Arizona tourism indicators: quarterly newsletter of research and strategic planning

              www.azot.com 1
S p r i n g
2 0 0 3
A r i z o n a T o u r i s m
I n d i c a t o r s
Statewide Lodging Performance 3
Tourism Revenues 5
Airport Passenger Traffic 5
State Park Visitation 6
National Park Visitation 7
Research Notes 8
Summer Leisure Travel 1
Family Travel Study 1
County Lodging Performance 4
A r i z o n a T o u r i s m
I n d i c a t o r s
A quarterly newsletter of research and strategic planning
According to the Travel Industry
Association of America (TIA),
Americans will take 275.4 million
leisure trips during June, July, and
August 2003, an increase of 2.5 percent
over last summer. Auto travel will
continue to be the favorite mode of
transportation, with more Americans
staying closer to home and planning
more frequent but shorter trips,
primarily with friends and family.
Air travel will be up about 1
percent this summer, and auto travel
will continue to be strong, up more
than 2 percent. RV travel also is likely
to remain very strong this summer.
The Recreational Vehicle Industry
Association reports that 71 percent of
RV owners expect to travel more this
summer than they did last year.
Summer 2003 might also be termed
the “family summer”. Trips with
children will be more popular this year,
with 43 percent of travelers taking their
kids on their longest trip (6+ days),
compared to 31 percent in 2002. Six
percent will take grandchildren with
them, compared to 4 percent last
summer. When asked whom they
would be traveling with this summer,
65 percent of survey respondents said
they will take their spouse, 43 percent
are taking their children, 25 percent are
traveling with friends, and 22 percent
are traveling with other family
members.
Scenic drives, the beach and
visiting friends and relatives will be the
most popular summer activities.
Consumers still favor the all-American
road trip, with 70 percent of travelers
says they plan to take a drive along a
scenic road. Going to a beach or lake
2 0 0 3 S u m m e r L e i s u r e T r a v e l
Continued on Page 2
Family vacations continue to be a
strong segment in the leisure travel
industry. According to the Meredith
Family Vacation Study 2002, an
estimated 86.3 million American adults
took a family vacation in 2002, a slight
increase from 2001. The number of
trips that included vacation travel with
children under 18 remained relatively
stable (56%) compared to 2001.
Indeed, most families (74%) with
children under 18 in their household
traveled with them on at least one trip
in 2002, similar to 2001. Baby
F a m i l y V a c a t i o n T r a v e l 2 0 0 2
Continued on Page 2
Boomers (aged 38 to 56 years)
comprised the largest share of family
vacationers, and, along with
Generation X (aged 25 to 37), were
among the most likely to take a family
vacation in 2002.
Female heads of household tended
to come up with the idea to take a
family vacation and carry the
responsibility for collecting travel
information, but male and female
heads of household both tended to
make the final destination decision. In
a major change from previous studies,
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R e s e a r c h N e w s U p d a t e
A r i z o n a T o u r i s m I n d i c a t o r s
Continued from Page 1
is the second most popular activity
(67%), tied with visiting friends and
relatives (67%). Other popular activities
planned are visiting cities/urban areas
(60%), visiting a small town or rural
area (59%), visiting national parks or
forests (49%), and going to historic sites
(45%). Traveling close to home (37%);
camping, hiking, or climbing (36%);
visiting museums (35%); fishing (34%);
and visiting theme parks (33%) are all
on summer travelers’ agendas.
Source: Travel Industry Association of America, May 2003. Recreational Vehicle Association of America, May 2003.
Biosphere 2, Oracle, Arizona
more than half (58%) of family
vacationers indicated that they decided
within a month or less on where they
would travel. “That means it is
imperative for you to get information
to them as fast as you can, ideally
through the Internet,” says Jaye
O’Donnell, Integrated Marketing
Director at the Arizona Office of
Tourism. According to the Meredith
Study, the Internet is the top source of
travel information for a vacation
planner, with six of 10 families citing
the World Wide Web as their primary
source of information. Nearly half
(49%) booked a trip on the Internet.
