The Economic Significance of Travel
to the North Lake Tahoe Area
2003-2008p Detailed Visitor Impact Estimates
August 2009
Prepared for
North Lake Tahoe Resort Association
Tahoe City, California
The Economic Significance of Travel to the
North Lake Tahoe Area
2003-2008p Detailed Visitor Impact Estimates
August 2009
prepared for the
North Lake Tahoe Resort Association
Tahoe City, California
Dean Runyan Associates
833 SW Eleventh Avenue, Suite 920
Portland OR 97205
503.226.2973
www.deanrunyan.com
This page intentionally blank
Table of Contents
EXECUTIVE SUMMARY .............................................................................................................................I
PREFACE ................................................................................................................................................. V
1. INTRODUCTION ................................................................................................................................ 1
OBJECTIVES ............................................................................................................................................. 1
DATA SOURCES ....................................................................................................................................... 1
REPORT CONTENTS.................................................................................................................................. 2
STUDY AREA ........................................................................................................................................... 2
2. VISITOR VOLUME AND SPENDING .................................................................................................. 5
MEASUREMENT OF TRAVEL IMPACTS ........................................................................................................... 5
TYPES OF TRAVELER ACCOMMODATION ..................................................................................................... 5
VISITATION & SPENDING BY TYPE OF TRAVELER ACCOMMODATION .............................................................. 6
VISITOR SPENDING TRENDS .................................................................................................................... 11
3. EARNINGS AND EMPLOYMENT ...................................................................................................... 17
EARNINGS AND EMPLOYMENT IN NORTH LAKE TAHOE AREA....................................................................... 17
EMPLOYMENT AND EARNINGS GENERATED BY TRAVEL SPENDING ................................................................ 19
4. TAX IMPACTS ................................................................................................................................... 21
TAX RECEIPTS GENERATED BY TRAVEL SPENDING ....................................................................................... 21
PROPERTY TAX RECEIPTS ......................................................................................................................... 22
5. CONSTRUCTION AND REAL ESTATE............................................................................................... 23
6. VISITOR IMPACT OVERVIEW........................................................................................................... 27
7. COMPARISON OF MOUNTAIN RESORT AREAS ............................................................................. 31
MONO COUNTY, CALIFORNIA (MAMMOTH LAKES) ................................................................................... 31
EAGLE COUNTY, COLORADO (VAIL) ........................................................................................................ 32
PITKIN COUNTY, COLORADO (ASPEN) ..................................................................................................... 32
SUMMIT COUNTY, COLORADO (BRECKENRIDGE, COPPER MOUNTRAIN) ...................................................... 33
BLAINE COUNTY, IDAHO (SUN VALLEY).................................................................................................... 33
SUMMIT COUNTY, UTAH (PARK CITY)...................................................................................................... 34
POPULATION GROWTH .......................................................................................................................... 35
EMPLOYMENT ....................................................................................................................................... 36
LEISURE AND HOSPITALITY EMPLOYMENT ................................................................................................. 37
MEDIAN ANNUAL EARNINGS FOR WORKERS ............................................................................................. 38
VACATION HOMES ................................................................................................................................ 39
GENERAL RETAIL SALES AND LODGING TAXES ........................................................................................... 40
APPENDICES .......................................................................................................................................... 41
APPENDIX A.
APPENDIX B.
APPENDIX C.
AGE DISTRIBUTION AND HOUSING CHARACTERISTICS............................................. 41
REGIONAL TRAVEL IMPACT MODEL (RTIM) METHODOLOGY .................................... 41
IMPLAN MODELING SYSTEM ............................................................................... 41
DEAN RUNYAN ASSOCIATES
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EXECUTIVE SUMMARY
The Economic Significance of Travel to the North Lake Tahoe Area: Detailed Visitor
Impact Estimates, 2003-2008p (the estimates for 2008 are preliminary) describes the
economic impacts associated with all visitor spending in the North Lake Tahoe Area of
Placer County. As shown below, direct travel-generated impacts accounts for over $361
million in visitor spending, providing 4,500 jobs with earnings of nearly $115 million
made by employees and business owners throughout the North Lake Tahoe Area.
During 2008p, visitor spending also generated local tax receipts (transient occupancy
and sales taxes) of $10.7 million, and state tax receipts (sales taxes, gasoline taxes,
business and personal income taxes) of $10.3 million.
North Lake Tahoe Area Visitor Spending and Related Impacts, 2003-2008p
Direct Travel-Generated Impacts Only
2003
2004
2005
2006
2007
2008p
Visitor
Spending
($ Million)
323.8
340.7
348.2
376.5
355.4
361.4
Earnings
($ Million)
104.3
109.7
111.9
121.6
114.1
114.8
Employment
(jobs)
4,810
4,920
4,900
4,940
4,560
4,500
1.9%
0.6%
-1.3%
-1.3%
Annual Percentage Change
03-08
2.2%
07-08 *
1.7%
Tax Receipts
Local
State
($ Million)
($ Million)
8.0
8.5
8.5
9.3
8.6
9.7
9.4
10.5
8.7
10.1
10.7
10.3
6.2%
23.6%
4.0%
2.3%
Source: Dean Runyan Associates
* Change in local tax receipts a result of an increase in TOT collections from vacation home rentals.
Total Visitor Spending in
North Lake Tahoe Area, 2003-2008p
$400
$377
Million
$300
$324
$341
$348
2004
2005
$355
$361
2007
2008p
$200
$100
$0
2003
2006
Year
Source: Dean Runyan Associates
Note: Visitor spending estimates are not adjusted for inflation.
DEAN RUNYAN ASSOCIATES
The following table and pie charts provide an overview of all the visitor-generated
economic impacts for the North Lake Tahoe Area. The table Earnings and Employment
Generated by Visitor Spending - North Lake Tahoe Area, 2008p shows the proportion of
visitor-generated earnings and employment as a percent of the North Lake Tahoe Area’s
total economy. Visitor spending in the area generates over 60 percent of earnings, and
about two-thirds (66%) of all employment in the North Lake Tahoe Area.
The bulk of area’s employment and earnings are generated through visitor spending
made for lodging accommodations (including rented homes and condominiums), food
services, and recreation – during winter and summer – throughout the North Lake
Tahoe Area. The re-spending of travel-generated earnings by employees and businesses
(referred to as secondary impacts) created an additional 760 jobs with earnings of $35.2
million. In addition, construction and real estate activity associated with vacation
homes generated more than 1,000 jobs with earnings of $43.2 million.
Earnings & Employment Generated by Visitor Spending
in North Lake Tahoe Area, 2008p
Visitor-Generated Impacts
Direct Secondary
Vacation
Homes
All
Visitor
Area
Total
Percent
Visitor
Earnings ($Millions)
Lodging & Food Serv.
Recreation
Retail & Misc. Services
Construction
Real Estate, Rental & Leasing
Local Government
All Other
Total
62.8
40.0
9.8
0.0
2.2
0.0
0.0
114.8
0.5
0.4
1.3
1.9
1.9
13.6
15.6
35.2
0.0
0.0
0.0
35.8
7.4
0.0
0.0
43.2
63.3
40.4
11.1
37.7
11.5
13.6
15.6
193.2
65.7
43.0
29.6
73.5
18.9
24.6
60.4
315.7
96%
94%
38%
51%
61%
55%
26%
61%
Employment (Number of Jobs)
Lodging & Food Serv.
Recreation
Retail & Misc. Services
Construction
Real Estate, Rental & Leasing
Local Government
All Other
Total
1,990
2,080
350
0
80
0
0
4,500
24
28
42
29
70
221
348
760
0
0
0
680
345
0
0
1,030
2,014
2,108
392
710
495
221
348
6,290
2,130
2,200
1,070
1,390
840
360
1,480
9,470
95%
96%
37%
51%
59%
61%
23%
66%
Source: Dean Runyan Associates
Note: Real Estate, Rental, and Leasing includes employment associated with the rental of homes and condominiums.
Vacation Home Induced estimates were judgmental based on workforce characteristics and factors described in the
previous section of this report.
PAGE II
DEAN RUNYAN ASSOCIATES
Visitor Share of Total Employment
North Lake Tahoe Area, 2008p
Total Employment: 9,470
All Other
3,180
33.6%
Direct Travel
4,500
47.5%
Vacation Home
1,030
Secondary Travel
760
10.9%
8.0%
Source: Dean Runyan Associates
Visitor Share of Total Earnings
North Lake Tahoe Area, 2008p
Total Earnings $315.7 (Million)
All Other
Direct Travel
$122.5
$114.8
36%
39%
Vacation Hm Induced
$43.2
14%
Secondary Travel
$35.2
11%
Source: Dean Runyan Associates
The pie charts draw attention to the share of visitor impacts as a proportion of all
employment and earnings for the North Lake Tahoe Area.
DEAN RUNYAN ASSOCIATES
PAGE iii
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PREFACE
The purpose of this study is to document the economic significance of the travel
industry in the North Lake Tahoe Area. Detailed estimates of travel spending, the
employment and earnings generated by this spending, and travel-generated tax receipts
from 2003 through 2008 are provided in this report. The estimates for 2008 are
preliminary. In addition, the report provides visitor volume estimates as well as the
secondary impacts associated with visitor spending.
Dean Runyan Associates prepared this study for the North Lake Tahoe Resort
Association. Dean Runyan Associates has specialized in research and planning services
for the travel, tourism and recreation industry since 1984. With respect to economic
impact analysis, the firm developed and currently maintains the Regional Travel Impact
Model (RTIM), a proprietary computer model for analyzing travel economic impacts at
the state, regional and local level. Dean Runyan Associates also has extensive
experience in project feasibility analysis, market evaluation, survey research, and travel
and tourism planning.
Many individuals and agencies provided invaluable information for this report. Among
the organizations involved in this effort were the Revenue Services Division of the
Placer County Department of Administrative Services and the California Employment
Development Department. Federal agencies include the U.S. Census Bureau and the
Bureau of Economic Analysis.
