hilton head economic impact analysis

HHEconomicImpactAnalysis HoughtonConsultingGroup Page1

TheHiltonHeadGolfweekAmateurGolfTour2015

ChampionshipReport

AnAssessmentoftheEconomicImpactsandMarketResearchoftheHiltonHeadGolfweekAmateurGolfTour

Championshipin2015HoughtonCollegeConsultingGroupAdvisingProfessor:KennethBatesTeamLeader:AnnaCoryell‘18

TeamMembers:ChrisBucciarelli‘19,SteveCantanzaro‘16,JacobDunnett‘17,EthanDuryea‘18,Aaron

Eisenhardt‘17,VeronicaGerace‘15,JordanMullen‘18,JohnStranahan‘16,BjørnWebb‘18


Contents

SectionIExecutiveSummary 4

SectionIIBackgroundandMethodologies 5

OrganizationalStructures 5

HiltonHeadGolfweekAmateurGolfTourChampionship 5

History 5

OverviewofOperations 6

HandicapParameters 6

CompetitiveAdvantage 6

Methodology 7

FirstDaySurvey 7

ClipboardSurvey 7

E-mailSurvey 8

SectionIIISurveyResults 9

SurveyGoals 9

SurveyResponse 9

Alternative 9

HiltonHeadAmateurGolfTourChampionshipPlayerProfile 10

PlayerProfileContinued 11

GolfersByState 11

EdwinWatts 12

TaylorMade 15

OnCoreGolf 19

DotPLX 21


SectionIVEconomicImpacts 24

GrossVersusNetImpacts 24

EconomicImpactsbyType 25

Direct 25

Indirect 25

Induced 25

EconomicMultipliers 25

OtherConsiderations 26

IndustriesAffectedbyGolfweekAmateurTourChampionship 27

DirectImpactofSampleAttendeeSpending 27

EstimatedTotalDirectEconomicImpactoftheChampionship 28

DirectImpactbyState 29

HiltonHeadGolfweekAmateurGolfTourChampionship’s

contributiontotheHiltonHeadIslandareaeconomyin2015 30

AppendixAEconomicImpactAnalysis 31

EconomicImpacts 31

PurposeofMeasuringEconomicImpact 31

KeyIssuesAffectingEconomicImpactAnalysis 32

GrossversusNetImpacts 32

DefinitionofRelevantStudyArea 32

DataReliedUpon 33

StatisticalAnalysis 33

AppendixBOutlineofSurveys 34

FirstDaySurvey 34

ClipboardSurvey 35

E-mailSurvey 37


SectionIExecutiveSummary

TheHiltonHeadGolfweekAmateurGolfTourChampionshipisthefinaltournamentoftheGolfweekAmateurGolfTour.ThistourconcludeswithaNationalTourChampionshipinwhichtopplayersineachflightcompeteagainstotheramateursfromallaroundthecountry.ThetourchampionshiptakesplaceinHiltonHead,SouthCarolinaandprovidestheamateurgolferswiththeopportunitytocompeteonworld-classgolfcourses.Anatmosphereisprovided“WhereamateursplaylikePros,”asthetour’ssloganstates.TheTourChampionshipattractsabout850amateurgolferstoplayintheChampionship,A,B,C,andDflights.Thesegolfersareeverydayestablishedwhite-collarandblue-collarworkersaveragingover$100,000inyearlysalary.Golfersarepredominatelymaleandspanfromover20differentstatesacrosstheUnitedStatesofAmerica.Onaveragethesegolfersareparticularlyknowledgeableaboutgolf,averaging20yearsofexperienceforparticipatingsurveyedgolfers.It’sclearthattheGolfweekAmateurGolfTourChampionshipprovidesauniqueopportunityforamateurgolfersaroundtheUnitedStates.TheChampionshipprovidesnotonlyapositiveatmospherebutapositiveimpacttoitslocaleconomyaswell.

• Thenetdirecteconomicimpactofthe2015championshiptothelocalareaisestimatedtobe$1,488,944.26.

• Oftherespondinggolfers,theaverageamountspentpergolferduringtheirtimeintheHiltonHeadIslandareaasaresultoftheirparticipationinthetournamentwas$1,745.54.

• Oftherespondinggolfers,theaverageamountspentpergolferperdayduringtheirtimeintheHiltonHeadIslandareaasaresultoftheirparticipationinthetournamentwas$277.51.

ThisreportisacomprehensiveoutlineofthemarketresearchandeconomicimpactrepresentedattheHiltonHeadGolfweekAmateurGolfTourChampionship.Eachdetailbrieflyobservedinthissummaryisoutlinedinfurtherdetailwithgreaterexplanationthroughoutthereport.