Nine in ten family travelers rate
“value for the money” and “offering a
variety of things to do,” as important
factors in choosing their travel
destination. Nearly all travelers (90%)
with kids at home rate “activities
designed for children” as important.
Most families (70%) took their
recent vacation using their own
auto/truck; one in five (19%) traveled
by air. Not surprisingly, short trips
were much more likely to be taken by
auto/truck (80% vs. 58%) than long
trips (6+ nights), and long trips were
more likely than short trips to include
air travel (27% vs. 11%).
2002
Average Age 43 years
Married Couples 68%
3+ Persons in Household 56%
Average Annual Household Income $69,000
Average Length of Stay 6.5 nights
Total Spending Per Trip $1,131
Auto Travel 70%
Family Vacationer Profile
Family Travel Continued from Page 1
Source: The Meredith Family Vacation Study 2002. Meredith Magazines and Travel Industry Association of America, 2003.
In 2002, family vacationers took 2.6
vacations per year, on average, and
spent 6.5 overnights per trip. Nearly
half (46%) stayed in hotels, motels, and
B&Bs on a recent trip; 43 percent stayed
with friends and family. The average
spending per trip was $1,131, up slightly
from 2001 ($1,115).
Visiting cities (54%) and small
towns/rural areas (50%) are the most
popular for family vacations, followed
by visiting historical sites (46%),
ocean/beaches (46%), science
center/zoo/aquarium (40%), and theme
parks (36%).
Lake Powell
“Other popular activities
planned are visiting cities/
urban areas (60%), visiting
a small town or rural area
(59%), visiting national
parks or forests (49%),
and going to historic sites
(45%).”
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Arizona’s statewide lodging
performance showed signs of recovery
during the first quarter of 2003, with
statewide occupancy at 66.8%, up from
65.1% a year ago. The state continues
to outperform the nation in occupancy.
The nation’s occupancy rate declined
-1.1 percent, while Arizona’s grew 2.6
percent. In Arizona, room rates fell
slightly (-0.5%) to an average of $100.55
per night for the nearly 100,000 rooms
across the state. Statewide lodging
managed to increase RevPAR, a key
performance measure affected by
occupancy and rates, to $67.17, up from
$65.77 last year.
S t a t e w i d e L o d g i n g P e r f o r m a n c e
A r i z o n a T o u r i s m I n d i c a t o r s
Monthly Statewide Occupancy Rates
50%
70%
90%
Occupancy Levels
2003 58.3% 70.1% 72.8%
2002 55.0% 66.7% 73.8%
January February March
Monthly Average Daily Rate
$90
$100
$110
Rates
2003 $95.30 $103.58 $102.12
2002 $96.19 $103.72 $102.62
January February March
Metro Phoenix showed some
resiliency in the first quarter.
Occupancy rates increased to 72.4%, up
from 69.6% in 2002. Area hotels
average daily rates fell slightly (-1.0%)
to $116.99, down from $118.22 last
year. The increase in occupancy led to
an increase in RevPAR to $84.68, up
from $82.25 last year. The Metro
Phoenix area performed well given the
arrival of 2,200 resort rooms to the
market.
Metro Tucson also showed growth
in overall demand (2.7%) and
occupancy rates (2.5%) in the first
quarter of 2003, but were challenged
with declining daily rates. Occupancy
rates were at 72.6 percent, up from 70.8
percent in 2002, but the average daily
rate of Tucson area hotels fell nearly 5
percent, from $100.65 in 2002 to $95.75
in 2003. This drove RevPAR down to
$69.51 from $71.25 in the same period
in 2002.
Outside the metro areas of Phoenix
and Tucson, state hotels experienced a
slight decline (-1.3%) in occupancy rates
over the first quarter of 2003, but
average daily rates held at or above last
year’s levels. Occupancy in non-metro
Arizona hotels was at 52.9 percent,
down from 53.6 percent in 2002.
Average daily rates went to $59.70, up
from $59.11 in 2002.
