For Immediate Release:
August 5, 2010


                        Destination DC Forecasts Economic Improvement in 2011 
                                                   for DC's $5 Billion Tourism Industry

(Washington, DC)…More than 500 business leaders joined Destination DC today at the Walter E. Washington Convention Center to discuss the forecast for one of the District’s largest economic generators – the travel and tourism industry. Industry and political heavy weights were in attendance including: Stephen Joyce, president and CEO of Choice Hotels, Intl. and current chairman of U.S. Travel Association; Roger Dow, president of U.S. Travel Association; Rick Wade, Senior Advisor and Deputy Chief of Staff for Secretary of Commerce Gary Locke; City Council Chairman Vincent Gray and Councilmember Kwame Brown.
 
Strong demand for leisure vacations has bolstered the $5 billion tourism industry in the District so far in 2010, while DC’s convention business has been relatively soft this year despite a flurry of recent significant citywide conventions (such as Microsoft’s Worldwide Partner Conference and American Library Association).

“There is no question that DC businesses and residents are better off financially because of Destination DC. We attract visitors and conventions that create new revenue and support new jobs in the nation’s capital,” said Elliott Ferguson, president and CEO of Destination DC. As the official convention and tourism corporation, Destination DC is responsible for marketing the nation’s capital, and generates 22-25% of the District’s overnight visitors that spend $1.3 billion in direct spending.  

2011 Outlook

Visitation is expected to remain relatively flat through 2011, according to IHS Global Insight, a leading global forecasting company that provides Destination DC and the District CFO’s office with visitation and tax revenue projections. Factors such as DC’s unique business and leisure mix, government spending and accessibility for budget-minded consumers are expected to insulate DC from pressures impacting other destinations. 

Ferguson noted, “Stronger convention demand coupled with DC’s strong leisure market will mark economic improvement for our industry and the District’s business community.”

The convention segment is poised for a comeback next year; Destination DC has booked 22 major citywide conventions that are expected to attract nearly 260,000 attendees during its 2011 fiscal year (Oct. 1, 2010-Sept. 30, 2011) including the American College of Surgeons in October, Teach for America in February and the NASFT Fancy Food Show in July. These citywide conventions represent 258,000 attendeeShort-term convention sales initiatives and the impending groundbreaking for the Marriott Marquis headquarters hotel should also help attract additional bookings. 

Findings from the day’s events include:

• The Mid-Atlantic economy has suffered relative to other regions.  As DC’s most important source market for visitors, the relative weakness will put a drag on visitation to the region, both day and overnight.

• Domestic visitation numbers fell in 2009, but will show steady growth going forward as the local economy rebounds.

• Destination DC is organizing themed promotions to generate more visitors to the District. For example, Destination DC is bringing back its popular Date Nights DC promotion and will also be marking the 150th commemoration of the Civil War with many of its members. DC will be celebrating its international flare with a monumental celebration of Italian art and culture in the spring. The organization is also considering promoting the powerful culinary scene during the summer, surrounding the NASFT’s Fancy Food Show in July of next year.

• International visitation to DC grew to nearly 10% of visitation in 2009, the third straight year of increased international share.  The growth in visitors was stronger than expected, bucking the national trend where international visitation fell 5%.  Growth to DC should remain steady through 2013.

• The United Kingdom (despite a 7% drop in visitation in 2009) remains DC’s largest international market.  Growth opportunities over the next three years will come from South America and Canada. Destination DC is forging a new strategic partnership with Virginia Beach and the Canadian Automobile Association to attract Canadians to DC in 2011.

• The continued depreciation of the U.S. dollar is one of the driving forces behind the continued strong international arrivals forecast.

For additional visitor statistics, visit www.destinationdc.com/pressroom.