edcUTAH July 8, 2009
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Economic Review
Jeff Edwards, president & CEO of EDCUtahPresident's Message
Meeting Professionals International to Convene in Salt Lake City Next Week

Next week Salt Lake City has the privilege to be host to over 3,500 attendees for the Meeting Professionals International (MPI) World Education Congress, to be held Saturday, July 11 through Tuesday, July 14. Over 300 exhibitors will be in attendance, representing destinations and hotels as well as products and services. The exciting part for Utah and economic development is this opportunity to show off our great capital city and the entire state to these influential trade-show, meeting and conference planners. These decision makers will have the pleasure to discover the welcoming atmosphere that made Utah famous during the 2002 Winter Olympics. If you are around town, you may see folks dressed in "ranger" gear directing visitors. Signage will also be enhanced. For more information on Meeting Planners International go to: http://www.mpiweb.org/Home.aspx.

I would also like to make a quick mention regarding the end of EDCUtah's 08-09 fiscal year, which occurred on June 30. Despite the economic downturn, 08-09 ended up being a strong year for economic development in Utah. I am proud of what we were able to accomplish as a states and as an organization, and I look forward to continued success in 2009-10. Look for a full fiscal year in review report in next week's Economic Review and an in depth report in our Summer 2009 Site Selection Quarterly. You will also be able to hear and see all the details of our successes at the EDCUtah Annual Meeting scheduled for Wednesday, September 16, 2009.

Also, don't miss EDCUtah's night at Rio Tinto Stadium on August 8, 2009. See Real Salt Lake play Seattle Sounders FC and have a chance to spend some quality time with fellow EDCUtah investors and their families. This event is graciously being sponsored by Layton Construction, builders of the Rio Tinto Stadium. There are only 50 seats left. If you would like a pair of tickets, e-mail Alan Rindlisbacher to reserve your seats today! First come, first serve.

Today's Economic Review also includes links to many of the ED-related news stories from the past week. As always, if you have comments, suggestions or topics you'd like to see in the Economic Review, please contact us by clicking the "Comments" link on the bottom of this page. Enjoy!

Jeff Edwards

Jeff Edwards
President and CEO

In the News

First blades attached at Utah wind farm
The first set of blades on the first of 97 planned turbines has been hung at a wind farm under construction near Milford. (Salt Lake Tribune) (Spectrum)

Avalanche-gear company opens center in Utah
Another name player in the ski industry has put down roots in Utah. Ortovox USA Inc., a subsidiary of a German company that primarily makes transceivers and avalanche gear, has opened its Western sales and distribution center in West Valley City. (Salt Lake Tribune)

Ogden named in top ten again
Ogden is again making news in a national publication in fDi Magazine's competition for North American Cities of the Future. The fDi Magazine, a production of the renowned Financial Times™ group, ranks Ogden as in the top 10 in two categories: "Best Infrastructure" and "Overall." (Utah Business Magazine registration required)

Obama makes Huntsman pick official
Nearly two months after tapping Gov. Jon Huntsman Jr. as U.S. ambassador to China, President Barack Obama on Monday formally nominated the Utah governor to the high-level overseas post. (Salt Lake Tribune) (Deseret News)

Utah ushers in a new era of choice for bar patrons
For the last 40 years, dropping into a bar in Utah has been a complicated affair: Patrons have to fill out an application, pay a fee and become a member before they can go in for a drink. ((Associated Press)) (Deseret News)

2010 Monster Energy AMA Supercross schedule announced, in SLC May 1
Feld Motor Sports has announced the schedule for its 2010 Monster Energy AMA Supercross, an FIM World Championship, which begins January 9 at Angel Stadium in Anaheim, Calif., and visits Utah's Rice-Eccles Stadium May 1 during a 17-stop season. (Press Release)

Op-Ed: Tourism provides tax relief to Iron County residents
In Utah, the tourism industry employs more than 113,030 Utahns, which accounts for one of every nine jobs. In 2008, the state was host to an estimated 20.4 million visitors, with an economic impact of $7.1 billion in spending. (Spectrum)

Despite turbulence, St. George Airport set to take off
In 2011, the old mesa-top airport in St. George is slated to shut down after its bigger, better replacement opens on 1,200 acres five miles southeast of the city's downtown. (Salt Lake Tribune)

Utah firms expect IT budget growth
About one-third of surveyed Utah companies expect their information technology budgets and staffs to grow in the next six months, according to a survey by staffing company ConsultNet. (Deseret News)

Easing congestion: FrontRunner South progresses as crews unveil rail addition
One small step for Utah Transit Authority, one giant leap toward easing transportation congestion along the Wasatch Front. (Deseret News) (KCPW) (Fox 13)

Organic clothing line takes off in Utah
Brittany Olsen and Havilah Mills are counting on their new clothing line to reshape the way consumers think about their health and the planet, one T-shirt at a time. (Salt Lake Tribune)

Calendar

July 21-24
OR Summer Market (Salt Palace)

August 10-13
AUVSI (Washington, D.C.)

