Tourism Industry

Economics 309 ‚ Humboldt County Employment Indicators Project 2001

Brandon Eleuterio

Sources:

http://www.calmis.cahwnet.gov/ -- California Labor Market Information Service

Employment Development Department, Anita Alexander

₁ Payrolls measured in 1991 dollars.

How are we doing?

The number of employees in the entire tourism industry has grown from about 1200 people to nearly 1400 people between 1991 and 1999óan increase of about 17%. The sectors that played the biggest role in this increase were Hotels and Motels and Amusement and Recreation Services. The other three sectors, which play less of a role in the tourism industry, saw only slight changes in employment.

Payroll in the tourism industry appears to tell a similar story. Total payroll went up from just over $12 million in 1991 to over $13 million in 1999óa small increase of about 8%. As was the case with employment, two sectors accounted for most of the increaseóHotels and Motels and Amusement and Recreation Services. The other three sectors remained fairly constant.

Within each year between 1991 and 1999, employment rises and falls in a consistent pattern. Employment falls during the winter months and rises in the summer months. More people come to visit Humboldt County during the summer because it doesnít rain as much as in the winter. Parents also come up to Humboldt in late spring and early summer to see their children graduate. This would probably account for the increase in the number of employees at hotels and motels during these times.

Why is this important?

Increasing employment and payroll in the tourism industry means growth in the Humboldt County economy. More people are able to find jobs and make money. People with these new jobs spend money elsewhere in Humboldt County helping growth in other supporting industries.

Increasing tourism can also bring too many people into Humboldt County. Our carrying capacity for visitors could become saturated. There is a limit to how many people our infrastructures--our roads, walkways, power systems, etc.--can sustain and a limit on how much our infrastructures can expand to handle more people.

With an increasing number of people visiting Humboldt County, we might also encounter a free-rider problem. Since tourists don't normally live here, they may feel as though it is not their responsibility to keep the place clean. Tourists might be less inclined to clean up after a picnic in the park, or to pick up a sandwich wrapper he or she dropped on the sidewalk. A tourist might also feel less of a need to recycle. After all, they are not the ones who have to live near growing garbage dumps. This means an extra burden for the people who do normally live here.

Crowded streets and increased pollution could be unintended consequences of more tourism. But, the rise in tourism could also be a sign that we are doing a good job maintaining our natural resources. People come to Humboldt County to see nature and to get away from the numerous human-made features of big cities. When we protect nature from damage and pollution it is more attractive to tourists.

When tourists visit Humboldt County, often they enjoy shopping. Especially attractive are the various small businesses found here. These shops often sell items unique to Humboldt as well as employ workers who live in Humboldt. When tourists purchase these items, they are contributing to an inflow of financial capital into the area. As tourists spend more money, the owners of small business become wealthier. These owners then have more money to spend at other local shops and more money to pay in wages to their employees. Their employees, in turn, also have more money to spend at other local shops. So tourists can have a very powerful and positive economic impact on the people who live in Humboldt County.