SectionII BackgroundandMethodologies

Toprovidecontextfortheanalysisinthisreport,thissectionbeginswithahistoryoftheHiltonHeadGolfweekAmateurGolfTourChampionshipfollowedbyadescriptionofitscurrentoperations.Itconcludeswithdiscussionsonthemethodologiesusedinthisresearch.

OrganizationalStructureEveryfall,HiltonHeadIslandholdstheGolfweekAmateurGolfTourChampionship.Thetourchampionshipisthelasteventofthe44tournamentsheldacrossthecountry.Awiderangeofflightsareavailabletoaccommodatevariousplayerabilities;casualgolfersandsemi-professionalsalikecanparticipate.

HiltonHeadGolfweekAmateurGolfTourChampionshipLocatedatthesouthernmosttipofSouthCarolina,thescenicHiltonHeadIslandareaisonlya20-minutedrivefromI-95.

History

Thetourwasestablishedin1995withthepurposeofprovidingamateurgolfersofallages,sexes,andhandicapstheopportunitytocompeteinstroke-playgolftournamentsonaregularbasisintheirlocalarea.In2015,thetourconsistedofmorethan40differenttourslocatedallaroundtheUnitedStates.ThetourconcludeswithaNationalTourChampionshipinwhichtopplayersineachflighttesttheirskillsagainstotheramateursfromaroundthecountry.Throughthiscompetition,theGolfweektourpromotesthesportofgolfbyprovidinganatmosphereoffriendly,fair,andwell-managedcompetitionforamateurgolfersinthepursuitofexcellence.


OverviewofOperations

Thetopplayersineachlocalflight,basedonthepointsearnedduringtheseason,areawardedtheopportunitytocompeteintheNationalTourChampionship.Playersfinishingtheseasoninthetoptenpointsstandings(andties)intheChamp&Dflightsaswellasthetop15pointsstandingsintheA,B&CflightsoftheirlocaltourqualifyfortheNationalTourChampionship.TobeeligiblefortheNationalTourChampionship,playersmusthavecompetedandreturnedvalidscoresforatleast4tournamentrounds.TheTourChampionshipisheldinHiltonHead,SouthCarolina,anddrawsover850playersfromaroundthecountry.

HandicapParameters

Anyrulingsandtermsofplay,includingpaceofplay,willbedeterminedbycommitteeandwillbegovernedbythe2015USGArulesandregulationsofgolfguidelines.Theflighthandicapbreakdownisasfollows:ChampionshipFlight

0-3.9

AFlight 4-8.9BFlight 9-13.9CFlight 14-18.9DFlight 19andabove

CompetitiveAdvantage

TheHiltonHeadGolfweekAmateurGolfTourChampionshipoffersmanyadvantagesoverthe40+annualamateurgolftournamentsheldwithintheU.S.

● ThelargestintheentireUnitedStatesforamateurgolf

tournaments,withthechampionshiptourbeingheldinthescenicHiltonHead,SouthCarolina.

● Therearefiveflightclassesallowingforawiderangeofskilllevelstobeaccepted.

● Thetouroffersvariousdifferentgolfcourseswithvarying

difficulties.

● Reputablesponsors:Taylormade,Golfweek,andEdwinWatts.


MethodologySurveyswereusedastheprimarymeansofgatheringtherequestedinformation.Multiplesurveyswerepreparedintheweekspriortothetournament.Theyweregiventotheparticipantsthroughouttheweekofthetournament.Thesurveyswereusedtogatherdemographicinformationaboutthegolfersparticipating,aswellastheestimatedlocaleconomicimpact.Inall,threedifferentsurveyswerepreparedforthetournamentparticipants.The“First-daySurvey”and“ClipboardSurvey”wereemployedusingpaperandclipboards.The“E-mailSurvey”wascompletedonlinethroughthesurveytoolSurveyMonkey.SeeAppendixBforcompleteoutlinesofthefollowingsurveys.

First-daySurveyThe“First-daySurvey”wasconductedWednesdayandThursdayduringthetournament.Inall,thissurveyconsistedof10questionsononepage.Internsworkedthroughoutthetwodayspassingthesurveysouttogolfersduringthetournamentregistration.Thesurveysaskedquestionssuchaswheretheywerefrom,howmanypeopletheywereattendingwith,whetherornottheyhadattendedthetournamentbefore,andhowmuchmoneytheywereplanningtospendwhileinattendance.Thepreliminarygoalofthe“First-daySurvey”questionswastofindouthowmanydifferentareaswererepresentedandhowmuchmoneygolfersplannedtobespentwithinthelocaleconomy.Inall,181ofthesesurveyswerecompletedoverthetwodays.ClipboardSurveyThe“ClipboardSurvey”waspassedouttocompetitorswhileplaywashappeningonFriday,SaturdayandSunday.Thissurveyconsistedof28questionsontwo-pages.Questionsinthissurveyincludedthoseaboutthetypeofequipmentthegolfersuse,andquestionsaboutloyaltytocertainproductsandbrands.Tournamentsponsors,TaylormadeandEdwinWatts,requestedspecificquestionstobeaskedthatwereincludedinthissurvey.Theremainingquestionswereaskedtogainacomprehensiveunderstandingoftheparticipants’demographicinformation.Inall,140ofthesesurveyswerecompletedoverthethreedays.