Source: Smith Travel Research
Source: Smith Travel Research
Miraval, Tucson
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S t a t e w i d e L o d g i n g P e r f o r m a n c e
A r i z o n a T o u r i s m I n d i c a t o r s
Source: Smith Travel Research
N/A: Not Available
Occupancy Average Daily Rate RevPAR Demand Supply
2003 % Change 2003 % Change 2003 % Change 2003 % Change 2003 % Change
United States 54.7% -1.0% $84.72 -0.5% $46.35 -1.6% 215.8 mil 0.5% 394.5 mil 1.6%
Mountain Region 59.9% -0.2% $94.33 -1.9% $56.46 -2.2% 28.2 mil 0.9% 47.2 mil 1.2%
State of Arizona 66.8% 2.6% $100.55 -0.5% $67.17 2.1% 5.9 mil 5.0% 8.5 mil 2.3%
Metro Phoenix 72.4% 4.0% $116.99 -1.0% $84.68 3.0% 3.62 mil 8.0% 5.00 mil 3.8%
Metro Tucson 72.6% 2.5% $95.75 -4.9% $69.51 -2.4% 945,701 2.7% 1.302 mil 0.1%
Non-Metro AZ 59.2% -1.3% $59.70 1.0% $31.57 -0.3% 1.34 mil -1.0% 2.54 mil 0.4%
County Lodging Performance
Quarter 1 2003
Occupancy Room Rate RevPAR Demand Supply
Apache n/a n/a n/a n/a n/a
% Change n/a n/a n/a n/a n/a
Cochise 69.8% $50.85 $35.48 145,399 208,390
% Change -2.6% -1.5% -4.1% -2.8% -0.2%
Coconino 42.7% $50.97 $21.76 392,103 918,313
% Change 2.9% -2.9% 0.0% 2.1% -0.8%
Gila 52.4% $51.43 $26.94 47,801 91,260
% Change -6.6% -2.1% -8.5% -6.5% 0.1%
Graham 53.4% $56.82 $30.35 18,173 34,020
% Change -1.7% 2.9% 1.2% -1.7% 0.0%
Greenlee n/a n/a n/a n/a n/a
% Change n/a n/a n/a n/a n/a
La Paz n/a n/a n/a n/a n/a
% Change n/a n/a n/a n/a n/a
Maricopa 72.9% $123.41 $89.91 3,539,594 4,858,193
% Change 5.2% -0.7% 4.4% 9.4% 4.1%
Mohave 68.9% $48.09 $29.73 232,245 375,727
% Change -3.8% 4.7% -1.2% -5.6% 0.0%
Navajo 46.5% $57.31 $26.64 122,232 262,947
% Change 2.4% 4.9% 7.5% 2.8% 0.4%
Pima 72.6% $97.77 $71.00 946,866 1,303,926
% Change 1.7% -1.5% -1.4% 1.9% 0.1%
Pinal 71.9% $59.95 $43.09 100,883 140,341
% Change -2.8% 2.1% -0.8% -2.9% 0.0%
Yavapai 56.8% $85.23 $48.41 233,522 411,122
% Change -0.2% 0.3% 0.1% -0.2% 0.0%
Yuma 80.1% $61.41 $49.17 169,916 212,220
% Change -0.2% 4.5% 4.2% -0.2% 0.0%
% Change n/a n/a n/a n/a n/a
Santa Cruz n/a n/a n/a n/a n/a
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A r i z o n a T o u r i s m R e l a t e d T a x R e v e n u e s
In the first quarter 2003, tourism sectors
(lodging, restaurant/bar, retail, and
amusements) generated more than $110
million in tax revenue, a 3 percent increase
over the same three-month period in 2002.
The increase was driven by strong
hotel/motel and restaurant/bar sales, which
managed 4.3 percent and 3.1 percent growth,
respectively. Tourism-related retail sales also
showed improvement over last year with
nearly $60 million in tax revenues, a 2.5
percent increase over last year. The smallest
sector, amusements, recorded a small decline
of 2.4 percent in sales relative to the first
quarter 2002.
