Source: UNIVERSITY OF MISSOURI submitted to NRP
ECONOMIC IMPACTS OF TRAVEL AND TOURISM IN MISSOURI
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
HATCH
Reporting Frequency
Annual
Accession No.
0189970
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Jan 1, 2001
Project End Date
Dec 31, 2006
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF MISSOURI
(N/A)
COLUMBIA,MO 65211
Performing Department
SOCIAL SCIENCES
Non Technical Summary
Current estimates suggest travel and tourism are important to Missouri, but state-wide measurements are very imprecise and sub-state estimates are virtually non-existent. This research should result in better estimates at both levels, and hence aid decision makers in their planning efforts.
Animal Health Component
60%
Research Effort Categories
Basic
20%
Applied
60%
Developmental
20%
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
1340599301020%
6050599301020%
6086110301030%
6086299301030%
Knowledge Area
605 - Natural Resource and Environmental Economics; 134 - Outdoor Recreation; 608 - Community Resource Planning and Development;

Subject Of Investigation
6110 - Economy of the United States and sectors thereof; 0599 - Recreational resources, general/other; 6299 - Marketing, general/other;

Field Of Science
3010 - Economics;
Goals / Objectives
The overall goal is to develop a set of procedures to more accurately estimate the economic impact of travel and tourism in Missouri and at the sub-state level. Specific objectives include 1.) Improve the accuracy of estimates of direct expenditures made by travelers and tourists at the state-level; 2.) Develop estimates of direct expenditures made by travelers and tourists at the sub-state level; and 3.) Develop models to estimate the total impact on the state's economy of travel and tourism expenditures.
Project Methods
A combination of three procedures will be employed in addressing the first objective, improving the accuracy of statewide direct expenditure estimates. First, the data from a national sample of households (TravelScope) will be examined. TravelScope's estimates of tourist numbers, categorized by lodging types, will be used in conjunction with estimated expenditures for these types of tourists. The spending estimates will be derived from primary data collection efforts. This procedure is attractive for a variety of reasons. A benefit (and a drawback) is that it would necessitate the involvement of those active in Missouri's travel industry (e.g., hotel operators). Another benefit is that, once a system is put in place, data could readily be gathered to address specific future issues. The main drawback is that primary data collection can be very expensive, even if local travel and tourism industry personnel cooperate. Further, eliciting this cooperation and putting the scheme in place would require a substantial amount of personal interaction between the PI and the local personnel. This is not a proposal to obtain data for a one-time estimate. The plan calls for putting in place an on-going data collection scheme. Second, another procedure will be employed in the short run. This will be done by obtaining average traveler expenditure estimates from secondary sources, then applying these to Missouri travelers using the number of traveler estimates available from TravelScope. Travel Industry of America (TIA) is one source of potential estimates to use for this purpose. TIA makes average traveler expenditure estimates at the national and regional (multi-state) levels. Third, secondary data will be used to try to infer the amount of tourism activity in the state. Regardless of whether either or both of the first two procedures are successful, this procedure will also be implemented. This involves building Tourism Satellite Accounts, using employment data made available from Missouri's Employment Securities and taxable sales revenues made available from Missouri's Department of Revenue. The second objective, to develop estimates of direct expenditures made by travelers and tourists at the sub-state level, will be achieved primarily by the use of Tourism Satellite Accounts. The third objective, to develop models to estimate the total impact on the state's economy of travel and tourism expenditures, will be achieved by continuing to use IMPLAN to estimate the total impact on the state's economy of travel and tourism expenditures. The main change being proposed is to make extensive use of primary and secondary data to refine estimates of direct expenditures, by category of expenditure.

