Revenue Retention

Increase the number of locally produced and grown products available for sale to tourists When tourists spend money on a locally produced or grown products, money stays in the local economy. For example, if a local art gallery sells two paintings, one from a local artist and one from an out of state artist, money paid to the local artist has a good chance of circulating locally, while money paid to the out of state artist creates little economic benefit locally.

Increase the number of locally owned and operated businesses selling products and services to tourists Locally owned and operated tourism businesses have a vested interest in the local tourism market and benefit from community efforts to retain outside revenue. Rather than attempting to recruit tourism-based business from outside the community, encourage local entrepreneurs and retirees to start businesses that sell products and provide services to tourists. Locally owned and operated businesses have a proven record of hiring local workers, reinvesting profits, and spending locally on products and services.

Insure that tourism related businesses utilize local labor, materials, products, and services Once a tourist spends money in a community, the goal is to have it circulate as long as possible before exiting. This is facilitated by hiring local workers and by spending locally on materials, products, and services. Making merchants aware of the local economic benefits of hiring and buying materials and supplies locally is many times enough to keep money circulating in the local economy.

Magnetic Communities value locally produced and grown products from locally-owned and operated businesses. This is why many tourist districts have added farmers’ markets and locally made crafts to the mix of products available to shoppers. This strategy entices residents and tourists to purchase locally grown produce and crafts. After visiting the farmer’s market, many residents stay downtown to shop and eat, especially if there are other events and attractions to hold their interest.