Despite all of the spending reductions, fund transfers, and other techniques used to balance the budget in the preceding few years, Arizona’s general fund faces a massive deficit. This issue of Policy Points poses an important question: Are you content with the historically low expenditures being made from the general fund and satisfied that the current low level of public services will be permanent?

The Governor's Strategic Partnership for Economic Development has identified 12 industry clusters in Arizona that collectively drive the economy. 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. Tourism is recognized as one of Arizona's 12 industry clusters. In northern Arizona it ranks as the dominant cluster.

Much of the analysis in this report is based on the concept that industry clusters act as primary growth influences on local economies. Strong clusters produce goods or services that can be sold to consumers outside the region, creating a flow of revenue into the region. This influx of revenue stimulates economic activity in other areas of the local economy such as the retail, real estate, or constructions sectors.

This report profiles the tourism cluster in Coconino County with special focus on the Page area. It examines the cluster's composition, relative size, and importance to the regional economy, and it addresses the cluster's dynamics and requirements for growth. In its conclusion, it presents a menu of options for strengthening the cluster in the Page area.