Booming Flathead tourist economy trickles down

Flathead County ranked second among Montana counties for tourist spending averaged over 2012 and 2013, with nonresident traveler spending topping $518 million.

According to the University of Montanan’s Institute for Tourism and Recreation Research, direct, indirect and induced economic impacts from that spending included $553 million in industry output, 7,000 jobs, $177 million in employee compensation, $33 million in proprietor income, and $28 million in state and local taxes.

The economic report prepared by Kara Grau was released July 21. It breaks down tourist spending for Montana’s six travel regions and the 18 counties where tourists spent more than $50 million.

“Nonresident spending is a significant contributor to Montana’s economy,” Grau said. “Money spent by those traveling to and through the state has an effect not only on the businesses where spending occurs, but it ripples throughout Montana’s economy, both locally and regionally.”

Montana’s tourist industry is booming. Statewide, nonresident traveler spending topped $3.5 billion, about 13 percent more than the 2011-2012 two-year average.

The Yellowstone Country travel region, which includes Bozeman, Red Lodge and West Yellowstone areas, accounted for 29 percent of statewide tourist spending. Glacier Country, which includes Northwest Montana, along with Missoula and Ravalli counties, came in second at 28 percent.

A breakdown of nonresident traveler spending in the Flathead showed 28 percent going to retail sales, 20 percent to bars and restaurants, 16 percent to gas or diesel, 10 percent to groceries or snacks, 9 percent to hotels and motels, 6 percent to outfitters and guides, 3 percent to licenses and entrance fees, 2 percent to cabin and condo rentals, and 2 percent to auto rentals.

Compared to Glacier Country as a whole, tourists in Flathead County spent less money on gas or diesel and more on retail sales, bars and restaurants, and hotels and motels.

About 1 percent of tourist spending in the Flathead went to farmers markets, and less than 1 percent went to gambling.

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