THE VIRGINIAN-PILOT   
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Friday, May 10, 1996                   TAG: 9605100636
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL  
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
                                             LENGTH: Medium:   78 lines

CORRECTION/CLARIFICATION: ***************************************************************** CORRECTION A Business News story about tourism at Virginia Beach incorrectly stated that nearly 600,000 more visitors traveled to the Beach in 1995. Only about 100,000 more visitors traveled to the beach in 1995 compared with 1994. About 1.89 million visitors came to the beach in 1994. The story also incorrectly said 15,500 jobs were created by visitor spending; in fact, 16,500 jobs were created. The city's partnerships for the Family Fun packages are with various regional cities and Busch Gardens Williamsburg, not the city of Williamsburg. Family Fun packages are sold cooperatively, not by a single city. Correction published , Saturday, May 11, 1996, p.D2 < ***************************************************************** BEACH TOURISM INCREASES TWO MILLION OUT-OF-TOWN VISITORS TRAVELED TO VIRGINIA BEACH IN 1995, ABOUT A HALF MILLION MORE VISITORS THAN IN 1994. THOSE VISITORS GENERATED $1 BILLION IN SPENDING IN HAMPTON ROADS PROVIDING 15,500 DIRECT AND INDIRECT JOBS FOR RESIDENTS.

Improved advertising and promotions may be paying off for Virginia Beach and giving a financial lift to the rest of the region.

Nearly 600,000 more visitors traveled to the Beach last year than in 1994, according to a study by Old Dominion University released Thursday.

In all, 2 million out-of-towners vacationed at the resort city, generating $1 billion in spending throughout the region, said Gilbert R. Yochum, an economics professor at Old Dominion's College of Business and Public Administration.

Visitor spending accounted directly or indirectly for 15,500 jobs for Hampton Roads residents, said Yochum, who supervised the economic impact study. About 11,000 jobs were created directly for the Beach, while 5,500 were created in the region.

Vacationers to Virginia Beach spent about $500 million in the resort city. Of that, the city took in $35.7 million and spent $21.8 million in visitor-related expenses. For every dollar that Virginia Beach spent on tourism, it collected $1.64.

Travelers also spent $500 million throughout the rest of the region.

``I haven't seen any other tourism-related area that does (a study of) average rate of return on their spending,'' said James Ricketts, director of the Virginia Beach Department of Convention and Visitors Development, which oversees the city's tourism program.

Virginia Beach also may have benefited from its regional partnerships. The Virginia Waterfront campaign, bankrolled by Norfolk, has an annual budget of $3 million, more than Virginia Beach spends on its solo advertising. The city also has entered advertising partnerships with the cities of Norfolk and Williamsburg.

Beach tourism officials hope to retain their share of tourists this summer as they wage heavy warfare against a $160 million Disney promotion of its theme parks, plus the Summer Olympics in Atlanta.

When asked about the impact of the Olympic games on the Beach's share of visitors, Ricketts said, ``I don't think this is going to have any impact at all.''

The Olympics will draw heavily from international visitors, athletes and corporate sponsors, a different niche from the Beach's core group of family visitors, he said. As well, the Beach's budget of $2.6 million for media advertising and promotion should help bolster its effort, Ricketts said.

Virginia Beach has already sold 700 family fun packages, following 20,000 inquiries, in three weeks of advertising, officials said. ILLUSTRATION: Color file photo

[Virgina Beach oceanfront]

KEYWORDS: TOURISM VIRGINIA BEACH by CNB