The Phoenix metropolitan area’s “favored quarter” for employment in 1995 – the metro area’s highest employment densities outside the primary core – extended from Chaparral Road in Scottsdale to Baseline Road in Tempe. Downtown and South Scottsdale’s success can be traced to being adjacent to the favored residential quarter that extends from the area around the Phoenix Mountains through north Scottsdale. In the 1990s, the favored employment quarter has been extending north in Scottsdale through the favored residential quarter. The presence of Arizona State University, proximity to Sky Harbor Airport, and access to the region’s first two freeways contributed to the portion of Tempe north of Baseline Road becoming the largest employment center outside of the primary core in Phoenix. Employment also was above average south of Baseline Road, extending into the secondary favored residential quarter of South Tempe and Ahwatukee – Foothills. Considering residential and economic factors, the Phoenix metro area’s favored quarter stretches from north of Squaw Peak in northeast Phoenix through Paradise Valley, Scottsdale, and Tempe to south of South Mountain in southeast Phoenix.

Tourism is one of 12 industry clusters widely considered to be driving the Arizona economy according to the Governor’s Strategic Partnership for Economic Development (GSPED). The term "cluster" refers to a geographic concentration of interdependent companies, suppliers, products, labor pool, and institutions that together constitute an important competitive advantage for a region. In northern Arizona, tourism ranks as the predominant industry cluster. This paper provides a profile of the tourism cluster in Coconino County, with special focus on the Flagstaff area. It examines the cluster’s composition, relative size and importance to the regional economy. It addresses the cluster’s dynamics and requirements for growth. It reviews important national and worldwide trends affecting tourism in Arizona, as well as the special characteristics of gateway communities. And, finally, it presents a menu of actions to choose from for strengthening the cluster in both Flagstaff and Coconino County.

This follow-up to the 2001 landmark report, "Five Shoes Waiting to Drop on Arizona's Future," focuses on the projected future of the state if Arizona fails to address its Latino educational attainment gap. The publication is more of an economic impact statement than an education report, with indicators pointing out consequences and contributions, depending on action or inaction in closing the gap of Arizona's future workforce.