Tourism Pumps Billions Into Local Economy

WASHINGTON - Tourists and business travelers spent a record $5.05 billion in the nation's capital last year - a gain of almost 5 percent over 2004 that officials said was helped by new sports and entertainment venues, mass transit improvements and a significant increase in spending by international visitors.

"Huge investments in baseball stadiums, convention centers, mass transit circulator buses and Metrorail are paying off for us," William A. Hanbury, president of the Washington, D.C., Convention and Tourism Corporation, said at a press conference Tuesday outside the recently renovated American Art Museum.

The tally of visitor spending includes money pumped into hotels, restaurants, entertainment, retail and transportation - and it contributed $543 million in city taxes. The District of Columbia relies heavily on the tourism industry, which made up 13 percent of its tax receipts in 2005.

Industry officials said hotels and restaurants generated about $4.5 billion in sales in 2003, compared to $4.8 billion the following year.

"There's only one industry in this town and that's called tourism," said Del. Eleanor Holmes Norton, the city's nonvoting U.S. House member.

This summer, Norton worked with U.S. Park Police and U.S. Capitol Police to increase patrols near tourist spots following a series of violent crimes. Five people have been arrested in a series of attacks on the National Mall, and police have said a citywide crime wave appears to be ebbing.

Last year's gains in spending came despite a smaller percentage increase in the number of visitors. Last year, 15.4 million people visited the city, up 2.7 percent from 2004.

International visitors helped push more money into the city. Although their numbers increased only slightly from 1.2 million to 1.3 million, their spending increased 15 percent, to $1.3 billion in 2005 compared to the previous year.

At the city's new convention center, which opened three years ago, attendance topped 1 million for 201 events in 2005, compared to 900,000 for 191 events the previous year. In July, the Downtown Circulator bus system, owned by the city and subsidized by local businesses, concluded its first year with 1.6 million passengers - about 7,000 a day.

A new 41,000 seat, $611 million baseball stadium for the Washington Nationals is being built by the city on the Anacostia River waterfront. A retail and entertainment district planned around the site is expected to be as important a draw as the businesses around Verizon Center, a sports arena built by Washington Wizards owner Abe Pollin.

Dozens of new restaurants in several areas of the city have opened in recent years. Other major attractions like the International Spy Museum and the Newseum, scheduled to open next autumn, have sparked the opening of new businesses in previously boarded-up storefronts.

"We're trying to entice people to stay in Washington longer," said Diana Mayhew, executive director of the National Cherry Blossom Festival, which draws about 1 million visitors to the city each spring. Mayhew said more than 35 restaurants already have signed on to offer special promotions during the 2007 festival.

Tourists are noticing the changes and spending more time in the city as they mix business and pleasure on many visits.

"I brought my kids with me and they're in the Spy Museum doing the tourist thing," said Chris McCarthy, 49, of Petaluma, Calif., who last visited the city five years ago. "There's a lot more to do and a lot more restaurants downtown."

Hospitality businesses provided more than 59,000 full-time jobs, or 13 percent of the city's total, accounting for nearly $2.5 billion in wages and benefits, gains of about 1,600 jobs and $100 million in wages from 2004.

(Copyright 2006 by The Associated Press. All Rights Reserved.)