A big year for tourist industry

Call 2013 an interesting tourist year. That’s what the University of Montana’s Institute for Tourism and Recreation Research says in their “2013 Review and 2014 Outlook” report.

Author and institute director Norma Nickerson notes that despite the 16-day partial government shutdown in October and the six-weekend closure of the Billings airport this summer, nonresident visitation in Montana was up 2 percent and spending by out-of-state visitors was even higher.

More than 11 million nonresidents visited Montana last year, and they spent nearly $3.5 billion dollars, the institute reports. Visitation was up 1 percent at Glacier National Park, which accounts for about 21 percent of nonresident visitors.

Overall, visitation to the state’s national parks was down 5 percent, but that could be a statistical dip caused by Yellowstone National Park’s updated visitor counting methodology.

Good news for the Northwest Montana tourist industry — visitation from nearby Alberta dramatically increased over the past three years, and Albertans now account for more nonresident visitors than any other location.

“This is a significant change for Montana,” Nickerson said. “Part of this is due to the relatively stable and nearly equal in value exchange rate between Canada and the U.S. In addition, we hear from our neighbors to the north that the Glacier National Park area is less crowded than the Banff area. Many people want the more laid-back visitor experience, and Montana can provide that.”

Spending by nonresidents also significantly increased — by 4 percent over 2012 in the first quarter (January-March), by 5 percent in the second and by a whopping 20 percent in the third.

“The numbers show, and business owners have verified, that spending increased greatly over the previous year,” said Kara Grau, the institute’s assistant director of economic analysis. “Spending was up across the board in all categories, including a 17 percent increase each in restaurant and bar, retail and gasoline, as well as a 30 percent increase in groceries and snacks.”

Montana tourist businesses generally expect this trend to continue next year. Fifty-seven percent of those surveyed by the institute said they expect visitation to increase, while 39 percent expect things to stay the same. Only 4 percent forecast a decline in visitation.

At the national level, the U.S. Travel Association projects a 2 percent increase in individual trips by U.S. travelers and a 5.4 percent increase in international visitors next year.

While both airport and Amtrak boardings were down for the state, the institute reports that 90 percent of nonresident visitors come to Montana via roadways, with the largest percent coming from the west on I-90. This correlates with the No. 1 activity posted by nonresident visitors — scenic driving.

“This is no surprise since all driving in Montana is scenic and everyone can do it,” Nickerson said.

Compared to the Rocky Mountain region as a whole, Montana saw slower growth in rooms sold in 2013, at 0.5 percent, but Montana outpaced the region by 2.5 percent in 2012 showing that the state is keeping pace with the region year to year.

Reflecting that trend was news from the Montana Department of Revenue that bed tax revenue is on its way to a second record-breaking year.

Bed tax revenue for Flathead County was 17 percent higher in the first quarter in 2013 (January-March), 15 percent higher in the second quarter and 9 percent higher in the third. Motels, hotels and other lodging in the Flathead took in $1.7 million in gross revenue for the third quarter this year (July-September).

The good news extends to winter. Montana ski areas saw visitation increase by nearly 3 percent in the 2012-2013 ski season, reaching 1.4 million skier-visits — the second highest number for Montana. A 2009-2010 study found that 35 percent of all skier visits in Montana were by nonresidents.