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The director of tourism has conducted an economic impact study. Heritage tourism is one of the fastest growing segments of the U.S. travel market. According to the Travel Industry Association of America, in 2003, historical and cultural travel had increased by more than 25% since 2000. They estimated 81% of all U. S. travelers are considered heritage tourists, meaning they include at least one cultural, historical or heritage activity during their visits. In 2003/4, 17% of visitors to Virginia experienced colonial history sites. Heritage travelers stay longer, visit twice as many places and spend more money that the average visitor. They look for authenticity and quality and they want sites that make the story come alive. Historic preservation provided just that and the Crossing of the Dan exhibit in South Boston will capture that interest and market.Supporting national and state trends, the economic impact of an exhibit showcasing a Revolutionary War episode would provide significant economic impact in Halifax County. To quantify the relationship between the impact of the Crossing exhibit and the local economy, an attempt was made to provide an economic impact analysis. While basic procedures for computing economic impacts are well known, applications to historical exhibits and parks pose additional challenges. Historic sites and monuments are often one of the many things to do on a trip so a very conservative approach was made as to the impact of one exhibit. This impact analysis also does not attempt to measure all travel expenditures, only spending in the vicinity of South Boston and the immediate region. An economic analysis of the exhibit measures the flow of spending by visitors in the local economy and estimation was made to the exhibit’s contribution to sales, income and jobs in the area. The comparative analysis of tourism used lodging receipts as the index of tourism. The rationale for this is first that of all the Standard Industrial Codes (SIC) of economic sectors pertaining to tourism, only the lodging sector has an insignificant amount of trade from local residents. Second, most tourism studies from lodging receipts to be a significant portion of total trip expenditures, and it is unusual to find localities where tourism originating from day-use visits is an important economic force. It does measure the value or the host of benefits to the community and region. this exhibit will have numerous educational and historical benefits that can not be measured in market transactions or visitor spending. The exhibit itself will provide limited spending within the Prizery so the economic impact will rest heavily on commercial properties surrounding South Boston and Southern Virginia. It is difficult to come to a firm estimate of visits for a new exhibit located at the Prizery because there are no current levels to use as a starting point. The best procedure was to seek out other tourist areas with similar types of attractions, similar target markets, and similar competition and to use current visit levels there to estimate the levels likely for South Boston, surrounding region and the Crossing exhibit. There is not an existing area that perfectly matches the proposed one but current visitation figures for other areas were adjusted to reflect differences in: • Size of potential target markets. • Nearness and convenience of target markets. • Availability of competitive areas to the target markets. • “Drawing power” of the area’s attractions. • Costs to the target markets of visiting the areas. To determine the potential economic impact of the Crossing of the Dan exhibit in South Boston, it is critical to examine visitation and economic impacts on site that also have exhibits of the Revolutionary War. In comparing data from Guilford Courthouse in North Carolina and Colonial National Park (Yorktown) in Hampton, Virginia, the determination was made to use Guilford Courthouse visitation numbers. Both sites are in close proximity to South Boston and have exhibits devoted exclusively to the Revolutionary War but Guilford Courthouse is more of a “stand alone” Revolutionary War site. The vast majority of visitors to Colonial National Park are on general vacations and the park may not be major draw for visitors. *Studies that determined economic impact were compiled by the Travel Industry of America and based on that data; projections are made relative to South Boston. The research data for travel impact was complied for the Virginia Tourism Corporation; data on economic impacts for Guilford Courthouse and Colonial Park was provided by the National Park Service. **Estimates for South Boston are based on only 10% of the visitors to Guilford Courthouse in 2003. This is a very conservative number but there was no other similar site in Southern Virginia to use as a model. A recent economic impact study conducted by the Travel Industry Association for the Virginia Tourism Corporation showed that during 2005, domestic travelers spend $32.7 million on transportation, lodging, food, entertainment and recreation in Halifax County. This direct spending by travelers marks a 9.1% increase over the traveler-spending estimate of $29.88 million for 2004. Estimates of the economic impact of The Crossing of the Dan exhibit would increase total expenditures in the county by $1.4 million. This exhibit alone would increase total travel expenditures 4%. Direct effects are estimated at $1.5 million which would provide an additional $75,000 in state tax revenues. Lodging expenditures alone are estimated at $612,000 which would generate an additional $30,600 in local lodging tax revenues (5%). Direct spending by domestic travelers in Halifax County supported 520 full-time and seasonal jobs, which in turn generated more than $8.17 million in wages and salaries in 2005. Visitor spending generated by the exhibit would produce 52 additional jobs and an addition $554,000 in payroll and salaries for the county. In summary, it is projected that visitors to the Crossing of the Dan exhibit will spend $1.43 million in the first complete year of operation. This will support a total projection of direct and secondary effects of $2.4 million in sales, $873,00 in personal income, 52 jobs and $1.3 in added value. |