In an advertising return on investment study conducted by Longwoods International for the City of Virginia Beach, it demonstrated that for every dollar we invest in tourism advertising we generated $67.84 in visitor spending and further generated $3.44 in local tax revenue. Tourism activity in Virginia Beach produces $1.49 billion in direct spend in our local businesses. It’s important to understand that these are new dollars added to our economy as visitors bring these dollars with them from outside our region and leave them in our local economy and then go home with their memories – and local purchases. This tourism activity also contributed nearly $60 million in local tax dollars to help support vital city services and our schools.
Here is a great flowchart that shows how the revenue flows into our economy from hotel taxes and restaurant taxes by visitors. When we redirect some of that money into more advertising, we keep visitors coming – hopefully new visitors that will make Virginia Beach their vacation destination of choice for years to come.