Finally, special thanks are due to Andy Chapman, Director of Tourism, and Steve
Teshara, Executive Director of the North Lake Tahoe Resort Association. Without their
support and assistance, this report would not have been possible.
Dean Runyan Associates
833 SW 11th Ave., Suite 920
Portland, OR 97205
(503) 226-2973
info@deanrunyan.com
www.deanrunyan.com
DEAN RUNYAN ASSOCIATES
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1. INTRODUCTION
Visitors traveling to the North Lake Tahoe Area generate a substantial portion of the
area’s economic activity. The local economy depends on visitors and owners of
vacation homes who contribute significantly to many businesses that provide overnight
accommodations, food and beverage service, and year round outdoor recreation
opportunities including the largest concentration of ski resorts in the U.S. Further, the
viability of many other types of businesses within the area is linked to the visitor
industry. Throughout the North Lake Tahoe Area, visitors generate valuable sales
receipts, earnings, employment and tax receipts for Placer County, as well as the state.
OBJECTIVES
This report describes the economic impacts of travel to the North Lake Tahoe Area from
2003 through 2008p (the estimates for 2008 are preliminary). In addition, this report
includes estimates of the secondary (indirect and induced) impacts associated with
visitor spending. A primary objective of this research is to provide reliable, detailed
estimates, which allow for year-to-year comparisons to help guide decision making for
planning, policy and marketing purposes. Specific objectives include:
•
Provide an economic overview of the North Lake Tahoe Area.
•
Estimate the direct economic impacts of visitor spending.
•
Estimate the impact of secondary businesses that are supported by the North
Lake Tahoe Area visitor industry.
•
Compare key economic measures and conditions with those of other similar
destination resort areas.
DATA SOURCES
This analysis makes use of numerous data sources, including but not limited to:
•
County-level employment and personal income data from the Bureau of
Economic Analysis’ Regional Economic Information System (REIS)
•
Payroll and employment data from the California Employment Development
Department
•
Room tax receipts and other sales tax data from Placer County Department of
Administrative Services
•
US Census Bureau population and housing data
•
Property tax data from the Placer County Tax Assessor
•
Study area employment and earnings data from Minnesota Implan Group, Inc.
•
Survey data on visitor spending from TNS Global Research
DEAN RUNYAN ASSOCIATES
PAGE 1
REPORT CONTENTS
Following this introductory chapter, Chapter 2 compares the demographic and
economic conditions of the study area with a selection of other mountain resort
communities. Chapter 3 examines the North Lake Tahoe Area, including an overview of
population, housing and workforce trends. Chapter 4 provides an overview of the
spending impacts of visitors to the North Lake Tahoe Area. Chapter 5 provides a
comprehensive view of the area’s earnings and employment, as well as the associated
visitor-generated impacts. State and local tax impacts are presented in Chapter 6, and
Chapter 7 provides a summary overview.
STUDY AREA
The area of study (shown on the following page) is located in the central Sierra Nevada
mountain range and encompasses the entire portion of Placer County east of the Sierra
Crest, which stretches from the Interstate 80 corridor southward through the Martis
Valley, and through the Truckee River Corridor to the North Shore of Lake Tahoe. The
area includes the communities of Tahoe City, Tahoe Vista and Kings Beach, as well as a
significant portion of Tahoma (the city of Tahoma is divided between Placer and El
Dorado counties). The study area includes the resorts of Squaw Valley, Alpine
Meadows, Sugar Bowl, Homewood, and Northstar, as well as the Granlibakken
Conference Center and Resort.
It is important to note that the North Lake Tahoe Area lies adjacent to key visitor service
and residential locations outside Placer County, which include:
•
The town of Truckee, with a population about 15,000, and the area around
Donner Lake (most of which lies within the city limits of Truckee) serve as a
destination and gateway for many visitor activities. Interstate 80, a major eastwest transportation corridor, passes through the town of Truckee and connects
Northern California with Northern, Nevada.
•
Located in the state of Nevada approximately 40 miles from the Reno/Tahoe
International Airport, the communities of Crystal Bay and Incline Village offer a
variety of options for lodging, food and beverage service, gaming, entertainment,
and recreation, including the ski resorts of Mt. Rose Ski Tahoe and Diamond
Peak.
•
Located along the west shore of Lake Tahoe, the Placer/El Dorado County
boundary divides the town of Tahoma.
PAGE 2
DEAN RUNYAN ASSOCIATES
Figure 1-1
267
80
Truckee Area
Soda
Soda Springs
Springs
80
Sugar
Sugar Bowl
Bowl
Martis
Martis Creek
Creek Lake
Lake
Truckee
Truckee
Donner
Donner Lake
Lake
❉
28
North Lake Tahoe Area
267
Northstar
Northstar
Nevada
❉
Kings
Kings Beach
Beach
Tahoe
Tahoe Vista
Vista
Carnelian
Carnelian Bay
Bay
Squaw
Squaw Valley
Valley Ski
Ski Area
Area
❉
Tahoe City
Alpine
Alpine Meadows
Meadows Ski
Ski Area
Area
❉
Lake Tahoe
89
Homewood
Homewood
Homewood Ski Area
Tahoma
Tahoma
❉
DEAN RUNYAN ASSOCIATES
PAGE 3
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2. VISITOR VOLUME AND SPENDING
The visitor industry is the primary source of economic activity for the North Lake
Tahoe Area. This section provides an overview of the spending impacts of visitors
to the North Lake Tahoe Area from 2003 through 2008p. This section also provides
visitor volume estimates for a single year (2008). These visitor volume estimates
provide a rough measure of the level of visitation and, with other data, demonstrate
the validity of the visitor estimates. Detailed earnings and employment impacts
directly derived from visitor spending are provided in Section 3.
MEASUREMENT OF TRAVEL IMPACTS
The estimates of the direct impacts associated with traveler spending in the North
Lake Tahoe Area were produced using the Regional Travel Impact Model (RTIM)
developed by Dean Runyan Associates. The input data used to detail the economic
impacts of the travel industry in the North Lake Tahoe Area were gathered from
various local, state and federal sources.
Travel impacts consist of estimates of travel spending and the employment,
earnings, and state and local taxes generated by this spending. Estimates of travel
spending are also broken out by type of traveler accommodation, by primary mode
of transportation, and by type of commodity purchased.
The RTIM was calibrated specifically to represent the unique characteristics of the
travel industry in the North Lake Tahoe Area. However, it is important to recognize
the limitations of the estimates reported herein. In particular:
The North Lake Tahoe Area is not a coherent economic region in terms of a visitor
market, a labor market and producer markets (see the discussion of Study Area in
the preceding section). This necessarily complicates and limits the estimation of
visitor impacts. In addition, because of the geographic scope of the North Lake
Tahoe Area, some of the economic information used to make this impact analysis
had to estimated from data available for larger (e.g., county) jurisdictions.
A description of RTIM methodology is included in Appendix B.
TYPES OF TRAVELER ACCOMMODATION
Travelers are classified according to the type of accommodation in which they stay
or as a day visitor to the area. The types of travelers are as follows:
Hotel/Motel/B&B. There are approximately 1,750 rooms or units for
accommodations of this type in North Lake Tahoe. A transient occupancy tax is
collected on the rental of these accommodations.
Rented Condo/Home. Transient Occupancy Taxes are also collected on the
rental of condominiums or privately owned homes for rental periods of less than
DEAN RUNYAN ASSOCIATES
PAGE 5
thirty days.1 There are approximately 1,540 condos and properties available for
rent in the North Lake Tahoe area.
Private/Vacation Home. There are approximately 14,560 vacation homes in
North Lake Tahoe Area that are not owner-occupied and not available as shortterm rentals. The short-term residents and visitors who stay these vacation
homes do not pay rental fees and transient occupancy tax when they are using
these accommodations. In addition, there are about 9,500 owner-occupied
homes in which some visitors may stay as guests of friends and relatives.
Campgrounds. There are two popular state parks with campgrounds, Donner
Memorial and Sugar Pine Point. In addition, there are a number of other
campground facilities operated by the State, the U.S. Forest Service, and
commercial owners. Altogether, there are approximately 500 campsites
available.
Day Travel. Day visitors by definition do not stay overnight in the North Lake
Tahoe Area. Normally, this would include a trip of at least 50 miles one-way
from home. Thus, a day trip from Sacramento would count as a visit for the
purposes of this study. Other day visitors may be staying in visitor
accommodations just outside of the North Lake Tahoe Area. Thus, a visitor
staying in a rented home in Truckee and visiting the North Lake Tahoe Area
during the day would also be counted as a day visitor.2
VISITATION & SPENDING BY TYPE OF TRAVELER ACCOMMODATION
The graphs and tables in this section relate the spending of visitors in the North Lake
Tahoe Area to the type and availability of accommodations. The definitions of the
variables or categories used follow:
Average Daily Spending The average daily amount spent by each adult visitor
on goods and services in the North Lake Tahoe Area. Normally, this includes
accommodations, food services, recreation, and other retail expenditures while
in the destination area. Transportation expenditures to and from the North Lake
Tahoe Area are not included. The primary source of these estimates is visitor
survey data.3 Average daily spending by owners of vacation homes (seasonal
residents) will include expenditures on some goods and services (e.g.,
household items) not typically included with visitors of shorter duration.
Overall, however, these are a small proportion of total visitor spending. Visitor
spending for seasonal residents does not include mortgage payments, insurance,
1
The Placer County Assessor distinguishes between those transient occupancy taxes collected from
rented condominiums or homes and from hotels, motels or bed & breakfasts.
2
It should be noted that the estimate of day travel is the least reliable of all visitor types. It must be
estimated primarily from survey data, since measures of accommodation occupancy are not relevant.
