November 20, 2013

New Study Reveals Tourism Expenditures Are at a New High

Spending on tourism in the Princeton region has climbed to an unprecedented level, according to an economic impact study released Tuesday by the Princeton Regional Convention and Visitor’s Bureau (PRCVB). Expenditures of more than $1.85 billion last year set a new record for the region and reflect a third year of continued growth.

The study, “The Economic Impact of Tourism in the Princeton Region” was carried out by Brian J. Tyrrell, president and CEO of Travel and Tourism Research and Training Associates. It credits the PRCVB as a major influence on the healthy numbers. “Strong evidence exists that the bureau’s efforts have helped to bolster the summer tourism season while contributing to growth in the fall as well,” Mr. Tyrrell wrote in the report.

Established in 2004, the PRCVB is a program of the Princeton Regional Chamber of Commerce. The Princeton region encompasses several municipalities in addition to Princeton, including Cranbury, Ewing, East and West Windsor, Hamilton, Hightstown, Trenton, Robbinsville, Rocky Hill, Pennington, Plainsboro, Montgomery, Lawrence, and Kingston.

According to the study, the tourism industry provides more than 34,000 jobs for residents of the region in area hotels, restaurants, and related businesses. Tourism expenditures in Mercer County alone were $1.13 billion last year, while Middlesex County municipalities saw $695.3 million spent. Somerset County towns had an economic impact of $42.5 million from tourism.

Food and beverages account for the most spending, at 27 percent. Coming in second was transportation spending at 22 percent, but that number is likely to increase due to the recent improvements at Trenton Mercer Airport in Ewing to accommodate the expansion of Frontier Airlines. The carrier recently announced flights to additional cities, bringing the number of routes up to 13.

“Those folks flying into the airport are staying longer and spending more than the average visitor to the region,” Mr. Tyrrell said Tuesday. “They stay overnight. They eat three meals rather than maybe one. So it’s an important impact to consider.”

Mercer County Executive Brian Hughes, who was among those on hand for the announcement of the study on Tuesday, concurred. “With Frontier Airlines’ rapid expansion of service at our newly renovated Trenton Mercer Airport, countless numbers of people will have direct access to this region that they never had before,” he said. “There is enormous potential to attract visitors and continue to create economic opportunity and jobs for the entire area.”

The numbers for Princeton region tourism began to rise in 2011, when they grew by 16 percent. That compares with eight percent nationally and four percent across the state of New Jersey. “These are impressive figures for the PRCVB,” the study reads. “Backed by the strength of the Princeton Regional Chamber of Commerce and its over half a century of commitment to industry in the Princeton region, it is expected that the promotional efforts to increase the economic impact of tourism to the Princeton region will continue to pay dividends in the future.”

The study was commissioned by the PRCVB to examine the economic impact of tourism and also evaluate the organization’s efforts to market the region.