DATE: Friday, September 12, 1997            TAG: 9709120582

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY DEBBIE MESSINA, STAFF WRITER 
DATELINE: RICHMOND                          LENGTH:   73 lines

TOURIST SPENDING SETS RECORD STATE'S POPULARITY EXPECTED TO KEEP GROWING; SOME CREDIT NEW ATTRACTIONS.

Visitors to Virginia spent a record $10.52 billion in 1996, an increase of 5.5 percent over 1995.

Tourism employment rose 1 percent from 168,000 in 1995 to 169,800 in 1996. That means one in 18 Virginians is directly employed in the travel industry.

``The news of 1996 is great,'' said Thomas G. Morr, chairman of the Virginia Tourism Corp. ``Like the Virginia is for Lovers hot air balloon, we're flying high.''

Morr released the new tourism data Thursday at the Virginia Is For Lovers Marketing Symposium in Richmond.

State tax revenues generated by tourism in 1996 totaled $460.6 million, up from $435 million in 1995. Local tax revenues in 1996 were $288.19 million compared to $256.2 million in 1995.

``Once again tourism proves to be a strong tool for economic development and a significant generator of revenue for the commonwealth,'' Morr said.

He credited the healthy economy, the world marketplace and good weather for Virginia's tourism gains. Tourism officials also cited creative marketing and exciting attractions for the state's success.

Travel spending in 1995 of $9.97 billion ranked Virginia 10th in the nation. Tourism officials expect the state to hold that position for 1996. The goal is to move into the top five tourism states by 2010.

If trends continue, 1997 will be another record-setting year. For the first six months, lodging sales were up 7.3 percent to $907.8 million, and food service sales jumped 7.5 percent to $3.24 billion.

Visitation to attractions statewide rose 16.8 percent in the first half of 1997, while state and national park visitation is up 15.6 percent.

Morr said Virginia's new attractions, including the Virginia Waterfront International Arts Festival, the Newseum in Arlington and Thomas Jefferson's Virginia tour, are helping to keep the momentum going.

For the future, tourism officials will promote the burgeoning horse industry to help lure visitors.

Using a variation of the nearly 30-year-old ``Virginia Is For Lovers'' slogan, the state will promote ``Virginia is for Horse Lovers.'' The horse industry promotion will be a cooperative effort with the recently christened Colonial Downs race track, Loudoun County, Fauquier county and the Virginia Horse Center in Lexington.

Other sporting events are expected to be a big draw, including hydroplane races on the Chesapeake Bay, truck races at Richmond International Raceway, hot rod races at the Virginia Motorsports Park and a mountain bike world championship at Massanutten.

Additionally, professional golf champion Curtis Strange will represent the Virginia Tourism Corp. in promoting golf.

Tourism officials are also looking to the Internet and the Virginia Tourism Corp.'s Web site to build business. About 60,000 people a month download at least 10 pages from the Web site, said Patrick McMahon, president of the Virginia Tourism Corp.

The Internet is also seen as a good way to reach international travelers - a growing market for the state.

Virginia's international guests grew from 258,000 people in 1991 to 351,000 in 1995, said Matt Gaffney, worldwide marketing vice president for the tourism corporation.

Foreign travelers are coveted because they stay longer (16 nights, versus four nights for American travelers) and spend more ($96 a day, versus $68 a day for Americans).

Maintaining and building the tourist industry is critical to Virginia's economic health. Travel is the third-largest retail industry in the state and the third largest employer.

Tourist spending has been rising steadily since the late 1980s. In the past nine years, spending increased 40 percent, said Kirsten Niemann, Virginia Tourism Corp. research manager.

Travel-related employment is rebounding from declines in the early 1990s and has now surpassed the 1980s levels, Niemann said. Travel-related business establishments have also grown, from 28,000 in 1988 to 40,000 in 1996.

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