3
The survey data provided by RRC Associates was adjusted for annual price changes by Dean
Runyan Associates. Dean Runyan Associates also made use of its own camping expenditure data
and expenditures of seasonal residents.
PAGE 6
DEAN RUNYAN ASSOCIATES
construction, and durable goods purchases. Expenditures of this type by either
full-time or seasonal residents cannot be reliably allocated to North Lake Tahoe
area businesses.
Total Visitor Spending The total amount of visitor spending for a particular
calendar year. These estimates were generated by the Regional Travel Impact
Model for the North Lake Tahoe Area.
Visitor-Days The total number of days of all adult visitors who stayed in the
North Lake Tahoe Area during the calendar year. This estimate is computed by
dividing total visitor spending by average daily spending. For example, ($361
million / $139 average daily spending per person) = 2,596,000 visitor-days.
Persons per Unit The average number of adults staying in each overnight unit of
accommodation.
Inventory Estimates of the total available units each day during peak season for
each accommodation type (see preceding section).
Occupancy Rate The average daily rate of occupancy for a calendar year. The
occupancy rate is computed by dividing the total number of visitor-days by the
persons per unit, and dividing this amount by the inventory multiplied by 365
days. For example, (579,000 visitor-days/2.0 persons per unit)/(1,750 rooms x
365 days)=45% occupancy rate.
Length of Stay The average number of days each visitor stays in the North Lake
Tahoe Area on a trip away from home.
Visitors The number of adults visiting the North Lake Tahoe Area on separate
trips, including repeat visitors. Computationally, this is equal to visitor-days
divided by length of stay.
Note: Several of these variables, including inventory, persons per unit, and
length of stay can be adjusted to reflect data availability, without altering the
visitor spending estimates.
DEAN RUNYAN ASSOCIATES
PAGE 7
The following table, North Lake Tahoe Area Visitor-Days by Type of Overnight
Accommodation, shows the spending of overnight visitors and the associated
occupancy rates for each category. Although these rates should be viewed as
approximate, they are useful in showing the relative levels of accommodation usage
for each type of visitor, and additionally function as a measure of validity of the
overall spending estimates. For example, occupancy rates of roughly 60 and 35
percent are reasonable for commercial lodging establishments and rented
condominiums in North Lake Tahoe. An occupancy rate of 23 percent for
campgrounds can be interpreted to mean that campgrounds in the North Lake
Tahoe Area are fully occupied about three months out of the year. An occupancy
rate of 7 percent for owned vacation homes indicates that the average vacation
home is used by its owner about three weeks during each calendar year. Of course,
some vacation homes will be occupied by owners for longer periods of time, while
others for less.
North Lake Tahoe Visitor-Days by Type of Overnight Accommodation, 2008p
Accommodation
Hotel/Motel/B&B
Rented Condo/Home
Private/Vacation Home
Campground
Total Overnight
Ave. Daily
Spending
(per person)
Total Visitor
Spending
(Million)
Visitor-Days
(Thousand)
Persons
per Unit
$219
$207
$67
$45
$142
$127
$120
$62
$6
$315
579
582
932
125
2,218
2.0
3.0
2.5
3.0
Inventory Occupancy
Estimate
Rate
1,750
1,540
14,560
500
45%
34%
7%
23%
Note: Occupancy rate was calculated based on estimated visitor spending and accommodation inventory.
Actual performance of individual lodging facilities and properties may vary. Inventory estimate for
private/vacation home represents the total of vacant single-family residential, condominium, and timeshare housing units not included as rental property above.
Source: Dean Runyan Associates
PAGE 8
DEAN RUNYAN ASSOCIATES
The following tables and pie charts in this section provide visitation estimates for all
accommodation types and day visitors, as well as overnight visitors traveling to the
North Lake Tahoe Area by private motor vehicle (auto, R.V.) or passenger air
(primarily Reno/Tahoe International Airport). The pie charts draw attention to the
important distinction between the number of visitors (number of adults who visited
the area on separate trips, including repeat visitors) and the number of visitor-days
(total days spent by all adult visitors in the area). For example, whereas 45 percent
of all visitors to the North Lake Tahoe Area are on day trips, only 15 percent of all
visitor-days are attributable to day travelers. Intuitively this makes sense since each
overnight visitor to the area will spend three or more times the number of visitordays as compared to a day visitor who does not stay overnight. Conversely, only 11
percent of all North Lake Tahoe Area visitors stay in a private/vacation home, while
36 percent of all visitor-days are attributed to this type of visitor, as many will spend
a period of multiple weeks while on a trip to the area.
North Lake Tahoe Visitation by Type of Accommodation, 2008p
Hotel/Motel/B&B
Rented Condo/Home
Private/Vacation Home
Campground
Day Trip
Total
Ave. Daily
Spending
(per person)
$219
$207
$67
$45
$122
$139
Total Visitor
Spending
(Million)
$127
$120
$62
$6
$46
$361
VisitorDays
(Thousand)
579
582
932
125
378
2,596
Length of
Stay
(Days)
3.4
3.5
10.4
3.5
1.0
3.1
Vistortrips
(Thousand)
170
164
90
36
378
838
Source: Dean Runyan Associates
North Lake Tahoe Visitation by Primary Mode of Transportation, 2008p
Ave. Daily
Spending
(per person)
Total Visitor
Spending
(Million)
VisitorDays
(Thousand)
Length of
Stay
(Days)
Vistortrips
(Thousand)
$142
$207
$125
$122
$139
$315
$94
$221
$46
$361
2,218
455
1,763
378
2,596
4.8
5.6
4.7
1.0
3.1
460
80
379
378
838
Overnight Total
Air
Car
Day Total
Total (Overnight & Day)
Source: Dean Runyan Associates
DEAN RUNYAN ASSOCIATES
PAGE 9
Visitor-Trips to the North Lake Tahoe Area
by Type of Accommodation, 2008p
(thousands)
Hotel/Motel/B&B
170
20%
Day Trip
378
45%
Rented Condo/Home
164
20%
Campground
36
Private/Vacation Home
90
11%
4%
Visitor-Days in the North Lake Tahoe Area
by Type of Accommodation, 2008p
(thousands)
Day Trip
378
15%
Campground
125
Hotel/Motel/B&B
579
22%
5%
Private/Vacation Home
932
Rented Condo/Home
582
22%
36%
PAGE 10
DEAN RUNYAN ASSOCIATES
VISITOR SPENDING TRENDS
The following bar chart illustrates the overall trend in visitor spending in the North
Lake Tahoe Area from 2003 through 2008p. Visitor spending peaked in 2006 at
nearly $376.5 million, declining to just over $361 million in 2008p. In general, the
trend of total visitor spending tracks the trend of accommodations spending,
because over two-thirds of all visitor spending in the North Lake Tahoe Area occurs
among people who stay overnight in hotels, motels and rented condominiums.
Visitor Spending in the North Lake Tahoe Area
by Accommodations and Other Commodities, 2003-2008p
$400
$86.4
$300
$77.7
$79
$263
$269.2
$79.6
$276.4
$281.7
$73.5
$290.1
Million
$79.1
$250.3
Accommodations
Other Commodities
$200
$100
$0
2003
2004
2005
2006
2007
2008p
Year
Note: Other commodities include recreation, food services, various retail
purchases, motor fuel, and miscellaneous services.
The Reno/Tahoe International Airport, located in Reno, Nevada, provides an
important transportation link for North Lake Tahoe Area visitors. For the years 2003
through 2008, roughly 30 percent of total visitor spending was attributable to those
who traveled by air, as the primary method of travel to the North Lake Tahoe Area.
DEAN RUNYAN ASSOCIATES
PAGE 11
Visitor Spending in the North Lake Tahoe Area
by Primary Mode of Transportation, 2003-2008p
$400
$262
Million
$300
$227
$249
$243
$238
$253
Ground
Air
$200
$100
$97
$103
$105
2003
2004
2005
$115
$107
$108
2006
2007
2008p
$0
Year
Note: Spending on airfare is not included in these total spending estimates.
Accommodation spending peaked in 2006 at $86.4 million. Spending on rented
homes and condos accounted for more than half (55%) of all spending on
accommodations.
Accommodation Spending in the North Lake Tahoe Area
by Type of Lodging, 2003-2008p
$100
$90
$48
$80
$43.2
Million
$70
$43.9
$43.9
$44.2
$40.8
$60
Rented Home/Condo
Hotel/Motel/B&B
$50
$40
$30
$32.7
$34.6
$35.1
2003
2004
2005
$38.4
$35.2
$35.4
2007
2008p
$20
$10
$0
2006
Year
PAGE 12
DEAN RUNYAN ASSOCIATES
In the chart below, total visitor spending in the North Lake Tahoe Area for 2008p is
broken out by type of accommodation (i.e., where visitors spend the night). Slightly
more than one-third of all visitor spending is generated by those who stay overnight
in hotels, motels, bed & breakfast inns ($126.7 million). Additionally, visitors who
stay in rented homes and condominiums spend about $120.4 million.
Total Visitor Spending in the North Lake Tahoe Area
by Type of Accommodation, 2008p
($ Million)
Day & Campgrounds
$51.9
14.4%
Hotel/Motel/B&B
$126.7
Private/Vacation Home/Time-Share
$62.3
35.1%
17.2%
Rented Home/Condo
$120.4
33.3%
DEAN RUNYAN ASSOCIATES
PAGE 13
It is also of interest to compare this spending breakout with visitor volume. For
example, while visitors staying in hotels, motels, bed & breakfasts, rented homes
and condominiums make up 44 percent of the total visitor-days, they comprise 63
percent of all visitor spending. Conversely, 56 percent of the remaining visitor-days
account for 37 percent of all visitor spending.
Total Visitor Spending and Visitor-Days in North Lake Tahoe Area
by Type of Accommodation, 2008p
35%
Hotel/Motel/B&B
23%
33%
Rented Home/Condo
23%
Spending
Visitor-Days
17%
Private/Vacation Home/Time-Share
37%
14%
Day & Campgrounds
17%
0%
10%
20%
30%
40%
Note: Visitor spending for private/vacation home/time-share does not include
mortgage payments, insurance, construction and durable goods purchases.
