The site is not published to be a show case of website design with intuitive navigation, fresh multimedia and with all of the "bells and ringers" of so many of the beautifully-designed sites in the county and Everywhere U.S.A. The new C.T.T.C site is one example of a show-case site.

Visiting this website then will continue to be a one-stop process for a showcase of quick and easy-to-read stats on the local and state economy. There will be regular updates on tourism and agriculture, incomes, population, employment numbers, sales taxes, TOT on a county-wide basis, business forecasts, and a host of other helpful items which the business community and elected officials should have access to in a expedient manner. In addition, to run any form of enterprise and yet remain competitive, quick and up-to-date information is vital. This site's mission is to fulfill this need. And its acceptability has confirmed this goal. Page views, and total hits continue to increase each week.

 Weekly reports are reflecting on what 2008 may bring to the economic health of the nation, and there is a  massive consensus that there will be continued slowing of the economy this year. Others are indicating that the political rhetoric during 2008 will continue to focus more on the economy and quick fixes such as a 90-day reprieve from the Federal gas tax of 18.5 cents/gallon. Nothing was mentioned about relieving Californians of any portion of the state taxes collected on each gallon.  

On April 30, 2008 the first quarter report from the BEA on the economy  was less than anticipated.  Real gross domestic product--the output of goods and services produced by labor and property located in the United States increased at an annual rate of 0.6 percent. In the fourth quarter of 2007 real GDP also increased 0.6 percent
 
 Consumer confidence cannot be underestimated. And headlines appearing across the nation are not creating a comfort level for the public. One major daily ran headlines: "Poll paints lousy economic picture." Others echoed the same pessimistic role in informing the public. The money market's performance the past few weeks also provided less than encouraging numbers. Keep in mind, in spite of all of the news about foreign imports, the United States still exports far more, and by a huge amount, than it imports. The world economy is looking positive. However, if the American economy continues in the doldrums, that will have a massive effect on those Asian countries depending on a strong export market to the U.S.


 Why are economic reports so important? Consumer confidence levels are released each month, and they are largely based on surveys, and most of the questions concern the economy. Two-thirds of the Index is related to consumer spending, and it continues to be one of the prime indicators of where the country is headed during a time when news events change daily.

Then look as the Presidential campaigns produce rhetoric each day with "doom and gloom predictions for the economy. It is no wonder that people are skittish and have a great uncertainty about the future. It is a long period of time between now and the November election, and the public should brace itself as it will be hearing "quick fixes" for the ailing economy. "Change" is the current buzzword, and that cannot happen overnight--or even in one term.

 
                                   

                                   
 
 Hertz and others has announced that with every rental car agreement, a full tank of gas is included as a bonus. Hotels are starting this incentive all over California. Nothing has emerged in Monterey County has been advertised as a fuel incentive as other areas are now implementing in California and elsewhere. Santa Barbara lodging facilities are offering gasoline coupons as incentive. It happened before in Monterey County. Even Las Vegas is experiencing a slowdown after recording over 40 million visitors in 2007. Thirty percent discounts are common on the Strip for lodging.

                                                       May 20, 2008
                          INTERNATIONAL VISITATION UP 15 PERCENT IN FEBRUARY 2008
                                        SPENDING AT $11.6 BILLION FOR THE MONTH
                                                  (new numbers coming) 

Year-To-Date Arrivals 13 Percent above Last Year

The U.S. Department of Commerce announced that 3.3 million international visitors traveled to the United States in February 2008, an increase of 15 percent over February 2007. Total visitation year-to-date 2008 was up 13 percent from the first two months of 2007. International visitors also spent $11.6 billion during the month, up 26 percent from February 2007.


 Arrivals from Canada were up 13 percent over last year and Mexico's visitation was up 10 percent. Arrivals from the United Kingdom were up almost six percent following a solid growth in 2007.



               

                                       (Source: CTTC News Release)



 The value of the dollar has much to do with those record-low prices being offered to foreign travelers. The value of the Eruo is one example of how the dollar fares with other currencies. Canadian visitation was a "driver" with a 30 percent increase with Mexico logging in with a ten percent increase. (June 1: Eruo $1.58)


 See the new study on American's eating habits and where they spend their dollars. An update will be posted this week reflecting what this industry means to the overall economy. It continues to grow. Also, hit the Restaurant Industry button. There is a change in the publics eating habits. And it will affect the tourism-related industries. Also, an  updated report has been posted this week on the restaurant industry and its economic impact on the nation. It is huge in spite of its low rate of profit.


