The Economic Impact of
Tourism in Georgia
Tourism Satellite Account
Calendar Year 2011
Key results
 After a strong rebound in 2010, the Georgia visitor economy
surged ahead in 2011, growing 9.7%.
 Total tourism demand reached a new high of $31 billion in
2011.
 This economic activity sustained 400,000 jobs in 2011,
including direct, indirect, and induced impacts.
 10.3% of all jobs* in the state are directly and indirectly
sustained by tourism activities.
 Including indirect and induced impacts, tourism in Georgia
generated $2.6 billion in state and local taxes and $3.4 billion in
Federal taxes in 2011.
2
* BLS SAE total payroll employment
Important definitions
1. Total Tourism Demand: Includes visitor spending plus
other spending streams in support of the traveler
industry. This includes government spending and
capital investment in support of tourism.
2. Tourism Industry GDP: Measures the value of
production of “tourism characteristic industries” on
behalf of travelers. This concept measures only the
direct impact of the travel industry.
3. Tourism Economic Impact: Measures the full
economic impacts of tourism demand, including indirect
and induced impacts.
3
Illustrating the concepts
Travel & Tourism Industry
Travel & Tourism Economic Impact
■
T
CATERING, ENTERTAINMENT
A
ER
OV
ACCOMODATION
EC
■ Allows for industry rankings and
comparisons
The flow-through effect of total T&T demand
across the economy
DIR
■ Focus of Tourism Satellite Account
T
T&
■ The direct effect of visitor spending
RECREATION, TRANSPORTATION
IND
FURNISHINGS AND EQUIPMENT SUPPLIERS,
TRANSPORTATION ADMINISTRATION, TOURISM
IRE
SECURITY SERVICES, RENTAL CAR MANUFACTURING,
CT
PA T
IM
C
FINANCIAL SERVICES, SANITATION SERVICES
&T
T
T&
PRINTING/PUBLISHING, UTILITIES
T
LL
&OTHER TRAVEL RELATED SERVICES
Expands the focus to measure the
overall impact of T&T on all sectors of
the economy
PROMOTION, SHIP BUILDING, AIRCRAFT MANUFACTURING,
RESORT DEVELOPMENT, GLASS PRODUCTS, IRON/STEEL
IND
4
ED
UTILITIES, MANUFACTURERS, HOUSING, PERSONAL SERVICES
UC
BUSINESS SERVICES, WHOLESALERS, COMPUTERS,
T
T&
FOOD & BEVERAGE SUPPLY, RETAILERS
Why quantify the tourism economy?
 By monitoring tourism’s economic impact, policy makers
can make informed decisions regarding the funding and
prioritization of tourism development.
 It can also carefully monitor its successes and future
needs.
 In order to do this, tourism must be measured in the
same categories as other economic sectors – i.e. tax
generation, employment, wages, and gross domestic
product.
5
What is this a challenge?
 Most economic sectors such as financial services, insurance, or
construction are easily defined within a country’s national
accounts statistics.
 Tourism is not so easily measured because it is not a single
industry. It is a demand-side activity which affects multiple
sectors to various degrees.
 Tourism spans nearly a dozen sectors including lodging,
recreation, retail, real estate, air passenger transport, food &
beverage, car rental, taxi services, travel agents…
6
The Tourism Satellite Account
•
The TSA was conceived by the UN World Tourism
Organization and has since been ratified by the UN,
Eurostat, and OECD.
•
The standard has been adopted by over fifty countries
around the world.
•
The TSA deals with the challenge of measuring tourism in
two important ways:
1. Defines the tourism economy
2. Provides methodology for calculating tourism GDP in
a way that is consistent with economic accounts
7
Benefits of a TSA
8
•
Enables comparisons of the importance of tourism to other
sectors of the economy in terms of GDP, employment,
and income
•
Allows for benchmarking to other destinations
•
Tracks the economic contribution of tourism over time
•
Monitors strength by tracking capital investment
•
Allows for extension analysis for of the full impact of
tourism
Detailed Results
9
Tourism demand (spending)
Tourism Demand by Category, $ million
Year
2006
2007
2008
2009
2010
2011
% change
2011/10
10
Domestic
Visitor
$
$
$
$
$
$
21,537
22,781
23,285
21,353
23,072
25,216
9.3%
Internat'l
Visitor
Non-visitor
PCE
$
$
$
$
$
$
$
$
$
$
$
$
1,613
1,706
1,950
2,039
2,357
2,425
2.9%
179
189
189
165
171
176
2.9%
Gov't
Support
$
$
$
$
$
$
33
35
38
36
35
34
-3.3%
CAPEX
$
$
$
$
$
$
3,532
3,737
3,309
2,394
2,418
2,932
21.3%
Total
$
$
$
$
$
$
26,895
28,449
28,771
25,987
28,054
30,783
% change
5.8%
1.1%
-9.7%
8.0%
9.7%
9.7%