Expenditures of this type by either full-time or seasonal residents cannot be
reliably allocated to North Lake Tahoe Area businesses.
The pie chart, Total Visitor Spending in the North Lake Tahoe Area by Type of
Commodity, provides a breakout of spending by the type of good or service
purchased for all categories of visitors. As can be seen, the largest single category is
recreation (36 percent). This includes spending on skiing, summer recreational
activities, and other entertainment or cultural/artistic events by all categories of
visitors (all accommodation types and day visitors.) Spending on Food and
Beverage refers to spending on all food and beverages for on-premise consumption.
Spending on retail and other includes all retail purchases (including gasoline and
groceries) and other miscellaneous goods and services.
PAGE 14
DEAN RUNYAN ASSOCIATES
Total Visitor Spending in the North Lake Tahoe Area
by Type of Commodity, 2008p
($ Million)
Retail & Other
$76.0
Accommodations
$79.6
21%
22%
Food & Beverage
$79.0
Recreation
$126.7
22%
35%
The visitor spending estimates for the North Lake Tahoe Area are presented in the
following detailed table.
DEAN RUNYAN ASSOCIATES
PAGE 15
North Lake Tahoe Visitor Spending, 2003-2008p
Direct Impacts Only
2003
2004
2005
2006
2007
2008p
Spending by Type of Accommodation ($ Millions)
Hotel/Motel/B&B
113.2
120.3
123.1
Rented Home/Condo
108.3
115.0
117.5
Private/Vacation Home
55.5
56.7
57.9
Day & Campgrounds
46.9
48.7
49.7
Total Spending
323.8
340.7
348.2
135.5
129.1
59.3
52.6
376.5
124.8
118.8
60.8
51.0
355.4
126.7
120.4
62.3
51.9
361.4
Spending on Accommodations ($ Millions)
Hotel/Motel/B&B
32.7
34.6
Rented Home/Condo
40.8
43.2
Accomm. Spending
73.5
77.7
35.1
43.9
79.0
38.4
48.0
86.4
35.2
43.9
79.1
35.4
44.2
79.6
Spending on other Commodities ($ Millions)
Food & Beverage
66.3
70.9
Recreation *
118.7
123.9
Retail & Other
65.3
68.2
Other Spending
250.3
263.0
73.5
125.6
70.1
269.2
80.8
134.4
74.8
290.1
76.8
125.9
73.6
276.4
79.0
126.7
76.0
281.7
79.1
276.4
355.4
79.6
281.7
361.4
106.6
248.8
355.4
108.2
253.2
361.4
Spending on all Accommodations and Commodities ($ Millions)
Accomm. Spending
73.5
77.7
79.0
86.4
Other Spending
250.3
263.0
269.2
290.1
Total Spending
323.8
340.7
348.2
376.5
Spending by Primary Mode of Transportation ($ Millions)
Air
97.2
102.8
105.1
114.9
Ground
226.7
237.8
243.1
261.5
Total Spending
323.8
340.7
348.2
376.5
Note: Report details may not add to totals due to rounding.
* Spending on recreation includes campground fees.
Source: Dean Runyan Associates
PAGE 16
DEAN RUNYAN ASSOCIATES
3. EARNINGS AND EMPLOYMENT
EARNINGS AND EMPLOYMENT IN NORTH LAKE TAHOE AREA
This section describes the findings on visitor-generated earnings and employment for the
North Lake Tahoe Area. Before these findings are presented, it is necessary to describe
the North Lake Tahoe Area economy in terms of the number and types of jobs present in
the area, as well as the workforce that resides in North Lake Tahoe and surrounding
areas.
Because the North Lake Tahoe region represents a portion of Placer County, it has been
necessary to derive an estimate of the earnings and employment in the area from several
sources.4 The table below provides an estimate of the total employment and earnings
within the North Lake Tahoe Area. Two points are crucial to note in interpreting this
table:
1. The employment and associated earnings are for “place of work” rather than
“place of residence.” This means that the enterprise that employs individuals is
located in the North Lake Tahoe Area. The residence of the employees may or
may not be the North Lake Tahoe Area. In the case of construction and real
estate employment, the actual work site may or may not be located within the
North Lake Tahoe Area, even though the establishment is formally located there.
2. The average employment numbers refer to all payroll jobs, proprietorships,
general partnerships, and other employees, such as those receiving commissions.
Payroll employment includes all full-time, part-time and seasonal jobs, regardless
of the hours worked per week. Proprietors and partners are counted with
reference to the enterprise, not the individual. An individual may be a partner in
several enterprises, each of which would be counted as a partnership
(employment).5
The estimates of total employment and earnings indicate that almost one-half of all jobs
and almost 40 percent of all earnings in the North Lake Tahoe Area are found in leisure
industries (accommodations, food services and recreation). We would expect that most
of these jobs, including food services and recreation, are visitor related.6 Furthermore,
we would expect that a substantial portion of retail employment would also be visitor
related, as well as employment in real estate and other services related to the
management of rental homes and condominiums. Thus, on the basis of these numbers
alone, we would expect that about one-half of all employment in the North Lake Tahoe
4
Calif EDD for covered employment (zip code area), BEA for relationship between payroll and total
employment and earnings at the county level. Because recreation and accommodations are concentrated
in North Lake Tahoe, the county level BEA data is good approximation.
5
This explains the seemingly high employment for real estate. The individual that is the proprietor of
multiple businesses would also be counted more than once in terms of total employment.
6
In urban areas, or areas that are not visitor destinations, the majority of employment in food services and
recreation is not visitor related.
DEAN RUNYAN ASSOCIATES
PAGE 17
Area (roughly 4,500 jobs) and the associated earnings are directly attributable to
spending made by visitors. (Note: This 4,500 jobs estimate does not include the
additional employment and earnings associated with the construction and vacation
home real estate market.)
Employment & Earnings by Industry and Place of Work
North Lake Tahoe Area, 2007
Leisure
Arts, Entertainment & Recreation
Accommodation & Food Services
Retail Trade
Retail Trade
Other
Construction
Real Estate, Rental & Leasing
Professional Services
Administrative Services
Other Services
Local Government
All Other
Total
Average
Employment
Earnings
(Million)
Average
Earnings
2,200
2,130
$43.0
$65.7
$19,600
$30,800
590
$16.3
$27,900
1,390
840
440
640
480
360
400
$73.5
$18.9
$17.8
$20.1
$13.3
$24.6
$22.4
$52,900
$22,600
$40,600
$31,300
$27,600
$68,700
$56,100
9,470
$315.7
$33,300
Note: Arts, Entertainment & Recreation includes employment in Truckee (postal address for Northstar Resort)
Source: Dean Runyan Associates, California EDD, & Bureau of Economic Analysis
PAGE 18
DEAN RUNYAN ASSOCIATES
EMPLOYMENT AND EARNINGS GENERATED BY TRAVEL SPENDING
The earnings and employment generated by visitor spending are shown in the table
below. These findings (4,500 jobs and $115 million in earnings for 2008p) are
consistent with the overall estimates of the North Lake Tahoe Area economy and
workforce, presented in the preceding discussion. Just as importantly, they provide an
additional validity check on the spending and visitor volume estimates presented earlier.
Earnings & Employment Generated by Visitor Spending
in North Lake Tahoe Area, 2003-2008p
Direct Impacts Only
2003
2005
2006
2007
2008p
Direct Earnings Generated by Visitor Spending ($Millions)
Accomm. & Food Serv.
57.7
61.3
62.9
Recreation
37.5
39.1
39.6
Retail & Misc. Services
9.1
9.3
9.4
Total Direct Earnings
104.3
109.7
111.9
69.2
42.4
9.9
121.6
64.7
39.7
9.7
114.1
65.0
40.0
9.8
114.8
Direct Employment Generated by Visitor Spending (Jobs)
Accomm. & Food Serv.
2,150
2,230
2,230
Recreation
2,300
2,340
2,320
Retail & Misc. Services
360
350
350
Total Direct Earnings
4,810
4,920
4,900
2,280
2,300
360
4,940
2,090
2,110
350
4,560
2,070
2,080
350
4,500
30,400
18,500
27,400
24,600
31,000
18,800
27,700
25,000
31,400
19,200
28,000
25,500
Average Annual Earnings ($)
Accomm. & Food Serv.
Recreation
Retail & Misc. Services
Total Direct Earnings
26,800
16,300
25,400
21,700
2004
27,500
16,700
26,700
22,300
28,200
17,100
26,900
22,800
Source: Dean Runyan Associates
Note: Accommodation & Food Service includes employment associated with the rental of homes and
condominiums.
DEAN RUNYAN ASSOCIATES
PAGE 19
SECONDARY IMPACTS
The most comprehensive way to describe the economic benefits of an industry is to
consider not only its direct impacts, but to also include a measure of the secondary7
benefits that accrue due to the impact of visitor-related businesses. Travel spending
within the North Lake Tahoe Area brings money into communities within the area in the
form of business receipts. Portions of these receipts are re-spent within the area for
labor and supplies. Hotels, for example, may purchase maintenance services from
independent contactors. Business proprietors and employees, in turn, spend a portion
of their earnings on goods and services in the area. This re-spending of direct travelrelated revenues creates secondary benefits also known as indirect and induced
impacts.
Businesses that benefit from secondary impacts
Secondary impacts provide a picture of the magnitude and variety of business activity
generated by travel spending in the North Lake Tahoe Area. Thus, the economic benefits
of the travel industry spread throughout the economy of the North Lake Tahoe Area.
Direct and Secondary Travel Generated Earnings
North Lake Tahoe Area, 2008p
Accomm. & Food Serv.
