2018 %Ch
Retail spending expanded 1.7%, Food and beverage 43.3 44.8 47.6 49.2 52.6 56.0 6.5%
and spending on local Retail 63.4 63.4 65.3 65.2 67.9 69.0 1.7%
transportation was pushed higher Accommodations 40.5 42.5 44.0 43.2 44.9 46.6 3.7%
by rising prices. Local transportation 28.2 28.0 25.6 24.2 26.6 29.6 11.3%
Recreation 9.7 9.7 10.1 10.3 10.7 11.2 4.3%
Total 185.0 188.5 192.6 192.2 202.7 212.4 4.8%
5.1% 1.8% 2.2% -0.3% 5.5% 4.8%
1 Tourism Economics 33
Tourism sales - City of Spokane Direct visitor spending amounted to $212
Valley million in in the City of Spokane Valley in
2018.
Direct visitor spending of$212 Gross Output (Business Scales)
million generated $48.5 million in
indirect impacts and$54 million (US$ Million)
in induced impacts. ir,iiir ,. I1,0I1i,- ii if r, n �k, 1.1
Agriculture,Fishing,Mining - 0,1 0.0 0.1
Adding direct, indirect, and Construction and Utilities I - 3.3 1.4 4.7
induced impacts together, the Manufacturing - 1.1 0.7 1.7
total economic impact sums to Wholesale Trade - 2.6 2.6 5.2
nearly$315 million in 2018. Air Transport(local) - 0.1 0.2 0.3
Other Transport 7.9 2.3 1.0 11.2
Retail Trade 67.4 1.0 5.3 73.8
Gasoline Stations 13.2 0.1 0.2 13.5
Communications - 4.4 1.9 6.3
Finance,Insurance and Real Estate 4.8 13.3 17.8 35.9
Business Services - 13.0 4.2 17.2
Education and Health Care - 0.1 10.9 11.0
Recreation and Entertainment 8.8 1.2 0.7 10,7
Lodging 62.1 0.1 0.0 62.2
Food&Beverage 46.9 1.4 3.3 51.6
Personal Services 1.2 1.4 1.5 4.1
Government - 3.1 2.3 5.4
TOTAL 212.4 48.5 54.0 314.9
*Direct sales include cost of goods sold for retail and wholesale trade sectors
1 Tourism Economics
34
Tourism employment - City of Tourism-supported employment amounted
Spokane Valley to more than 2,600 jobs in 2018.
•
Direct visitor spending sustained
just over 1,869 jobs in 2018, or Employment Impacts
2.7% of all jobs in the City. _
iColi i 1i It ii1 .1pTri. i ln7 1:11.1 z fti iI(Ke
Including indirect and induced Agriculture,Fishing,Mining - 1 1 1
jobs, a total of 2,623 jobs were Construction and Utilities - 12 5 17
sustained by tourism in 2018, Manufacturing - 4 1 5
accounting for 3.8% of all jobs in Wholesale Trade - 11 12 23
the City of Spokane Valley. Air Transport(local) - 0 1 1
Other Transport 99 18 9 126
Retail Trade 303 13 62 378
Gasoline Stations 19 1 3 22
Communications - 25 8 33
Finance,Insurance and Real Estate 12 65 53 130
Business Services - 113 42 155
Education and Health Care - 3 110 113
Recreation and Entertainment 145 29 11 185
Lodging 532 1 0 533
Food&Beverage 728 27 49 804
Personal Services 30 12 20 63
Government - 16 19 35
TOTAL 1,869 349 405 2,623
I Tourism Economics 35
Tourism income - City of Tourism sustained a total of $80.4 million in
Spokane Valley income in Spokane Valley in 2018.
