The forum featured speakers from CIC Research, Inc., an economics and market research firm based in San Diego; Smith Travel Research, the leading authority on current trends in occupancy, room rate and supply/demand data for the lodging industry, and Michigan State University's Travel, Tourism and Recreation Resource Center.

The volume of visitors to metro Detroit in 1997 rose 6 percent and visitor spending increased 5 percent over 1996, according to the 1997 Tourism Market Profile Study, conducted for the Bureau by CIC Research. Visitor counts have climbed 40 percent and visitor spending has increased 28 percent since 1992 when the first tourism market profile of the region was conducted for the Bureau.

The annual Tourism Market Profile Study is based on the results of about 1,800 face-to-face interviews with visitors to the region and 1,200 household telephone surveys of local residents to determine the number and characteristics of their out-of-town visitors.

A continuing healthy economy, low unemployment, high consumer confidence and an enhanced tourism product are among the reasons for the steady growth of metro Detroit visitors, said Bureau Chairman Christina Lovio-George.

"If all remains equal, we anticipate this visitor growth trend to continue and we must be ready to respond with outstanding value, service and facilities," she said. "Tourism spending directly generates 72,000 jobs in the tri-county area so it is an industry that has a tremendous economic impact on this region."

Of the $4.1 billion spent in metro Detroit by visitors in 1997, approximately one-third -- or $1.4 billion -- was spent on shopping and another $1.2 billion was spent in restaurants. Dining and shopping were named as the most popular visitor activities. Approximately $690 million was spent on lodging, $370 million on ground transportation and $320 million on entertainment and recreation.

After restaurants and shopping, the top five most visited attractions by visitors from outside metro Detroit were Henry Ford Museum Greenfield Village, Greektown, Renaissance Center, conventions/events held at Cobo Conference Exhibition Center, and the Detroit Zoo.

Michigan residents from outside the tri-county area represented the largest market for overnight visitors to metro Detroit. Michigan residents accounted for nearly 1.1 million of the 10 million overnight visitors. States throughout the Midwest (including Michigan) generated the majority of visitors -- 32 percent -- to metro Detroit, followed by the Southern United States at 26.2 percent. International visitors represented 16 percent of the total overnight visitor count, with Canada being the largest international market, at 4.4 percent of all international visitors.

Approximately 74 percent of metro Detroit visitors in 1997 were here on pleasure trips, compared to 21 percent on business trips or attending meetings and conventions. Of the 16 million total visitors, 10 million were overnight visitors and 6 million were day visitors. The majority of the overnight visitors -- 7 million -- stayed in private homes while 3 million stayed in hotels and motels.

Local Hotel Occupancy

Hospitality Advisors of Ann Arbor, which specializes in consulting for the hospitality industry nationwide, presented 1997 market performance results for the hotel sector at the forum and reported that increases in private home visitors accounted for the largest portion of increased tourism visitation last year, at 9 percent.

Although metro Detroit hotel occupancy levels in Wayne, Oakland and Macomb counties were down one point from 1996, at 67 percent, room supply increased so that there was actually a real increase in occupied rooms of nearly 50,000 in 1997.

"Although many hotels had a better year than ever in 1997 and the occupancy level in metro Detroit is significantly higher than the 64.5 percent national occupancy level, it may be time for the hotel industry to exercise some caution," said Chuck Skelton, president of Hospitality Advisors. "Because of the increase in private home visitors as well as an increase in the average daily rate, hotel supply on the leisure side of the business may begin to outpace demand, mirroring the national trend."

The Bureau's Lovio-George said, however, there is still a critical need to support the potential for more city-wide, Cobo Conference Exhibition Center based conventions by adding to the number of committable hotel rooms.

The National Outlook

Chuck Ross of Smith Travel Research gave an overview of the national lodging industry at the forum, reporting that current national room supply is at 3.6 million, compared to an annual demand for 2.3 million rooms.  The average daily room rate is at $75.60 nationally, compared to $69.68 in metro Detroit.

The Metropolitan Detroit Convention Visitors Bureau is a private, nonprofit organization whose mission is to market and sell the metropolitan Detroit area on a worldwide basis as a destination for leisure and business travel including conventions, trade shows, corporate meetings, tours and incentive travel to maximize additional visitors, visitor expenditures, state and local tax revenues, and job opportunities. More than 625 businesses are represented in the MDCVB's membership. The MDCVB was founded in 1896 as the world's first convention and visitors bureau.