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Does Your Festival or Event Make Cent$?
How To Conduct an Economic Impact Analysis (…
and why you should)
Photo: 401(k) 2013 on Flickr
Agenda
Benefits of conducting an EIA
Is an EIA right for your event?
DIY Methods of conducting an EIAMethod 1
Method 2
When to seek professional help
Method 3 – Hire professional help
EIA Case Studies
Q&A
What Is Economic Impact?
New money injected into a host economy by
people from outsidethe host economy.
#7 Provides Market Research
12%
13%
19%
20%
28%
4%
How often do you come downtown?
daily
2-3 times/week
once/week
2-3 times/month
once/month
never before today
Don’t Conduct an EIA If …
… your event draws mainly locals
… you lack the resources
… economic impact data is not needed
Run Like the Wind Relay
Photo: Ella Baker Center on Flickr
• Run Like the Wind Relay is held in Abilene, TX
• There are 1,700 race participants
Use Method 1 If …
… you only need a very basic and generalized estimate
… you have little time to prepare and organize prior to the event
... there are few volunteers available to survey event attendees
… no one is available for data entry and analysis
… you have a good estimate of the number of event attendees
• Big Bend
• Gulf Coast
• Hill Country
• Panhandle Plains
• Piney Woods
• Prairies and Lakes
• South Texas Plains
Texas Travel Regions
Calculating the Economic Impact
1,700 race participants * $101.00 pppd spending = $171,700
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
The economic impact of the Run Like the Wind Relay was $171,700.
Use Method 2 If …
… you have little time to prepare and organize prior to the event
… you can secure the cooperation of local hotels, motels, and B&Bs
.. there are few volunteers available to survey event attendees
… someone is available to contact the lodging places before and after the event and to record the data
… you have a good estimate of the number of event attendees
Method 2 Process
• Uses algebra and actual hotel receipts to estimate the total impact
• Solves an equation to determine unknown quantities
• Hotel receipts are the known quantities
• Hotel receipts are a percentage of total travel expenses
Photo: katherinedavis on Flickr
Method 2 Process
$10,385 ($ lodging) ÷
$59,026 ($ total destination) = .1759 or 17.6%
17.6% of all trip expenditures in TX are for lodging.
Method 2 Process
Make this assumption:
If 17.6% of all expenditures on trips in Texas are for lodging, then 17.6% of all
expenditures on trips in Abilene are also for lodging.
Method 2 Process
• Before the event
• Step 1: Request that hotels ask guests if they are in town for the Run Like the Wind Relay
• After the event
• Step 2: Call each hotel and request the “rack rate” charged during the event. Also ask for the number of rooms sold and number of nights stayed specifically for the Run Like the Wind Relay.
• Step 3: Multiply the number of rooms by the rate for each property and total.
Method 2 Process
The economic impact of the Run Like the Wind Relay was $27,585
Hotel # of Rooms Sold for Event
# of Nights Stayed for
Event
Rack Rate Revenue
Hotel 1 10 1 $65 $650
3 2 $65 $390
Hotel 2 15 1 $85 $1,275
Hotel 3 30 1 $60 $1,800
7 2 $60 $840
TOTALS 65 7 $4,955
$4,955 ÷ .176 = $27,585 (Direct Impact of the Run Like the Wind Relay)
Use Method 3 If …
… you need the most accurate data possible
… there is ample time available to plan and organize prior to the event
.. there are plenty of volunteers available to survey event attendees
… you have a good estimate of the number of event attendees
Consultant Responsibilities
• Design the survey
• Estimate sample size needed
• Develop a sampling plan and surveying schedule
• Guide in survey team selection and provide training
• Determine/estimate event attendance
• Collect and analyze the data
• Produce a report detailing the results
You’ll Need a Questionnaire
• Zip code
• Number in the traveling party
• Number of days spent in your town
• Amount (or estimated amount) spent in the following categories:– Dining
– Lodging
– Shopping
– Gas
– Attractions/entertainment
– Other expenses
Sampling
• Survey – or sample – throughout the entire event.
