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STEAM 101
The Sport Tourism Economic
Assessment Model
Tony FisherDirector of Research
Canadian Sport Tourism Alliance
Before we begin…
Questions are encouraged!
• The STEAM model – what it is and how it
works
• Using STEAM
• Interpreting and understanding the results
Motivation
• One of the objectives of the CSTA is to raise the profile of the economic benefits associated with hosting sport events
• When we began, we quickly realized that there were many sources of error associated with measuring economic impact:
– Number of visitors
– Spending of visitors
– Multipliers used
STEAM – the Solution
• STEAM addresses these issues in two ways:
– The model uses a consistent set of visitor profiles
• Specific to sport
• Calibrated based on more than 10,000 on-site surveys
completed across Canada
• Expenditure profile varies based on location of event,
age of participants, distance traveled, etc.
– STEAM has a nationally consistent set of
multipliers
• Developed for CSTA by Conference Board of Canada
STEAM - Structure
Unique Features
– Web based tool
– Specifically developed to estimate economic
impact of sport events
• Future Events
• Past Events
– STEAM can be used for a variety of sports events,
from small (30 participants) to large (20,000
spectators)
STEAM - Background
Why Use STEAM?
• Feasibility Tool – Does hosting the event make
financial sense?
• Accountability – Did it deliver on its promise?
• Due Diligence – Did you consider all aspects
associated with the event?
• Partnership Development – Help persuade
financial/non-financial partners
Using STEAM – Required Information
• To use STEAM, start with the minimum information about your event:
• Proceed to www.canadiansporttourism.com
• Sign in to the
members section
using your member
username and
password
Signing In
• Select Access STEAM
under the Members
Home tab on left
• Choose the appropriate
province
• Note the User’s Guide is
available to download
from this page as well
Signing In
Challenges With Signing In
• If you have problems signing in (i.e. you don’t
see anything), 99% of the time it is because of
a pop-up blocker
• Pop-up blockers need to be disabled from:
– Web browser (Under Tools menu in IE)
– Many ‘Toolbars’ such as Google, Yahoo, etc., also
have pop-up blockers; we recommend you disable
these
– Note that STEAM works best using IE
STEAM – Main Menu
STEAM – Adding Projects
1) Type Name2) Click Insert
3) Click Close
STEAM – General Input
STEAM – Visitor Attendance
• In using STEAM, all figures should refer to out-of-town visitors
• Information regarding expected attendance can be derived from a number of sources:
– Historical attendance at annual events
– Attendance of similar events in host community
– Marketing plan (e.g. are you marketing locally or nationally)
– Capacity of venue (and accommodation capacity of host region)
Define your local area
• Establish a definition of visitors to your community
• Be consistent between events if you will be
comparing them
• Be aware of potentially different definitions of
tourism
Define your local area
STEAM – Visitor Input
Visitor InputBritish Columbia STEAM - Participant Input
Number of unique out of town participants 225
Percentage of out of town participants staying overnight (0-100) 100
Overnight participants (0-100)
Participants from Canada (%) 10
Participants from U.S. (%) 10
Participants from Overseas (%) 80
Canadian overnight visitor origin(0-100)
Out of town up to 320km, regardless of province of origin (%) 10
More than 320km and the same province as the event (%) 10
More than 320km and a different province as the event (%) 80
Average overnight length of stay (nights) 7.0
Age of participants (0-100)
Participants under 19 (%) 80
Participants 19-44 (%) 10
Participants 45 and over (%) 10
Participants under 19 who are staying in commercial accommodation (%) 100
Same Day participant
Average number of day trips taken by each participant 3.0
• Data entry is
similar to that of
Participants with
the addition of a
question about
the importance
of the event in
the travel
decision
– In most cases,
this will be
100%
STEAM – Spectator Input
• When people
travel and are not
responsible for
final bill, they
tend to spend
more
• Last visitor
category includes
those who are
usually
sponsored,
members of
media and VIPs
STEAM – Media/VIP Input
STEAM – Capital Expenditures
• Need to ensure that all capital expenditures are directly associated with the event
• Changes to physical structures (permanent)
– Clubhouse renovation $150,000
– Driveway repaving $100,000
• Paving was originally scheduled for September 2012, but was accelerated to take place before the event, therefore we do not include the driveway expenditure, as it would have occurred anyways
STEAM – Capital Input
British Columbia STEAM - Capital Input
Enter Capital Spending on:
Buildings and Renovations $0
Machinery and Equipment $0
Furniture and Fixtures $0
Transportation Equipment $0
Other Supplies $0
Other Services $0
Total (calculated) $0
Enter the % of construction costs that are attributed to
local firms100
Operational Expenditures
STEAM –
Operational
Input
A full description
of the categories
can be found in
the user’s guide
IMPORTANT
You must enter
revenues that
are equal or
greater than your
expenses
STEAM – Operational Expenditures
• Need to classify budgetary expenses into
STEAM categories
• Examples:
– Operations $20,000
• Actually comprised of the following components:
– Rent $ 10,000
– Insurance $ 500
– Security $ 5,000
– Renovations $ 4,500
STEAM – Operational Expenditures
• Administration $40,000
– Components
• Salaries $ 10,000
• Rent $ 10,000 – (Donated)
• Office Supplies $ 2,000
• Advertising $ 10,000
• Communications $ 8,000
STEAM – Operational Expenditures
• In order to accurately capture the true
economic benefits of the event for the host
city, some adjustments to operational budgets
are also necessary
– Exclude all value in kind donations
– Exclude all transfers (i.e. TV rights and fees for
other organizations)
– Exclude all inter-city transportation
STEAM – Operational Expenditures
• Need to classify budgetary expenses into STEAM categories
• Major categories are:– Salaries, Fees, etc.: paid positions of host society,
tournament managers, etc
– Rent: venues, tents, fencing, TV’s, other AV, etc.
