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Final Report March 1997 The economic benefit of heritage tourism is spread throughout a community and is anticipated to have steady growth well into the 21st century. Ninety-eight percent ofthe organizations of the travel and tourism industry are classified as small businesses (Gartrell, 1994: ix). This is not surprising given the range of spending by out-of-town visitors. Such visitors spend money on lodging, food and drink, rentals, sport and event admission fees and tickets, entertainment, ground transport, and shopping for gifts and souvenirs (Gartrell, 1994: 43). The tourism industry "generates large revenues relative to the demand placed on a destination's support structures" (Gartrell, 1994: 30) because the products tourists "consume" are those that residents use on a regular basis e.g. roads, parks and retail establishments. Further, specialty retail stores, historic sites and structures, performing arts, and museums enhance our quality of life and are paid for with money contributed by heritage visitors. The total impact of tourism must be measured by the sum ofthe jobs created, personal income gained and taxes generated (Gartrell, 1994: 43). This positive impact is substantial and is expected to grow in both the United States and Texas. By the mid-1990s, the tourist industry is the second largest retail or service industry in the United States (Weaver and Wishard-Lambert, 1996). An increasingly important consumer sector ofthis industry is the senior traveler - those visitors 65 years and older. It is estimated that by the year 2030,20% of the U. S. population will be 65 years or older. Today's senior travelers tend to be better educated and more affluent than their predecessors. As a group, they are willing to pay for cultural experiences (McCarthy, 1992: 11,7). Texas generally, and central Texas specifically, evokes a strong imagery both within and outside the United States. This unique image is a gift beyond price as it already provides potential visitors with an incentive to visit Texas because of its distinctiveness. Travel is the third largest industry in Texas (Tyson, 1997: D8). Visitors to Texas spent $25.4 billion in 1995. San Marcos is a small town in the Texas hill country with a university that educated a president ofthe United States. These assets have an inherent legitimacy from which we can build anew while at the same time retaining the history and traditions of our town. As McCarthy observed, "the integrity of the product itself [is] the essence of. . . wqat people looking for quality and individuality want" in heritage tourism. Nature tourism offers a number of benefits to San Marcos. We are located in an interesting natural area, at the headwaters of the San Marcos River, supposedly at the longest continuously inhabited area of North America and all that implies. As yet, we have not used our natural uniqueness to our full advantage. Mayor's Blue Ribbon Committee on Tourism Development Page 5