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Norma Nickerson, director, UM Institute for Tourism and Recreation Research, 406-243-2328, norma.nickerson@umontana.edu .

Tourism Produces Jobs In Every Industry Sector In Montana

Jan. 14, 2013

MISSOULA –

The 10.8 million people traveling to Montana are bound to produce an impact on Montana’s economy. Recently released figures from The University of Montana’s Institute for Tourism and Recreation Research found that nonresident travel spending directly or indirectly supported jobs in every industry sector in Montana (Table 1). Nineteen percent of the wholesale trade sector jobs, 10 percent of service sector jobs and 12 percent of retail jobs are supported by people who travel to Montana on vacation or business. 

Preliminary 2012 estimates show a 5.7 percent increase from 2011 in travel-generated employment to exceed 41,000 jobs for Montana residents. The nonresident travel industry in Montana comprises 6.2 percent of the state’s total employment, making it the fifth largest employer, following just behind construction, which contributes 6.4 percent of total employment (Table 2).

 “These numbers show that the large dollar amount of $3.2 billion dropped in our state by nonresident visitors supplies many jobs beyond the typical travel job of hotels, restaurants, airlines and gas stations,” said Norma Nickerson, ITRR director. “In fact, 17 percent of Montana’s workforce has personal income that is partially or entirely due to travelers visiting our state. These are Montanan’s working in positions such as finance, construction, agriculture, information technology and more.” 

“Since the travel industry is not one distinct industry, there are challenges in measuring its economic impact,” said Kara Grau, assistant director of economic analysis at ITRR. “But economic modeling software allows us to estimate the ripple effect of nonresident spending among all the industry sectors it supports.”

Nonresident spending also contributes to Montana’s tax revenue. In 2012, 8.1 percent of Montana’s state and local collections were produced by people from outside Montana, totaling $294 million in tax contributions. Nonresident travelers contribute to the tax base through the payment of excise taxes on items such as gasoline and alcohol.  They also support industries that pay corporate taxes and whose workers’ pay income, property and other taxes.

According to the U.S. Travel Association, tourist spending in Montana equals to $3,192 for every person living in the state. This ranks Montana sixth in the nation for per capita spending by travelers (Table 3).  Montana ranks 41st in the nation in terms of travel spending in the state. 

For the full economic review, go to http://www.itrr.umt.edu/ecorev/EconomicReview2012.pdf. For more information, call Nickerson at 406-243-2328 or email norma.nickerson@umontana.edu.

Table 1: Employment Attributable to Nonresident Travel, 2011

Employment Sectors

Total Industry Employment (2011)

Nonresident Travel-Generated Employment (2011)

Nonresident Travel-Generated Employment as % of Sector Total

Wholesale trade

   17,555

 

    3,321

18.9%

Retail Trade

   70,551

 

    8,377

11.9%

Services

  248,637

 

   3,653

9.5%

Information

    8,852

 

     379

4.3%

Real Estate, Rental & Leasing

   30,985

 

    1,299

4.2%

Transportation & Warehousing

   18,136

 

      567

3.1%

Utilities

    3,224

 

       79

2.5%

Federal

   13,878

 

      256

1.8%

Finance & Insurance

   25,628

 

      406

1.6%

Manufacturing

   20,411

 

      221

1.1%

Construction

   40,537

 

      120

0.3%

Agriculture

   29,321

 

       56

0.2%

Forestry, Fishing & Hunting

    6,777

 

        9

0.1%

State & Local

   74,137

 

       84

0.1%

Mining

   12,342

 

       11

0.1%

Military

    8,224

 

        - 

0.0%

Total

629,195

 

38,8391

Travel jobs as % of total

6.2%

Sources: ITRR; U.S. Bureau of Economic Analysis.

1 Nonresident travel employment figures are ITRR estimates based on expenditures. Travel is not an isolated industry since activity associated with travel is part of other sectors. ITRR has estimated the impacts of nonresident travel to various sectors and subtracted those impacts from the affected industries’ employment figures to avoid double-counting.

Table 2: Employment Structure in Montana, 2011

Employment Sectors2

Number of Jobs1

% of Total

Services

  224,984

 

35.8%

 

State & Local

   74,053

 

11.8%

 

Retail Trade

   62,174

 

9.9%

 

Construction

   40,417

 

6.4%

 

Nonresident travel

   38,839

 

6.2%

 

Real Estate, Rental & Leasing

   29,686

 

4.7%

 

Agriculture

   29,265

 

4.7%

 

Finance & Insurance

   25,222

 

4.0%

 

Manufacturing

   20,190

 

3.2%

 

Transportation & Warehousing

   17,569

 

2.8%

 

Wholesale trade

   14,234

 

2.3%

 

Federal

   13,622

 

2.2%

 

Mining

   12,331

 

2.0%

 

Information

    8,473

 

1.3%

 

Military

    8,224

 

1.3%

 

Forestry, Fishing & Hunting

    6,768

 

1.1%

 

Utilities

    3,145

 

0.5%

 

 

 

 

 

 

Total

629,195

 

100.0%

 

 

 

 

Sources: ITRR; U.S. Bureau of Economic Analysis.

2Includes both full-time and part-time jobs.

Table 3: 2010/2008 Tourist Spending Per-Capita (Top 10 and Other Western States)

Rank

Rank

 

 

2008 Per Capita

 

2010 Per Capita

2010

2008

State

2008 Population

Receipts (2009$)

2010 Population

Receipts (2010$)

1

2

Hawaii

 

1,295,178

 

$12,236

1,360,301

$11,324

2

1

Nevada

 

2,643,085

 

$12,843

2,700,551

$9,945

3

3

Wyoming

 

544,270

 

$5,002

563,626

$4,714

4

4

Florida

 

18,537,969

 

$3,791

18,801,310

$3,548

5

9

North Dakota

 

646,844

 

$2,966

672,591

$3,225

6

5

Montana

 

974,989

 

$3,203

989,415

$3,192

7

7

Vermont

 

621,760

 

$3,027

625,741

$3,043

8

12

South Dakota

 

812,383

 

$2,821

814,180

$2,879

9

6

Alaska

 

698,473

 

$3,047

710,231

$2,855

10

8

New Mexico

 

2,009,671

 

$2,983

2,059,179

$2,800

 

 

 

 

 

 

 

 

 

 

 

United States

 

307,006,550

 

$2,507

308,745,538

$2,421

 

 

 

 

 

 

 

Western State Comparison (not in Top 10 Ranking)

 

 

11

 

Colorado

 

 

 

 

5,029,196

$2,755

13

 

California

 

 

 

 

37,253,956

$2,566

20

 

Arizona

 

 

 

 

6,392,017

$2,263

24

 

Utah

 

 

 

 

2,763,885

$2,191

27

 

Idaho

 

 

1,567,582

$2,255

30

 

Oregon

 

 

 

 

3,831,074

$2,095

39

 

Washington

 

 

 

 

6,724,540

$1,796

Sources: U.S. Travel Association; U.S. Census Bureau.

 

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