Cherokee 2008 Market Profile - Western North Carolina Commercial

Eastern Band of Cherokee Indians
2008 Market Profile
Eastern Band of Cherokee Indians
Table of Contents
Topic
• Mission Statement
• Brief historical overview of the EBCI
• Tribal Government
• Resident and Nearby Market Overview
• Tourist/Recreation Market Overview
• Economic Development Initiatives
• Conclusion
Page
4
5
7
11
21
38
41
Planning & Development Mission
Statement
The Mission of the EBCI Office of Planning and Development is
to mobilize available economic resources to enhance the overall
quality of life for our people. We strive to grow job opportunities,
to improve the business climate and tax base of the Tribe, and to
promote a self-sustaining and diverse economy on the Qualla
Boundary.
Brief Historical Overview of the EBCI
• What is now WNC has been part of the homeland
of the Cherokee people for many centuries.
• Originally, Cherokee land encompassed what would
now be part of eight states.
• Today’s Eastern Band members are direct
descendents of those who avoided the Cherokees’
forced removal to Oklahoma in the 1830’s, the “Trail
of Tears.”
Brief Historical Overview,
Cont’d
• The home of the Eastern Band today is the 56,698acre Qualla Boundary in Western North Carolina
adjacent to the Great Smoky Mountains National
Park.
• There are 13,977 enrolled members of the Tribe
today; over 60% live on the Qualla Boundary.
EBCI Tribal Government
• The Eastern Band is a sovereign nation, not subject
to:
¾ NC state sales tax for retail sales on or delivered to the
Qualla Boundary
¾ County property taxes
¾ NC state income tax (members on Qualla Boundary)
• Three-branch Government
¾ Executive, elected every four years
¾ Legislative, elected every two years
¾ Judicial, non-elected positions
EBCI Tribal Government,
cont’d
• Headed by a popularly-elected Principal Chief, Vice Chief,
and Tribal Council
• Provides services that are typical of those provided by most
municipal governments.
• Provides police, fire, public safety, EMS and sanitation
services to residents and the business community.
• Responsible for water and sewer services, environmental
planning, as well as road construction and maintenance.
• Also provides a variety of health, medical, community
and recreational services to Tribal members.
Tax Advantages of Doing Business on
the Qualla Boundary
• Certain provisions of the IRS Code provide key
incentives for locating businesses on Indian Lands.
¾ Section 45 (a) provides tax credits on qualified wages and
health insurance costs up to $20,000 per year for each
qualified employee
¾ Section 168 (j) of the code provides for the accelerated
depreciation of certain property acquired in connection
with your business
¾ Consult your tax professional for specific rules
which may apply to your situation.
Eastern Band of Cherokee
Indians
Resident and Nearby Markets
Resident and Nearby Markets
•
•
•
•
•
Qualla Boundary population:
8,092 (US Census, 2000)
Median Family Income:
Cherokee
$31,723 (US Census, 2000)
Population within 50-mile
radius (the distance to
Asheville) approximately
350,000
Retail sales on the Qualla
Boundary grew 57% from
1999 to 2007… faster than
most neighboring counties
Semi-annual per capita
payments to enrolled members
put over $84 million in
discretionary income into the
regional economy in
FY 2007
Asheville
EBCI Income Distribution
Source: US Census, 2000
3% 1%
0%
5%
11%
16%
7%
19%
21%
17%
< $10,000
$50 - $75,000
$10 - $15,000
$75 - $100,000
$15 - $25,000
$100 - $150,000
$25 - $35,000
$150 - $200,000
$35 - $50,000
Over $200,000
EBCI Per Capita Payments into
Regional Economy
(Millions of Dollars)
$84.7
$90.0
$78.8 $80.1
$80.0
$58.6
$70.0
$57.9
$55.1
$60.0
$48.3
$50.0
$40.5
$40.0
$27.6
$30.0
$12.8
$20.0
$10.0
$17.2
$20.0
$4.4
$0.0
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07
An estimated 2/3 of all enrolled members of the EBCI are adults who receive semiannual per capita distributions.
Resident and Nearby Markets,
cont’d
• Largest area employer is Harrah’s Cherokee Casino and
Hotel which employs 1,825
¾ Largest employer in NC west of Asheville
• EBCI Tribal Government employs over 1,000
• Combined payroll of $89 million in 2007
• Other major employers:
– Cherokee Indian Hospital: 240 employees, $12.8 million payroll
– Cherokee Boys Club: 571 employees, $15.1 million payroll
• Over the ten years since the Casino opened,
unemployment has decreased in all counties
surrounding Cherokee
EBCI Payroll 1999 – 2007
(Millions of Dollars)
$40
$32.4
$35.2
$36.8
$31.7
$35
$28.0
$23.1
$30
$19.7
$25
$20
$16.9
$14.8
$15
$10
$5
$0
1999 2000
2001 2002
2003 2004
2005 2006
2007
Harrah’s Cherokee Casino & Hotel
Payroll
1999 – 2007 (Millions of Dollars)
$60
$50.2
$46.8
$48.2
$52.2
$47.1
$43.4
$50
$40
$32.6
$34.6
$25.1
$30
$20
$10
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007
Harrah’s Cherokee Workforce
County of Residence
Other
5%
Macon
4%
Swain
36%
Jackson
36%
Buncombe
1%
Haywood
15%
Graham
2%
Cherokee
1%
Average Unemployment Rates:
1994 versus 2007*
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
15.5%
13.6%
5.7%
6.5%
5.0%
8.0%
5.1%
4.2%
3.7%
Swain
Jackson
Graham Haywood
*Source: NC Department of Commerce
4.1%
Macon
1994
5.1%
4.4%
NC
2007
Resident and Nearby Markets, cont’d
• Educational Opportunities
¾Convenient and quality educational opportunities
¾Western Carolina University, a vital part of the NC
University System, and Southwestern Community
College are both located with 30 minutes of
Cherokee
¾Tribal internships for management development
Eastern Band of Cherokee
Indians
Tourist Market
The Great Smoky Mountains attract
millions of visitors annually
Cherokee: A Major Tourist Destination
• Cherokee is a major tourist destination for millions of visitors
each year
• A gateway to both the Blue Ridge Parkway and the Great
Smoky Mountains National Park – two of the top three most
visited recreation areas in the United States
¾ 2,221,251 visitors crossed through the Cherokee entrance to the
GSMNP in 2007
¾ Cherokee is the southern terminus of the Blue Ride Parkway; an
estimated 508,787 people traveled the Parkway through Cherokee in
2007
¾ Average 2006 daily traffic count on Highway 441
from Gateway Exit to Reservation: 15,000
(Sources: National Park Service, NC Department of Transportation, and
Blue Ridge Parkway)
Cherokee and WNC: A Recreation
Paradise
Entity
Acres
Square Miles
Qualla Boundary
56,698
88.6
Great Smoky Mtns.
