Sportzfun.com. Source: Joseph Pine and James Gilmore, The Experience Economy, Harvard Business School Press.

Similar documents
The University of Georgia

The 2006 Economic Impact of Nebraska Wineries and Grape Growers

Technical Memorandum: Economic Impact of the Tutankhamun and the Golden Age of the Pharoahs Exhibition

THE ECONOMIC IMPACT OF BEER TOURISM IN KENT COUNTY, MICHIGAN

The Economic Impact of Wine and Grapes in Lodi 2009

Results from the First North Carolina Wine Industry Tracker Survey

ECONOMIC IMPACTS OF THE FLORIDA CITRUS INDUSTRY IN

How Rest Area Commercialization Will Devastate the Economic Contributions of Interstate Businesses. Acknowledgements

THE ECONOMIC IMPACT OF MODEL WINERIES IN TEXAS. Industry Report

2016 STATUS SUMMARY VINEYARDS AND WINERIES OF MINNESOTA

The University of Georgia

McDONALD'S AS A MEMBER OF THE COMMUNITY

The University of Georgia

THE ECONOMIC IMPACT OF THE WINE AND GRAPE INDUSTRY IN CANADA 2015

ECONOMIC IMPACT OF LEGALIZING RETAIL ALCOHOL SALES IN BENTON COUNTY. Produced for: Keep Dollars in Benton County

ECONOMIC IMPACT OF WINE AND VINEYARDS IN NAPA COUNTY

THE NORTHEAST OHIO GRAPE & WINE ECONOMIC IMPACT STUDY

THE ECONOMIC IMPACT OF WINE AND WINE GRAPES ON THE STATE OF TEXAS 2015

The Economic Impact of the Craft Brewing Industry in Maine. School of Economics Staff Paper SOE 630- February Andrew Crawley*^ and Sarah Welsh

Economic Contributions of the Florida Citrus Industry in and for Reduced Production

An Examination of operating costs within a state s restaurant industry

The Economic Contribution of the Colorado Wine Industry

Economic and Fiscal Impacts of LiftFund:

THE ECONOMIC IMPACT OF WINE AND WINE GRAPES ON THE STATE OF VIRGINIA 2015

Rural Vermont s Raw Milk Report to the Legislature

Re: Winery-Vineyard Economic Impacts

WE DELIVER A Comprehensive Economic Impact Study of the U.S. Foodservice Distribution Industry.

EXECUTIVE SUMMARY OVERALL, WE FOUND THAT:

Consumer Demand for Pecans Future, Challenges, Opportunities - Some Thoughts from an Economist

The Economic Impact of Grapes, Grape Juice and Wine on the New York Economy, 2008 Prepared for the New York Wine and Grape Foundation

A Presentation of the Primary Research on Visitation to Wine Festivals and Wineries in British Columbia

Commercial Crawfish Fishing in the Gulf of Mexico States

ECONOMIC IMPACTS OF WINE TOURISM IN MICHIGAN

Harvesting Charges for Florida Citrus, 2016/17

Informing Wineries Tourism Decisions: Studies of Tasting Room Visitors and Wine Tourism Collaboration

Economic Contribution of Vineyards and Wineries of the North, 2015

THE ECONOMIC IMPACT OF NORTH CAROLINA WINE AND WINE GRAPES 2013

Oregon 2013 Regional Visitor Report Willamette Valley

TYPE II LAND USE APPLICATION Winery Events Special Use Permit

OKANAGAN VALLEY WINE CONSUMER RESEARCH STUDY 2008 RESULTS

Peet's Coffee & Tea, Inc. Reports 62% Increase in Second Quarter 2008 Diluted Earnings Per Share

DELIVERING REFRESHING SOFT DRINKS

2017 FINANCIAL REVIEW

THE ECONOMIC IMPACT OF NORTH CAROLINA WINE AND WINE GRAPES 2016

Agricultural Exports, Economic Prospects and Jobs

THE ECONOMIC IMPACT OF NEW JERSEY WINE AND VINEYARDS 2016

DISTILLERY REPORT. Prepared for Colorado Distillers Guild

Looking Long: Demographic Change, Economic Crisis, and the Prospects for Reducing Poverty. La Conyuntura vs. the Long-run