E-mailSurveyThelastsurveyconductedwasapost-tournamentsurvey,accessedviamasse-mailaswellasalinklocatedonbusinesscardspassedoutatthetournament.The“E-mailSurvey”wasconductedtofindtheactualamountofmoneyeachgolferspentaswellastheirreactiontothetournament.Withtheinformationgatheredinthe“E-mailSurvey”,wewereabletocomparetheresultswiththe“First-daySurvey”estimatedfigurestotheactualpost-tournamentfigures.Inthe“E-mailSurvey,”questionswereaskedregardingtheactualamountofmoneyspentduringthetournamentbyeachgolferaswellasafewmoredetailedbackgroundquestions.Inall,373surveyresponseswereusedforanalysis.


SectionIIISurveyResults

SurveyGoalsThegoalofthesurveyprocesswastoobtaininformationfromtheparticipatinggolfersofthetournamenttoprovidedemographicbackgroundandanalysisofthetournament’slocaleconomicimpact.Theresultsofthevarioussurveysareexaminedinfurtherdetailinthefollowingpages. SurveyResponse

Surveyresponsesvarieddependingonthesurveytype.AspreviouslynotedtheFirstDaySurveysaw181responses,theClipboardSurveysaw140responses,andtheE-mailSurveysawresponsesof373.ThisputstheE-mailSurveyataresponserateof44%,whichbyconservativemeasuresiseffective.

Alternative

GolftournamentparticipantswereaskedifthetournamentdidnotoccurwouldtheyhavecometotheHiltonHeadIslandarearegardless.Ofthe181respondents156ofthemrespondedwith“no”leadingto86.2%ofgolfersnotcomingtotheHiltonHeadIslandareaiftheeventwerenotheld.Only24golfersrespondedwith“yes”leadingto13.3%ofgolferscomingtotheHiltonHeadIslandareawithouttheeventbeingheld.Only1golferrespondedwith“maybe”leadingto.5%ofgolfersbeingundecided.Ofthosewhorespondedwith“yes”itwasdeterminedthat54.5%stayedlongerbecauseoftheevent.Ofthegolfersthatresponded,theextensionofdaysontheislandresultedinanaverageof5days.ThisisaresultoftheGolfweekAmateurGolfTourChampionshipbeingheldintheHiltonHeadIslandarea.


HiltonHeadAmateurGolfTourChampionshipPlayerProfile

Accordingto139responses,the

AmateurGolfTourChampionship

golfers’onaverageclaimedbrandloyaltyof7.5onascaleof1to10with10being

veryloyal.Accordingto140responses,theaveragelengthoftimeagolferatthistournamenthasbeengolfingis20years.Theaveragelengththesegolfershavebeenattendingthe

tournamentwas3yearsand6months.

Accordingto290responses,theaveragehouseholdincomeoftheGolfweekAmateurGolfTourChampionshipgolfers

was$148,700.

Accordingto370responses,96.7%ofgolfersweremalewhile3.3%werefemale.

Accordingto140responses,golfers,onaveragesstayedintheHiltonHeadIslandareaforover5days.Thesegolferscompletedthe

tournamentatarateofover98%.

Accordingto375responses,41%of

golferswoulddefinitelyreturntotheHiltonHeadGolfweekAmateurGolfTourChampionshipeventaftertheirexperiencethis

year.

Accordingto194responses,48.97%of

golferswouldattributedthier

interestininvestinginrealestateintheHiltonHeadIslandareatotheir

participationinthechampionship.

Basedonthe853golfersthatattendedtheHiltonHeadGolfweekAmateurGolfTourChampionship atotalof3,804nightswerespentinhotels/resorts.Thiscalculationisbasedupontheaverageofnightsspentinhotels/resorts(4.46nights)accordingtorespondinggolfers.


PlayerProfileContinuedGolfersbyState

State AL AR CO FL IL IN KS KY LA MD MI MN MS NC NJ

NumberofGolfers

7 9 6 47 7 17 4 10 25 5 21 2 7 58 2

State NM NY OH PA SC TN TX UT VA WV

NumberofGolfers

2 7 10 4 30 20 8 4 27 1

Basedonthegolfersthatrespondedtothisquestion,25statesacrosstheUnitedStateswererepresentedattheHiltonHeadGolfweekAmateurGolfTourChampionship.ThetopfiverepresentedstatesincludeNorthCarolinawith58participatinggolfers,Floridawith47participatinggolfers,SouthCarolinawith30participatinggolfers,Virginiawith27participatinggolfers,andLouisianawith25participatinggolfers.Theparticipatinggolfers,accordingtotherespondents,traveledfrompredominatelycentralandeasternstates.


