Montana Strengthens Tourism Industry
May 1, 2019
MEDIA CONTACT: DAX SCHIEFFER
FOR IMMEDIATE RELEASE
406-539-1026 – dax@voicesoftourism.com
Montana Strengthens Its Tourism Economy
HELENA, MT – Tourism, a leading industry in Montana, does not grow by accident. Over time, as Montana’s economy has diversified to support a growing visitor economy, several critical milestones were first achieved. In 1987, Montana implemented a 4% lodging tax with proceeds statutorily directed to marketing promotion at the state, regional and local level along with supporting tourism assets such as Montana State Parks and the Historical Society.
In 2003 an additional 3% bed sales tax was created to support general fund operations for Montana. This spring, another milestone was met when the legislature passed SB 338 to increase the 3% tax to 4%. The funds generated from this additional 1% will be used to establish a grants program to enhance rural museums and historic sites across the state as well as providing funds to invest in Montana’s Heritage Center Museum in the Capital City. In turn, after five years when the Heritage Center renovation is complete, funds will further support important areas such as marketing promotion at the state, regional and local level and Montana State Parks.
According to the Institute of Tourism and Recreation Research, in 2018 12.2 million non-resident visitors spent $3.7 billion in Montana. Those dollars then circulate through main street businesses and support wages for nearly 60,000 jobs.
Research shows that many travelers are shifting behaviors to focus more on experiences and connections to place vs. material goods in retail. The National Trust for Historic Preservation defines cultural heritage tourism as traveling to experience the places, artifacts and activities that authentically represent the stories and people of the past and present.
Many states have taken advantage of the upward traveler trends in heritage tourism as visitors tend to stay longer and spend more money per day. Montana is rich in history with a wide range of stories from dinosaurs, tribal experiences to gold rushes and Copper Kings. These stories can be enhanced by the Montana Historical Society and its member communities across the state with this additional support.
Not only are there significant economic benefits from this segment of the visitor economy, but heritage tourism also strengthens engagement and can be a differentiating factor unique to Montana and not available with other vacations. The heritage traveler enjoys learning new things which they then will value and will want to care for it. Generally speaking, when travelers connect to an area, they are also more apt to speak positively of the experience to friends and family generating future visitors.
Voices of Montana Tourism serves as a united voice for Montana’s tourism stakeholders. Since its creation in 2011, Voices has led the effort with education and outreach to communicate the immense value a sustainably-grown tourism industry provides for all Montanans.
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Non-Resident Visitors Spent $3.7 Billion in 2018
UM Report: Visitors Spent $3.7B in Montana Last Year
Full report: https://scholarworks.umt.edu/itrr_pubs/385/
MISSOULA – Last year, 12.4 million out-of-state visitors contributed over $3.7 billion in travel spending to Montana’s economy, according to a recent report from the Institute for Tourism and Recreation Research at the University of Montana.
The latest report finalizes preliminary estimates from January with new fourth-quarter tourism data. The new data showed that Montana tourism in the summer months generated more than half of the year’s tourism dollars. Forty-six percent, or 5.7 million visitors, traveled to Montana in the third quarter of the year, July through September, and spent 52% of the $3.7 billion. Travel groups spent an average of $156 per day, for a total of $1.9 billion during the summer months.
During the first and second quarters of 2018, traveler groups spent an average of $161 and $135 per day, respectively, totaling $440 million and $853 million in spending. Fourth quarter spending in 2018 totaled $499 million, with traveler groups spending $130 per day on average.
Visitation to Montana was down 1% in 2018, though spending in the state increased nearly 11% overall.
“It’s really a nice overall picture for the year, with the number of travelers holding nearly steady, but we had over a 10 percent increase in what the state’s visitors spent while they were here,” said Kara Grau, ITRR assistant director of economic analysis.
Visitors spend most on fuel, dining out and lodging according to Grau.
“Even travelers just passing through Montana make stops for fuel, food and possibly a night or two as they make their way through the state, not to mention those here for longer vacations, so it’s no surprise that spending on those things always tops the list,” Grau said.
Tourist spending on outfitted and guided activities has increased over the past few years, surpassing retail spending by travelers to become fourth on the list of spending categories.
Grau said this jump can be attributed to a shift in tourists valuing experiences over things.
“We saw a bit of an increase in the proportion of vacationers compared to 2017, along with a decrease in the proportion of travelers in Montana simply passing through,” says Jeremy Sage, ITRR economist and associate director. “That, along with a good 2017-18 ski season, likely bolstered traveler spending during the year.”
In 2018, out-of-state travelers directly supported nearly $3.2 billion in economic activity for Montana and over 43,000 state jobs, as well as indirectly supporting an additional $2.1 billion in economic activity and more than 16,200 jobs.
For more information about 2018 visitor spending estimates, visit https://scholarworks.umt.edu/itrr_pubs/385/. All information and reports published by ITRR are online at http://www.itrr.umt.edu.
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Explore Indian Country – New Guide Book Available
INDIAN COUNTRY
There is great diversity among the twelve tribes located in Big Sky Country in their languages, rituals, histories and governments. Each tribe has a distinct and unique cultural heritage that contributes to modern Montana. Indigenous languages and traditions are alive and well throughout Indian Country, where visitors are welcome to experience the varied customs of each tribe.
Click here to download the full guide.