Non-visitor private consumption expenditures (PCE) represent tourism
consumer durables such as an RV, boat, or furniture for a vacation home.
These rose 2.9% last year.

Government support for tourism, including the budgets for the Division of
Tourism, tourism attractions, security, and other budget items in broad
support of tourism, declined slightly by -3.3%.

Capital investment, including construction of hotels and attractions, as well
as tourism infrastructure, grew strongly in 2011 at a rate of 21%.
Tourism demand by source
Non-visitor PCE
1%
 Domestic visitor markets
comprise the majority (81%) of
tourism demand.
Gov't Support
0.1%
Internat'l Visitor
8%
CAPEX
10%
Domestic
Visitor
81%
 Capital investment in tourismrelated construction and
machinery & equipment is
second in importance even as
it recovers from a steep
decline during the past
recession.
 International visitor markets
contributed 8% of tourism
demand in Georgia last year.
11
Tourism demand growth
Tourism Demand Trend
billions
$35
Domestic Visitor
Internat'l Visitor
CAPEX
$30
$25
$20
$15
$10
$5
$2006
2007
2008
Source: Tourism Economics
12
2009
2010
2011
Translating spending into impact
 The direct impacts
are quantified within
travel-related
sectors.
 The indirect impacts
include the benefits
realized by the
supply chain.
 The induced impacts
are generated as
wages are spend
within the state’s
economy.
13
Tourism business sales by sector
Tourism Sales (Output)
US$ Million, 2011
Direct*
Agriculture, Fishing, Mining
Construction and Utilities
Manufacturing
Wholesale Trade
Air Transport
Other Transport
Retail Trade
Gasoline Stations
Communications
Finance, Insurance and Real Estate
Business Services
Education and Health Care
Recreation and Entertainment
Lodging
Food & Beverage
Personal Services
Government
TOTAL (2011)
TOTAL (2010)
TOTAL (2009)
652
2,280
9,156
663
5,008
1,840
742
326
1,566
3,308
4,133
1,076
34
30,783
28,054
25,987
Indirect
101
392
1,333
547
27
808
219
15
537
1,384
2,834
87
54
79
322
136
162
9,039
8,424
7,950
Induced
79
294
839
564
32
252
1,098
70
337
1,316
729
1,295
116
86
438
382
1,279
9,206
8,541
8,030
Total
180
1,337
2,173
3,391
9,215
1,723
6,325
1,925
874
3,442
3,890
1,382
1,736
3,472
4,893
1,594
1,476
49,027
45,019
41,967
% change
from year
earlier
7.5%
11.0%
7.5%
17.6%
12.5%
7.3%
5.3%
23.5%
7.5%
6.7%
7.4%
7.8%
6.1%
6.0%
5.9%
4.4%
7.4%
8.9%
7.3%
-8.9%
* Direct sales include cost of goods for retail sectors

14
Tourism demand of $31 billion generated $49 billion in business sales, including
indirect and induced impacts. Total tourism-generated business sales expanded
8.9% in 2011.
15
Government
Pers. Svcs.
Oth. Transp.
Recreation
Gas Stations
Manufacturing
Whole. Trade
10
9
8
7
6
5
4
3
2
1
0
Fin., Insur.
Lodging
Bus. Svcs.
F&Bev
Retail Trade
Air Transport
Tourism sales
Tourism Business Sales
$ billion
Induced
Indirect
Direct*
Tourism industry GDP
Tourism Industry GDP

Tourism GDP is the value
added of those sectors directly
interacting with travelers.