 
                   California General Fund Expenditures in Billions:
             (Source: Senate Committee  on Budget and Fiscal Review)
                                                      

Note: The Governor's proposed budget proposal with be updated each week  as he seeks to sell the public on how to get out of the "red."  Some political observers in Sacramento are already calling his solutions to cure the state's financial ills as "mission impossible" without raising taxes in an election year. Taxes are now being called "fees."

 In addition, the Governor has ordered all state departments to prepare for a ten percent cut in their respective budgets due to an expected $20 billion plus shortfall for next year's budget cycle. Most of it is attributed to the depressed housing market. The Legislature is heavily divided on this, and it will not be resolved easily. No one wants to raise taxes or cut services and that will be the issue in 2008. Lottery Fund borrowing plans now on the priority agendas for both parties. No consensus has emerged and time is running out since it would require a ballot measure for the November elections. The choice of using the lottery fund future profits to curb the deficit or raising the state sales tax will be a difficult choice.

 The water crisis, and a move to have a $10 billion bond on the February ballot failed, adding to the woes of the decisions makers at the State Capitol. The Delta Water System is now getting a very thorough review, as well as the construction of dams, and other measures to prevent a catastrophic happening for the water supply in Southern California and elsewhere. Monterey County is now facing some severe problems with water supply issues, and rationing may be an extreme but mandated option.


 New to this site is a review of the military presence in Monterey County and its contribution to the economy. See the new link button: Military Presence. More information is forthcoming from other military-related institutions in the county. The current posting covers NPS and the DLI facility. Others are under study including the expansion of Ft. Hunter Liggett in south county. There may be as many as 17,000 additional regular and reserve military troops involved for training purposes at Liggett throughout the year. Construction projects are underway to emulate war-time conditions for trainees. (more)

Results Consulting/Research has doing these public-accessed updates for 16 years in the county, and it has helped produce millions of dollars in public and private funding to support the tourism industry.

The first report published in 1993 for their MCTTA showed the county was losing its market share of the state's tourism and travel business. It was down to 1.1 percent of the state's total tourism economy.

 The economic report made public was the major catalyst to change the way business had been conducted in the past and the area was not keeping pace with other tourism destinations in the state. The county market share is stable and is holding its own. It continues to be ranked 11th among all of the 58 counties. That is with only 1.12 percent of the total state's population. On a per-capita basis and using the current population base (without the prisoners being counted), the share of tourism expenditures ranks Monterey County near the top of all the state's 58 counties.
                               

Monterey County has completed its calendar year for measuring tourism activity. And in review, the tourism industry produced a robust season for the summer with record attendances, and more visitations from the Bay Area. Short, family vacations are the norm for the area, however, there is still no firm count on day-tripper visits, and that project is under current study by this company. It is expected that 8.8 million visitors  visited Monterey County during 2007. That could change with  plus $4 /gallon fuel. As reported elsewhere on this site, there are 14 million people within a four-hour drive of the Peninsula. Many of them coming to the area for a day's visit, and that number is much higher than earlier reported. The 2007 TOT report shows a record collection year of over $45 million. These very positive numbers have been made public for over 6 weeks, and have not been written up by any of the Monterey County print media.


Summer and early fall vacation visitors from all over the world made the past summer and early tourism season one of the most productive in recent years. The Car Week highlighted by the Concours d'Elegance event was ahead of any week-long event ever staged in Monterey County. And it wasn't a pay- and-see crowd; they stayed and made a huge impact on the tourism industry. The Monterey Jazz Festival celebrated its 50th Anniversary with a complete sell out for its three-day September run. Even Labor Day continued the trend with the Aquarium breaking every record with 14,000 people on the weekend.  With the economic conditions being as they are, expect a slow down of tourism activity from a record 2007. It is  now a period when new attractions and facilities will provide enough in incentives to visit Monterey County in the same numbers for 2008. Short trips from major population centers should favor the county. 

Conditions have changed for 2008, there is a marked slowdown on travel. And looking forward to 2009, the AT&T Pebble Beach National Pro-Am has been moved up two weeks next February--and it falls on a major weekend later in the month. President's Day weekend has always been a typical great day for visitors to Monterey County. Lodging could be a major problem.

  Tourism economic reports are released on this site using calendar-year numbers. Applying fiscal numbers ending on June 30th do little to inform the public of the real economic impact this industry produces. Decisions are made on current conditions, not those based on a June 30th closing date.

 Yet reports still emerge from various nonprofit groups citing fiscal-year performances.  A TOT record was collected last year with over $45 million---more than the millennium year as well as  Pebble Beach being the site for the U.S. Open's 100th anniversary in that record year. They will return to Pebble Beach Golf Links in the year 2010.
                                
