Biloxi: Economy
Major Industries and Commercial Activity
Gaming and tourism is Biloxi's most important industry. By the end of the twentieth century, there were 12 Las Vegas-style casinos in the region, nine of which were in the city of Biloxi. The casinos feature restaurants, floor shows, and round-the-clock gambling. According to a formula devised when gambling was legalized, 8 percent of gross gaming revenue goes to the state and 3.2 percent of gross gaming revenue is distributed among city institutions, including the general fund, the city public safety department, the city school system, the county school system, and the county public safety department. The revenue of Biloxi's casinos exceeded $879 million in 2003, representing the city's greatest single source of revenue. This economic impact is only expected to increase with the opening of the Hard Rock Hotel & Casino Biloxi in the summer of 2005. The lure of gaming has also bolstered the region's tourism industry in general, as many gamblers also visit other area attractions outside of the casinos. In fact, most visitors are no longer merely overnight guests; now the average tourist stays 2.5 days.
The seafood industry contributes $450 million dollars to the Mississippi Gulf Coast economy, supporting an estimated 1,600 shrimp workers and 1,200 employees in seafood processing. Shrimp accounts for about half of the seafood market, contributing $250 million to the economy, followed by oysters, menhaden, and crabs. Thirty-eight seafood processing plants are situated along the Gulf Coast, with 11 in Biloxi. Building boats and producing boat paraphernalia are also big businesses in the area. Ingalls Shipbuilding, based 20 miles east of Biloxi in Pascagoula, employs approximately 10,000 workers, more than any other private employer in Mississippi.
Military and federal government installations are another key sector of the area's economy. The presence in the city of Keesler Air Force Base is responsible for a great part of the employment in the government sector of the economy, which represents nearly a quarter of all employment in the city. Keesler's economic impact on the Mississippi Coast equaled $1.4 billion dollars in 2002. In addition to the 12,600 active-duty personnel, Keesler employs 3,600 civilians and pays $179 million to military retirees. Local contracts initiated through Keesler in 2002 include $120 million in construction and $46.7 million in other local services and supply contracts. The John C. Stennis Space Center, located 45 miles west of Biloxi, impacts the local economy by employing approximately 30,000 military and personnel in more than 20 federal and state agencies. Other federal installations in the region are the Naval Construction Battalion Center, Naval Station Pascagoula, the National Guard facilities in Gulfport, and the Office of Supervisor of Shipbuilding, Conversion & Repair, located about 30 miles east of Biloxi.
Items and goods produced: seafood products, canning, boat building and repair, fishing nets
Incentive Programs—New and Existing Companies
Local programs
The Harrison County Development Commission works with companies interested in developing or expanding their business in the county. Its services include the coordination of financial incentives, including tax abatements, as well as assisting in industrial park and Foreign Trade Zone activities. The Biloxi Department of Economic & Community Development offers a renovated building tax exemption to businesses that renovate existing structures in the city's central business district.
State programs
A tax credit program is offered through the Mississippi Department of Archives & History for the restoration of buildings listed on the National Register of Historic Places or designated as Mississippi Landmarks. The Mississippi Development Authority (MDA), through the Financial Resources Division, administers a variety of incentive programs to assist businesses in development and expansion. For large projects, a primary financial incentive is the Major Economic Impact Authority, which allows the state to issue general obligation bonds to secure up to $300 million for development. Other financial incentive programs administered by the MDA are the Rural Economic Development Assistance Program, Industrial Development Revenue Bond Program, Agribusiness Enterprise Loan, Business Investment Act Program, Energy Investment Program, Guaranty Loan Program, Minority Business Enterprise Loan, Minority Surety Bond Guaranty Program, Small Business Assistance Program, and Small Enterprise Development Finance Program. Additionally, in an effort to attract national and regional headquarters to Mississippi, the state offers income tax credits for each new job created and sales tax exemptions on construction materials and equipment used to build the new facility.
Job training programs
The state of Mississippi provides custom-designed pre-employment training, post-employment training, and upgrade/retraining services for new, expanding, or existing industries. The Employment Training Division of the Mississippi Development Authority administers the Workforce Investment Network (WIN). This network, the state's response to the federal Workforce Investment Act, combines federal, state, and community workforce resources to provide employment and training services to Mississippi employers and job seekers. WIN Job Centers, located throughout the state, provide access to employment, education, training, and economic development services. Other WIN services for employers include a database of qualified job candidates, assistance in writing job descriptions, proficiency testing, labor market data, and information on work opportunity tax credits. The Mississippi Contract Procurement Center, located in Biloxi, provides information about bid opportunities from federal, state, and local government agencies; it also offers training, marketing assistance, technical support, and counseling. The Gulf Coast Business Services Training Program assists local business with employee training.
