Local tourism officials were thrilled when the latest impact figures were released by the State Government this week, revealing that this has been a record year for the region.
Somerset Tourism Director Leslie Ikard and Somerset-Pulaski County Tourism Director Michelle Allen presented 2023 tourism economic impact figures for Pulaski County to both the Pulaski County Fiscal Court and Somerset Council, announcing the county generated $150.9 million in revenue.
Not only is this a record amount, it also exceeds last year’s revenue by more than $6 million.
Allen said he knew the 2023 numbers would be higher than 2022, but he didn’t expect such a big increase.
This $150.9 million not only reflects a large portion of the tourism impact figure seen for the entire Lake Cumberland region (which generated $348 million in tourism economic impact for the 11-county region), but it also ranks Pulaski County 15th out of all 120 counties in Kentucky.
Allen explained that these figures come from Tourism Economics, an independent consulting firm hired by the state of Kentucky, and that local officials have no say in how these numbers are determined.
But what she and Ikard can say is that the importance of tourism to the commonwealth has a positive impact on the daily lives of people who live here.
“Without tax and tourist revenue coming into our community, every Kentucky household would be taxed an additional $564,” Allen told the Somerset City Council. “So next time someone says, ‘We hope the tourists don’t come,’ remember those numbers.”
While the exact formula for how Tourism Economics arrived at the figure is unclear, Allen said it’s a combination of three factors: direct impacts, which is when a tourist dines at a restaurant or pays a service charge with their own money; indirect impacts, such as when a conference is held and the venue hires a caterer to serve lunch; and induced impacts, which is when people whose jobs are paid for by tourism dollars spend that money back in the community.
Ikard also spoke about how she, Allen and others in the tourism industry are working to create a positive impression of Somerset for people who are visiting for business rather than vacation, and how that impacts visitors.
“Sometimes they don’t just come to stay,” Icardo says, “they come for a day trip or a business trip. And when they come here, they want to come back. We show them great restaurants, we take them shopping, we do things together, and they want to come back with their families.”
Ikerd also noted that an increase in activity and festivals, especially in Somerset’s downtown area, has had a positive impact on the numbers. Since 2019, she said, downtown has become more lively on weekends and after 5 p.m.
The Summer Nights Cruise has been a mainstay of the local festival scene for the past 24 years, but the addition of the city’s food truck and arts festivals has helped draw people downtown, she said.
“Last year alone we had 18,000 people come to just the three events we hosted,” Icardo said of the city’s festivals.
She also said the newly renovated Virginia has hosted many shows and events, some of which have sold out.
While the economic impact numbers are impressive, officials at both meetings wondered where the county goes from here and what new attractions might emerge.
Allen said he doesn’t have any big plans, but noted that Somerset Mayor Alan Keck’s recently announced plans to renovate Summer Sports Park have the city looking to expand sports tourism.
She also noted that thanks to the efforts of the Somerset-Pulaski Economic Development Agency, there has been a surge in conferences and business meetings being held in the area.
The good news for tourism was tempered somewhat by the fact that three hotels have closed in the area in the past few years, but Allen said even that news isn’t all that bad.
One of the hotels is being rebuilt after a fire destroyed the original building, a Best Western near Loews, and Allen said the area needs more hotels to replace two others that have gone out of business.
But other short-term rentals, like Airbnb, are being booked frequently, she said.
Keck also, somewhat cryptically, added that there have been “discussions” about building a small boutique hotel downtown, which would be beneficial for people wanting to stay overnight on summer nights and during festivals.