– Communications: cell phone, internet, etc.
– Merchandise: goods you are selling, volunteer uniforms, etc.
– Transportation and Storage: bus rentals, etc
Operations – Misc. Goods & Services
• If some expenses don’t easily fit into the
STEAM categories, use the catch all categories
of other goods & other services
– Goods: trophies, decorations, etc.
– Services: garbage disposal, security, etc.
Operations Food & Bev and Accommodation
• STEAM has 3 categories for Food & Bev and Accommodation
– Organizing committee: expenditures made and consumed by event organizers (e.g. food for volunteers)
– Participants: expenditures made on the behalf of participants
– Media / VIP: expenditures made on the behalf of media / VIP members
• If you use the participants and media / VIP categories, you need to let STEAM know what proportion of these groups are being sponsored (enter as % between 0-100)
Case Study - Assumptions
• BC U14 Boys Basketball championship, hosted in Richmond
• Remember, in using STEAM, all figures should refer to out-of-town visitors
• In this case, we are using team registration information
• Estimate that there are an average of 13 players and 2 coaches / trainers / managers per team (15 total)
• A total of 117 teams, 82 teams from out-of-town
• Doing the math = 1,230 out of town participants
• Assumed 1.5 family members for every player, thus an additional 1,845 spectators
Visitor Input
• Once you have determined number of visitors, figure
out proportion who are staying overnight (provincial
championships, so almost everyone ~90%)
• Overnight length of stay (in nights) = 2
• Number of day trips – most play on Friday and
Saturday, about 1/3 of teams make the playoff
rounds on Sunday, so number of day trips is 2.3
Operations InputEnter Operating Expenditures on:Salaries, Fees and Commissions $14,790
Advertising Services $0
Professional Services $0
Financial Services $0
Rent $20,000
Laundry and Cleaning Services $0
Other Services $0
Communication $100
Energy and Other Utilities $0
Office Supplies $125
Other Supplies $0
Repairs $0
Food and Beverages – Prepared $350
Accommodation $500
Merchandise and Retail $0
Personal Travel $1,480
Transportation and Storage $300
Total Expenditure $37,645 Total Event Revenue $52,650
Operating Surplus $15,005
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B CA
Presenting your results
•The combined expenditures of visitors, event operations, and capital expenditures as a result of hosting the U14 Boys Provincial Basketball Championship were estimated to reach (1a) $646,000 in the Province of BC.
•The event is estimated to have generated (2a) $709,000 in GDP in BC (net economic activity), of which (2b) $454,000 occurred in the City of Richmond.
•A total of (3b) $329,000 in wages and salaries were paid in Richmond, with an additional (3c) $132,000 paid throughout the rest of the BC; supporting an estimated (4b) 10 jobs in the city, and an additional (4c) 2 jobs in other areas of the province.
Presenting your results
• In summary, the spending generated an estimated (6a)
$1,419,000 in economic activity, of which (6b) $980,000
occurred in the City of Richmond.
• The event supported (5.4a) $333,000 in taxes; of which (5.1a)
$148,000 accrued to the federal government. Additionally,
(5.2a) $120,000 in tax revenue was supported in the province
with (5.3a) $66,000 in municipal taxes supported, of which
(5.3b) $54,000 accrued to the City of Richmond.
How to Leverage STEAM
• Highlight potential economic impacts
– Elected & business officials
– Municipal & private venue staff
• Demonstrate a good fit for community
• Identify benefits outweigh the risk
STEAM vs. STEAM-PRO
• Pre event EI projections
• Limited information
• Post event analysis
• On-site electronic survey
• Full EI assessment of event
Troubleshooting
1) Turn off your pop-up blocker!– Installed Yahoo/Google toolbar
– Recent upgrade on your system
2) On Operations Input screen, ensure
revenues are greater than expenses
– You will get incorrect results if revenues are less
than the total expenses
Troubleshooting
•Do – erase cell
completely while
entering data
• Don’t – insert cursor
to the right of the ‘$’
sign unless erasing
completely
(i.e. don’t insert cursor
here:
$|0
Fully Erase Cells
Troubleshooting – other
1. Ensure that you are using the correct STEAM Scenario (Workbook) as well as the correct STEAM model
2. Refer to the STEAM user’s guide
3. Contact the CSTA ([email protected])