EdwinWattsisaworldwidegolfshopcompanythatoffersvariousdifferentgolfrelatedproducts.ThefollowingtablesoutlineresponsesfromHiltonHeadGolfweekAmateurGolfTourChampionshipgolfersregardingEdwinWattsbasedquestions.WheredidyoupurchaseyourgolfequipmentontheHiltonHeadIsland?Location PercentageofTotal

Responses(128TotalResponses)

PercentageofThoseWhoBoughtEquipment(49Responses)

Didnotpurchasegolfequipmentontheisland

61%

EdwinWatts 20% 53%Other 8% 22%CountryClubs 6% 16%GolfHeadquarters 3% 8%Ofthe49respondentswhoboughtequipmentontheislandwhileparticipatinginthetournament,53%ofthemboughtequipmentatEdwinWatts.AreyoulikelytovisitEdwinWattsGolfwebsitewhenconsideringapurchase?Response NumberofResponses

(140TotalResponses)Percentage

Yes 98 70%No 42 30%Ofthe140golfer'swhorespondedtothisquestion,70%ofthemarelikelytovisittheEdwinWattsGolfwebsiteiftheyareconsideringpurchasingequipment.


DoesEdwinWattscarryamixofproductsthatappealtoyou?Response NumberofResponses


Yes 119 87%No 18 13%InadditiontoseeingthatgolfersarelikelytovisittheEdwinWattsGolfwebsite,wecanseethat87%ofgolferswhoweresurveyedarepleasedwiththemixofproductsofferedbytheEdwinWattsGolfwebsite.DoyouknowaboutEdwinWattsGolf90-Day,100%SatisfactionGuarantee?Response NumberofResponses


Yes 87 62.1%

No 53 37.9%WhenaskedaboutEdwinWattsGolf90-Day100%satisfactionguaranteeonly62ofthegolfersaskedsaidtheywereawareoftheguarantee.DoyoureceiveemailcommunicationsfromEdwinWattsGolf?Response NumberofResponses


Yes 65 45.7%No 75 54.3%Ofthe138golferswhorespondedtothisquestion,only46%ofthemreceiveemailcommunicationsfromEdwinWattsGolf.


DoyoureceiveEdwinWattsGolfmailcatalog?Response NumberofResponses

(140responses)Percentage

Yes 41 29.3%No 99 70.7%Whenaskedthequestions“DoyoureceiveEdwinWattsGolfmailcatalog?”only29%ofthe140respondinggolfersreceiveEdwinWattsGolfmailcatalog.


TaylormadeisGolfCompanywithamissionto“CreatetheBestPerformingProductsintheWorld”.ThefollowingtablesoutlineresponsesfromHiltonHeadGolfweekAmateurGolfTourChampionshipgolfersregardingTaylormadebasedquestions.Whichbrandofgolfballdoyouprefer?Brand NumberofResponses


Nopreference 7 5%Titleist 60 43%Bridgestone 17 12%Callaway 15 11%Taylormade 14 10%WilsonStaff 5 4%Srixon 5 4%Nike 4 3%TopFlight 3 2%Other 7 5%Thistableshowsthat43%ofthegolferssurveyedpreferTitleistgolfballstoanyotherbrandofgolfball.Only10%ofthegolferssurveyedpreferredTaylormadegolfballs


Howoftendoyoureplaceyourgolfclubs?TimePeriod NumberofResponses


Never 5 3.6%Semi-Annually 10 7.2%Yearly 26 18.7%2-3Years 18 12.9%3-4Years 12 8.6%4-5Years 2 1.4%5Years 6 4.3%10Years 2 1.4%Other 58 41.7%Ofthegolfer'ssurveyed,41.7%ofthemdonotreplacetheirgolfclubsatagivenperiodsoftime.Thenextlargestpercentagesofgolfersreplacetheirgolfclubsyearlyandaftertwotothreeyears.Whatisyourpreferredgolfbrand?Brand PercentageofTotal

Responses(129TotalResponses)

PercentageofThoseWhoHaveaPreferredBrand(94Responses)

Nopreference 27% Taylormade 17% 23%Titleist 14% 19%Callaway 13% 18%PING 7% 10%Nike 7% 10%Mizuno 4% 5%WilsonStaff 2% 2%Adidas 2% 2%Cobra 2% 2%Other 6% 9%Ofthegolfer'ssurveyedwhohadapreferredgolfbrand,thetopthreebrandswereTaylormade(23%),Titleist(19%),andCallaway(18%).27%ofthegolfer'ssurveyedhadnopreferredgolfbrand.


Whattypeofplatformdoyouconsumemostofyourgolfmediaon?