Recreation services
Government
Retail and Misc. Services
Prof. Services
Finance, insurance, real estate
Construction
Trans., Utilities
$0
$10
$20
$30
$40
$50
$60
$70
Direct & Secondary Earnings
(Millions)
Direct
Secondary
Source: Dean Runyan Associates and Minnesota Implan Group.
Note: Secondary Impacts include Indirect and Induced effects. Accommodation & Food Service includes
the impact associated with the rental of homes and condominiums.
7
These secondary impacts are sometimes referred to as a “multiplier” effect. The multiplier is the ratio of
the total impacts to the direct impacts. Secondary impacts or multipliers will vary substantially among
different economic regions. In general, larger and more diverse economies will have larger secondary
impacts or multipliers because there will be less “leakage” of indirect and induced effects. See Appendix
C for a description of the Implan methodology, including the use of workforce characteristics in the
calculation of secondary impacts.
PAGE 20
DEAN RUNYAN ASSOCIATES
4. TAX IMPACTS
TAX RECEIPTS GENERATED BY TRAVEL SPENDING
Although residents of the surrounding region hold many of the jobs generated by visitor
spending in the North Lake Tahoe Area, most of the tax impacts remain in the area
because about 9 out of 10 tax dollars generated by visitor spending are attributable to
point of sale taxes. These tax impacts are shown in the following pie chart. More than
one-half (51 percent) of all tax impacts generated by travel to the North Lake Tahoe Area
accrues to local government in the form of transient occupancy taxes (TOT) and local
sales taxes.
North Lake Tahoe Area Visitor-Generated State and Local Tax Receipts, 2008p
($ Millions)
Combined Total: $21 Million
State Income
$2.1
10%
Local Sales
$1.5
7%
State Sales
$8.2
Lodging (TOT)
$9.2
39%
44%
Source: Dean Runyan Associates & Placer County Dept. of Administrative Services
Note: State Sales tax includes state motor fuel tax. State
income taxes include taxes on personal and business income.
Property taxes are not included.
DEAN RUNYAN ASSOCIATES
PAGE 21
PROPERTY TAX RECEIPTS
In addition to tax receipts generated directly from visitor spending, property tax
assessments for North Lake Tahoe Area property provide substantial tax revenue for
Placer County. Within the North Lake Tahoe Area, about 90 percent of the most recent
property tax assessment roll (fiscal year 2007-08) was related to residential and vacation
home properties. Because of the high proportion of vacation homes, condominiums,
and time-shares in the North Lake Tahoe Area (about two-thirds of all housing units),
properties that are visitor-related and are not owner-occupied generate a significant
source of the area’s property tax receipts. Visitor-related commercial properties such as
hotels and restaurants also generate a substantial portion the property tax receipts
collected for property classified as commercial, which generated about 8% of all
property tax receipts for the area.
North Lake Tahoe Area of Placer County
Property Tax Receipts, FY 2007-08
Estimated Total Tax Receipts $93.5 Million
Commercial
Industrial & Other
$7.5
$0.5
8%
1%
Residential & Vacation
$85.5
91%
Source: Dean Runyan Associates & Placer County Tax Assessor
PAGE 22
DEAN RUNYAN ASSOCIATES
5. CONSTRUCTION AND REAL ESTATE
Segments of construction and real estate employment in the North Lake Tahoe Area can
also be attributed to visitors, to the extent that such activity is related to the construction,
maintenance or sale of vacation home property. Estimates of visitor-generated
construction and real estate activity are less straightforward, and ultimately less precise,
than estimates of direct and secondary visitor spending made in the preceding section.
There are two principle reasons for this distinction.
First, expenditures on visitor-related construction activities are related to anticipated
visitation and expenditures made by visitors in a future time period. In the case of
vacation homes by private owners, construction expenditures are investments
predicated on expectations of visitor activity at a later and extended period of time. The
same is true with regard to the sale of vacation home property. Therefore, it is
analytically useful to distinguish visitor-related construction and real estate from the
other type of visitor-related impacts discussed.
Second, there is generally more “out-of-area” activity associated with the employment
for construction and real estate than on visitor expenditures made for accommodations,
food service and recreation. This is especially true for vacation home construction,
which, over the last decade, has been a significant source of construction activity in the
Truckee Area. Likewise, real estate brokers and agents in the North Lake Tahoe Area
may service vacation home property in Truckee or other locations outside the North
Lake Tahoe Area. It is also important to consider, particularly with regard to large
development projects, that construction activity in the North Lake Tahoe Area may
generate employment and earnings for firms from outside the area.
Construction
Construction employment in the North Lake Tahoe Area is most orientated toward
general building contractors. The following bar chart illustrates the overall pattern in
payroll employment for construction businesses in the North Lake Tahoe Area.
Furthermore, as compared to all of Placer County, general building contractors in the
North Lake Tahoe Area comprise nearly twice as large a proportion of payroll
employment. This is probably due to the relatively high number of residential structures
(both owner-occupied and vacation homes) relative to other commercial and industrial
structures in the North Lake Tahoe Area.
DEAN RUNYAN ASSOCIATES
PAGE 23
Characteristics of Construction Employment
North Lake Tahoe Area, 2006
North Lake Tahoe Area
Placer County
0%
10%
20%
30%
40%
50%
60%
70%
Percent of Payroll Employment
General building
Special trade
Heavy construction
Sources: derived from U.S. Census Bureau County Business Patterns by Dean Runyan Associates
As shown in the table below, an examination of the mix of single-family, condominium,
and time-share housing units in the North Lake Tahoe Area shows a high proportion of
units are not owner-occupied and serve as vacation homes and short-term rental
properties. These North Lake Tahoe Area properties provide an ongoing source for
construction employment as maintenance and improvements are made to entire stock of
housing.
Single-Family Residential, Condominium, and Time-Share Housing Units, 2008
Location
Carnelian Bay
Homewood
Tahoma
Kings Beach
Tahoe City
Olympic Valley
Tahoe Vista
Combined Total
Zip Area
96140
96141
96142
96143
96145
96146
96148
OwnerOccupied
4,381
128
41
419
4,105
243
161
9,478
Vacant
Units
3,529
900
166
1,682
7,443
1,879
501
16,100
Total
Units
7,910
1,028
207
2,101
11,548
2,122
662
25,578
Percent
Vancancy
45%
88%
80%
80%
64%
89%
76%
63%
Source: Dean Runyan Associates and DataQuick
PAGE 24
DEAN RUNYAN ASSOCIATES
Visitor Industry Activity
In addition to vacation home construction, a significant portion of non-residential
construction is also related to the visitor industry, which provides for constructionrelated employment in the North Lake Tahoe Area.
•
Northstar Resort invested more than $13 million in on-mountain improvements
for the 2008-09 winter season. Improvements included the extension of ski trails
and the express quad lift on Lookout Mountain.
•
The Northstar Lodge, Hyatt Residence Club, located at the base of Northstar atTahoe opened the first phase in December 2008.
•
With the addition of restaurants and retailers, the Village at Northstar, a four-year,
$55 million project is now complete.
Real Estate
As shown in the following bar chart, payroll employment for real estate establishments
in the North Lake Tahoe Area is most oriented toward property management and the
sales activity of agents and brokers. As compared to all of Placer County, agents and
brokers comprise about twice as large a proportion of payroll employment for real estate
establishments. In addition, property management and appraisal, which tends to be
more oriented to commercial property, represents a significantly higher proportion of
real estate employment in all of Placer County.
Characteristics of Real Estate Employment
North Lake Tahoe Area, 2006
North Lake Tahoe Area
Placer County
0%
10%
20%
30%
40%
50%
60%
Percent of Payroll Employment
Lessors of Real Estate
Agents & Brokers
Property Mgmt. and Appraisal
Sources: derived from U.S. Census Bureau County Business Patterns by Dean Runyan Associates
DEAN RUNYAN ASSOCIATES
PAGE 25
As shown below, around 575 single-family and condominium homes were sold in the
North Lake Tahoe Area and Truckee in 2008, a decline of about 4 percent from the
previous year. Real estate agents and brokers with businesses located in the North Lake
Tahoe Area have facilitated a large portion of these real estate transactions, the vast
majority of which involve the sale of property for use as a vacation home.
Annual New and Resale Home Transactions, 2003-2008
(single-family residence and condominiums)
1,000
900
North Lake Tahoe Area
769
Truckee
Number of Transactions
800
634
700
600
528
531
465
423
500
400
300
200
100
150
96
105
107
2005
2006
132
151
0
2003
2004
2007
2008
Source: Dean Runyan Associates using Dataquick Information Systems
Note: Based on selected zip code areas.
PAGE 26
DEAN RUNYAN ASSOCIATES
6. VISITOR IMPACT OVERVIEW
The Economic Significance of Travel to the North Lake Tahoe Area: Detailed Visitor
Impact Estimates, 2003-2008p describes the economic impacts associated with all
visitor spending in the North Lake Tahoe Area of Placer County. As shown below,
direct travel-generated impacts accounts for over $361 million in visitor spending,
providing 4,500 jobs with earnings of nearly $115 million made by employees and
business owners throughout the North Lake Tahoe Area.
North Lake Tahoe Area Visitor Spending and Related Impacts, 2003-2008p
Direct Travel-Generated Impacts Only
2003
2004
2005
2006
2007
2008p
Visitor
Spending
($ Million)
323.8
340.7
348.2
376.5
355.4
361.4
Earnings
($ Million)
104.3
109.7
111.9
121.6
114.1
114.8
Employment
(jobs)
4,810
4,920
4,900
4,940
4,560
4,500
1.9%
0.6%
-1.3%
-1.3%
Annual Percentage Change
03-08
2.2%
07-08 *
1.7%
Tax Receipts
Local
State
($ Million)
($ Million)
8.0
8.5
8.5
9.3
8.6
9.7
9.4
10.5
8.7
10.1
10.7
10.3
6.2%
23.6%
4.0%
2.3%
Source: Dean Runyan Associates
* Change in local tax receipts a result of an increase in TOT collections from vacation home rentals.