September 9-11
ULCT (Sheraton, SLC)

September 16
EDCUtah Annual Meeting (Grand America Hotel, Salt Lake City) (breakfast meeting)

September 19-23
IAMC (Minneapolis, MN)

October 4-7
IEDC (TBD)

October 15
Quarterly Investor Update (Jewish Community Center, Salt Lake City)

November 18
Board Meeting (Salt Lake Country Club)

December 16
Holiday Open House (EDCUtah)

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The EDCUTAH Economic Review is a weekly publication of the Economic Development Corporation of Utah. It is distributed to EDCUTAH partners and selected other government and civic organizations interested in Utah's economic development.

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Feature Story
Utah's Travel/Tourism Industry Important to Economic Development

Later this month outdoor retailers from across the nation and the world will gather in Salt Lake City and Ogden to preview and test the latest in outdoor products, gadgets and gear. Utah has become home to the Outdoor Retailer Summer and Winter Markets, two enormously important trade shows that bring approximately 40,000 attendees to the state annually and generate approximately $33 million in direct economic impact.

While indirectly related to the state's travel/tourism industry, the two shows are nonetheless important to the industry because they expose outdoor products manufacturers, retailers, industry advocates and media to Utah, where they can not only conduct business but also do it at the epicenter of outdoor recreational opportunities.

"The Outdoor Retailer show bolsters Utah's reputation as the premiere outdoor recreation location in the country," says EDCUtah President and CEO Jeff Edwards, "which fuels economic development in many areas and strengthens our tourism industry."

Indeed, Utah's $7 billion-a-year tourism industry is a key economic driver. The Bureau of Labor Statistics estimates that approximately 10 percent of all Utah non-farm jobs are directly or indirectly related to travel and tourism, trailing such sectors as trade, transportation, utilities, government, professional and business services, education and health services, and manufacturing. While Utah is fortunate to have an economy as diverse as its landscape, travel and tourism are nonetheless important to the state, especially in rural Utah, where they dominate the economies of counties in the northeast and southeast regions and comprise a significant portion of the employment base, tax receipts, personal income and business profits.

While competition is intensifying among nearby destinations for local and regional travel/tourism dollars, Utah is gradually garnering a greater percent of U.S. domestic traveler spending, from 0.88 percent in 2004 to 0.94 percent in 2008. National trends in key segments of the travel market, such as adventure travel, cultural and heritage tourism, nature-based travel and family travel bode well for Utah. The state is well positioned to attract visitors in these segments due to its rich diversity of outdoor recreational opportunities -- from skiing the "Greatest Snow on Earth" to hiking spectacular slick rock, sandstone canyons and all adventures in between.

According to data from the Utah Office of Tourism (UOT), an estimated 24.7 million vehicles crossed Utah's borders in 2008 via its interstate highways. While the airline industry has taken a beating, some 20.7 million passengers arrived at Salt Lake International Airport during 2008, a decrease of five percent from 2007 that is largely attributed to the weak economy and smaller planes with lower capacity. Nonetheless, Delta Airline's new non-stop flights from Salt Lake City to Tokyo, combined with a visa waver agreement signed between the governments of the United States and South Korea, are expected to greatly assist Utah in attracting visitors from Asia.

Last year international visitors accounted for 3.77 percent of total non-resident visitation with an estimated 740,000 visits. Utah's top foreign markets include:

  • Canada
  • Mexico
  • Germany
  • United Kingdom
  • France
  • Japan
  • The Netherlands
  • South Korea

Approximately 77 percent of Utah's visitors come from the Western United States. Top markets include:

  • Colorado
  • California
  • Idaho
  • Nevada
  • Arizona
  • Texas

Utah overnight leisure visitors (including Utah residents and non-residents) are estimated to have spent on average $101 per person per day and stayed 4.95 nights during 2008, according to UOT data. Traveler spending in Utah rose approximately 6.2 percent to $7.1 billion and generated an estimated $631 million in state and local tax revenues.

Utah's five national parks experienced 5.6 million recreation visits during 2008. Through May 2009 the national parks have experienced 1,822,512 visits. Bryce Canyon has experienced a 20.8 percent increase over last year, while Arches has experienced a 6.1 percent increase and Zion National Park has seen a 1.5 percent increase over the same period last year. Canyonlands and Capitol Reef have both seen small decreases in visits through May 2009.

During 2008 another 3.1 million recreation visits occurred at Utah's seven national monuments, two national recreation areas and one national historic site. And despite the economic recession, Utah's 13 ski resorts experienced the fourth best season on record for the 2008/2009 ski season, hosting 3.9 million skier days.

Edwards says Utah's reputation as an outdoor recreation wonderland not only impacts jobs in travel and tourism, but is also extremely beneficial for recruiting and growing outdoor-related businesses here. Many outdoor product companies have operations in Utah, such as Rossignol, Dynastar, Nidecker, Salomon; Atomic; Goode Skis; Voile Ski, Snowboard, & Bindings; Dale Boots; Black Diamond; Morrell Boards; Revolution Snowboards; Petzl; Ortovox; Peregrine; Backcountry.com; Easton Technical Products; Chums; Zeal Optics; Chisco; and Liberty Mountain. What's more, Specialized Bicycle has its western warehouse in Salt Lake City and many bicycle accessory manufacturers like Lone Peak, Lizard Skins, Black Bottoms, Reynolds Cycling, and Flat Attack call Utah home. Increasing the cluster of outdoor products companies in Utah is an important part of EDCUtah's recruitment activities, Edwards adds, and the organization will continue to actively recruit outdoor products companies to the state.

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