STATE OF THE INDUSTRY economic impact & consumer insights Christian Miller Proprietor, Full Glass Research

Timing is Everything: The Role of Time in Fast-food and Sit-down Restaurant Behavior

YAKIMA VALLEY TOURISM ANNUAL REPORT

SEAFOOD CONSUMPTION National and Local Preferences

Vineyards and Wineries in the New England States

DEFINITIONS: Page 1 of 6 F:\DEVSVC\Planning Application Forms\ Winery or Wine Cellar Supplemental Info & Marketing Plan. Doc (Revised )

Annika Stensson. Director Research Communications National Restaurant Association Washington, D.C. Restaurant.org/Research.

THE ECONOMIC IMPACT OF INDIANA WINE AND WINE GRAPES 2016

TABLE OF CONTENTS. Page. Page

Tasting Room and Wine Club Survey 2016 Washington State Overview

Winery Property in Niagara-on-the-Lake Vineyard/Production/Retail

Use Permit Application Packet

Large-scale Accessory Winery Event. Large-scale accessory winery event is an event hosted by the on-site winery or off-site

Monterey County Ranch Johnson Canyon Road Gonzales, CA Acres

Potential Economic Impact of Cold Inspection Facility Upgrade at Mariposa Port of Entry, Nogales, AZ

PIZZA HUT & WINGSTREET

FOR LEASE RESTAURANT OPPORTUNITY 6760 MCKINLEY STREET, SUITE 120, SEBASTOPOL, CA

Ontario Wine and Grape Industry Performance Study

Summary Report Survey on Community Perceptions of Wine Businesses

Cost of Establishment and Operation Cold-Hardy Grapes in the Thousand Islands Region

HONDURAS. A Quick Scan on Improving the Economic Viability of Coffee Farming A QUICK SCAN ON IMPROVING THE ECONOMIC VIABILITY OF COFFEE FARMING

Wines of British Columbia Liberal Party of Canada s Pacific Caucus (July 19, 2016)

Submission to the Marlborough District Council Annual Plan 2016/2017

ASSESSING THE HEALTHFULNESS OF FOOD PURCHASES AMONG LOW-INCOME AREA SHOPPERS IN THE NORTHEAST

Ontario Wine and Grape Industry Performance Study

The Contribution made by Beer to the European Economy. Poland - January 2016

Please see Section IX. for Additional Information:

The Incidence of Greening and Canker Infection in Florida Citrus Groves from September 2007 through August

Yielding Returns for Greater Profitability for your Wine Country Business

Whether to Manufacture

HOUSE COMMITTEE ON APPROPRIATIONS FISCAL NOTE. HOUSE BILL NO. 466 PRINTERS NO. 521 PRIME SPONSOR: Turzai

South Napa Century Center

The Economic Impact of Napa County s Wine and Grapes, 2016

Economic Losses from Pollution Closure of Clam Harvesting Areas in Machias Bay

AIC Issues Brief. The Availability and Cost of Healthier Food Items Karen M. Jetter and Diana L. Cassady 1. Agricultural Issues Center

Characteristics of Wine Consumers in the Mid-Atlantic States: A Statistical Analysis

2018 Vineyard Economics Survey

ETHIOPIA. A Quick Scan on Improving the Economic Viability of Coffee Farming A QUICK SCAN ON IMPROVING THE ECONOMIC VIABILITY OF COFFEE FARMING

The Economics Surrounding Premium Wine Production

2015 ONTARIO GRAPE + WINE INDUSTRY

EZ Stop N Save Convenience Stores

Perspective of the Labor Market for security guards in Israel in time of terror attacks

BC WINE INDUSTRY BENCHMARKING

To successfully select and promote a retail product after careful analysis of the customer population, meeting forecasted sales goals and providing