Total Visitor Spending in
North Lake Tahoe Area, 1997-2008p
$400
$377
Million
$300
$324
$341
$348
2004
2005
$355
$361
2007
2008p
$200
$100
$0
2003
2006
Year
Source: Dean Runyan Associates
Note: Visitor spending estimates are not adjusted for inflation.
DEAN RUNYAN ASSOCIATES
PAGE 27
The following table and pie charts provide an overview of all the visitor-generated
economic impacts for the North Lake Tahoe Area. The table Earnings and Employment
Generated by Visitor Spending - North Lake Tahoe Area, 2008p shows the proportion of
visitor-generated earnings and employment as a percent of the North Lake Tahoe Area’s
total economy. Visitor spending in the area generates over 60 percent of earnings, and
about two-thirds (66%) of all employment in the North Lake Tahoe Area.
The bulk of area’s employment and earnings are generated through visitor spending
made for lodging accommodations (including rented homes and condominiums), food
services, and recreation – during winter and summer – throughout the North Lake
Tahoe Area. The re-spending of travel-generated earnings by employees and businesses
(referred to as secondary impacts) created an additional 760 jobs with earnings of $35.2
million. In addition, construction and real estate activity associated with vacation
homes generated more than 1,000 jobs with earnings of $43.2 million.
Earnings & Employment Generated by Visitor Spending
in North Lake Tahoe Area, 2008p
Visitor-Generated Impacts
Direct Secondary
Vacation
Homes
All
Visitor
Area
Total
Percent
Visitor
Earnings ($Millions)
Lodging & Food Serv.
Recreation
Retail & Misc. Services
Construction
Real Estate, Rental & Leasing
Local Government
All Other
Total
62.8
40.0
9.8
0.0
2.2
0.0
0.0
114.8
0.5
0.4
1.3
1.9
1.9
13.6
15.6
35.2
0.0
0.0
0.0
35.8
7.4
0.0
0.0
43.2
63.3
40.4
11.1
37.7
11.5
13.6
15.6
193.2
65.7
43.0
29.6
73.5
18.9
24.6
60.4
315.7
96%
94%
38%
51%
61%
55%
26%
61%
Employment (Number of Jobs)
Lodging & Food Serv.
Recreation
Retail & Misc. Services
Construction
Real Estate, Rental & Leasing
Local Government
All Other
Total
1,990
2,080
350
0
80
0
0
4,500
24
28
42
29
70
221
348
760
0
0
0
680
345
0
0
1,030
2,014
2,108
392
710
495
221
348
6,290
2,130
2,200
1,070
1,390
840
360
1,480
9,470
95%
96%
37%
51%
59%
61%
23%
66%
Source: Dean Runyan Associates
Note: Real Estate, Rental, and Leasing includes employment associated with the rental of homes and condominiums.
Vacation Home Induced estimates were judgmental based on workforce characteristics and factors described in the
previous section of this report.
PAGE 28
DEAN RUNYAN ASSOCIATES
Visitor Share of Total Employment
North Lake Tahoe Area, 2008p
Total Employment: 9,470
All Other
3,180
34%
Visitor Impacts
6,290
66%
Source: Dean Runyan Associates
Visitor Share of Total Earnings
North Lake Tahoe Area, 2008p
Total Earnings 315.7 ($ Millions)
All Other
$122.5
39%
Visitor Share
$193.2
61%
Source: Dean Runyan Associates
DEAN RUNYAN ASSOCIATES
PAGE 29
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7. COMPARISON OF MOUNTAIN RESORT AREAS
This section describes and compares general demographic and economic conditions
among a selection of mountain resort areas. A number of general economic indicators
were investigated including: population and employment growth, personal income and
share of employment in key visitor-related industries. It is useful to evaluate these
economic conditions and trends for purposes of tourism planning and marketing.
These areas were selected for comparison because each functions as both a winter and
summer destination for visitors, and is a popular location for vacation/second homes. In
this regard, each is similar to the North Lake Tahoe Area. Following a brief description
of each resort area, indicators and trends are compared for the following locations:
•
•
•
•
•
•
Mono County, California (Mammoth Lakes)
Blaine County, Idaho (Sun Valley)
Pitkin County, Colorado (Aspen)
Eagle County, Colorado (Vail)
Summit County, Colorado (Breckenridge, Copper Mountain)
Summit County, Utah (Park City)
MONO COUNTY, CALIFORNIA (MAMMOTH LAKES)
The Town of Mammoth Lakes (incorporated in 1984) is located in the southwestern
mountainous region of Mono County, California. The surrounding region is
characterized by its mountains, lakes, streams and forests with many trails, campgrounds
and roads which either abut or cross the crest of the Sierra Nevada Mountains –
Yosemite National Park’s eastern entrance lies just 32 miles to the north. The area offers
both residents and visitors a variety of recreational opportunities. During the winter
months, Mammoth Mountain Ski Area serves as a popular destination for skiing,
snowboarding and other winter recreation. During the warmer months, outdoor
recreation is orientated to hiking, climbing, fishing, canoeing and mountain biking.
During the fall, the area is known for its leaves, which display brilliant and intense
colors.
Mammoth Lakes is located nearly equidistant between the Los Angeles Basin and San
Francisco -- driving time from the Los Angeles Basin is approximately 6 hours and 7
hours from San Francisco. A high proportion of visitors to Mammoth Lakes travel from
the Los Angeles Basin. The Reno/Tahoe International Airport in Reno, which is a 3-hour
drive to Mammoth Lakes, is the closest airport served by most major airlines. Mammoth
Yosemite Airport, located just 10 minutes from the Town of Mammoth Lakes, is
currently served by three charter air services.
DEAN RUNYAN ASSOCIATES
PAGE 31
EAGLE COUNTY, COLORADO (VAIL)
Surrounded by the White River National Forest within the Rocky Mountains, Eagle
County and the town of Vail has evolved into a year-round destination. During the
winter months, Vail offers skiing, snowboarding, ice-skating, horse drawn sleigh rides,
and snowcat tours as well as world-class competitions in various skiing and
snowboarding events. During the summer months, Vail hosts a variety of music and
theater performances held at the Gerald R. Ford Amphitheater and the Vilar Center for
the Performing Arts, as well as locations at many local restaurants, hotels and pedestrian
areas. Summer sporting events include the Teva Whitewater Festival, which features
Vail’s new whitewater park, and the Vail Mountain Bike Series – where participants of
all ages compete in various road and mountain bike races.
Vail is located in one of the fastest growing counties in Colorado, with more than half of
the county’s population living in unincorporated Eagle County. The town of Vail
(incorporated in 1966) provides a free public transportation system, and many outlying
properties offer complimentary van service. Pedestrian plazas and street design further
facilitate walking throughout the town.
With direct flights from many major U.S. cities, Vail/Eagle County Regional Airport
offers the most direct access to Vail by air (a 40 –minute drive or shuttle ride). Vail is
most frequently accessed via Interstate 70 through Denver then on into the Rocky
Mountains and over the Continental Divide. Driving time from Denver International
Airport is approximately two hours.
PITKIN COUNTY, COLORADO (ASPEN)
Located high in the Rocky Mountains of Colorado, Pitkin County includes the city of
Aspen, Snowmass Village, and a number of rural residential areas. Characterized by the
surrounding the peaks of the Elks Range in the northern Rocky Mountains and the
nearby White River National Forest, which contains the Maroon Bells-Snowmass
Wilderness, Pitkin County is best known for its four world-class ski resorts: Aspen
Mountain, Aspen Highlands, Buttermilk, and Snowmass.
Aspen offers a mixture of historic, well-preserved Victorian buildings, vibrant retail and
commercial businesses, and numerous art galleries, as well as over 100 restaurants and
entertainment establishments. In the winter, the area offers opportunities for Alpine and
Nordic skiing, snowmobiling, ice skating, sleigh rides, and snow shoeing. The summer
months are popular for golfing, biking, hiking, fishing, tennis, horseback riding,
whitewater rafting, air ballooning, and a wide array of arts and cultural events.
The City of Aspen is often known an innovator of policies and activities that provide
models for other communities. Aspen has undergone complete downtown
redevelopment, established a growth-management policy, and implemented several
creative schemes to address affordable housing issues. A coalition of non-profit groups
has been influential in many community development decisions. The influence of nonprofit groups is unique to Aspen, and is a legacy that dates back over 40 years.
PAGE 32
DEAN RUNYAN ASSOCIATES
Aspen is located 200 miles southwest of Denver and 130 miles east of Grand Junction,
Colorado. Highway 82 is the only major roadway in Pitkin County leading into and out
of Aspen via Interstate 70 and over the Continential Divide at 12,000-foot Independence
Pass. The Aspen/Pitkin County Airport is located approximately four miles from Aspen.
Three airlines serve the airport, along with several rental car agencies and limo
companies.
SUMMIT COUNTY, COLORADO (BRECKENRIDGE, COPPER MOUNTRAIN)
The town of Breckenridge in Summit County, Colorado sits on the western side of the
Continental Divide Divide approximately 90 miles west of Denver and the Denver
International Airport via Interstate-70 and Colorado State Highway 9. Breckenridge
offers opportunities for world-class skiing and snowboarding, numerous summer and
winter carnivals, festivals, and events, authentic mining-era and Victorian character, and
hundreds of restaurants, art galleries, shops, and services. Most recently, in 2007, an 8person gondola was completed from the center of town to base of the ski resort.
Breckenridge is less than 20 miles from Summit County’s three other ski resorts: Copper
Mountain, Keystone, and Arapahoe Basin.
During the summer months, there are opportunities abound for hiking, biking, rockclimbing, fishing, and golfing, as well as a scenic chair lift rides and a SuperSlide.