Visitors and their spending Labor Income (Compensation)
sustained$48.3 million in direct
income earned. (US$ Million)
When including indirect and Agriculture,Fishing,Mining - 0.0 0.0 0.0
induced benefits across other Construction and Utilities - 0.6 0.3 0.9
industries, a total of$80.4 million Manufacturing - 0.2 0.1 0.3
in income was earned in the City Wholesale Trade - 0.7 0.8 1.5
of Spokane Valley in 2018. Air Transport(local) - 0.0 0.0 0.1
Other Transport 2.5 0.7 0.3 3.5
Retail Trade 8.4 0.4 1.9 10,7
Gasoline Stations 0.6 0.0 0.1 0.7
Communications - 1.2 0.3 1.5
Finance,Insurance and Real Estate 0.8 2.4 2.2 5.4
Business Services - 5.8 1.9 7.7
Education and Health Care - 0.0 6,2 6.3
Recreation and Entertainment 2.2 0.3 0.2 2.7
Lodging 15.8 0.0 0.0 15.9
Food& Beverage 17.0 0.7 1.1 18.8
Personal Services 0.9 0.7 0.9 2.4
Government - 1.3 0,8 1 2.1
TOTAL 48.3 15.1 17,0 I 80.4
I Tourism Economics 36
Tourism tax revenue generation Nearly $32 million in state and local taxes
were generated in 2018.
Total tourism-generated tax
revenues amounted to $55 Tax Revenues Generated
million in 2018. Of this, $31.6
million accrued at the state and 2018. Sm o l i o ns
local level. I,,.._,,. amount
Federal 23.4
State tax revenues included
$13.6 million in sales tax. Local Personal Income 7.4
tax revenues included $4.8 Corporate 2.7
million in sales tax revenues and Indirect business 3.3
$0.5 million in bed taxes. Social Security 10.1
State and local tax revenues State '16.2
helped to relieve $793 in tax Sales 13.6
burden for each household in the Social Security 0.7
City of Spokane Valley. Other Taxes and Fees 1.9
Local tourism-generated tax '
Local 15.4
revenues of$15.4 million would
account for 36.1% of the City's Sales 4.8
general fund if all revenues were Lodging 0.5
directed to the GF, and would Property 9.1
fund 75% of thebudgeted police Other Taxes and Fees 1.0
contract,spending on Fire 3.1 TOTAL 55.0
times over, or Parks and Rec 5.2
times over.
i Tourism Economics 37
5. City of Liberty Lake
Visitor spending trends - City of Visitor spending grew 6.5% in Liberty Lake
Liberty Lake in 2018. .
Total visitor spending expanded
6.5% in 2018,slightly slower than
a year earlier.
Growth was [ed by food and City of Liberty Lake Visitor Spending by Category
beverage at 7.9%,followed by tilions.
accommodations at 7.1%, and 2017-18
then by recreation at 5.6%. 2013 2014 2015 2016 2017 2018 %Ch
Food and beverage 4.6 5.1 5.3 6.2 6.7 7.2 7.9%
Retail spending expanded 2.9%, Retail 6.3 6.8 6.9 7.7 8.1 8.3 2.9%
and higher gas prices boosted Accommodations 0.8 0.9 1.0 1.1 1.2 1.2 7.1%
spending on local transportation. Local transportation 3.0 3.3 2.9 3.1 3.4 3.9 12.7%
Recreation 2.5 2.7 2.8 3.2 3.3 3.5 5.6%
Total 17.3 18.8 18.9 21.2 22.7 24.2 6.5%
3.2% 9.2% 0.6% 11.7% 7.3% 6.5%
I Tourism Economics 39
Tourism sales - City of Liberty Direct visitor spending amounted to $24.2
Lake million in in the City of Liberty Lake in 2018.
Direct visitor spending of$24.2 Gross Output (Business Sales)
million generated $5.2 million in
indirect impacts and$5.8 million (US$ Million)
in induced impacts. 9r'1,4'EIrii I nrgiir= I1i,,j,R11,c,.�,;: 1r ,,,n;a
Agriculture,Fishing,Mining - 0.0 0.0 0.0
Adding direct, indirect, and Construction and Utilities - 0.4 0.2 0.5
induced impacts together,the Manufacturing 1 - 0.1 0.1 0.2
total economic impact sums to Wholesale Trade - 0.3 0.3 0.6
$35.2 million in 2018. Air Transport(local) - 0.0 0.0 0.0
Other Transport 1.0 0.2 0.1 1.4
Retail Trade 8.8 0.1 0.6 9.5
Gasoline Stations 1.7 0.0 0.0 1.8
Communications - 0.5 0.2 0.7
Finance,insurance and Real Estate 1.7 1.4 1.9 5.1
Business Services - 1.4 0.4 1.8
Education and Health Care - 0.0 1.2 1.2
Recreation and Entertainment 2.8 0.1 0.1 3.0
Lodging 1.7 0.0 0.0 1.7
Food&Beverage 6.0 02 0.4 6.5
Personal Services 0.4 0.1 0.2 0.7
Government - 0.3 0.2 0.6
TOTAL 24.2 5.2 5.8 35.2
*Direct sales include cost of goods sold for retail and wholesale trade sectors
1 Tourism Economics 40 •
Tourism employment - City of Tourism-supported employment amounted
Liberty Lake to more than 300 jobs in the City of Liberty
Lake in 2018.