              2007 CROP Report Highlights
               from the Commissioner

 Farm bill clears Congress with veto-proof majority on May 21. The $300 billion bill was passed in spite of President Bush indicating that he would veto it because of it being too expensive and offered little in reform to correct long-standing subsidies to large farming interests. He asked Congress to keep the current farm policy in place for another year, however, his veto had more than enough votes to pass the law without his signature.

Of interest to Monterey County's agricultural industry, it included a new section addressing the needs of specialty crops and organic foods. This is the first time that this segment of the industry has receive any  funding from the Farm Bill. It is a major victory even though not all of the requests were finalized in the final conference report.
       
Monterey County would be number one in the state if the Fresno and Tulare county's Federal subsidy were not added to their agriculture reports. Monterey County does not receive agriculture subsidies from the Federal government. 

         
The safety issue will affect sales of bagged vegetable products, and the bottom line will not be know for several months.  As last year went off the boards,  a new wave of "health issues" have  emerged. People will be staying home more, and being careful on their extra spending habits. Major advertisers from all of the media are now stressing the need for a good healthy diet. Obesity and its effect on good health appear weekly in most of the major print and broadcast media.

 Also, the restaurant industry is offering a variety of foods under their new campaign of "eating healthy."  With increased consumer emphasis on health, they are responding with nutritious options and a variety in portion sizes. According to the Restaurant Association, 76% of the customers say they are trying to eat more healthfully in restaurants and fast-food outlets than two years ago. Consumers are paying attention to a healthier life and food with an eco-commitment to menus and sustainable seafood and meats.

 And that also includes lots of vegetables and leafy greens at the dinner table. One major Sunday insert had headlines: "Limit carbs and cook with more veggies." Another said "get a super start, eat vegetables and fruits and spinach. Aim for balance composed of 40% healthy carbohydrates (whole grains, fruits, and vegetables.) Eat fiber-rich foods such as apples, almonds, and spinach helps you feel full. It also may prevent certain cancers, lower your cholesterol and reduce your risk of heart disease."

 The collateral damage that was expected from the E coli incident in late 2006, is not happening. And as long as the new "leafy agreement" prevents other outbreaks, the farming community in the county can be encouraged to emphasize health and good eating habits...and especially those grown in Monterey County. A "fitness-theme "of good health is something the industry should have on the planning boards to capitalize on all of the publicity being generated by those outside the actual production of the crops. 


The agricultural industry not only has the food-safety perception among the public, it is being faced with some serious labor problems as more "crack downs" are being enforced in areas employing farm labor. In addition, recent layoffs in the value-added industry have contributed to the problems facing the local economy. The labor market is now seen as a major problem for the county's agricultural industry. More will be forthcoming on this subject as more reports are issued by the various agencies governing immigration matters. One report indicates that the monies sent back to Mexico by workers in the United States has had a remarkable decline.  In addition, the waiting period and cost for green cards and legal immigrations have greatly increased.
                                                                    

Be reminded that the agriculture segment in the county was $3.8 billion in 2007, and the tourism industry was over $2.1 billion. These are direct contributions and when the multiplier (IMPLAN factor) has been applied to the tourism industry, it grows to $3.78 billion. and it is explained further on this site. Both of these economic engines comprise over 50 percent of the county's gross domestic product or a combined economic impact of $10.24 in Monterey County. Other segments such as the military, education, and health-care total economic impacts will be featured on this website at a later time.

The 2007 Crop Report was released, and the results are posted on the Crop Report link. The gross value of Monterey County's agriculture output was $3.8 billion.This does not count the IMPLAN multiplier fact which is posted on this site. That preliminary total will show a multiplier effect of $6.46 billion for the agriculture industry in the county. The real economic value of the agriculture and tourism industry now exceeds $10.24 billion of the County's Gross Domestic Product. 

                              
This is copyright material and if use is desired, please contact the editor as listed below-- and there is no problem with proper credits. You can post it, print it, but with proper sources and no editing. There has been a void on readily-available economic facts. Hopefully, this may be of service to the business community, elected officials, staff persons, as well as the general public who are concerned about the economy of Monterey County. 

FREE OF CHARGE--
                                                                            
NO REGISTRATION--

AND NO LOG IN
IS REQUIRED                      






The latest economic news is just one click away.


Ernest Hoffman, President and Editor
Results Consulting/Research
E-mail: consulthoffman@msn.com
831-375-6125
Website: www.economicfastfacts.com
Member of the International Association of Travel Research and Marketing Professionals