A new economic impact report released by Lt. Gov. Sue Ellspermann and the Indiana Office of Tourism Development (IOTD) documents the growing impact tourism has on the Indiana economy. The report shows travel, tourism and hospitality continues to be the sixth largest industry in the state (excluding government), supports over 187,000 jobs and contributes $10.3 billion in revenue to Indiana businesses. This is the second consecutive year tourism’s economic impact was measured. This study used data from 2013; the most recent year complete data was available.
“The economic impact report for 2013 shows that Indiana’s travel, tourism and hospitality industry continues to grow and have a significant impact on the Hoosier economy,” said Ellspermann. “This important research is possible through the collaboration between tourism bureaus and IOTD. County participants now have meaningful tourism data available at the local level.”
In 2013 the travel, tourism and hospitality industry was responsible for 1.5% of total Indiana gross domestic product (GDP), 4.7% of total jobs in the state and 6.3% of state & local tax receipts. The study shows measureable growth over 2012; a year buoyed by Super Bowl XLVI, a seminal event for the state.
Key data points from the economic impact study include:
• Total Indiana tourism spending in 2013 of $10.3 billion (an increase of $200 million over the previous year).
• In 2013 visitor spending translating to over $7.9 billion in Indiana GDP.
• Leisure travelers comprised 85% of total visitors.
• Direct employment within the Indiana travel, tourism and hospitality industry eclipsing 140,000, making it the sixth-largest industry in the state (excluding government).
• Indiana tourism generating over $2.2 billion in tax receipts.
• Indiana visitors contributing $572 million or 8.5% of sales tax receipts.
• Tourism paying direct wages of over $3 billion to industry employees.
• Indiana retaining approximately 77% of each dollar spent by visitors.
“Tourism is big business in Indiana and every Hoosier household benefits from a robust tourism economy,” said Mark Newman, IOTD’s executive director. “If visitors stopped coming to Indiana, each household would have to pay an additional $478 in state and local taxes to offset the loss of visitor spending.”
The study was commissioned by IOTD and conducted by Rockport Analytics, an independent market research and consulting company that specializes in economic impact and feasibility studies for the travel, tourism and hospitality industry. The methodology employed by this study is in accordance with industry best practices and aligns economic impact data at the state and local level with rigorous methodological standards that are recognized as the highest in the industry.
The study used data on Indiana visitor spending derived from multiple sources including Longwoods International, Reach Market Planning and U.S. Office of Travel & Tourism Industries. It was then reconciled with Bureau of Labor Statistics reported employment data, Indiana Department of Revenue reported tax receipts and secondary sources such as Smith Travel Research.
Tourism is defined as an overnight stay or a trip greater than 50 miles each way that is not part of an individual’s normal routine.
The attached infographic offers context for some key data points in the economic report. This year’s complete study, as well as last year’s information for comparison purposes, key travel indicators and other information related to the tourism industry, is housed on the Indiana tourism industry websiteVisitIndianaTourism.com.
