Business and Economics Journal

Employment Impacts of Off-Peak Seasonal Tourism Development

Abstract

Stephen C Morse

Tourism demand during the off-peak season and related unemployment rates and number of workers employed are examined for Sevier County, Tennessee where a majority of tourism demand occurs between May and October. Before 1990, the months of November, December, and January were considered the off-peak season when unemployment rates increased and the number of jobs generated decreased. In 1990 the three tourism related cities in Sevier County – Gatlinburg, Pigeon Forge and Sevierville, cooperatively began the creation of a new seasonal tourism product called Winterfest. Coupled with the extension of the usual off-peak season of keeping the Dollywood theme park open for November and December, Winterfest was designed to attract tourists to Sevier Co. during the off-peak season. Examination of monthly unemployment rates and jobs generated trends during the 24 year period when the Winterfest tourism development plan begun in 1990 to 2014, reveals increasing tourist demand, resulting in sustained lower unemployment rates and sustained higher levels of employment in Sevier County. Implications for off-peak tourism development indicate a tourism development product that increases tourism demand that extends the off-peak season can also generate sustainable lower unemployment rates and higher employment levels. Also, unemployment rates decreased fastest over time for November and December than January unemployment rates.