Progress 01/01/01 to 12/31/06

Outputs
OUTPUTS: The main outputs from this project are the annual economic impact reports and ongoing informal consulting services provided to personnel at Missouri's Division of Tourism and to personnel at tourism-related agencies in other states. In addition to formal presentations at Annual Tourism and Travel Research Association meetings, informal methodological teaching was conducted at at pre-meeting workshops, primarily to state travel research directors. This project also developed a survey instrument for use with multi-site multi-day events and demonstrated its use with a study of the economic impact of the Inaugural Tour of Missouri, a 6-day professional bicycle race across the state. PARTICIPANTS: Not relevant to this project. TARGET AUDIENCES: Not relevant to this project. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
This project had a profound impact on the way applied researchers (state travel research directors) process data from a large national survey of households. Detailed work with the survey collection project revealed a consistent upward bias in travel-related estimates due to the inappropriate use of person-based weights on data collected at the household level. As a result of work on this project, this bias was found and corrected. This project also conducted an economic impact study of a multi-site multi-day event (the Inaugural Tour of Missouri, a six-day professional bicycle race across the state) and showed similar studies have an upward bias in that they double-count the number of spectators. An instrument was developed to estimate the number of spectators attending multiple days and/or multiple sites to correct estimates for this overlap. This work was disseminated in a research report delivered to Missouri's Division of Tourism and in poster presentations and papers to be presented at meetings in 2009.

Publications

  • No publications reported this period


Progress 01/01/04 to 12/31/04

Outputs
A paper on an index developed to help identify those states which compete with Missouri for travelers was presented ath the January 2004 Missouri Valley Economics Association meeting. Work has begun on documenting the types of research currently carried out by state Tourism Offices and a paper presenting an overview is being written.

Impacts
State tourism offices employ different methodologies to assess the economic impact of travelers on their states' economies. A review of the costs and benefits of these different methodologies will provide useful information as they consider what types of research to conduct in the future.

Publications

  • No publications reported this period


Progress 01/01/03 to 12/31/03

Outputs
A competitive index was developed which facilitates the identification of those states with which Missouri competes the most for travelers. A paper on this index was accepted for presentation at the annual Missouri Valley Economics Association meeting in January 2004. Further work will be done utilizing the index to help direct marketing efforts.

Impacts
The competitive index will allow Missouri to readily identify which states it competes with for travelers and target marketing efforts accordingly. Travelers are important to state economies because they bring in dollars from outside the state. As state budgets have tightened, competition for travelers' dollars (and the resulting state tax revenues) has intensified.

Publications

  • Kaylen, Michael. 2003. Economic Impact of Missouri's Tourism and Travel Industry: July 2001 - June 2002.
  • Kaylen, Michael. 2003. Market Share Analysis of Missouri's Tourism and Travel Industry: July 2001 - June 2002.
  • Kaylen, Michael. 2003. Cooperative Marketing Study: Hannibal Convention and Visitors Bureau.
  • Kaylen, Michael. 2003. Cooperative Marketing Study: Joplin Convention and Visitors Bureau.
  • Kaylen, Michael. 2003. Cooperative Marketing Study: Sedalia Convention and Visitors Bureau.


Progress 01/01/02 to 12/31/02

Outputs
The principal investigator has been on a quasi-sabattical with Missouri's Division of Tourism since July 2002. As part of this experience, he is working on several projects. First, he is reviewing a database and assessing the possibility of extending its usefulness by developing means to estimate confidence intervals. Second, he is reviewing the impact on the Division of Tourism's funding of the switch from the Standard Industrial Classification system to the North American Industrial Classification System. Third, he is in reviewing the other research carried out for Missouri's Division of Tourism.

Impacts
A means may be developed to use the TravelScope database to more accurately assess the effectiveness of advertising in Designated Marketing Areas. A means may also be developed to estimate confidence intervals.

Publications

  • Kaylen, M.S. 2002. Economic Impact of Missouri's Tourism and Travel Industry: July 2000 - June 2001.
  • Kaylen, M.S. 2002. Market Share Analysis of Missouri's Tourism and Travel Industry: July 2000 - June 2001.
  • Kaylen, M.S. 2002. Economic Impact of Missouri's Tourism and Travel Industry: January 2001 - December 2001.
  • Kaylen, M.S. 2002. Market Share Analysis of Missouri's Tourism and Travel Industry: January 2001 - December 2001.


Progress 01/01/01 to 12/31/01

Outputs
This project has just gotten underway, so there are no hard results to report at this time. However, the principal investigator has been appointed to an advisory group for TravelScope, an ambitious cooperative effort to collect data by surveying 25,000 households per month from a panel of U.S. households. The project has been ongoing since 1994 and the survey instrument is in the process of being revised.

Impacts
Given the current fiscal crisis Missouri's state government is experiencing, it's becoming more important for programs to justify their expenditures. It is critical to measure the impact of Missouri's Division of Tourism and this project will go a long way towards doing that.

Publications

  • No publications reported this period