Consumer and Market Insights Symposium James Omond Lawyer & trade mark attorney, Omond & Co Board Member, Wine Victoria and WFA

rom Texas Vineyards to the Final Consumer: n Economic Impact Analysis

Missouri Specialty Crop Survey

Sample. TO: Prof. Hussain FROM: GROUP (Names of group members) DATE: October 09, 2003 RE: Final Project Proposal for Group Project

Timothy E. Martinson Area Extension Educator Finger Lakes Grape Program Cornell Cooperative Extension

Economic Contributions of the Florida Citrus Industry in

Uniform Rules Update Final EIR APPENDIX 6 ASSUMPTIONS AND CALCULATIONS USED FOR ESTIMATING TRAFFIC VOLUMES

North America Ethyl Acetate Industry Outlook to Market Size, Company Share, Price Trends, Capacity Forecasts of All Active and Planned Plants

Transcription:

National Extension Tourism Conference Park City, Utah Center for Agribusiness and Economic Development June 15 th, 2009 or Agribusin siness and Econ onomic Deve Center fo velopment

What does Agritourism Have to provide? Sportzfun.com The Experience Economy Experiences must provide a memorable offering that will remain for a long time Source: Joseph Pine and James Gilmore, The Experience Economy, Harvard Business School Press.

What do you think of when you hear Nature Based Tourism in Georgia?

Fishing

Hunting

Georgia Agritourism We have Identified d over 650 agritourism/nature i based tourism operations in Georgia. Contributes to over $100,000,000 million annually Cut/Pick your Own (124) Alligator farm Butterfly farm Clam farm Bees Winery (24) Petting Zoo Maze (20) P-Y-O (209) Equine (35) Hunting /Fishing (250) Ham processing facility (1) Historic Farm structures

Impact of Georgia Wineries

Background Information Georgia s wine industry began in late 1970 s and early 1980 s. Georgia currently has 24 wineries scattered throughout the state, many of them primarily located in the northeastern Georgia. - This is known as the North Georgia Wine Highway. Two distinct regions demarcation is the GNAT line Northern region above gnat line Southern region below gnat line Pierce s disease prevents lower elevations from growing viniferous grapes. Generally, Georgia s northern wineries i produce more traditional vinifera wine in addition to muscadine wine, whereas the wineries in the southern region of the state generally produce wine and other products derived from muscadines or other fruits. Increased wine consumption combined with growth in agritourism is expected to lead to a doubling of wineries across the state over the next 10 years. According to the Georgia Farm Gate Fruits and Nuts Report, Georgia had 689 acres of wine/juice grapes in 2007 with a total value of $3,102,349 (Boatright and McKissick 2008).

What We Did The Center for Agribusiness and Economic Development (CAED) conducted two surveys in the summer and fall of 2008 to obtain detailed information on wineries and winery visitors.

Surveys The first survey, entitled Georgia Winery Survey, - collected detailed operating cost data as well as sales data (winery, gift shop, restaurants, etc ) Asecondsurvey survey, Georgia Winery Visitor Survey, - collected detailed expenditure and demographic data..

Winery Survey Methodology 24 wineries i registered with the State- had 25 but??? Personal visits and phone calls were made to all 24 wineries to explain the study objectives and to try to ensure participation. Wineries were mailed a copy of the Georgia Winery Survey. Wineries were mailed packet of 50 visitor surveys - the packet contained a business reply envelope which allowed the wineries to return the Georgia Winery Survey to the CAED at no cost. Wineries that did not return phone calls and those who failed to respond to emails were given two follow up phone calls a week later. A total of 17 wineries responded to the survey. Incomplete or surveys missing critical data were followed-up with a call in an attempt to capture this information.

Data The Georgia Winery Survey began on July 9, 2008 and ended on October 26, 2008. A total of 17 Georgia wineries completed surveys. A total of 248 Georgia Winery Visitor Surveys were completed by visitors. The Georgia Winery Survey started on June 27, 2008 and ended on October 24, 2008. Eight Wineries participated in this survey.

Visitor Information 84% were Georgia residents Average party size was 2.7 people 56% percent of visitors were at the winery as part of a trip to the area 58% were e spending the night in the area Spend an average of 3 days in the area On average spend $49 in the area per person daily.