The narrow definition of the
tourism industry counts only
tourism consumption, which
excludes capital investment
and general government
support of tourism. This
definition is consistent with
economic accounts.

On this basis, tourism industry
GDP reached $10.8 billion in
2011, accounting for 2.4% of
total Georgia GDP.
(US$ Million)
Industry Composition
Agriculture, Fishing, Mining
Construction and Utilities
Manufacturing
Wholesale Trade
Air Transport
Other Transport
Retail Trade
Gasoline Stations
Communications
Finance, Insurance and Real Estate
Business Services
Education and Health Care
Recreation and Entertainment
Lodging
Food & Beverage
Personal Services
Government
TOTAL
16
2010
2011
%
2,858
301
787
210
3,215
322
824
221
12.5%
7.0%
4.7%
5.0%
430
128
446
138
3.8%
7.3%
754
2,246
1,867
492
799
2,378
1,972
507
6.0%
5.9%
5.6%
3.0%
10,074
10,822
7.4%
Tourism GDP Impact
 The complete definition of the tourism demand includes
capital investment and general government support of
tourism.
 The total tourism GDP impact in Georgia rose 7.7% in 2011.
 Including the direct, indirect and induced impacts of total
tourism demand, the tourism sector generated $21.9 billion of
state GDP. This is 5.2% of the state economy.
17
Tourism GDP Impact
Tourism GDP (Value Added)
(US$ Million)
Direct*
Agriculture, Fishing, Mining
Construction and Utilities
Manufacturing
Wholesale Trade
Air Transport
Other Transport
Retail Trade
Gasoline Stations
Communications
Finance, Insurance and Real Estate
Business Services
Education and Health Care
Recreation and Entertainment
Lodging
Food & Beverage
Personal Services
Government
TOTAL (2011)
TOTAL (2010)
TOTAL (2009)
18
436
184
3,215
322
824
221
446
138
799
2,378
1,972
507
22
11,464
10,626
9,843
Indirect
28
261
325
369
9
563
143
10
270
911
1,577
52
31
51
153
71
59
4,884
4,552
4,296
Induced
32
208
236
380
11
139
717
48
167
792
418
805
68
54
209
200
1,086
5,571
5,168
4,859
Total
60
906
561
934
3,236
1,024
1,685
279
436
2,149
2,133
857
898
2,483
2,334
779
1,167
21,919
20,346
18,999
% change
from year
earlier
7.6%
11.0%
7.5%
10.3%
12.5%
7.3%
6.2%
5.5%
7.5%
6.7%
7.4%
7.8%
6.2%
5.9%
5.9%
4.6%
7.5%
7.7%
7.1%
-9.1%
Tourism GDP impact
Tourism GDP Impact
 All sectors of the
Georgia
economy benefit
from tourism
activity directly
and/or indirectly.
$ billion
3.5
Induced
3.0
Indirect
2.5
Direct
2.0
1.5
1.0
0.5
19
Personal Services
Edu, Health
Recreation
Constr, Utilities
Wholesale Trade
Other Transport
Government
Retail Trade
Bus. Svcs.
Fin, Insurance
F&B
Lodging
Air Transport
0.0
Ranking tourism industry employment

The tourism industry directly employed 244,202 Georgians in 2011. This narrow
measurement of tourism includes only those jobs directly supported by visitor
activity and enables inter-industry ranking.

