"As we're looking for new residents and new people to move here, some of the big investments the community is making are having an impact," said David Gilbert, president and CEO of Destination Cleveland. "It's reversing decades and decades and decades of sliding numbers."
CLEVELAND, Ohio -- An economic study of travel and tourism spending by Destination Cleveland and other convention and visitors bureaus says investing in efforts to attract tourists pays off in long-term economic growth.
Oxford Economics, an independent British advisory firm that specializes in global forecasting, found that cities that make marketing their brands and amenities a high priority see a growth in employment and spending that goes well beyond the tourism industry.
Oxford Economics analyzed more than 200 cities over 23 years, and found widespread economic benefits from those who collectively spent $2 billion promoting leisure and convention travel.
Among the eye-opening statistics that Destination Cleveland will roll out at its annual meeting Monday afternoon, March 16, are that:
1. Thirty-three percent of new residents first visited the city as a tourist;
2. Thirty-seven percent of site selection executives say that what they think of an area's business climate was influenced by a prior business trip there;
3. For every 100 tourism-related jobs that are created, 15 professional service jobs in unrelated business sectors are also created, over a two-year period.
4. Cities that draw more leisure visitors see their population and employment grow an average of 2 percent faster than other cities over a 10-year period, especially among coveted college-educated residents.
5. As incomes have risen over the past 30 years, the percentage of budgets that consumers spend on travel has grown even faster. For example, while GDP has risen 75 percent since 1980 on a real, per capita basis, the amount spent on lodging has jumped 200 percent over that same period.
"Statistical analysis over the past two decades shows that destinations with substantial and growing visitor economies have outperformed their peers in the general economy," said Adam Sacks, director of Oxford Economics, in a written statement. "Cities and States that coordinate destination marketing and economic development are generally better positioned to compete for new investments and corporate relocations."
Employment in the hospitality and tourism industries has risen nearly 10 percent since 1998, while total employment in all other trades has declined 1 percent, according to Oxford Economics.
Promoting Cleveland as a travel destination also builds awareness and relationships in business sectors that are crucial to attracting investment, Destination Cleveland concluded.
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David Gilbert, president and CEO of Destination Cleveland. David Gilbert, president and chief executive of Destination Cleveland, pointed out that there's about $3 million currently being invested in visitor-related infrastructure between downtown and University Circle, including nine new or significantly renovated hotels in a six-year period, $350 million at the Cleveland Museum of Art, as well as upgrades at the Museum of Contemporary Art and at the casino.
That's both helped by and contributed to a jump in positive impressions and testimonies by Cleveland residents, who are now more likely to invite friends and family members to come visit Northeast Ohio.
Travel and tourism is a strong growth industry, that not only boosts the economy short-term, but also attracts more college-educated visitors and increases the likelihood they might consider relocating here, he said.
"As we're looking for new residents and new people to move here, some of the big investments the community is making are having an impact," Gilbert said. While Cleveland still has room to improve, "we're proud of the difference that we're making. It's reversing decades and decades and decades of sliding numbers."
The travel and tourism industry is now Ohio's fourth largest employer, with 63,000 employers and an increase in economic impact by 4 percent, he said.
Destination Cleveland's budget is almost entirely funded by a countywide bed tax specifically earmarked for sales and marketing spending. Last year, that total amounted to about $7 million. "But that $7 million is by far the lowest of our peer group, Gilbert said. "Many other cities spend two or two-and-a-half times that. The dollars spent on sales and marketing [here] is a pea shooter compared to other cities.
He said the Greater Cleveland area welcomed more than 40,000 visitors for the Senior Games and the Gay Games last year, and both groups said they thought it was the most welcoming city they'd ever been to. When people knew that the Senior Games were in town they went out of their way to reach out to them and say, "'Hey, are you having a good time in Cleveland?' It was always amazing,'" he said.
Gilbert recalled the night he and his wife were enjoying a late dinner on East Fourth Street, dining al fresco at the Euclid Avenue end of the street when they suddenly heard loud applause coming from the Prospect Avenue end.
"It was a women's softball team from Virginia, all in their matching sweats, and people were just clapping for them" as they walked by, just to congratulate them for being in Cleveland.
"That's what I think will happen with the RNC," Gilbert said. "I have no doubt in my mind that when people are here for the RNC, they're all going to feel incredibly welcome. The community's been so welcoming and so embracing of the RNC already, and it has nothing to do with politics."