Television(41.1%),Computer/Laptop(27.3),andMobiledevice(15.8),arethemostcommonwaysthatthegolfer'ssurveyedconsumedgolfmedia.Magazinesheldthelowestpercentagefornon-combinationresponses.Itisalsoimportanttotakeintoconsiderationthecombinationresponsesastheyaddtothetotalsofthesingleplatformresponses.Whatisyourmosttrustedwebsiteforsportsandnews(outsideofgolf)?Website NumberofResponses

(108Totalresponses)PercentageofTotalResponses

ESPN 60.0%GolfChannel 5.6%Yahoo 5.6%FoxSports 1.9%Other 26.9%ESPNwasthemostpopularwebsiteforthegolfer'ssurveyedastheirgo-toforsportsandnewsoutsideofgolf.The"Other"categoryheld26.9%ofresponses,whichwasthenexthighestpercentageamongsurveyedgolfers.

Platform NumberofResponses(139TotalResponses)

PercentageofTotalResponses

Television(TV) 57 41.1%Computer/Laptop 38 27.3%Mobiledevice 22 15.8%Magazine 8 5.8%TV/Mobiledevice 1 0.7%TV/Computer/Laptop 2 1.4%TV/Magazine/Mobile 1 0.7%TV/Magaine 3 2.2%Magazine/Mobiledevice 2 1.4%Other 5 3.6%


WhatisyourfavoriteGolfPublication?Publication NumberofResponses

(102TotalResponses)PercentageoftotalResponses

Golfweek 56 55%GolfDigest 25 25%GolfMagazine 16 15%GolfChannel 3 3%None 2 2%Whenasked,“WhatisyourfavoritegolfPublication?”GolfweekwasthepopularGolfPublicationofthesurveyedgolfersat55%.


OnCoreGolfisagolfcompanyinnovatingthewaygolfisplayedwiththeirhollowmetalcoregolfball.Thecompanylooksto“infusefunandenjoymentintoanamazingsport,whilecontinuingtointroducegamechangingtechnologyandproductsthatremainwithintheRulesofgolf”.ThefollowingtablesandgraphsoutlineresponsesfromHiltonHeadGolfweekAmateurGolfTourChampionshipgolfersregardingOnCorebasedquestions.Whatdoyouthinkisthemostimportantperformanceattributeinagolfball?

Attribute NumberofResponses

(358TotalResponses)PercentageofTotalResponses

Distance 124 34.6%Spin 154 43.1%Bounce 14 3.9%Roll 37 10.3%Feel 23 6.4%Consistency 6 1.7%

OfthesixdifferentattributesthatwereavailablespinwasthemostimportantperformanceattributeamongfromHiltonHeadGolfweekAmateurGolfTourChampionshipgolfersat43.1%.Distancewasthenextmostimportantattributewith34.6%ofrespondinggolfersselectingit.Consistencywastheleastimportantattributewithonly1.7%ofrespondinggolfersselectingit.


AreyouawareofOnCoregolf’shollowmetalcoregolfball?Response NumberofResponses


Yes 117 47%No 132 53%

Ofthegolfersthatrespondedtothisquestion,only47%ofthemwereawareofOnCoregolf’shollowmetalcoregolfball.Whatwouldcauseyoutochangeagolfball?Response NumberofResponses

(144Responses)PercentageofTotalResponses(144Responses)

Performance 103 72%Cost 18 12%Both 23 16%

Whenasked,“Whatwouldcauseyoutochangeagolfball?”themajorityofrespondinggolfersselectedperformanceat72%ofgolfers.Costledtoonly12%ofgolferschangingtheirgolfball.While16%ofgolfersrespondedwithbothperformanceandcostbeingequalfactorsinthedecisiontochangeagolfball.


DotPLXisacompanythatspecializesinparallaxputters.Thecompanyoffers“theworldsbestputteralignmentsystemthatguaranteesyourheadisdirectlyovertheballandyourstanceissuchthatyourputtingstrokehitstheballontheupswingattheequatortoimpartmaximumrolleverysingletimeyouputt.ThefollowingtablesandgraphsoutlineresponsesfromHiltonHeadGolfweekAmateurGolfTourChampionshipgolfersregardingDotPLXbasedquestions.Haveyouevervisitedwww.dotputter.com?

Ofthe243respondinggolfers,only9.5%hadevervisitedDotPLX‘swebsitewww.dotputter.com.Ofthegolfers,90.5%hadnevervisitedthewebsite.


HaveyouheardofDotPLXparallaxputter?

Ofthe242golfersthatrespondedtothisquestion,only31.8%ofthegolfershadheardoftheDotPLXparallaxputter.68.2%hadneverheardofthisputter.

