Community News

Here in Montana, a steady stream of tourists is common and anticipated throughout the year. We not only have many of the natural amenities that travelers seek, but a strong marketing presence nationwide that entices people to try us out or return to this stunning part of the country. The state recently demonstrated just how “popular” we are by outpacing the national average hotel occupancy in both June and July and leading the entire nation with an 84% occupancy rate in July. In 2011, the 10.5 million out-of-state travelers (10 times our state’s population) spent $2.8 billion dollars in Montana. That is $7.5 million per day from nonresidents, which creates a ripple effect throughout the economy. The ripple effect, meaning how many times each dollar is technically “re-spent”, is very difficult to quantify because each direct impact can lead to an indirect impact (purchase made by travel-related business) and then an induced impact (purchase by those employed in travel-related occupations).   Montana has seen a 6% increase in the number of out-of-state travelers for the first two quarters of 2012. Along with higher occupancy and visitor numbers, the state has experienced room revenue increases of nearly 10%. 

According to the Montana Office of Tourism, visitors want an “authentic experience…to live like a local, whatever that might be in each region or town.”  By day, they can enjoy the simplicity of stunning natural sites and charming local hospitality in the evenings. This is what makes for lasting impressions and word-of-mouth marketing.

A breakdown of expenditures by the Institute for Tourism and Recreation Research ranks gasoline at the top of nonresident travel dollars at 34% of the total, followed by retail sales at 20%, restaurants/bars at 19%, and lodging at 12%, with several other categories rounding out the pie. So clearly tourism touches many sectors of the economy, not just hotels and restaurants. And the overall result is that 1 in 13 jobs in Montana are created and sustained by out-of-state visitors, making it a very viable part of our overall economy.
Of course, not all tourism dollars come from out of state. Many Montanans travel extensively across this vast terrain without ever leaving our state's border. To give a more fun and local example of how dollars get spent, let’s take a look at MSU Bobcat football.  The home opener game, Gold Rush 2012, against Chadron State took place at MSU on August 30th. This first-ever night game drew a stadium-record crowd of 20,767 fans.  For those who traveled from out of town to attend the game, there were many more expenditures than simply the price of the ticket. There are meals consumed, whether at the stadium or at a local favorite restaurant. Most “gas up” before hitting the road to return home. Some come early to shop at their favorite boutiques or big-name stores. Still, others turn game day into a mini-vacation and stay in a local hotel. Don Cape, Jr., owner of the Hilton Garden Inn and Old Chicago Pizza, states, "MSU home games produce over a 20% boost for Saturday night hotel occupancy and increased restaurant sales."  And don’t forget those who stock up on their blue and gold merchandise, whether at the MSU Bookstore, on-site pro shops, or local businesses that carry Bobcat gear. Games are expected to bring record crowds for the season and Parent/ Family weekend on October 13th will keep family and fans around for more than just the sporting event.  Thank you to Montana State University for the additional local tourist impact and GO CATS!