ArikTourism and Rural Economic Developme

Tourism and Rural Economic Development: An Overview : 

Tourism and Rural Economic Development: An Overview Murat Arik, Ph.D. Associate Director Business and Economic Research Center Jennings A. Jones College of Business Middle Tennessee State University Murfreesboro, TN 37132 1

What role does tourism play in rural economic development? : 

What role does tourism play in rural economic development? This session deals with three major tourism related areas that may contribute to the rural economic development Natural amenities Retirees Event-based tourism 2

How has the literature on tourism and rural economic development linkage evolved over time? : 

How has the literature on tourism and rural economic development linkage evolved over time? A keyword search using various research venues indicates that there is more headline news than academic research on the subject matter The research venues used are Google LexisNexis Academic Universe Academic Search Premier 3

Keyword Combinations : 

Keyword Combinations Initial combination of keywords: “economic development,” and tourism and rural (EDTR) +nature +retiree +retirement +heritage +target industry +amenities +music 4

Google Search Results : 

Google Search Results 5

LexisNexis Academic Universe: Keyword Search Results : 

LexisNexis Academic Universe: Keyword Search Results 6

LexisNexis Academic Universe: Keyword Search Results : 

LexisNexis Academic Universe: Keyword Search Results 7

Academic Search Premier: Keyword Search Results : 

Academic Search Premier: Keyword Search Results 8

Academic Search Premier: Keyword Search Results : 

Academic Search Premier: Keyword Search Results 9

Retirement and Tourism Connection: Why is it important? : 

Retirement and Tourism Connection: Why is it important? Those who are 50 years old and over Control 77% of Personal Assets 80% of Money in Savings Accounts 77% Own their Homes Do 70% of Tourism Spending 10 Extracted from Dr. Mark Fagan, Retirement as an Economic Development Strategy at www.jsu.edu/depart/sowk/Mark_Homepage.html. Dr. Fagan graciously allowed us to use some of his slides in this presentation.

Where do these retirees spend? Spending by the Mature Market : 

Where do these retirees spend? Spending by the Mature Market $118 billion in FL or 48% of total spending $24 billion in LA or 38% of total spending $23 billion in AZ or 34% of total spending 11 Extracted from Dr. Mark Fagan, Retirement as an Economic Development Strategy at www.jsu.edu/depart/sowk/Mark_Homepage.html. Dr. Fagan graciously allowed us to use some of his slides in this presentation.

Retiree Spending by Expenditure Categories : 

Retiree Spending by Expenditure Categories 26% on Housing 20% on Transportation 16% on Food and Beverage 13% on Household Operations 7% on Healthcare 6% on Recreation 5% on Services 4% on Apparel 3% on Charity 12 Extracted from Dr. Mark Fagan, Retirement as an Economic Development Strategy at www.jsu.edu/depart/sowk/Mark_Homepage.html. Dr. Fagan graciously allowed us to use some of his slides in this presentation.

Size of Potential Market:78 Million Baby Boomers (1946-1964) : 

Size of Potential Market:78 Million Baby Boomers (1946-1964) 1/3 of U.S. population The oldest will begin turning age 60 in 2006 People ages 55-75 will increase 3.5% annually over the next 9 years In 1990, $11 billion was transferred to them; in 2015, that number will peak at $340 billion In less than 15 years, infrastructure (housing, health care, commerce, and services) to support them will have to more than double 13 Extracted from Dr. Mark Fagan, Retirement as an Economic Development Strategy at www.jsu.edu/depart/sowk/Mark_Homepage.html. Dr. Fagan graciously allowed us to use some of his slides in this presentation.

Why Rural Areas? : 

Why Rural Areas? Older interstate migrants Increasingly are going from metro areas to smaller communities and rural areas Increasingly are going to states with mild climates, natural beauty; yet easy access to urban services 14 Extracted from Dr. Mark Fagan, Retirement as an Economic Development Strategy at www.jsu.edu/depart/sowk/Mark_Homepage.html. Dr. Fagan graciously allowed us to use some of his slides in this presentation.

How can We Characterize Older Migrants? : 

How can We Characterize Older Migrants? Amenity Migrants—Go to States with Amenities Such as Lakes, Beaches, Mountains, Deserts (healthy, wealthy) Return Migrants—Return to States Where They Were Born After Earning a Pension for the Nostalgia (healthy, wealthy) Dependency Migrants—Move to State Where They Have Caregivers After Becoming Disabled or Losing Spouse 15 Extracted from Dr. Mark Fagan, Retirement as an Economic Development Strategy at www.jsu.edu/depart/sowk/Mark_Homepage.html. Dr. Fagan graciously allowed us to use some of his slides in this presentation.

On Average, What do the In-migrant Retiree Households Bring to the Local Communities? : 

On Average, What do the In-migrant Retiree Households Bring to the Local Communities? They have $400,000 in Total Assets $40,000 Annual Income Do 85% of Their Spending Locally Pay More in Taxes Than They Cost in Services 16 This translates into 2.75 jobs per new household Serving their communities through volunteering and leadership positions Extracted from Dr. Mark Fagan, Retirement as an Economic Development Strategy at www.jsu.edu/depart/sowk/Mark_Homepage.html. Dr. Fagan graciously allowed us to use some of his slides in this presentation.

What are the Sectors Benefiting From Retirees? : 

What are the Sectors Benefiting From Retirees? Real Estate (residential & commercial) Finance (banks, insurance, stocks, financial planners, accountants) Healthcare (professionals & facilities) Recreation and Entertainment Hospitality (lodging & restaurants) Retail (durables & non-durables) Utilities Tourism (visiting & permanent tourists) 17 Extracted from Dr. Mark Fagan, Retirement as an Economic Development Strategy at www.jsu.edu/depart/sowk/Mark_Homepage.html. Dr. Fagan graciously allowed us to use some of his slides in this presentation.

To summarize, : 

To summarize, Benefits From In-migrant Retirees are Job Creation and Retention Increasing Tax Base Increasing Community Deposit Base for Financing Infrastructure/other industry Increasing Retail Sales Increasing Number of Volunteers Improved Quality of Life 18 Yet, affluent ones will not strain Social services and healthcare services School system Criminal justice system, and Create environmental problems Extracted from Dr. Mark Fagan, Retirement as an Economic Development Strategy at www.jsu.edu/depart/sowk/Mark_Homepage.html. Dr. Fagan graciously allowed us to use some of his slides in this presentation.

What are the Geographic Characteristics of Retirement Counties? : 

What are the Geographic Characteristics of Retirement Counties? Moderate, 4-Season Climate Scenic Landscapes (mountains, lakes, beaches, deserts) Quieter and Safer Reasonable Cost of Living Outside Urban Area but Easy Access to Health Care, Commercial, Transportation, and Cultural Attractions 19 Extracted from Dr. Mark Fagan, Retirement as an Economic Development Strategy at www.jsu.edu/depart/sowk/Mark_Homepage.html. Dr. Fagan graciously allowed us to use some of his slides in this presentation.