On this basis, tourism is the 5th largest private employer in the state of Georgia.
Ranking of Employment
2011
Rank
Industry
1 Retail trade
440,062
2 Health care
403,637
3 Manufacturing
349,046
4 Administration and waste management
265,093
5 Tourism
244,202
6 Accommodation and food services (minus tourism)
225,880
7 Professional, Scientific, and Technical Services
222,942
8 Wholesale Trade
197,367
9 Construction
145,448
10 Finance and insurance
* Comparative data is BLS QCEW employment
20
Value*
149,517
Total tourism employment
Tourism Employment
2011
Direct
Agriculture, Fishing, Mining
Construction and Utilities
Manufacturing
Wholesale Trade
Air Transport
Other Transport
Retail Trade
Gasoline Stations
Communications
Finance, Insurance and Real Estate
Business Services
Education and Health Care
Recreation and Entertainment
Lodging
Food & Beverage
Personal Services
Government
TOTAL (2011)
TOTAL (2010)
TOTAL (2009)
21
Indirect Induced
Total
% change
from year
earlier
28,957
43,127
73,478
15,147
69
1,528
962
3,769
2,636
109
8,201
3,046
180
1,546
6,972
22,638
1,357
1,072
897
5,904
2,018
941
1,254
349
2,163
2,711
129
2,510
18,354
880
783
6,205
7,998
14,933
2,625
964
8,031
8,734
810
2,782
12,100
5,932
6,683
41,591
20,643
47,816
5,714
2,330
13,177
31,705
16,290
32,654
44,989
87,413
25,899
1,821
2.0%
5.1%
2.0%
3.3%
2.2%
2.7%
2.4%
1.4%
2.0%
2.0%
2.0%
2.1%
2.9%
-0.1%
2.8%
2.2%
2.1%
256,326
250,438
245,238
63,776
62,599
61,619
79,435
77,790
76,492
399,537
390,827
383,348
2.2%
2.0%
10,789
1,335
41,353
9,931
26,416
4,654
1,069
* BLS SAE total payroll employment
The tourism sector
directly and indirectly
supported more than
400,000 jobs, or
10.4% of all payroll
employment* in
Georgia last year.
Tourism-related
employment grew 2.2
in 2011 as visitor
spending recovered.
Total tourism employment
22
70
Induced
Indirect
50
Direct
30
Gasoline
Manufacturing
Whole.Trade
Construction
Fin, Insur
Edu, Health
Other Transp
Personal Serv
Bus Svcs
Recreation
-10
Air Transport
10
Lodging
For example, 13,200
people are employed in
the finance, insurance,
and real estate sector as
a result of tourism
activity.
90
Retail Trade

Secondary benefits are
realized across the entire
economy through the
supply chain and incomes
as they are spent.
Tourism Generated Employment
F&B

The restaurant, lodging,
and retail sectors
employed the most
persons in the tourism
sector.
Thousands

Tourism personal income
Tourism Income (Compensation)
(2011, US$ Million)
Direct
Agriculture, Fishing, Mining
Construction and Utilities
Manufacturing
Wholesale Trade
Air Transport
Other Transport
Retail Trade
Gasoline Stations
Communications
Finance, Insurance and Real Estate
Business Services
Education and Health Care
Recreation and Entertainment
Lodging
Food & Beverage
Personal Services
Government
TOTAL (2011)
TOTAL (2010)
TOTAL (2009)
598
100
2,669
209
562
100
316
53
901
1,257
1,338
366
8,470
8,035
7,622
Indirect
18
103
212
202
8
461
88
5
139
333
1,193
37
24
28
105
56
40
3,052
2,924
2,759
Induced
22
69
129
207
9
103
439
21
72
340
328
675
46
30
143
157
27
2,816
2,690
2,529
Total
40
770
341
509
2,686
773
1,089
126
211
989
1,574
712
971
1,314
1,586
579
68
14,338
13,650
12,911
% change
from year
earlier
4.5%
7.0%
4.5%
6.0%
8.7%
4.6%
4.1%
2.0%
4.5%
4.6%
4.5%
4.7%
4.3%
1.5%
4.2%
3.6%
4.5%
5.0%
5.7%
-7.4%
 $14.3 billion in compensation was generated by tourism demand in
2011, an increase of 5.0%
23
Tourism personal income
24
3.0
Induced
2.5
Indirect
2.0
Direct
1.5
1.0
0.5
Wholesale Trade
Personal Svcs.
Edu, Health
Constr, Utilities
Other Transport
Recreation
Fin, Insurance
Retail Trade
0.0
Lodging
On average, the tourism
economy generated
$35,885 in income per
employee (including parttime).
$ billion
Business Svcs.