National Park
495,000
773.4
Nantahala National
Forest
517,579
808.7
Pisgah National
Forest
520,408
813.1
Total
1,589,685
2,483.8
Recreation on the Qualla Boundary
• Trout fishing: 30 miles of waters and three ponds
– NC State record brook trout (7 lbs., 7 ozs.)
•
•
•
•
45 miles of ATV Riding Trails
Camping – 2,149 campsites on the Boundary
Hiking
Kayaking/other river floating
Recreation in Western North Carolina
•
•
•
•
•
•
Trout fishing: over 2,000 miles of public trout waters
Fontana, Santeetlah, Chatuge, Glenville, other lakes
Camping
Hiking
Kayaking/other river floating
Hunting– bear, deer, wild turkey, grouse, other
small game
• Rock Climbing
• Winter sports
Recreation: Fishing
Recreation: Fishing
The Cherokee Talking Trees Trout Tournament as televised by ESPN.
Recreation: Camping
Recreation: 4-Wheeling
Recreation: Fall Color Season
Harrah’s Cherokee Casino and Hotel
A Major Tourist Destination, cont’d
• Cherokee is the home of Harrah’s Cherokee Casino
and Hotel
¾#1 tourist attraction in North Carolina
¾Over 3.6 million visitors in 2007.
¾A year-round attraction.
Harrah’s Cherokee Casino & Hotel
Visitors
• Harrah’s Cherokee Visitors By State:
– North Carolina
– Georgia
– Tennessee
– South Carolina
– All other
Total
1,008,000
756,000
540,000
360,000
936,000
3,600,000
28%
21%
15%
10%
26%
100%
Source: Harrah’s Marketing Reports
Typical Casino Visitor Demographics
• Median Household Income $53,204 (16%
higher than non-visitors)
• Casino participation rate by income:
– Under $35,000
– $35 - $55,000
– $55 - $75,000
– $75 - $95,000
– Over $95,000
Source: 2004 Profile of the American Casino Gambler
20%
26%
29%
30%
32%
$650 million Casino Expansion
• Will double size of gaming operation
• 1,000 additional jobs to a total of 2,800 by
2010
• 500 new rooms in third hotel tower (22-story)
• New 3,000-seat showroom
• 16,000 square foot luxury spa
• Eight new on-site restaurants
Cherokee: A Major Tourist Destination
Summary of 2006 Visitation
• 2,221,251 visitors at Cherokee entrance to GSMNP
• Over 508,000 visitors from the Blue Ridge Parkway
• Over 3.6 million visitors to Harrah’s Cherokee
Casino
• Over 1,500,000 overnight visitors on the Qualla
Boundary in 2007 (74,978 campsite nights, 526,088
hotel/motel nights*)
• 2,354 hotel/motel rooms and 2,149 campsites
are available on the Qualla Boundary
*Source: EBCI Revenue Department
Economic Development Initiatives
• $650-million casino expansion now in progress
• Broadband Fiber Optic Service through BalsamWest
FiberNet
• Robert Trent Jones-designed Sequoyah National Golf
Club
• Water and sewer infrastructure upgrades and expansion
• Downtown revitalization
• New major housing developments
• $130-million new school project underway
• Greenways development and expansion
• Enhanced cultural attractions
• New entertainment complex
• Travel and Tourism Initiatives
Economic Development Initiatives
• Broadband Fiber Optic Cable Service
Map of BalsamWest
FiberNET’s 300-mile
carrier-grade fiber optic
loop in NC, Tennessee
and Georgia
EBCI Fiber Optic Network Access
• EBCI is a 50% owner of BalsamWest FiberNET, a
3-state carrier-grade fiber-optic network in WNC,
East Tennessee, and North Georgia
• The local EBCI fiber-optic ring on the Qualla
Boundary can be directly connected to businesses
• Provides redundant and secure networks for
internet service, video, wide area data and voice
communication at costs lower than major markets
• No rural community can offer such access
Conclusion
• The Tribe has made major economic strides
over the last decade
• We offer a community with growing prosperity
• A destination for millions every year
• A community of tremendous business
opportunity