Distance Winery Visitors Traveled Miles Percentage 0-50 32.4 50-100 33.2 100-500 24.8 500-1000 7.6 1000-2000 1.3 Over 2000 0.9 The majority of visitors (81.8%) travel 100 miles or less to visit the wineries.

Attractions That Draw Visitors to the Area Other than the Winery Reason for Visiting Winery Percentage Georgia Resident Non-Georgia Resident All Visitors Primary Reason 47.1 25.0 44.0 Secondary Reason 52.9 75.0 56.0 Attraction Percentage Scenery 26.7 Outdoor recreation/ Camping 26.7 Events 24.4 Culture 17.8 Other 4.4

Winery Survey data Variable All GA NGWH Non-NGWH Number of Wineries Surveyed 17 10 7 Years in Operation Mean 6.9 9.2 6.6 Median 50 5.0 60 6.0 45 4.5 Experience Seasonality Yes 94% 100% 87% No 6% 0% 13% Seasonal Traffic Patterns Summer 23% 29% 19% Fall 37% 38% 36% Winter 20% 11% 27% Spring 19% 22% 18% Annual Visitors it Mean 9,863 35,943 15,271 Median 4,639 8,000 3,500

Visitor Percentage by Category All NGWH Non-NGWH Winery visitors 70% 68% 73% Special event visitors 14% 17% 10% Gift shop visitors 9% 0% 17% Restaurant visitors 7% 15% 0% Lodging g or other amenities 0% 0% 0%

Retail Wine Sales and Production Pi Price Ranges All NGWH Non-NGWHNGWH Less than $10 per bottle 12% 0% 24% $10 - $15 per bottle 42% 26% 58% $16 - $25 per bottle 35% 53% 18% Above $25 per bottle 11% 21% 0% Production Capability for Maximum Number of Cases (Annually) Mean 6,418 7,625 5,954 Median 5,000 6,250 5,000 Georgia wineries range in production capacity from 675 to 18 000 cases Georgia wineries range in production capacity from 675 to 18,000 cases produced annually.

Future Plans More Agritourism Category All NGWH Non-NGWHNGWH Lodging or other amenities 33 38 29 Bottling equipment 26 25 15 Retail facility (wine tasting and retail) 23 14 33 Restaurant facility 21 26 14 Event facility 20 13 29 Wine storage equipment 18 19 17 Acreage devoted to grapes 17 4 33 Wine processing equipment 8 21 10 Gift shop facility 7 13 0

Expenses/Expenditures Number of Cases sold and total Revenue Generated What were the expenditures in your winery over the last 12 months in each of the following areas? Total employee compensations (all wages and benefits): $ Total number of employees included: # Management and administration employees: $ Number of employees included: d # Production employees : $ Number of employees included: # How much hdo you pay in property taxes for winery related operations $ This question is critical to estimating the impact of the Georgia Winery industry on the local and state economy. What is your 2007 gross revenue (total revenue for the year including wine sales and other events) for your winery? Total (including events, weddings, concerts, food service, lodging, amenities, etc): $ Events only (weddings, concerts, food service, lodging, amenities etc): $

Lodging Expenditures Dollars per Day Total Dollars Category All NGWH All NGWH Hotel/Motel 43.04 43.04 1,960,259 1,572,855 Bed & Breakfast 66.19 66.20 1,193,483 957,616 RV/Camping 16.64 16.64 126,342 101,373 Other 31.66 31.67 961,574 771,539 Friends/Relatives NA NA NA NA Total 4,241,658 3,403,383 58% of visitors surveyed indicated they were going to spend the night in the area.

