The Motorcoach Tour and Travel Industry Creates Jobs in Iowa

Iowa companies that provide motorcoach services to intercity travelers and group tours are a critical part of the state’s economy. Motorcoach operators, along with the companies that supply services and materials to them, provide well-paying jobs in Iowa and pay significant amounts in tax to federal, state and local governments.

Economic Impact of Motorcoach Tour and Travel in Iowa

Direct Supplier Induced Total
Jobs (FTE) 9,494 2,891 2,904 15,289
Economic Impact $776,615,200 $514,665,100 $476,973,700 $1,768,254,000

The Motorcoach Industry is a Crucial Economic Driver in Iowa’s Economy

  • Motorcoach companies in Iowa provide good jobs paying industry average wages and benefits. Today every job is important. In fact, in Iowa the unemployment rate has reached 4.3 percent. This means that there are already 73,900 people trying to find jobs in the state, and collecting unemployment benefits.
  • In addition to providing good paying jobs for thousands of workers in Iowa, motorcoaches are the most fuel- and carbon-efficient mode of passenger transportation. Motorcoach travel averages 223 passenger miles per gallon compared to commuter rail at 90, transit bus at 70, automobiles at 27 and hybrid cars at 46 passenger miles per gallon.
  • Motorcoach operations in Iowa, saves travelers $1.5 million annually by alleviating congestion on local roads, city streets and major arteries by removing cars from travel lanes and adding productivity to the workforce.
  • Motorcoaches are an important cog in driving local and regional tourism economies; providing flexible and cost effective transportation for rural residents, commuters and intercity passengers; while linking airports and rail stations to the surface transportation network. This is all accomplished by an industry of small businesses with little to no public subsidy.
  • Motorcoaches provided nearly 640 million passenger trips in 2012 with little to no public subsidy.

The State Also Benefits From the Taxes Paid by the Industry

Taxes Generated in the state of Iowa
Federal Taxes $91,106,700
State Taxes $100,983,000
Total Taxes $192,089,700
  • Not only does the motorcoach travel and tourism industry create jobs, it also generates substantial revenues for state and local governments. In Iowa, the industry and its employees pay over $101.0 million in taxes including property, income, and sales based levies.5 Total Taxes $192,089,700 

 

Source: American Bus Association Foundation Research. 21 January 2015. <http://www.buses.org/ABA-Foundation/Research/Economic-Impact>.