Breckenridge Riverwalk and Riverwalk Center includes walking and bicycling paths,
bridges, outdoor seating areas, a performing arts center and events green. The
Riverwalk Center – an 800- seat performing arts center hosts concerts performed by the
National Repertory Orchestra and the Breckenridge Music Institute. Located near the
Center, a whitewater kayak park includes 15 water features to challenge all levels of
boaters. In addition, a Mountain Bike Freeride Park offers riding trails with raised ramps,
log rides, and jumps. The Town continues to implement the Town Trails Plan by
dedicating, constructing, and maintaining numerous trails for hiking, jogging, and
bicycling for the recreational enjoyment of residents and visitors alike.
BLAINE COUNTY, IDAHO (SUN VALLEY)
Located in south central Idaho, Blaine County includes the mountain resort communities
of Ketchum and Sun Valley. Sun Valley, site of America’s first destination ski resort built
in 1936, has served as a popular vacation destination area for nearly seven decades.
Ketchum, located one mile east of Sun Valley, is an historic mining town that now
serves as a commercial hub of shops, restaurants, art galleries, theatres, museums, and
lodging for the area. The towns of Hailey and Bellevue lie 15 miles to the south, and
are home to a majority of the residents in Blaine County. To the north, lies the majestic
Sawtooth National Recreation Area, providing a wide variety of opportunities for
outdoor recreation.
During the summer months, the arts community hosts a variety of art shows and events
such as a writers conference, free symphony concerts, jazz concerts, antique fairs, a
wine auction, and dance workshops. The area is home to over twenty art galleries with
DEAN RUNYAN ASSOCIATES
PAGE 33
evening gallery walks held. Five theater companies provide live entertainment using
local and regional actors.
Idaho State Highway 75 provides auto access to Ketchum and Sun Valley. Horizon Air
and SkyWest serve Friedman Memorial Airport in Hailey, providing the most direct air
transportation access. Most national carriers service Sun Valley’s gateway cities of
Boise, Idaho and Salt Lake City, Utah. Driving time is 2.5 hours from Boise and 5 hours
from Salt Lake City.
SUMMIT COUNTY, UTAH (PARK CITY)
Park City is located in Utah’s Summit County, in the heart of the Wasatch Mountains,
part of the Rocky Mountain Range. Home of three world-class resorts (Deer Valley
Resort, Park City Mountain Resort, and The Canyons Resort) Park City offers a variety of
recreation opportunities. Winter recreation includes skiing, snowboarding, sleigh rides,
and snow tubing (Gorgoza Park, a lift-served tubing park). Summer opportunities
include swimming, hiking (more than 200 miles of trails), lift-served mountain biking,
and attending concerts during the annual summer-long music festival Music in the
Mountains.
With a blend of historic as well as new development, Park City has many shops and
boutiques in four distinct shopping districts. About two-thirds of Park City’s buildings
are listed on the National Register of Historic Places, many of which are located along
the town’s Main Street where a trolley operates, daily. Much of the new housing
development has occurred in the nearby unincorporated area of Synderville Basin.
Located just 36 miles from the Salt Lake International Airport via a six-lane interstate
highway (I-80), Park City is one of the most easily accessible destinations in the Rocky
Mountains. Park City is also a convenient stop to or from Yellowstone National Park,
any one of Utah’s many national forests and monuments, or any of the state’s five
national parks such as Canyonlands or Zion.
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DEAN RUNYAN ASSOCIATES
POPULATION GROWTH
Population growth, an important indicator of economic prosperity, is likely to have a
substantial economic influence on local business and employment patterns, and growth
typically provides opportunities for new business development. In addition to economic
benefits, population growth will tend to increase the demand for local services, and can
often present an array of challenges for local government in terms of livability issues
such as traffic congestion, affordable housing, and impacts on environmentally sensitive
areas. As shown in the table Population by Place of Residence, 1990-2007, some of the
mountain resort areas in Colorado and Utah have experienced population growth at a
much higher rate as compared to the North Lake Tahoe Area (see Appendix A for
historical population estimates).
Population Growth by Place of Residence,
1990-2007
Eagle, CO (Vail)
5.3%
Summit, UT (Park City)
5.0%
Summit, CO (Breckenridge)
4.8%
Blaine, ID (Sun Valley)
Mono, CA (Mammoth Lakes)
Pitkin, CO (Aspen)
North Lake Tahoe Area
2.7%
1.9%
1.6%
2.9%
Average Annual Rate of Growth
Note: Data for the North Lake Tahoe represented by selected census tracts. Data for other resort areas are
represented by their respective counties.
Source: Dean Runyan Associates and U.S. Census Bureau
MEDIAN HOUSEHOLD INCOME
Median household income represents an average annual income available to each
household. Among these mountain resort areas, the highest household incomes were
found in Summit County, Utah (Park City) and Eagle County, Colorado (Vail). It is also
important to note that for the purpose of this comparison of median household income,
the North Lake Tahoe Area is represented by the households located in the Tahoe
Truckee Unified School District, which includes the town of Truckee in Nevada County.
DEAN RUNYAN ASSOCIATES
PAGE 35
Median Household Income
by Place of Residence, 2007
Summit, UT (Park City)
$78.3
Eagle, CO (Vail)
$73.3
Pitkin, CO (Aspen)
$69.4
Summit, CO (Breckenridge)
66.2
Blaine, ID (Sun Valley)
$62.2
Mono, CA (Mammoth Lakes)
$54.2
North Lake Tahoe Area
$62.6
20
30
40
50
60
70
80
90
Median Household Income in $Thousands
Note: Data for North Lake Tahoe Area represented by the geographically by the Tahoe Truckee Unified
School District. Data for other resort areas are represented by their respective counties.
Source: Dean Runyan Associates and U.S. Census Bureau, 2005-2007, American Community Survey
EMPLOYMENT
Employment opportunities will tend to attract residents to an area, as population growth
tends to support new jobs. Over the last decade, total employment was strongest in
Eagle County, CO (Vail) and Summit County, Utah (Park City).
Total Employment, 2007
(Civilian employed population 16 years and over)
Eagle, CO (Vail)
29.6
Summit, UT (Park City)
19.8
Summit, CO (Breckenridge)
17.8
Pitkin, CO (Aspen)
16.9
Blaine, ID (Sun Valley)
11.9
Mono, CA (Mammoth Lakes)
8.2
North Lake Tahoe Area
9.4
0
10
20
30
40
Employment in Thousands
Note: Selected zip code areas represent data for North Lake Tahoe Area. Data for other resort areas are
represented by their respective counties.
Source: Dean Runyan Associates using U.S. Census Bureau, Colorado Dept. of Labor, and California
Employment Development Dept.
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DEAN RUNYAN ASSOCIATES
LEISURE AND HOSPITALITY EMPLOYMENT
Leisure and hospitality employment – defined as the labor force employed in arts,
entertainment, and recreation, and accommodation, and food services -- can be viewed
as a general indicator of the degree to which visitors support the local economies of
these Mountain resort areas. As shown in the following chart, nearly one-half (48%) of
all employment in Mono County, CA (Mammoth Lakes) is found in leisure and
hospitality. The North Lake Tahoe Area has nearly the same proportion, with 45 percent
of employment in leisure and hospitality. For the other Mountain resort areas, the
portion of the labor force employed in leisure and hospitality represents about one-third
or less of total employment.
Leisure and Hospitality Employment
as a Percent of Total, 2007
Mono, CA (Mammoth Lakes)
48%
Pitkin, CO (Aspen)
34%
Summit, CO (Breckenridge)
30%
Eagle, CO (Vail)
27%
Summit, UT (Park City)
21%
Blaine, ID (Sun Valley)
17%
North Lake Tahoe Area
45%
0%
10%
20%
30%
40%
50%
60%
Percent of Total Employment
Note: Data for North Lake Tahoe Area represented by selected zip code areas. Data for other resort areas
are represented by their respective counties.
Source: Dean Runyan Associates using U.S. Census Bureau, Colorado Dept. of Labor, and California
Employment Development Dept.
DEAN RUNYAN ASSOCIATES
PAGE 37
MEDIAN ANNUAL EARNINGS FOR WORKERS
Median annual earnings per worker are a function of many factors, including the mix of
jobs in the local economy and the supply of labor in the market. The following chart
shows median annual earnings per worker ranged from about $36,000 to $27,000.
Median Annual Earnings for Workers, 2007
Pitkin, CO (Aspen)
$36.5
Summit, UT (Park City)
$36.1
Eagle, CO (Vail)
$35
Summit, CO (Breckenridge)
$31.2
Mono, CA (Mammoth Lakes)
$28.3
Blaine, ID (Sun Valley)
$26.5
North Lake Tahoe Area
$30.6
15
20
25
30
35
40
Median Annual Earnings in $Thousands
Note: Data for North Lake Tahoe Area represented by the geographically by the Tahoe Truckee Unified
School District. Data for other resort areas are represented by their respective counties.
Source: Dean Runyan Associates and U.S. Census Bureau, 2005-2007, American Community Survey
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DEAN RUNYAN ASSOCIATES
VACATION HOMES
The proportion of vacant housing units can be viewed as a general indicator of vacation
homes and the degree to which second-home owners contribute to the local economies
in each resort area. As shown in the figure below, Pitkin County, CO (Aspen) has the
highest proportion (80%) of homes, condominiums, and time-shares that function as
vacation/second homes. In other mountain resort areas, such as Mono County, CA
(Mammoth Lakes), Summit County, Colorado (Breckenridge) and the North Lake Tahoe
Area, about two-thirds of all housing units are identified as vacation/second homes.
Vacation/Second Homes
as a Percent of Total Housing Units, 2007
Pitkin, CO (Aspen)
80%
Mono, CA (Mammoth Lakes)
66%
Summit, CO (Breckenridge)
65%
Summit, UT (Park City)
45%
Eagle, CO (Vail)
42%
Blaine, ID (Sun Valley)
40%
North Lake Tahoe Area
0%
63%
25%
50%
75%
100%
Percent of Total Housing Units
Note: Data for North Lake Tahoe Area represented by selected zip codes. Data for other resort areas are
represented by their respective counties.
