does your festival or event make cent$?
DESCRIPTION
Presentation given during the North Carolina Parks and Recreation Association's annual conference in Wilmington, NC on September 22, 2014.TRANSCRIPT
Does Your Festival or Event Make
Cent$? How To Conduct an Economic Impact
Analysis (… and why you should)
Photo: 401(k) 2013 on Flickr
Or … Does This Event Make My Budget Look Big?
Agenda
Benefits of conducting an EIAIs an EIA right for your event?DIY Methods of conducting an EIA
Method 1Method 2
When to seek professional helpMethod 3 – Hire professional helpEIA Case StudiesQ&A
Get these slides here:http://sarahtpage.com/NCParks-Rec/
What Is Economic Impact?
New money injected into a host economy by
people from outside the host economy.
7 Benefits of Conducting an
EIA on Your Event
#1 Justifies Financial Support
Photo: Michael @ NW Lens on Flickr
Anytown City Council
#2 Proves Return on Investment
Photo: 401(k) 2013 on Flickr
#3 Attracts Sponsorships
Photo: 401(k) 2013 on Flickr
#4 Allows for Benchmarking
Photo: 401(k) 2013 on Flickr
#5 Demonstrates Benefit to Partners
Photo: 401(k) 2013 on Flickr
#6 Paves the Way for Expansion
Photo: AlBakker on Flickr
#7 Provides Market Research
12%
13%
19% 20%
28%
4%
How often do you come downtown?
daily2-3 times/weekonce/week2-3 times/monthonce/monthnever before today
Is an EIA Right for Your Event?
Don’t Conduct an EIA If …
… your event draws mainly locals… you lack the resources… economic impact data is not needed
EIA Example:Run Like the Wind
Relay
Run Like the Wind Relay
Photo: Ella Baker Center on Flickr
• Run Like the Wind Relay is held in Wilmington, NC• There are 1,700 race participants
#1DIY Method 1
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
Method 1 Processhttp://www.nccommerce.co/tourism
Calculating the Economic Impact
$517 / 1.9 / 2.7 = $101.17 pppd
1,700 race participants * $101.17 pppd spending = $150,450
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
The economic impact of the Run Like the Wind Relay was $150,450.
#2DIY Method 2
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
ALGEBRA!!!
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
Method 2 Process
Method 2 Process
$3,520.4 ($ lodging) ÷
$20,196.5 ($ total destination) = .1743 or 17.4%
17.4% of all trip expenditures in NC are for lodging.
Method 2 Process
Make this assumption:
If 17.4% of all expenditures on trips in North Carolina are for lodging, then 17.4% of all expenditures on trips in
Wilmington 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 $28,477
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 ÷ .174 = $28,477 (Direct Impact of the Run Like the Wind Relay)
Photo: andyde on Flickr
When To Seek Professional Help
Photo: modenadude on Flickr
Accuracy
Avoid This
Credibility
#3Method 3
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
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
EIA Case Study #1
Wein & Saengerfest – New Braunfels, TXMay 3, 2014
7,500 attendeesHeld in downtown New
Braunfels (Main Street City)
Grape stompWine tasting
Chef’s Showdown Live musicCraft and artisan
vendorsKids’ 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
EIA Case Study #2
TAAF Winter Youth Basketball Festival & State Tournament – Longview, TX
March 14-16, 2014
25,020 players, spectators, and coachesHeld in gyms all over Longview, TX7 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
Can I Help?
Call Me!
Follow Me
Linkedin.com/in/sarahpage
Facebook.com/SarahTPageConsulting
@pagetx
Sarah Page, PrincipalSarah T. Page Consulting, LLC
http://[email protected]
512.914.8873
Instagram.com/stpconsulting
Pinterest.com/sarahtpage
Thank You!Questions?