A r i z o n a T o u r i s m I n d i c a t o r s
A r i z o n a A i r p o r t P a s s e n g e r T r a f f i c
2003 2002 % Change
January $34,497,064 $33,098,911 4.2%
February $36,271,017 $35,585,330 1.9%
March $41,529,276 $40,355,333 2.9%
1st Quarter Total $112,297,357 $109,039,574 3.0%
Arizona Tourism Related Tax Revenues — 1st Quarter
2003 2002 % Change
Grand Canyon 100,012 88,759 12.7%
Phoenix Sky Harbor 9,052,862 8,418,409 7.5%
Tucson International 934,567 906,309 3.1%
Yuma International 32,262 29,913 7.9%
Arizona Airport Passenger Traffic — 1st Quarter
1st Quarter Total 10,119,703 9,443,390 7.2%
More than 10 million passengers passed
through Arizona’s airports in the first quarter
of 2003, an increase of 7.2 percent over the
same period in 2002, signaling a slight
recovery from the lingering effects of 9/11 and
the economic slowdown that have plagued the
airline industry for nearly two years.
Improving month by month, all of
Arizona’s airports are showing positive gains
in the first three months of 2003. Sky Harbor
International Airport welcomed just over 9
million of those passengers, recording a 7.5
percent increase over the 8.4 million
passengers received in the first quarter of 2002.
Tucson International also recorded positive
growth in passenger traffic with nearly 1
million enplanements and deplanements, a 3.1
percent increase from last year. Yuma
International and the Grand Canyon airports
also showed positive signs with increases of
7.9 percent and 12.7 percent, respectively.
Monthly Airport Passenger Traffic
Percent Change from Previous Year
7.2%
10.6%
14.6%
0%
10%
20%
January February March
Calendar Year
Percent Change
2003 2002 % Change
Lodging $29,452,175 $28,579,235 3.1%
Restaurant/Bar $23,729,914 $22,744,593 4.3%
Retail $58,281,215 $56,861,186 2.5%
Amusement $834,053 $854,560 -2.4%
1st Quarter Total $112,297,357 $109,039,574 3.0%
Tourism Related Tax Revenues — 1st Quarter
Source: Arizona Department of Revenue
Source: Activity reports provided by airports
Tourism sectors as defined by the Tourism Economic Impact
Model (TEIM) developed by the Travel Industry Association
of America, and adapted for Arizona by Northern Arizona
University, include: lodging, restaurant/bar, retail, and
amusements. TEIM model produced the following
percentages, which are used to figure gross sales attributable to
tourism: lodging (95%), restaurant/bar (23.62%), retail
(10.91%), and amusements (6.43%).
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Arizona’s 28 state parks welcomed
more than a half million visitors in the
first quarter of 2003. The most visited
parks were:
A r i z o n a S t a t e P a r k s V i s i t a t i o n
A r i z o n a T o u r i s m I n d i c a t o r s
2003 2002 % Change
January 140,973 150,576 -6.4%
February 156,091 185,705 -15.9%
March 244,622 299,781 -18.4%
1st Quarter Total 541,686 636,062 -14.8%
All Arizona State Parks Visitation — 1st Quarter
Arizona State Parks Visitation — 1st Quarter
2003 2002 % Change
All Parks 541,686 636,062 -14.8%
Alamo Lake (R) 23,523 33,549 -29.9%
Boyce Thompson (C) 30,649 41,989 -27.0%
Buckskin Mountain (R) 24,890 28,093 -11.4%
Catalina (R) 50,469 50,060 0.8%
Cattail Cove (R) 22,801 25,957 -12.2%
Dead Horse Ranch (R) 26,231 28,288 -7.3%
Fool Hollow Lake (R) 3,009 5,317 -43.4%
Fort Verde (H) 3,434 4,080 -15.8%
Homolovi (R) 3,047 3,124 -2.5%
Jerome (H) 11,524 16,570 -30.5%
Kartchner Caverns (C) 54,043 56,785 -4.8%
Lake Havasu (R) 47,717 62,718 -23.9%
Lost Dutchman (R) 38,933 40,386 -3.6%
Lyman Lake (R) 1,368 2,064 -33.7%
McFarland (R) 1,936 1,792 8.0%
Oracle 1,908 3,208 -40.5%
Patagonia Lake (R) 36,304 43,045 -15.7%
