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Final Report March 1997 Benefits of Tourism Development Tourism is economic development. In 1996, an estimated 4.4 million people shopped at the discount malls annually, but few of those people visited San Marcos. If only 3% of shoppers at the malls will visit San Marcos and spend $70 each (the average daily expenditure of Texas intrastate travelers), direct sales in San Marcos will increase by $9,240,000 annually. At a 1.5% sales tax rate, that expenditure will generate $138,600 in tax revenue for the city. Increased tourism in San Marcos will benefit important segments of the community. According to the Tourism Division of the Texas Department of Commerce, one job is created for each $56,995 in tourism expenditures. Thus, under the scenario described above, 162 new jobs will be created. Most of those jobs will be in service and retail and many of them will be entry-level jobs. These jobs will benefit those in San Marcos who need employment, but lack technical skills. Appropriate tourism development can also benefit all citizens of San Marcos. The vision of tourism development established by the Blue Ribbon Committee emphasizes the diversity of the community. This kind of tourism can provide opportunities to capitalize on food, markets, and music that reflect the ethnic diversity of San Marcos. Tourism can benefit San Marcos in other ways. Tourists support local restaurants, specialty stores, and entertainment venues, and thereby make these attractions available to local residents. Tourism may also motivate the city and private landowners to maintain property. There are many types of "tourism" and some are more appropriate for San Marcos than others. The Blue Ribbon Committee believes that the most appropriate form of tourism for San Marcos is "ambiance" tourism - one that can build on the heritage of the community and its natural features. Heritage tourism is an increasingly important type of tourism in the United States. The heritage visitor "desires to experience all of those things that define a particular locality or region." These experiences include history, architecture, landscape, the arts, sports, cuisine, leisure time activities, local customs and events, and institutions (McCarthy, 1992: 4). Heritage tourists can help a community economically by their very presence. As Suzanne Cook observed, "tourists are people, and as such they must not only have places to eat, sleep and entertain themselves, but they also need sources of information, transportation, and reception services as well .... [T]ourism can stimulate the entire economy of an area" (Cook, 1988: N.8). Further, heritage tourists help a community disproportionately because they "are among the best educated [and] most affluent" and tend "to stay longer and spend more money" (Tighe, 1987: 1, 3). 79,E Mayor's Blue Ribbon Committee on Tourism Development Page 4