Rhode Island Welcome Center

New Study Shows that Rhode Island Welcome Center
Generates $33 in Tourist Spending for Every $1 of State Funding

Customer service is key to increases in visitor spending in Rhode Island

PROVIDENCE, R.I. – March 28, 2002 – A new study conducted by the Rhode Island Economic Development Corporation’s Tourism Division and the University of Rhode Island shows that the Rhode Island Welcome Center, the state’s visitor information center located on Interstate 95 in Richmond, generated $33 in visitor spending for every $1 in operating expenses last year. This figure is based on the study’s finding that the economic impact of the Welcome Center is $20 million or more. With the Center’s operating expenses estimated at $600,000 per year (not including brochures), the gross return on operating ratio is estimated to be approximately 33:1.

Tourists spend $104 more per party and stay approximately a half-day longer than planned in Rhode Island after receiving visitor information from the Welcome Center’s staff, the study also showed.

“The economic impact of the Rhode Island Welcome Center is very important to the success of our tourism industry statewide,” said RIEDC Executive Director Tom Schumpert. “From my perspective as a former banker, I would have to say that 33-to-1 is a pretty amazing return on investment. I tip my hat to the RIEDC employees who staff the Welcome Center. Their passion for their jobs and for the State of Rhode Island is really paying off for all of us who call Rhode Island home.”

The study “Effectiveness of the Rhode Island Welcome Center,” was conducted between May 21 and September 5, 2001 by Dr. Timothy Tyrrell, a University of Rhode Island economist, on behalf of the RIEDC’s Tourism Division. The two-pronged research project consisted of a survey of 999 visitor groups at the Welcome Center and 303 follow-up postcard replies.

Using identification numbers to match on-site survey respondents to follow-up postcard responses, the research team was able to determine that those surveyed actually spent nearly three times as much money on their Rhode Island visit than they estimated they would at the beginning of their trip.

Further, the study revealed facts about the effectiveness of welcome center stops on different types of visitors. Those who receive travel brochures during their stop will increase spending $43 to $63. An additional spending increase of $35 to $49 per child in the travel party was also recorded. The most significant spending increase concerns respondents who, at the outset, said they expected no increase in spending, for any reason, due to a stop at the Welcome Center. The follow-up survey shows that this group actually increased their spending an average of $79 to $95 because of their Welcome Center visit.

“The survey indicates what we in the tourism industry have believed all along, which is that the Welcome Center provides vital sales leads that turn into real visitor dollars for attractions, restaurants, lodging and retail establishments throughout Rhode Island,” remarked David DePetrillo, director of RIEDC’s Tourism Division. “The Center’s location near the Rhode Island – Connecticut border means that it is ideally positioned to serve our key visitor population from Connecticut, New York and New Jersey. We have always marketed Rhode Island heavily to this critical drive market.

“Since September 11th, that market has become more important than ever, and as such we are increasing our marketing efforts in this region. The bottom line is that Rhode Island’s tourism industry will be relying on the economic impact of the Welcome Center even more in the coming year,” he said

Other findings in the Welcome Center survey include:

• 33% reported household incomes above $100,000
• Approximately 50% reported education beyond 4 years of college
• Nearly 50% of the respondents lived in Connecticut, New York or New Jersey, although a wide range of residences, including international residences, were reported
• 61% of interviewees were male
• More than 50% stopped to request directions or a map

The study’s executive summary will be posted on the web site of the Rhode Island Economic Development Corporation, www.riedc.com. RIEDC is the state’s economic development organization, and is charged with overseeing Business Development, Financial Services, Urban Initiatives, the Export Assistance Center, Quonset Davisville Port & Commerce Park, Federal Procurement, Tourism, the Film & Television Office, and the Sports Council.