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Tourism makes up state’s sixth largest industry, study says

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Tourism and travel is the state’s sixth largest industry, not including government, according to a new economic impact report released Wednesday by Lt. Gov. Sue Ellspermann and the Indiana Office of Tourism Development.

The industry maintains nearly 140,000 jobs and contributes $10 billion in revenue to Indiana businesses, the report said.

“This economic impact study confirms the fact that the travel, tourism and hospitality industry is a crucial segment of the Indiana economy,” Ellspermann said. “My office is committed to promoting Indiana tourism and providing support to our partners in the industry.”

The study reveals that in 2012, the travel, tourism and hospitality industry constituted roughly 1.5 percent of Indiana’s total gross domestic product, 4.8 percent of total jobs and 6.3 percent of state and local tax receipts.

The study took into account Super Bowl XLVI, which was responsible for roughly half of the industry’s 5.2-percent growth in 2012.

In addition, the study finds that tourism pays direct wages of more than $3 billion to full and part-time industry employees and that Indiana retains approximately 76 percent of each dollar spent by visitors.

Furthermore, 40 Indiana counties chose to invest in a research cooperative that provided them county-specific reports to document the impact of tourism at the local level.

The study, which defines tourism as an overnight stay or a trip greater than 50 miles each way that is not part of an individual’s normal routine, is the first study of its kind to be produced in eight years. It will help measure future developments in the travel, tourism and hospitality industry.

“This report illustrates the economic benefit Indiana derives from tourism and is the first such report in some time,” said Mark Newman, the tourism department’s executive director. “It serves as a necessary benchmark to begin measuring the growth or decline of tourism as an economic driver for the state on a more regular basis.”

The study was commissioned by tourism officials and conducted by Rockport Analytics, with managing director and chief economist Ken McGill acting as head of the research team. Rockport Analytics is an independent market research and consulting company that specializes in various studies for the travel, tourism and hospitality industry.

“Our research shows Indiana earns a significant positive return from a minimal investment in the tourism industry,” McGill said. “The data demonstrates that Indiana has the potential to develop even greater economic development returns through a robust tourism economy.”

The study used data on Indiana visitor spending derived from multiple sources, including Longwoods International, Reach Market Planning and U.S. Office of Travel & Tourism Industries. The data was reconciled with information from the Bureau of Labor Statistics the Indiana Department of Revenue regarding employment and tax receipts, as well as secondary sources such as Smith Travel Research.

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  1. Apologies for the wall of text. I promise I had this nicely formatted in paragraphs in Notepad before pasting here.

  2. I believe that is incorrect Sir, the people's tax-dollars are NOT paying for the companies investment. Without the tax-break the company would be paying an ADDITIONAL $11.1 million in taxes ON TOP of their $22.5 Million investment (Building + IT), for a total of $33.6M or a 50% tax rate. Also, the article does not specify what the total taxes were BEFORE the break. Usually such a corporate tax-break is a 'discount' not a 100% wavier of tax obligations. For sake of example lets say the original taxes added up to $30M over 10 years. $12.5M, New Building $10.0M, IT infrastructure $30.0M, Total Taxes (Example Number) == $52.5M ININ's Cost - $1.8M /10 years, Tax Break (Building) - $0.75M /10 years, Tax Break (IT Infrastructure) - $8.6M /2 years, Tax Breaks (against Hiring Commitment: 430 new jobs /2 years) == 11.5M Possible tax breaks. ININ TOTAL COST: $41M Even if you assume a 100% break, change the '30.0M' to '11.5M' and you can see the Company will be paying a minimum of $22.5, out-of-pocket for their capital-investment - NOT the tax-payers. Also note, much of this money is being spent locally in Indiana and it is creating 430 jobs in your city. I admit I'm a little unclear which tax-breaks are allocated to exactly which expenses. Clearly this is all oversimplified but I think we have both made our points! :) Sorry for the long post.

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  5. It is sad to see these races not have a full attendance. The Indy Car races are so much more exciting than Nascar. It seems to me the commenters here are still a little upset with Tony George from a move he made 20 years ago. It was his decision to make, not yours. He lost his position over it. But I believe the problem in all pro sports is the escalating price of admission. In todays economy, people have to pay much more for food and gas. The average fan cannot attend many events anymore. It's gotten priced out of most peoples budgets.

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