Direct visitor spending sustained
just over 223 jobs in 2018, or Employment Impacts
2.3% of all jobs in the City. _ __
_ _ ` ',. - l hr ll II;i . I'a ; l i irui f ,1r 6
Including indirect and induced Agriculture,Fishing,Mining - 0 0 0
jobs,a total of 304 jobs were Construction and Utilities - 1 1 2
sustained by tourism in 2018, Manufacturing - 0 0 1
accounting for 3.2% of all jobs in Wholesale Trade - 1 1 2
the City of Liberty Lake. Air Transport(local) - 0 0 0
Other Transport 13 2 1 16
Retail Trade 40 1 7 48
Gasoline Stations 2 0 0 3
Communications - 3 1 4
Finance,Insurance and Real Estate 5 7 6 17
Business Services - 12 5 17
Education and Health Care - 0 12 12
Recreation and Entertainment 46 3 1 50
Lodging 14 0 0 14
Food 8':Beverage 93 3 5 102
Personal Services 10 1 2 13
Government - 2 2 4
TOTAL 223 38 43 304
1 Tourism Economics 41
Tourism income - City of Liberty Tourism sustained a total of $10.1 million in
Lake income in the City of Liberty Lake in 2018.
Visitors and theft spending Labor Income (Compensation)
sustained $6.2 million in direct
income earned. (US$ Million)
Uok,r, ryi I i -,,,r-. 1 ,Ili',r _i^il ' r.i ' '
When including indirect and Agriculture,Fishing,Mining - 0.0 0.0 0.0
induced benefits across other Construction and Utilities - 0.1 0.0 0.1
industries, a total of$10.1 million Manufacturing - 0.0 0,0 0.0
in income was earned in the City Wholesale Trade - 0.1 01 0.2
of Liberty Lake in 2018 Air Transport(local) - 0.0 0.0 0.0
Other Transport 0.4 0.1 0,0 0.5
Retail Trade 1.3 0.0 0.2 1.5
Gasoline Stations 0.1 0,0 0.0 0.1
Communications - 0.1 0.0 0.2
Finance,Insurance and Real Estate 0.4 0.3 0.3 0.9
Business Services - 0.7 0.2 0.9
Education and Health Care - 0.0 0.8 0.8
Recreation and Entertainment 0.8 0.0 0.0 0.9
Lodging 0.5 0.0 0.0 0.5
Food&Beverage 2.5 0.1 0,1 2.7
Personal Services 0.3 0.1 0.1 0.5
Government - 0.2 0.1 0.3
TOTAL 62 1.9 2.1 10.1
I Tourism Economics 42
Tourism tax revenue generation Just over $3.4 million in state and local
taxes were generated in 2018.
Total tourism-generated tax
revenues amounted to $6.0 Tax Revenues Generated
million in 2018. Of this, $3.4
million accrued at the state and 2018, $thousands
local level.
Arno
State tax revenues included $1.5 Federal 2,612.2
million in sales tax. Local tax Personal Income 824.6
revenues included $0.4 million in Corporate 297.8
sales tax revenues and nearly Indirect business 364.5
$50,000 in bed tax revenues. Social Security 1,125.3
State and local tax revenues State 1,8'12.9
helped to relieve $929 in tax Sales 1,524.4
burden for each household in the Social Security 72.8
City of Liberty Lake. Other Taxes and Fees 215.8
Local tourism-generated tax Local 1,596.1
revenues of$1.6 million would
account for 21% of the City's Sales 426.6
general fund if all revenues were Lodging 48.9
directed to the GF, and would Property 1,011.6
fund 72% of the Police budget, Other Taxes and Fees 108.9
Fire 1.8 times over, or 64% of TOTAL 6,021.2
spending on Parks and Rec in
Liberty Lake.
