Assessing Expenditure Changes Related to Welcome Center Visits

Abstract

This article illustrates a methodology for assessing expenditure changes associated with welcome center visits and applies this methodology to assess the effectiveness of the Rhode Island Interstate 95 welcome center. The model is distinguished by (1) the use of detailed information from both on-site and follow-up surveys and (2) a means to correct for potential nonresponse bias in the follow-up sample. Results of the analysis illustrate that a visit to the Rhode Island welcome center increases visitors' average in-state expenditures. The estimated expenditure change for the average visitor group—which varies from $104 to $111, depending on model specification—is significantly greater than the expenditure change anticipated during the initial on-site survey. On the basis of model estimates, the authors conclude that the welcome center generates approximately $35 in new tourism expenditures for every dollar of operating budget.