Whatdoyouthinkisthemostimportantattributeofaputter?Attribute NumberofResponses

(393TotalResponses)PercentageofTotalResponses

Weight 133 33.8%HeadShape 103 26.2%ShaftLength 61 15.5%ShaftPosition 52 13.2%Feel 44 11.2%

Weight(33.8%)andHeadShape(26.2%)werethemostimportantattributeofaputteraccordingtothe393golferswhoansweredthisquestion.Thefeeloftheputterwastheleastimportantattributewithonly11.2%ofgolfersselectingit.Approximatelyhowmuchdoyouspendonasingleputter?Ofthegolferssurveyed,theaveragepriceagolferwaswillingtopayforaputterwas$201.41.Thehighestanyonewouldpayforaputteroutofthegolferssurveyedwas$500.00andthelowestwas$40.00


AreyouawarethataDotPLXputterguaranteesthebestputteralignmentsystem?

Ofthe240golfersthatrespondedtothisquestion,only21.3%wereawarethatDotPLXputterguaranteesthebestputteralignmentsystem.78.7%werenotawareofthis.


SectionIVEconomicImpacts

GrossVersusNetImpactHoughtonCollegeConsultingGroupwasaskedtomeasurethecontributionoftheHiltonHeadGolfweekAmateurGolfTourChampionshipin2015onthelocaleconomy.ToonlystatetheeconomicimpactofspendingbytheAmateurGolfTourChampionship,participantsandvisitorswouldproduceapresentationof“gross”economicimpacts.Thisanalysismeasuresthe“net”economicimpact.ThisrequiresthatonlyspendingattributedtotheAmateurGolfTourChampionshipisnew(orwouldnothaveoccurredwithoutthepresenceofthechampionship)totheHiltonHeadIslandarea.Thismeansthatspendingconcernstakenintoconsiderationareasfollows:

● Spendingbynon-localvisitorsorparticipantsthatoccurredlocallybecause

oftheAmateurGolfTourChampionshipisincluded.

● SpendingbythosewhowouldhavecometotheHiltonHeadIslandarearegardlessoftheAmateurGolfTourChampionshipatthistimeisexcluded.

● Spendingbylocalvisitorsorparticipantsthatwouldnothaveoccurredin

theareawithoutthepresenceofAmateurGolfTourChampionshipisincluded.

Neteconomicimpactestimatesarenotablysmallerthangrosseconomicimpact.However,neteconomicimpactproducesamorerealisticestimateoftheeconomicimpactsoftheAmateurGolfTourChampionship.Thiswillallowamoreaccurateanswertothequestion,“HowistheHiltonHeadIslandAreaeconomyaffectedbytheHiltonHeadGolfweekAmateurGolfTourChampionship?”


EconomicImpactsbyType

DirectImpactDirectimpactisthemeasureofdirectoractualrevenuegeneratedbytheHiltonHeadGolfweekAmateurGolfTourChampionshipmostcommonlythroughthelocalspendingbyparticipantsandvisitorsasoutlinedbythespendingconcernsforconsideration.TheimpactrepresentedbyourreportgivesnumericalvaluesforonlytheestimateddirectimpactoftheHiltonHeadGolfweekAmateurGolfTourChampionship.

IndirectImpactIndirectimpactshowcasesadditionalinputpurchasesmadebylocalbusinessesthatarenotnecessarilyinvolvedwiththeHiltonHeadGolfweekAmateurGolfTourChampionshipasaresultofthedirectimpact.Thisrequiresamultipliereffecttobetakenintoconsiderationforanumericalvalue.

InducedImpactInducedimpactisthefinalimpactwhatoccursasaresultoflocalbusinessowners,suppliers,andemployeesspendingadditionalincomethattheyearnedasaresultofthedirectandindirectimpacts.Thisrequiresamultipliereffecttobetakenintoconsiderationforanumericalvalue.

EconomicMultipliers

EconomicMultipliersareusedtocalculatethetotalimpactofanevent.Multipliersaregenerallyprovidedthroughexpertjudgment,modelsandsoftwaresuchasIMPLAN.Thetotalimpactequalsthedirectimpactplustheindirectimpactplustheinducedimpact.Thistotalimpactcanbecalculatedmoresimplywiththetotalimpactequalingthedirectimpactsmultipliedbythemultiplier.


OtherConsiderations

TheHiltonHeadIslandareaseespeaktourisminthesummermonths.TheHiltonHeadGolfweekAmateurGolfTourChampionshipoccursinOctoberofferingasmallerpeakineconomyinthedownseasonoflocaltourism.ThedirecttakeawayfromthiswouldbethattheHiltonHeadGolfweekAmateurGolfTourChampionshiphasapositiveeconomicimpactonthelocalarea.


IndustriesAffectedbyGolfweekAmateurTourChampionship

Itcanbeestimatedthattheaboveindustrieswouldseedirect,indirectandinducedeconomicimpactsbasedonthenatureofthistournament.ThisisnotafullycomprehensivelistofallindustriesthatcouldpotentiallybeaffectedbytheHiltonHeadGolfweekAmateurGolfTourChampionship.However,itattemptstoofferaconservativescopeofindustriesaffectedbythetournament.