Visitor Days The winery surveys were used to derive a total winery visitor population. All Georgia Wineries - 236,723 visitor days NGWH Wineries- 172,250 visitor days

Area Lodging 58% of visitors surveyed indicated they were going to spend the night in the area. Percent Visitor Days at Facility Category All NGWH All NGWH Hotel/Motel 33.3 34.3 45,548 36,547 Bed & Breakfast 13.2 13.6 18,030 14,466 RV/Camping 5.6 5.7 7,591 6,091 Other 22.2 22.9 30,365 24,364 Friends/Relatives 25.7 23.6 35,110 25,126 Total 100.0 100.0 136,644 106,594

Other Visitor Area Expenditures Other Visitor Expenditures ($/Person/Day for All Visitors) Restaurants $14 Grocery $3 Souvenirs $7 Fuel $11 Bottles of Wine $10 Entertainment $4

Other Visitor Spending Results $/Person/Day Total ($) Category All Visitors NGWH Visitors All Visitors NGWH Visitors Restaurant 13.53 13.90 3,202,917 2,394,060 Grocery 3.20 3.29 758,346 566,317 Souvenirs 6.61 6.53 1,564,392 1,125,099 Fuel 11.36 11.51 2,688,117 1,982,475 Entertainment 4.30 4.33 1,017,244 745,986 Total 9,231,016, 6,813,937,

Three Different Impacts One Grape production Two Wineries minus grape production Visitor Expenditures

Impact of Grape Production for GA Wineries Direct Indirect Total Output ($) 3,159,841 3,465,724 6,625,565 Labor Income ($) 1,706,075 1,281,004 2,987,079 Employment 57 35 92 *Value Added ($) 215,608 2,041,895 2,257,499 State Taxes ($) 160,401 Local Taxes ($) 154,613 Sum of Taxes ($) 315,014 *Value added is output minus purchase inputs, value added consists of p p p, profits, net equity exchange, and property income. Property income is a negative value in IMPLAN for fruit farming which explains why the value added component is low

Economic Impact of Georgia Wineries, Excluding Grape Production Direct Indirect Total Output ($) 11,148,881 6,736,007 17,884,883 Labor Income ($) 1,688,747 2,229,160 3,917,907 Employment 99 42 141 Value Added ($) 2,098,841 3,532,857 5,631,699 State Taxes ($) 377,998 Local Taxes ($) 363,148 Sum of Taxes ($) 741,146 *Value added is output minus purchase inputs, value added consists of profits, net equity exchange, and property income.

Economic Impact From Winery Visitors Direct Indirect Total Output ($) 13,472,674 6,807,242 20,279,916 Labor Income ($) 3,498,666 2,241,078 5,739,744 Employment 147 50 197 Value Added ($) 5,231,672 3,850,391 391 9,082,056 056 State Taxes ($) 631,750 Local Taxes ($) 545,271 Sum of Taxes ($) 1,177,021 * import substitution and exports 83 7% of respondents are Georgia residents This is import substitution and exports. 83.7% of respondents are Georgia residents. This is known as import substitution which captures the spending that would otherwise be spent in other states if Georgia wineries did not exist. The other 16.3%, which are outof-state residents, are exports. Exports capture the out-of-state visitors

Total Economic Impacts of Grape Production, Wineries, and Visitor Expenditures Grape Winery Visitor Total Output ($) 6,625,565 17,884,883 20,279,916 44,790,364 Labor Income ($) 2,987,079 3,917,907 907 5,739,744 744 12,644,730 Employment 92 141 197 430 Value Added ($) 2,257,499 5,631,699 9,082,056 16,971,254 State Taxes ($) 160,401 377,998 631,750 1,101,521101 Local Taxes ($) 154,613 363,148 545,271 1,032,640 Sum of Taxes ($) 315,014 741,146 1,177,021 2,134,161

Multipliers Grape Wineries Visitor Output 2.10 1.60 1.51 Employment 161 1.61 134 1.34 142 1.42 Wineries- the 1.60 indicates for every dollar of output (sales) by the wineries, $1.60 of economic activity occurs in the state s economy. The same interpretation applies for employment. For every job directly employed by the wineries, 1.34 jobs are involved throughout Georgia s economy.

Adding Value to Georgia s Agricultural Economy Through Research and Extension Agribu for Center usiness and Econo lopment omic Develo www.caed.uga.edu edu College of Agricultural & Environmental Sciences