Email This   Larger Font      Print This   Smaller Font Advertisement 2008 OUTLOOK Visitor spending in Clark County reached an estimated $400 million last year. In 2008, at least an 8 percent increase is projected. According to the latest figures, nearly $92 million was spent in 2006 on food services and $55 million on retail sales in Clark County. Spending on accommodations was nearly $132 million. An expected increase in Washington's tourism budget in 2008 will afford businesses in the industry greater opportunities for partnerships and marketing. Expect to see three or four new hotel projects in the region confirmed for construction in the next two or three years.

Wednesday, January 16, 2008
By KIM BENNETT, Columbian forecaster

The tourism industry in Clark County continued growing in 2007, and all indicators are that we will see steady growth through 2008.

This important segment of our economy is a $13.9 billion industry statewide and ranks among the leading services exports for both Washington and the United States.

Since 2002, when the industry began recovering from the Sept. 11, 2001 attacks, travel spending has been on the upswing, increasing by an average of 7.6 percent annually statewide. In Clark County, we saw a 9.2 percent increase for that period as measured by retail spending.

However, as energy costs push up prices for air travel, hotel rooms and rental cars, we do expect to see more modest growth in 2008.

The latest Washington State County Impacts report shows that tourism generated $364 million for Clark County in 2006 from direct visitor spending on such items as hotels, food, transportation, retail sales and recreation. That number represents a 10.8 percent increase over 2005. Nearly $92 million was spent on food services and $55 million was spent on retail sales. Spending on accommodations accounted for nearly $132 million.

Like in the Washington cities that compete with us for visitors, Clark County's bread-and-butter comes from business and meetings travel, which is estimated to generate 70 percent of overnight stays. This is different from Washington coastal cities, for instance, where the majority of visitors are leisure travelers. Although it will be almost a year before we have final numbers for 2007, we anticipate that visitor spending in Clark County reached nearly $400 million last year. In 2008, we are projecting at least an 8 percent increase.

Because most of the goods and services purchased by travelers are taxed at the point of sale (e.g. lodging, food services, retail goods), the tourism industry also generated $26.6 million in state and local tax receipts for the cities and county in 2006. These dollars benefit not just those in the industry; they help local municipalities provide public services without placing an added tax on local residents.

The tourism industry in Clark County also generates 3,800 jobs, paying more than $95.5 million in salaries in 2006 - an impressive 8.9 percent increase from $87.7 million in 2005.

An indicator that our industry is healthy and continuing to grow is evident in how well our hotels are performing. Clark County's average hotel occupancy as of August 2007 was 68.6 percent, a 6.1 percent increase over the same period last year. Another key indicator of hotel performance is RevPAR, an acronym for revenue per available room. As of August, hotels in Clark County saw a 9.1 percent increase in year-to-date RevPAR over 2006.

Demand for meeting space

Hotel and meeting space demand is another performance indicator. In Clark County, such space is typically booked two years in advance. This means that sales and marketing groundwork laid two and three years ago is now paying off in signed contracts and confirmed sales for 2008.

Confirmed bookings for this year have already outpaced 2007 bookings, as of October, by 29 percent. In addition, past election years tended toward strength in business travel, which would help set the stage for a good year in 2008.

Travel costs

According to American Express Business Travel, the average cost of a U.S. trip is expected to climb 6 percent this year, in part due to gas prices. Clark County won't be completely shielded from the effects of climbing fuel costs and the U.S. airline industry's struggle, but has a competitive advantage in our ease of access - being so close to a major airport and directly on a major interstate highway.

Our burgeoning arts, heritage and cultural activities bring new interest to our area. Recent investments in cultural tourism and legacy projects such as the Cathlapotle Plankhouse and the Confluence Project, as well as increased funding for the National Historic Reserve's interpretive programs, will help drive the industry forward.

The revitalization of many of our downtowns, coupled with potential waterfront developments in Vancouver and east Clark County, will continue to have a positive impact on tourism as well.

Gas prices and consumer confidence will influence travel and tourism spending in Clark County this year, but all indications are that our region's growth will outpace the national forecast of a 5.2 percent increase this year, pushing us well beyond the $400 million mark.

Long-term outlook

Longer term, consumer confidence and the economy as a whole will play a large role. If the national economy continues to grow, or even stabilizes, we expect convention and group business to increase steadily, and leisure travel to keep pace with newly added infrastructure, attractions and recreational opportunities.

If the economy slows, the travel and tourism industry is the first to feel that pinch with reduced business travel, fewer conventions and meetings, and less travel and spending by the independent leisure traveler.

Nevertheless, hotel occupancy rates in Clark County are expected to grow by 2 percent with room rate revenue up 7.5 percent and direct travel spending reaching more than $400 million in 2008.

Completion of the Confluence Project's Vancouver land bridge will add to our cultural tourism experience.

With the Internet already the vacation planning tool of choice for today's traveler, we will see an increase in pre-packaged travel offerings available online.