Development Projects
Construction in Biloxi nearly doubled between 2000 and 2003, rising from an estimated value of $70.7 million to $120.1 million. By early 2005, more than $800 million in construction was in varying stages of development on the Gulf Coast. It is, perhaps, no surprise that some of the largest projects are casinos. The Isle of Capri Casino Resort's $170 million expansion of its Biloxi facility will be completed in the spring of 2005. The Hard Rock Hotel & Casino Biloxi broke ground on a $235 million facility that is expected to open in the summer of 2005. Scheduled to open later in 2005 is the Silver Slipper, an $80 million project that will feature the only riverboat casino on the Gulf Coast.
A number of large-scale construction projects outside the realm of the gaming industry were underway in Biloxi in the mid-2000s. Voters in 2004 approved a $68 million expansion of the Mississippi Coast Coliseum & Convention Center that will be completed in 2007. The Gulfport-Biloxi International Airport was undergoing a series of expansion projects to increase its physical size, thereby increasing the number of airlines and passengers it can handle. Among projects in the amusement industry were a new $29 million Ohr-O'Keefe Museum of Art, expected to open in phases until its completion in 2007; the Gulf Islands Water Park, which will open in Gulfport in spring 2005; and a $35 million NASA space attraction that is scheduled to open in 2007.
Economic Development Information: Mississippi Development Authority, 501 N. West St., PO Box 849, Jackson, MS 39205; telephone (601)359-3449; fax (601)359-2832. Mississippi Gulf Coast Convention & Visitors Bureau, PO Box 6128, Gulfport, MS 39506-6128, telephone (228)896-6699; toll-free (800)237-9493; email tourism@gulfcoast.org.
Commercial Shipping
Biloxi is located within one day's drive of more than half of the country's population and is within an hour from the major cities of New Orleans, Louisiana, and Mobile, Alabama. The Gulfport-Biloxi International Airport is the site of Foreign Trade Zone #92, a 1,000-acre area where foreign goods bound for international destinations can be temporarily stored without incurring an import duty. Cargo railroads serving Biloxi include CSX Corp. and Kansas City Southern Rail Line. The Mississippi State Port, located at nearby Gulfport, is the second largest handler of tropical fruit in North America and the nation's top exporter of frozen poultry to Russia and other former Soviet countries. In 2002 this port handled more than 2.1 million tons of cargo, including bananas and other fresh fruits, ores and other bulk cargo, frozen cargo, lumber and wood products, and containerized general cargo. Nine industrial parks on the Gulf Coast offer prime waterfront industrial sites on navigable water. Worldwide overnight and local shipping capability is provided by express, courier, and parcel companies that serve the coast region.
Labor Force and Employment Outlook
The success of gaming in Biloxi is responsible for the creation of many new jobs in the area. Some, like those in the hospitality and tourism industries, are directly linked to gaming; others, like those in the construction, medical services, and general retail industries are indirect offshoots of an economy driven by casinos. In 2003 the Biloxi-Gulfport-Pascagoula metropolitan area ranked 127th among the "Best Places for Business and Careers" by Forbes magazine.
The following is a summary of data regarding the Biloxi metropolitan area labor force, 2004 annual averages.
Size of nonagricultural labor force: 113,500
Number of workers employed in . . .
construction and mining: 5,200
manufacturing: 6,000
trade, transportation and utilities: 20,400
leisure and hospitality: 29,600
government: 24,000
Average hourly wage of production workers employed in manufacturing: $12.88 (2003 statewide annual average)
Unemployment rate: 4.0% (December 2004)
| Largest employers | Number of employees |
| Keesler Air Force Base | 15,674 |
| Grand Casino/Park Place Entertainment | 5,460 |
| Beau Rivage | 4,150 |
| President Casino | 1,991 |
| VA Gulf Coast Veterans Health Care System | 1,500 |
| Imperial Palace | 1,500 |
| Casino Magic Corp. | 1,360 |
| Treasure Bay Casino | 1,200 |
| Isle of Capri Casino | 1,077 |
| Boomtown Casino | 1,000 |
Cost of Living
According to the City of Biloxi, the Gulf Coast's cost of living was 5.6 percent below the national average in 2003.
The following is a summary of data regarding several key cost of living factors for the Biloxi area.
2004 (3rd Quarter) ACCRA Average House Price: $188,335
2004 (3rd Quarter) ACCRA Cost of Living Index: 96.2 (U.S. average = 100.0)
State income tax rate: Ranges from 3.0% to 5.0%
State sales tax rate: 7.0%
Local income tax rate: None
Local sales tax rate: None
Property tax rate: 30 mills (2002)
Economic Information: Mississippi Development Authority, 501 N. West St., PO Box 849, Jackson, MS 39205; telephone (601)359-3449; fax (601) 359-2832