I Tourism Economics 43
5. Data Sources and Methods
Notes
Why quantify the tourism economy?
• By monitoring tourism's economic impact, policy makers can make informed decisions regarding the funding and prioritization of tourism
development.
• It can also carefully monitor its successes and future needs.
> In order to do this, tourism must be measured in the same categories as other economic sectors—i.e. tax generation, employment,wages,
and gross domestic product.
Why is this a challenge?
y. Most economic sectors such as financial services, insurance, or construction are easily defined within a region's economic statistics.
> Tourism is not so easily measured because it is not a single industry. It is a demand-side activity which affects multiple sectors to various
degrees.
> Tourism spans nearly a dozen sectors including lodging, recreation, retail, real estate, air passenger transport,food &beverage, car rental,
taxi services, travel agents, museums,and theme parks.
I Tourism Economics 45
Methods and data sources
Estimates of direct visitor expenditures in Spokane County were Local level revenue estimates were based on 2018 city budget
based on several sources including: documents and line item revenues or expenditure where available.
• Visitor volume and spending estimates from Longwood's General Fund comparisons are intended to provide context for the
International, a national consumer research firm. revenues generated by visitor spending —not all visitor-generated
• Data covering hotel room demand, supply, revenues, occupancy, revenues go to the respective City General Funds, and the General
and room rates from STR. Fund is not necessarily the only source of funding for city
• Industry data on employment, wages and sales from the U.S.
departments.
Census, the Bureau of Economic Analysis, and the Bureau of
Labor Statistics. Amounts used in the report calculations include:
• Local transient rental tax data available from the Visit Spokane and City of Spokane,with 88,638 households:
the Washington Department of Revenue. • Total General Fund of$189 million
• Air transportation data available from the U.S. Bureau of • Police budget of$58 million
Transportation Statistics. • Fire budget of$39.7 mil€ion
• International data from Tourism Economics proprietary databases • Parks and Rec budget of$14.2 million
covering international travel to U.S. states and cities, and the
National Tourism and Travel Office(NTTO)
City of Spokane Valley, 39,134 households:
An €MPIAN input-output model was constructed for Spokane County.
• Total General Fund of$42.6 million
The model traces the flow of visitor-related expenditures through the Police budget of$20.6 million (by contract with the County)
local economy and their effects on employment, wages, and taxes. • Fire budget of$4.9 million (estimated for the fire districts)
1MPLAN also quantifies the indirect (supplier) and induced (income) • Parks and Rec budget of$3.0 million
impacts of tourism. Tourism Economics then cross-checked these
findings with employment and wage data for each sector to ensure the City of Liberty Lake, with 3,618 households:
findings are within reasonable ranges,
• Total General Fund of$7.6 million
Gasoline price data for the Spokane area were obtained from the
• Police budget of$2.2 million
Energy Information Administration. ▪ Fire budget of$0.9 million
• Parks and Rec budget of$2.5 million
I Tourism Economics
46
About Tourism Economics
Tourism Economics is an Oxford Economics company with a singular
objective: combine an understanding of tourism dynamics with
rigorous economics in order to answer the most important questions
facing destinations, developers, and strategic planners. By combining
quantitative methods with industry knowledge, Tourism Economics
designs custom market strategies, destination recovery plans,tourism
forecasting models, tourism policy analysis, and economic impact
studies.
With over four decades of experience of our principal consultants, it is
our passion to work as partners with our clients to achieve a
destination's full potential.
Oxford Economics is one of the world's leading providers of economic
analysis, forecasts and consulting advice. Founded in 1981 as a joint
venture with Oxford University's business college, Oxford Economics
enjoys a reputation for high quality, quantitative analysis and
evidence-based advice. For this, its draws on its own staff of 30
highly-experienced professional economists; a dedicated data analysis
team; global modeling tools, and a range of partner institutions in
Europe, the US and in the United Nations Project Link. Oxford
Economics has offices in London, Oxford, Dubai, Philadelphia, and
Belfast.
Ai TOURISM
.' '' ECONOMICS
AN OXFORD ECONOMICS COMPANY
I Tourism Economics 47