Case Study: Hospitality Industry Analysis – New Braunfels Economic Development Foundation

Client: New Braunfels Economic Development Foundation
Location: New Braunfels, Texas

The Research Question
As a water recreation paradise, New Braunfels boasts one of the world’s best water parks and two beautiful rivers perfect for fishing, tubing or swimming. The historic district of Gruene offers year-round music, dancing, shopping and dining. The annual Salute to Sausage, Wurstfest, provides entertainment food and fun while celebrating the city’s German heritage. The hospitality industry that draws and accommodates these visitors plays an important and significant role in the local area economy.

The New Braunfels Economic Development Foundation knew the hospitality industry was important to the local economy and was a significant contributor to city revenues but the Foundation engaged Impact DataSource to quantify the industry’s significance.

The Approach
With the assistance from the City of New Braunfels, the Greater New Braunfels Chamber of Commerce and the Convention & Visitors Bureau, Impact DataSource collected local business data and conducted interviews and surveys. For the purpose of the report, the hospitality industry was defined as businesses in industries that derive significant earnings from tourists or out-of-town visitors.

Impact DataSource determined the direct and indirect economic impact of the hospitality industry on the New Braunfels area. Next, we translated these economic impacts into revenues for the city to determine the financial contribution made by these firms. In addition, Impact DataSource conducted a web survey of hospitality industry businesses to determine the charitable contributions that they make in the community.

The Outcome
Although community leaders and citizens were aware of the hospitality industry’s importance, our study quantified just how vital this industry is to New Braunfels. In terms of economic output, the industry accounts for nearly 20% of total gross area product in New Braunfels through direct and indirect impacts. Similarly, the industry contributes over 18% of total revenue to the city’s annual budget. The New Braunfels Economic Development Foundation released the study to remind community leaders and residents the importance of the city’s hospitality industry and encourage policies to protect the valuable industry.

Download the entire report.
New Braunfels Hospitality Industry Analysis