• This is the number of completed non-local surveys you need.
• Local survey responses DO NOT contribute to the economic impact.
Estimating Attendance
• Guest book
• Polling
• Visitor counts
• Traffic counts and average number of people per vehicle
• Interval counts from a high vantage point or in quadrants
• Tag and recapture
• Aerial photography
Analysis
• Spending from the surveyed attendees is applied to the entire population (all non-local attendees)
• Data is analyzed with economic modeling software
• The software produces the impacts:
• Total impact
• Direct impact
• Indirect and induced impacts
• Number of FTEs created
• FTE income
• Tax impacts (sometimes)
Where To Find Help
Photo: Theo La Photo
• Colleges and universities
• Councils of Government (COGs)
• State agencies
• Economic Development Corporations
• Chambers of Commerce
• Consultants
Wein & Saengerfest – New Braunfels, TXMay 3, 2014
7,500 attendees
Held in downtown New Braunfels (Main Street City)
Grape stomp
Wine tasting
Chef’s Showdown
Live music
Craft and artisan vendors
Kids’ area
Methodology
• 15 volunteers
• Collected paper surveys and Emails from attendees via intercept surveys and convenience samples
• Surveyed from noon to 8pm
• Offered a local “staycation” package as an incentive
Methodology
• Used SurveyMonkey to send the survey– 1 Email to 100 Email addresses, and 2 reminders to
non-respondents
• Determined per person per day spending for each spending category
• Data from paper surveys was entered into SurveyMonkey
• Used IMPLAN to calculate the impacts on both Email and paper surveys
Impacts
Spending Category $ Impact
Total Economic Impact $476,070
Food & Beverage Impact $255,807
Lodging Impact $121,765
Retail Impact $83,484
Tourist Attraction Impact $15,014
Average per person per day spending $72.89
TAAF Winter Youth Basketball Festival & State Tournament – Longview, TX
March 14-16, 2014
25,020 players, spectators, and coaches
Held in gyms all over Longview, TX
7 boys’ and 7 girls’ divisions (ages 8 – 14)
Each team played 2 pool games & then a single elimination bracket to determine the winner
Methodology
• 11 paid temps
• Surveyed in 13 of the 19 gyms
• Collected Email addresses from attendees via intercept
• Surveyed throughout the tournament until the semi-finals on the last day
• An iPad was offered as an incentive to participate
Methodology
• Used SurveyMonkey to send the survey
– 1 Email to 385 Email addresses, and 2 reminders to non-respondents
• Determined per person per day spending for each spending category
• Used IMPLAN to calculate the impacts on both Email and paper surveys
Impacts
Spending Category $ Impact
Total Economic Impact $618,000
Food & Beverage Impact $220,507
Lodging Impact $345,114
Retail Impact $27,345
Transportation Impact $25,034
Average per person per day spending $92.67
Red Poppy Festival – Georgetown, TXApril 26-27, 2014
45,000 attendees
Held in downtown Georgetown (Main Street City)
Live music (Bellamy Brothers)
Craft and artisan vendors
Kids’ area
Car show
Methodology
• 20 volunteers
• Collected Emails from attendees via intercept surveys and convenience samples
• Surveyed Friday through Saturday evening
• Offered an iPad as an incentive
• 45,000 people attended
Methodology
• Used SurveyMonkey to send the survey
– 1 Email to 580 attendees, and 3 reminders to non-respondents
• Determined per person per day spending for each spending category
• Used IMPLAN to calculate the impacts
Impacts
Spending Category $ Impact
Total Economic Impact $2,510,678
Food & Beverage Impact $1,426,154
Lodging Impact $419,064
Retail Impact $644,396
Tourist Attraction Impact $21,063
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Sarah Page, PrincipalSarah T. Page Consulting, LLC
http://[email protected]
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