DirectImpactofSampleAttendeeSpendingSpendingType AmountSpent($)

(Basedon284Golfers)TotalAmountSpent $495,732AverageAmountSpentPerGolfer $1745.54AverageAmountSpentPerDayPerGolfer

$277.51

Basedon284respondinggolfersnearly$500,000wasspentbythosegolfersduringthecourseoftheHiltonHeadGolfweekAmateurGolfTourChampionshipin2015.WithstatisticalanalysisthedirecteconomicimpactcanbeestimatedtorepresentthetotaldirecteconomicimpactthetournamenthadontheHiltonHeadIslandareain2015.

IndustryAffected PotentialEconomicImpactFoodandBeverage Direct,Indirect,InducedImpactBarsandRestaurants Direct,Indirect,InducedImpactRetail Direct,Indirect,InducedImpactLodgingandTourism Direct,Indirect,InducedImpactTransportation Direct,Indirect,InducedImpactSport(Golf) Direct,Indirect,InducedImpact


EstimatedTotalDirectEconomicImpactoftheChampionshipSpendingType AmountSpent($)

(Basedon853Golfers)TotalAmountSpent(DirectImpact) $1,488,944.26AverageAmountSpentPerGolfer $1745.54AverageAmountSpentPerDayPerGolfer

$277.51

Basedonthe853totalgolfersthatattendedtheHiltonHeadGolfweekAmateurGolfTourChampionshiptheestimatedtotaldirecteconomicimpactthetournamenthadontheHiltonHeadIslandareaisnearly1.5million.ThisimpactonlyrepresentstheestimatedtotalnetdirectimpactthetournamenthadontheHiltonHeadIslandarea.WithamultipliertakenintoaccountthisamountwouldbelargerandwouldincludebothindirectimpactandinducedimpactassociatedwiththeHiltonHeadGolfweekAmateurGolfTourChampionship.Thecombinationofthedirectimpact,indirectimpactandtheinducedimpactwouldprovideacomprehensivetotalneteconomicimpactthetournamenthadonthearea.Thisonlyrepresentsthenetdirectimpactsofthechampionship.FormoreinformationregardingthestatisticalconfidenceofthisanalysisrefertoAppendixA“StatisticalAnalysis”.


DirectImpactbyState

TheabovegraphoutlinestheamountspentpergolferperstateduringtheHiltonHeadGolfweekAmateurGolfTourChampionshipaccordingtothesamplesizeofgolfersthatwasobtained.

StateAverageAmountSpentPerGolferPerState($)

AL $1340AR $3137.5CO $2933.33FL $1627.92IL $1483.33IN $2060KS $1962.5KY $1888.89LA $2265MD $1890MI $2068.75MN $2700MO $2360

StateAverageAmountSpentPerGolferPer

State($)MS $2840NC $1178.52NJ $800NM $3000NY $1666.67OH $3610PA $1525SC $1112.5TN $1750.56TX $2080UT $2362.5VA $1768WV $1600


HiltonHeadGolfweekAmateurGolfTourChampionship’scontributiontotheHiltonHeadIslandareaeconomyin2015NeteconomicimpactanalysisallowsfortheexaminationoftheHiltonHeadGolfweekAmateurGolfTourChampionship’scontributiontotheHiltonHeadIslandareaeconomyin2015.Fromaneconomicmeasure,thenetcontributionoftheHiltonHeadGolfweekAmateurGolfTourChampionshipwaspositive.ThisiswiththeconsiderationofexcludingspendingthatwouldhaveoccurredintheabsenceoftheHiltonHeadGolfweekAmateurGolfTourChampionshipinthelocalarea.Thenetdirecteconomicimpacttotheareaisestimatedtobe$1,488,944.26.


AppendixAEconomicImpactAnalysis

Thisappendixsectionprovidesadetailedoverviewoftheanalysismethodsusedtoestimatetheeconomicimpact.Itbeginswithanintroductionintowhateconomicimpactisandhowitcanbemeasured.Thisappendixthengoesontoprovidekeyissuesineconomicimpactanalysis.Itreiteratestheimportanceofmeasuringnetimpactratherthangrossimpact.Itthenoutlinestheimportanceofarelevantstudyareaandwhatthisanalysis’relevantstudyareaincluded.Itconcludeswithanoverviewofthedatarelieduponinfurtherdetail.

EconomicImpact EconomicImpactissimplythechangesineconomicactivityinagivenareaasaresultofaninitialchangeinthelocaleconomy.Thisimpactismostcommonlymeasuredthroughchangesinoutput(orsales),income(valueadded),andjobs.

