Economic impact of Mississippi and Alabama Gulf Coast tourism on the regional economy

Abstract

The coastal economy is highly sensitive to natural and human disasters and changes in economic conditions. This study analyzes the local and regional economic impacts of Mississippi and Alabama Gulf Coast visitor spending in 2013, aiming to provide guidance on future regional planning and management. IMPLAN input-output models were constructed which capture the connections among the Gulf Coast region and the two states' economies. Economic impacts of visitor spending were calculated with the IMPLAN software. An internet survey of tourists was conducted by Survey Sampling International (SSI) to a nationally representative population. Overall, 2891 individuals responded, for a response rate of 26.2%. Based on the survey data, it was estimated that approximately 16.4 million travelers visited Alabama and Mississippi Gulf Coast in 2013 and the average per visitor spending was $730.11. In total, visitor spending yielded $17.6 billion in sales revenue, $9.4 billion in value added, $5.9 billion in labor income, and about 200,000 full and part-time jobs in the five coastal counties. Comparatively, the leakage of the visitor spending out of the regional economy is small. Coastal tourism also contributed to the economy of inland areas of the two states. But the spillover effect on inland areas and feedback effects on coastal counties were not large. This analysis examined how tourism industry impacted other working waterfront industries as well as the rest of the regional economy. Findings help decision makers look beyond the direct impacts generated by the Gulf Coast tourist spending and contribute to sustainable community planning and management.