The business services
sector benefits strongly
as a supplier to other
tourism sectors.
Tourism Generated Income
F&B

Tourism generated the
most personal income in
the air transport,
business services and
food & beverage sectors.
Air Transport

Tourism tax generation
Tourism-Generated Taxes
(US$ Million)
2008
Federal Taxes
Corporate
Indirect Business
Personal Income
Social Security
3,254
443
330
1,102
1,378
State and Local Taxes
Corporate
Personal Income
Sales
Property
Excise and Fees
State Unemployment
TOTAL
% change year ago
25
2009
2010
2011
3,000
3,183
3,373
404
301
1,020
1,276
433
323
1,079
1,349
471
352
1,133
1,417
2,457
184
350
1,027
745
131
21
2,277
2,412
2,580
168
323
936
712
119
19
180
342
1,004
738
128
20
196
359
1,093
771
139
21
5,710
5,278
5,595
5,952
1.1%
-7.6%
6.0%
6.4%
 Taxes of $5.9 billion were
directly and indirectly
generated by tourism in
2011.
 State and local taxes
alone tallied $2.6 billion.
 Each household in
Georgia would need to be
taxed an additional $744
per year to replace the
tourism taxes received by
state and local
governments.
State government’s role
State Expenditures on Tourism
TOURISM ATTRIBUTION
FY 2012
Tourism
Film, Video, and Music
$
$
$
$
$
$
9,434,970
485,333
$ 1,189,537
$ 14,093,738
$ 3,332,018
Office of the Govenor
Georgia Council for the Arts
$
26

Capital expenditures are
also considered in
proportion to tourists’
usage.

Current (operating)
support of tourism
contracted 3.3% in 2011.

Capital expenditures in
support of tourism
increased 30% on
account of transport
infrastructure.
-
Natural Resources
Historic Preservation
Parks, Recreation and Historic Sites
Coastal Resources
Public Safety
Aviation
Department of Transportation
Georgia Aviation Authority
Capital construction projects
Capital maintenance projects
Construction administration
Total
% change
Government support of
tourism is divided
between collective
(general support) and
individual (specific
support) spending.
Capital
Current
General
Specific
Economic Development
Aviation Hall of Fame
Civil War Commission
Music Hall of Fame
Sports Hall of Fame

309,900
$ 2,192,030
$ 3,206,501
$
9,920,303 $ 24,323,724
-1.4%
-4.0%
$
$
$
$
101,788,885
28,596,984
10,941,563
141,327,432
29.6%
Tourism capital investment
Tourism Capital Investment
2007
2008
2009
Construction
$ 1,110,340,200
$ 1,093,385,055
$
Machinery and Equipment
$ 2,478,577,839
$ 2,059,535,755
$ 1,850,605,775
Government Capital Outlays
$
$
$
Total
$ 3,736,570,046
147,650,000
155,870,608
$ 3,308,793,425
440,076,674
107,474,569
$ 2,398,159,027
2010
$
438,948,080
2011
510,569,427
16%
$ 2,052,996,640
$ 2,279,919,623
11%
$
$
141,327,432
30%
$ 2,931,818,493
13%
109,061,426
$ 2,601,008,156
$
2011
% change
 More than $2.9 billion was invested by the tourism sector last year,
including hotels, recreational facilities, and related government
capital outlays.
 This marks the second year of recovery in tourism capital
investment, with a 13% gain in 2011.
27
About Tourism Economics
28

Tourism Economics, headquartered in Philadelphia, is an Oxford Economics
company dedicated to providing high value, robust, and relevant analyses of the
tourism sector that reflects the dynamics of local and global economies. By
combining quantitative methods with industry knowledge, Tourism Economics
designs custom market strategies, project feasibility analysis, tourism forecasting
models, tourism policy analysis, and economic impact studies.

Our staff have worked with over 100 destinations to quantify the economic value
of tourism, forecast demand, guide strategy, or evaluate tourism policies.

Oxford Economics is one of the world’s leading providers of economic analysis,
forecasts and consulting advice. Founded in 1981 as a joint venture with Oxford
University’s business college, Oxford Economics is founded on a reputation for
high quality, quantitative analysis and evidence-based advice. For this, it draws
on its own staff of 40 highly-experienced professional economists; a dedicated
data analysis team; global modeling tools; close links with Oxford University, and
a range of partner institutions in Europe, the US and in the United Nations
Project Link.

For more information: info@tourismeconomics.com / +1 610 995 9600.
For more information:
Adam Sacks, Managing Director
adam@tourismeconomics.com
Christopher Pike, Senior Economist
cpike@tourismeconomics.com
29