Source: Dean Runyan Associates and U.S. Census Bureau, 2005-2007, American Community Survey
DEAN RUNYAN ASSOCIATES
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GENERAL RETAIL SALES AND LODGING TAXES
The table, General Retail Sales Tax Rates, shows the general retail sales taxes in each of
the different resort communities. Overall, sales tax rates range between 7 to nearly 9
percent. These general retail sales tax rates do not apply to specific exemptions, and do
not include any special taxes that may apply to certain types of purchases such as food
and beverages in restaurants, liquor, and auto rental.
General Retail Sales Tax Rates
(Rates in effect as of April, 2009)
Destination Area
(State)
State Sales Tax
County Sales Tax
Municipal Sales Tax
Combined Sales Rate
North Lake Mammoth Sun Valley
Tahoe (CA) Lakes (CA)
(ID)
6.0%
6.0%
6.0%
1.25%
1.25%
2.0%
7.25%
7.25%
8.0%
Park City
(UT)
4.70%
1.00%
1.75%
7.45%
Aspen
(CO)
2.9%
3.6%
2.2%
8.7%
Vail Breckenridge
(CO)
(CO)
2.9%
2.9%
1.5%
2.75%
4.0%
2.5%
8.4%
8.2%
Note: Does not include restaurant, liquor, auto rental and other special taxes
Source: Dean Runyan Associates
The table, Lodging Tax Rates, shows the various local and state taxes applied to transient
lodging activity in each of the different resort communities. All of these resort
communities have combined room tax rates on lodging in the range of 10 to 13 percent.
Lodging Tax Rates
(Rates in effect as of April, 2009)
Destination Area
North Lake Mammoth Sun Valley
(State)
Tahoe (CA) Lakes (CA)
(ID)
State Sales Tax
6.0%
State Room Tax
2.0%
County Sales Tax
Municipal Sales Tax *
Local Room Tax (TOT)
10.0%
13.0%
3.0%
Other Local/Resort
Combined Lodging Rate
10.0%
13.0%
11.0%
Park City
(UT)
4.70%
Aspen
(CO)
2.9%
Vail Breckenridge
(CO)
(CO)
2.9%
2.9%
1.00%
1.75%
3.00%
3.6%
2.2%
1.00%
0.40%
10.1%
1.5%
4.0%
1.4%
2.75%
2.5%
2.4%
9.8%
10.6%
10.45%
*Includes county option tax and resort community tax for Park City, UT.
Source: Dean Runyan Associates
PAGE 40
DEAN RUNYAN ASSOCIATES
APPENDICES
APPENDIX A.
AGE DISTRIBUTION AND HOUSING CHARACTERISTICS
APPENDIX B.
REGIONAL TRAVEL IMPACT MODEL (RTIM) METHODOLOGY
APPENDIX C.
IMPLAN MODELING SYSTEM
DEAN RUNYAN ASSOCIATES
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APPENDIX A
Population Growth Trends by Selected Counties, 1990-2007
County (primary resort)
Eagle, CO (Vail)
Summit, UT (Park City)
Summit, CO (Breckenridge)
Blaine, ID (Sun Valley)
Mono, CA (Mammoth Lakes)
Pitkin, CO (Aspen)
1990
21,928
15,518
12,881
13,552
9,956
12,661
NLT Area *
10,912
2001
44,863
30,924
26,480
19,798
12,910
16,254
2002
45,930
31,753
26,890
20,272
13,083
16,227
2003
47,000
32,653
27,279
20,666
13,212
16,453
2004
48,170
33,683
27,472
20,960
13,352
16,301
2005
49,421
34,659
27,583
21,069
13,441
16,409
2006
50,926
34,867
28,029
21,323
13,586
16,426
Sources: U.S. Census Bureau, California Department of Finance, and Colorado Department of Local Affairs.
* North Lake Tahoe Area as represented by selected census tracts, U.S. Census Bureau Census 2000.
DEAN RUNYAN ASSOCIATES
PAGE 43
2007
52,532
35,377
28,611
21,445
13,730
16,607
Avg.
Annual
Change
5.3%
5.0%
4.8%
2.7%
1.9%
1.6%
17,659
2.9%
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APPENDIX B
Summary of
Regional Travel Impact Model (RTIM) Methods
TRAVEL SPENDING
Hotel, Motel, B&B. Spending on
accommodations by hotel and motel
guests is estimated from Transient
Occupancy Tax (TOT) collections
made by Placer County. Spending by
hotel and motel guests in other
business categories, such as food and
transportation, is estimated using
spending distributions reported in the
visitor survey data. The spending
distribution shows how travelers divide
their spending between lodging and
other purchases.
Rented Home/Condo. Spending by
rented home/condo guests is also
estimated from Transient Occupancy
Tax (TOT) collections, which are
collected on the rental of
condominiums or privately owned
homes for rental periods of less than
thirty days.
Vacation Home. Vacation home
visitation and expenditures are
estimated from an inventory of
vacation homes (housing data from the
U.S. Bureau of the Census) and survey
data for expenditures.
Unpaid Accommodations. Spending
by private home guests is determined
from visitor survey data estimating the
number of visitors staying as guests of
friends and relatives, and applying
Dean Runyan Associates
these rates to the household
population base.
Campgrounds. Spending by campers
using commercial campgrounds is
estimated from the visitor counts at
California State Parks and federally
managed national forests, as well as a
number of commercial campsites. The
average occupancy of these campsites
and daily expenditures of visitor camp
parties is estimated from state sources
and survey data.
Day Travel. The share of day visits as
a percentage of total travel is estimated
from visitor survey data and applied to
average daily spending estimates to
produce day visitor spending.
Related Travel Impacts
Spending by travelers generates jobs,
earnings, tax revenues.
Total Earnings generated directly from
traveler expenditures are estimated
from the payroll-to-receipts ratio
obtained from the 2007 Economic
Census for the State of California, and
earnings estimates from the Bureau of
Economic Analysis.
Employment in each business category
is calculated from wage and
employment data supplied by the
California Employment Development
Page 45
Department, and earnings estimates
from the Bureau of Economic Analysis.
Local Taxes consist of transient
occupancy taxes and local sales taxes
applicable to traveler purchases in
eating and drinking establishments and
retail stores.
State Taxes consist of state sales taxes
applied to traveler spending on
accommodations, retail shopping,
restaurant meals, entertainment, the
state fuel tax levied on motor fuel
purchases, and personal and corporate
income taxes.
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Dean Runyan Associates
APPENDIX C
IMPLAN Modeling System
IMPLAN is a widely used, nationally recognized economic impact model, first
developed by the U.S. Forest Service. IMPLAN can be used to measure the direct
and indirect impacts associated with economic changes in a particular region or
local area. This methodology has been packaged, along with the necessary data
files, as IMPLAN Pro by the Minnesota IMPLAN Group, Inc. (MIG) of Stillwater,
Minnesota, and provides the basis for the indirect analysis in this report.
The following are some of the conventions used by IMPLAN.
•
Direct impacts represent the employment and earnings attributable to travel
expenditures made directly by travelers at businesses throughout the North
Lake Tahoe Area.
•
Indirect impacts represent the employment and earnings associated with
industries that supply goods and services to the businesses that directly serve
visitors (i.e., those that receive money directly from visitors throughout the
area).
•
Induced impacts represent the employment and earnings that result from
purchases for food, housing, transportation, recreation, and other goods and
services made by travel industry employees, and the employees of the
indirectly affected industries.
Database Components
The IMPLAN databases consist of two major parts: 1) national-level matrices and
tables and 2) economic and physical data at the county and/or state level. The
national matrices are combined with regional data to create a regional model,
which can be edited to reflect local conditions.
IMPLAN data is divided into four main categories:
1. Industry Output
2. Employment
3. Value Added (includes employee compensation)
4. Final Demands
Industry output represents the dollar value (producer price of goods and services) of
an industry’s total production. The data is derived from a number of sources
including Bureau of Census economic censuses and the BLS employment
projections.
Dean Runyan Associates
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Employment is listed as a single number of jobs for each industry. The data is
derived from ES202 employment security data supplemented by county business
patterns and Regional Economic Information System (REIS) data. All IMPLAN
databases include both full-time and part-time workers in employment estimates.
Value Added includes employee compensation, proprietor income, other property
type income, and indirect business taxes. Employee compensation includes the
total payroll costs (including benefits) of each industry in the region. Proprietary
income consists of payments received by self-employed individuals (includes private
business owners, doctors and lawyers). Other property type income consists of
payments from rents, royalties, dividends and interest. Indirect business taxes
consist primarily of excise and sales taxes paid by individuals to businesses.
Final Demands are the dollar value of goods and services purchased by consumers
and institutions (federal, state and local government). Personal consumption
expenditures are the largest component of final demand. It consists of payments by
individuals/households to industries for goods and services used for personal
consumption.
Trade Flows
Trade flows describe the movement of goods and services between a defined region
and the outside world (imports and exports into and out of the study region).
Regional Purchase Coefficients (RPC’s) were used to estimate how much of the local
production of a commodity will supply local demand, and how much will be
exported from the region. RPC’s represent the portion of local demand purchased
from local producers for each commodity. IMPLAN software automatically
generates RPC’s for each commodity with a set of econometrically-based equations.
Indirect Impacts
Input-output models are driven by final consumption (or final demand). Industries
respond to meet demands directly or indirectly (by supplying goods and services to
industries responding directly). Each industry that produces goods and services
generates demands for other goods and services. These other producers, in turn,
purchase goods and services. These indirect purchases (indirect effects) continue
until “leakage” from the region (imports, wages, profits, etc.) stop the cycle.
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Dean Runyan Associates