Tourism Creates Economic Stimulus

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med_Pamelas_Mug_copy55Doug La Placa, president/CEO of Visit Bend spoke recently on the state of the Bend tourism industry: it is doing very very well, he summarized!

La Placa reported that December marked the 13th consecutive month of increases in transit room tax (TRT) collections citywide.  From June through December 2010, Bend TRT collections were up 13.5 percent.

While the economy struggles, but appears to be gaining some ground in our region, Bend’s tourism industry is substantially outpacing the state, the Pacific Northwest and the nation.  The good news about this data is that it reminds us of what we already know: this is a great place to live, work and play. Nothing has changed here except the economy, and for those business owners and residents who have been able to ride the recession we are confident of a strong future.

What’s bringing visitors to Bend and why is the tourism industry growing, while other segments of our economy are lagging? 
“A few reasons,” says La Placa, “but essentially people are coming here to play.”  He says tourism creates economic stimulus in Bend in two ways: 

First, is in the form of immediate direct tourist spending.  That means visitors come here (2 million annually) and take money out of their pockets and put it into the cash registers of local businesses.  This direct tourist spending happens to the tune of over $500 million annually, and the beneficiaries are not just hotels and restaurants:  the beneficiaries include grocery stores and gas stations, retails shops, tour operators, doctors (because tourists get hurt), lawyers (because tourists get in trouble), but the point is that virtually every segment of the Bend economy is impacted by the immediate economic stimulus of tourism.
The second economic stimulus comes in the form of long-term in-migration of new residents and new jobs.  The tourism industry serves as the “Gateway Industry” into our community.  Meaning, people discover Bend and the extraordinary lifestyle that exists here, through tourism.  Then they fall in love with our community, and ultimately make the decision to relocate their lives here, and when we’re lucky, really lucky, they bring jobs with them. 

 
It Feels Good to Be Here
La Placa makes a really good case for why people move their businesses here. “Often times an entrepreneur will relocate their business to Bend, even though it may be an irrational business decision in terms of profit. People want to be in Bend because of the clean air.  They want to be in Bend for the mountains, or the trails, or the good schools, or the beautiful parks, or clean rivers full of trout, or the safety.  There’s 1,000 reasons to be in Bend, but they all point to one conclusion (and Ben Alexander from Headwaters said this) and that is it feels good to be here.”

With that in mind Visit Bend has created and launched a series of ads specifically asking visitors to move their lives and businesses here.  The concept of the campaign, according to La Placa, is a rather simple one.  Visitors fall in love with our area while they’re here, so this campaign simply extends the invitation for them to relocate here.  It introduces the idea.  It plants the seed of inspiration for them to make the long-term investment in our community.

 
See www.BendForBusiness.com or www.MyMoveToBend.com for more information.

 
La Placa concluded: “While I do believe that the calling card of our region is the extraordinary quality of life offered here, I’m under no illusion that lifestyle alone can solve our economic problems.  The lifestyle that sets Bend apart from “Anytown USA” must be supported by quality infrastructure and a supportive and progressive business culture.  But the lifestyle assets of our region have to be protected, they have to be enhanced, and they have to be valued.  The two have to work hand in hand, and there is no reason they can’t.”  PHA

Les Schwab Concerts Add to Tourism
Visit Bend released the results of a study aimed at determining the economic impact of summer concerts at the Les Schwab Amphitheater in Bend’s Old Mill District.

The study was compiled by Boulder based research firm RRC Associates, Inc. and was based on survey responses from attendees at nine paid concerts held at the Les Schwab Amphitheater between May 29 and September 18, 2010.

Among the findings:
• The nine summer concerts attracted a total attendance of 26,293 individuals.
• Thirty nine percent of the attendees (or 10,254 individuals) were out-of-town visitors.
• Among the out-of-town visitors, 80 percent said they came specifically for the concert, while 20 percent said they would have visited the area anyway.
• The average length of stay for out-of-town concert attendees was 2.2 nights with 71 percent staying in Bend lodging accommodations, five percent in Redmond, five percent in Eagle Crest, four percent in Sunriver and 15 percent elsewhere.  
• Total concert-related spending in the Central Oregon area was estimated to be $3.61 million and impacted a broad cross-section of the regional economy including dining, shopping, lodging, recreation, groceries, gas stations, and a variety of other services.
• Total trip-related spending by out-of-town visitors attracted to Bend specifically to attend the concert series was $2.26 million.
La Placa said: “The Les Schwab Amphitheater is one of the unsung heroes of Bend’s tourism industry. While other events receive more attention and generate more headlines, there are none that draw as many out-of-town visitors as the concerts at the
Les Schwab Amphitheater.” 

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Founded in 1994 by the late Pamela Hulse Andrews, Cascade Business News (CBN) became Central Oregon’s premier business publication. CascadeBusNews.com • CBN@CascadeBusNews.com

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