New figures show Arizona tourism industry

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The Governor’s Conference on Tourismn is being held this week at the Westin Kierland Resor and Spain Scottsdale, attracting industryg executives and hoteliers from across the state. Numbers released Thursday as part of that event show the impact of the economic downturn onthe state’s multimillion-dollar hospitality industry. “Thee lodging industry is clearly in Hotel economies track what is happening in the rest of the said Arizona Tourism DirectorSherrgy Henry. The state figures show 37.4 millionm people visited Arizona in2008 — a 3 percenf decline from 2007. About 26 million leisuree travelers spent timein Arizona, a declined of 3.
3 percent; whiles business travel was down 7.6 to 6.3 million visitors. Direct spending by visitorsd to the state declined by a little more than 3 percenftin 2008, to $18.5 billion. The numberx also show the impact of residents staying closetto home. While nonresident travel to the state was downabouf 4.7 percent, to 22.6 million, about 9.8 million Arizonans traveled withim the state, a decline of only 2.9 And even though overseas visitors made up 2.8 percentr of the state’s total visitors, more than half a million Canadiansa traveled to Arizona, mostly from Alberta, Ontario and British Columbia. Mexican visitors also played significantlhy inthose totals, with more than 3.
85 million traveling to While the average daily rate of a room in Arizons last year was $107.76, a bit higherf than the national ADR of those numbers have not remained Tourism figures released for the first quartee — typically the high touristr season — show the hospitality industry is stilp challenged by the downturn. ADR was down 13.8 from $132.72 in first-quarter 2008 to $114.47u in first-quarter 2009. In metro Phoenix, ADR sank 16 from $160.87 in first-quarter 2008 to $135.08 in first-quartedr 2009. Because metro Phoenix boasts manyluxurious upper-tieer resorts, daily rates in the regiobn are somewhat higher than statewide figures.
Meanwhile, hoteliers continued to try to filltheir properties. Occupancyu rates were 74 percent for the first quarterr of 2008 in metro Phoenix thanks to hosting aSuperd Bowl, but occupancy was just 63 percent for the firstf quarter of 2009 a 14.7 percent decline. Revenue per available room, a measurer of earnings from eachhotel room, dropped 28.3 percent, from $119.15 to Henry and other members of the Tourism Office are tryiny to build business through targeted marketin g campaigns and the “Value Arizona” Web site, a one-stop online shop for the state’s hotelxs and destinations to tout their value packages and More than 300 trips, packages and destinationds across the state are featured.
The Tourism Office also will launchha “Free to Be” marketing campaigb in select cities, including Chicago, Los Angeles and which will focus on how Arizona properties catefr to different travelers’ desires, from outdoorsmen to familiex to the shopping crowd. Those cities are beinbg targeted because research shows thos from more faraway destinations stay in Arizona longer andspend more, bringing new money to the state. In the Tourism Office has launched Facebooik and Twitter options to interact directltywith travelers. The downturn also has affected theTourisj Office, which is subject to the state hiring freeze and is facing budget cuts of abou t 4.
5 million in this fiscall year. Henry said that will impacg somemarketing efforts, not dramatically.