A study shows the industry put $4.77B into state economy in ’05
Tourism pumped $4.77 billion into Rhode Island’s economy in 2005, an increase of 1.7 percent from 2004 that was fueled by visitors from out of state, state Tourism Director David C. DePetrillo said last week.
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The figures, which are included in a Johnson & Wales University College of Business report slated to be released in coming weeks, show that visitors from out of state increased their spending in Rhode Island to $2.84 billion, up $54 million or 1.9 percent from 2004.
That’s the third consecutive annual increase in overall tourism revenue and spending by out-of-state visitors. DePetrillo said that’s due to Rhode Island’s growing appeal among travelers and the R.I. Tourism Division’s targeted marketing efforts.
Increasingly, foreign tour operators are reporting double-digit increases in trips booked to the region from England and Germany – areas that Rhode Island continues to market to. Additionally, the state markets to regions such as upstate New York and mid-Atlantic states such as Maryland, both of which fit Rhode Island’s key demographic.
“The areas that we focus on are based on a lot of research and planning,” DePetrillo said. “It has paid off.”
In a press release trumpeting the increase in spending, Gov. Donald L. Carcieri said that tourism in Rhode Island is “on the move.”
“The report is testimony to the fact that our efforts are working,” he said. “From the launch of an $81 million improvement project at T.F. Green Airport, to our plans for a train station there, to removing the Jamestown Bridge, opening the new Blackstone Valley Visitor Center and launching a multifaceted advertising campaign to provide potential visitors with the information they need to plan their trip to the Ocean State, we are taking the necessary measures to support and grow our tourism industry.”
DePetrillo said that all portions of Rhode Island’s travel industry saw increases last year. While leisure and convention travel continued their steady increases, DePetrillo said one of the most noteworthy trends is that business travel is returning to its pre-2000 levels. In the long run, however, that remains an “unknown” dictated by economic forces, he said.
Other findings of the study were:
•Rhode Island households spent $1.58 billion on travel and tourism within the state in 2005.
•Rhode Island businesses and governments spent $353 million within the state on employee travel.
•Nearly 58,000 people work in the travel, tourism and hospitality sectors, making it the second-largest industry in Rhode Island, after health care. Total payroll and benefits jumped in 2005 to $1.09 billion, an increase of 1 percent from 2004’s figures.
This is the first time that Johnson & Wales has conducted the tourism economic impact study. Previously, it had been conducted by University of Rhode Island Professor Timothy Tyrrell, who created the study but moved to the Southwest last year.
