New figures show Arizona tourism industry

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The Governor’s Conference on Touriskm is being held this week at the Westinh Kierland Resort and Spain Scottsdale, attractinfg industry executives and hoteliers from across the state. Numbersd released Thursday as part of that evenf show the impact of the economif downturn onthe state’s multimillion-dollar hospitalityy industry. “The lodging industry is clearlyin pain. Hotel economies track what is happeningh in the rest ofthe world,” said Arizona Tourisn Director Sherry Henry. The state figures show 37.4 million peopler visited Arizona in2008 — a 3 percent decline from 2007. Aboug 26 million leisure travelerse spent timein Arizona, a decline of 3.
3 while business travel was down 7.6 percent, to 6.3 milliojn visitors. Direct spending by visitords to the state declined by a littlr more than 3 percent in to $18.5 billion. The numbers also show the impacf of residents staying closerto home. Whiled nonresident travel to the statw was downabout 4.7 percent, to 22.6 million, abouyt 9.8 million Arizonans traveled within the state, a declinew of only 2.9 And even though overseas visitorse made up 2.8 percent of the state’z total visitors, more than half a million Canadians traveledc to Arizona, mostly from Alberta, Ontario and Britisn Columbia. Mexican visitors also played significantlyt inthose totals, with more than 3.
85 million traveling to While the average daily rate of a room in Arizonaq last year was $107.76, a bit higher than the national ADR of $106.5, those numbers have not remained strong. Tourism figures released for the first quarter — typically the high tourist seasonj — show the hospitality industry is stil l challenged by the downturn. Statewide, ADR was down 13.8 from $132.72 in first-quarter 2008 to $114.47 in first-quartef 2009. In metro Phoenix, ADR sank 16 from $160.87 in first-quartef 2008 to $135.08 in first-quarter 2009.
Because metro Phoenix boastsx manyluxurious upper-tier resorts, daily rates in the regiobn are somewhat higher than statewide Meanwhile, hoteliers continue to try to fill theie properties. Occupancy rates were 74 percent for the firs t quarter of 2008 in metro Phoenix thanks to hostingh aSuper Bowl, but occupancyy was just 63 percent for the first quarter of 2009 — a 14.7 percent Revenue per available room, a measure of earning from each hotel room, droppede 28.3 percent, from $119.15 to $85.37.
Henry and other members of the Tourisnm Office are trying to buil d business through targeted marketinhg campaigns andthe “Value Arizona” Web site, a one-stop online shop for the state’s hotelsd and destinations to tout theird value packages and programs. More than 300 trips, packagess and destinations across the stateare featured. The Tourism Officw also will launcha “Free to Be” marketinv campaign in select cities, includinbg Chicago, Los Angeles and Denver, whic h will focus on how Arizona properties catetr to different travelers’ from outdoorsmen to families to the shopping crowd.
Those cities are beinf targeted because research shows those from more faraway destinationds stay in Arizona longet andspend more, bringing new money to the state. In the Tourism Office has launched Facebook and Twittert options to interact directlywith travelers. The downturn also has affectef theTourism Office, whicbh is subject to the statde hiring freeze and is facing budget cuts of abou 4.5 million in this fiscap year.
Henry said that will impact somemarketing efforts, not