Picacho Peak (R) 31,421 36,797 -14.6%
Red Rock (C) 16,325 16,381 -0.3%
Riordan Mansion (H) 3,396 3,926 -13.5%
Roper Lake (R) 10,733 14,322 -25.1%
Slide Rock (R) 22,184 24,908 -10.9%
Tombstone Courthouse (H) 18,210 25,057 -27.3%
Tonto Natural Bridge (R) 15,062 19,579 -23.1%
Tubac Presidio (H) 7,479 9,978 -25.0%
Yuma Crossing (H) 5,206 6,226 -16.4%
Yuma Prison (H) 29,884 31,863 -6.2%
Source: Arizona State Parks
Source: Arizona State Parks, R: Recreation, H: Historic, C: Conservation
1. Kartchner Caverns State Park® (54,043)
2. Catalina State Park (50,469)
3. Lake Havasu State Park (47,717)
4. Lost Dutchman State Park (38,933)
5. Patagonia Lake State Park (36,304)
For the first three months of the
year, visitation was down nearly 15
percent, with only two parks, Catalina
(0.8%) and McFarland (8.0%) showing
increases in total visitation compared to
the same period last year. Northern
Region parks experienced visitation
declines of 15.1 percent, Southern
Region parks were down 12.8 percent,
and Western Region parks visitation
was down 19.5 percent.
When grouped by type of park,
Arizona’s state historic parks showed
the deepest decline in visitation at 24.3
percent, while recreational/camping
parks experienced a visitation decline of
14.5 percent, and the three
conservation parks—Kartchner
Caverns, Boyce Thompson Arboretum,
and Red Rock State Park—saw
visitation fall by 12.3 percent.
Slide Rock, Sedona
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Arizona’s national parks,
monuments, historic sites and
recreation areas welcomed more than 2
million recreational visitors in the first
quarter of 2003. The most visited areas
were:
A r i z o n a N a t i o n a l P a r k s V i s i t a t i o n
A r i z o n a T o u r i s m I n d i c a t o r s
2003 2002 % Change
January 560,431 536,593 4.4%
February 579,012 577,962 -0.2%
March 872,598 937,312 -6.9%
1st Quarter Total 2,012,041 2,051,867 -1.9%
All Arizona National Parks Visitation — 1st Quarter
Arizona National Parks Visitation — 1st Quarter
2003 2002 % Change
All Arizona Parks 2,012,041 2,051,867 -1.9%
Canyon de Chelly NM 171,957 148,179 16.0%
Casa Grande NM 38,970 40,090 -2.8%
Chiricahua NM 17,235 26,428 -34.8%
Coronado NM 23,466 24,290 -3.4%
Fort Bowie NHS 3,331 3,406 -2.2%
Glen Canyon NRA 134,460 148,835 -9.7%
Grand Canyon NP 578,989 584,697 -1.0%
Hubbell Trading Post NHS 31,641 40,205 -21.3%
Lake Mead NRA 261,238 250,487 4.3%
Montezuma Castle NM 152,181 167,495 -9.1%
Navajo NM 5,794 5,685 1.9%
Organ Pipe Cactus NM 104,799 113,645 -7.8%
Petrified Forest NP 82,991 99,506 -16.6%
Pipe Spring NM 9,438 8,998 4.9%
Saguaro NP 254,881 240,007 6.2%
Sunset Crater Volcano NM 22,841 28,170 -18.9%
Tonto NM 20,600 23,981 -14.1%
Tumacacori NHP 17,824 17,644 1.0%
Tuzigoot NM 29,236 28,864 1.3%
Walnut Canyon NM 13,905 17,694 -21.4%
Wupatki NM 36,264 33,561 8.1%
Source: National Parks Service
Source: National Parks Service, NP: National Park, NM: National Monument, NHS: National Historic Site,
NRA: National Recreation Area, NHP: National Historic Park
1. Grand Canyon NP (578,989)
2. Lake Mead NRA (261,238)
3. Saguaro NP (254,881)
4. Canyon de Chelly NM ( 171,957)
5. Montezuma Castle NM (152,181)
In the first three months of 2003,
visitation for all Arizona parks was
down nearly 2 percent compared to the
same period last year. Eight of the
parks show positive gains in visitation;
the greatest increases were seen at
Canyon de Chelly National Monument
(+16.0%), Wupatki National
Monument (+8.1%), and Saguaro
National Park (+6.2%). Thirteen parks
experienced declines in visitation in the
first quarter, with the greatest decline at
Chiricahua National Monument
(-34.8%).
Grand Canyon National Park, the
crown jewel of the national park
system, welcomed more than a half
million visitors in the first quarter of
2003. Visitation to the park was up in
January (10.6%) and February (0.4%),
but down in March (-7.2%). Overall
visitation for the quarter showed a
slight decline of 1 percent.
Arizona’s three national parks—
Grand Canyon, Petrified Forest, and
Saguaro—collectively experienced a
slight decline of -0.8 percent, while
visitation at the 12 national monuments
fell 3.1 percent from the previous year.
The most dramatic change in
visitation during the first quarter came
at the state’s two national historic sites,
Fort Bowie and Hubbell Trading Post,
whose visitation collectively fell nearly
20 percent. Arizona’s two national
recreation areas, Glen Canyon and
Lake Mead also experienced a slight
decline (-0.9%), while the state’s only
national historic park, Tumacacori, saw
a slight increase (1.3%) in visitation.
Canyon de Chelly NM
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R e s e a r c h N o t e s
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Phoenix, Arizona 85007
Phone: 602-364-3700
Fax: 602-364-3701
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A r i z o n a O f f i c e o f T o u r i s m
Arizona Tourism Indicators is a publication of the Research and
Strategic Planning Division of the Arizona Office of Tourism
Margie Emmermann, Director
Janet Woolum, Director, Research and Strategic Planning
Jennifer Pound, Research Manager
The Arizona Office of Tourism (AOT) is an equal employment opportunity
agency. If you need this publication in an alternative format, please contact
the ADA Coordinator at the AOT, (602) 364-3718 for more information.
AOT’s Research Division has
developed an annual “AZ Tourism Market
Research Series” in an effort to disseminate
important information to industry partners
and strategic alliances. The series will allow
Arizona destination marketing
organizations (DMOs) to integrate the
most current and reliable market research
into their own tourism promotion and
development efforts. Session topics will be
chosen to address a variety of current
issues related to targeted tourism
marketing, such as visitor profiling for
target marketing, consumer travel trends
and behaviors, and destination web site
usage trends.
The first session is scheduled for
Wednesday, July 9, 2003,
10:00am-12:00pm. For more
information please contact:
Jennifer Pound
Research Manager
Arizona Office of Tourism
research@azot.com
602-364-3716
AZ Tourism Research Series
H  27% of those polled said they planned to vacation close to home this year
H  82% said they try to negotiate the best hotel rates when making reservations
H  75% said they want to go someplace new
H  54% of their vacations last year were for four days or less, and included a Saturday
H  63% of business travelers did at least some of their travel planning online
H  57% of leisure travelers did at least some of their travel planning online
Yesawich, Pepperdine, Brown & Russell survey of 2,800 leisure travelers conducted March 24-26, 2003
H  68% of those polled said they had not changed their leisure travel plans since the beginning of the year
H  40% said personal economic conditions was the reason they had changed their leisure travel plans
H  86% said they planned to take as many or more leisure trips in 2003
H  96% said they would take as many or more leisure trips by car in 2003
H  96% said they would take as many or more getaway (1-3 nights) in 2003
H  79% said they were more interested in relaxation vacations over lots of activities
NFO Plog Research online survey of 1,000 leisure travelers conducted April 30-May 7, 2003