PurposeofMeasuringEconomicImpactAneconomicimpactanalysisexaminestheeffectofaneventontheeconomyinaspecifiedarea.Theeventanalyzedcanincludeimplementationofanewpolicyorproject,ormaysimplybethepresenceofabusinessororganization.Aneconomicimpactanalysisisoftenconductedwhenaninterestedpartyintendstocalculatethepotentialimpactsofaproposedprojectorpolicy.Aneconomicimpactanalysistypicallymeasuresorestimatesthechangeineconomicactivitybetweentwoscenarios,oneassumingtheeconomiceventoccurs,andoneassumingitdoesnotoccur.Thiscanbeaccomplishedeitherbefore,duringoraftertheeventhasoccurred.


KeyIssuesAffectingEconomicImpactAnalysis

Economicimpactanalysisissometimesviewednegatively.Figurescanbeclaimedasbeingexaggeratedand/orunreliable.Therearetwomainareasofconcernwhenconductingthistypeofstudy.Thefirstissueisthewayinwhichtheanalysisisbeingprepared.Thesecondissueinvolvesspecifyingtheexactgeographiclocationunderconsideration.Conditionseachyeardonotremainconstant.Differencesineventimplementation,attendees,weather,socialtrendsandsoon,canskewnumbersfromyeartoyear.

GrossversusNetImpacts

Grossanalysisisusefulfordiscoveringthemacroeconomicimpactofanarea,takingintoaccountthetotaleconomicimpactoftheregion.ANetanalysisisbetterutilizedtodiscoverthespecificimpactofanewpolicy,business,oreventheld,takingonlytheimpactofthatspecificinstanceontheregionandnotthetotaleconomicimpactofthearea.ThefirststepinanyeconomicanalysisistakingtheGrossnumber.Thekeytodiscoveringtheexactneteconomicimpactonanareaisseparatingcertaindatafromthegrossimpactthattheeventhad.

DefinitionofRelevantStudyArea Definingtheareaofstudyisofparamountimportance.Thisiscertainlythemostimportantfactordictatingthelegitimacyandeffectivenessofthestudy.Contingentuponhowtherelevantstudyareaisdefined;particulareconomiceffectswilleitherbeinternalorexternaltothearea.Thuspeoplemaybeincludedorexcludedunintentionally,skewingthedataandmisrepresentingthepopulationarea.Byexplicitlydefiningtheareaofstudy,thepopulation’sgatheredstatisticaldataispreciselycollected,whichimprovestheaccuracyoftheimpactstudy.


DataReliedUpon Inordertocompleteaneconomicimpactanalysis,manyformsofdatacanbereliedupon.Oneformofthatdataissurveys.Surveyscanbebothphysicalwritten-outsurveysorcanbecompletedonline.Surveyscanbegiventoattendeesatanevent,localbusinessessurroundinganevent,peoplewholiveinthearearegardlessofwhethertheeventishappeningandsomanymore.Thereisnolimittothedatathatcanbegatheredviasurveys.

Anotherexampleofdatarelieduponduringaneconomicimpactanalysisare

monetaryfiguresgainedfromthelocaltown/cityordinances.Thesefigurescanpointtowhetherornotthelocaleconomyseesaspikeduringtheeventbeingresearched.

StatisticalAnalysis ThestatisticalanalysisusedtoestimatethetotaldirecteconomicimpactoftheHiltonHeadGolfweekAmateurGolfTourChampionshipwasbaseduponatotalpopulationsizeof853golfers.Theconfidencelevelusedforthisanalysiswas95%.Theconfidencelevelreferstotheamountofuncertaintythatistolerableintheanalysis.Higherconfidenceintervalsrequirelargersamplesizesduetolesstolerabilitytotheamountofuncertainty.Themarginoferrorwas5%.Thisaccountsfortheamountoferrorthatisallottedwithintheanalysis.Theresponsedistributionwas50%.

Withthesestatisticalrestrictionsaminimumsamplesizeof266golferswouldberequiredtoproducestatisticallysoundanalysis.Thesamplesizeusedforthisreportwaswellabovethisminimumat284golfers.Thismeansthattheestimatedresultscanbedeemedstatisticallysoundwiththeserestrictions.Netandgrossimpactconsiderationsweretakenintoconsiderationduringthepreparationofthetotalnetdirecteconomicimpact.


AppendixBOutlineofSurveys

FirstDaySurveyFirst Day 10 questions Survey

1. How long have you been planning to attend this tour? ______________

2. Would you have come to the Hilton Head area at this time even if this event had not been held? Yes________ No______

3. If “Yes” (in 2), will you stay longer in the Hilton Head area than you would have done if this event had not been held? Yes_________ No______

4. If “Yes” (in 3) How much longer? ______________________Days

5. Would have come to the Hilton Head area in the next two months if you had not come at this time for this event? Yes_________ No_______

6. What is the zip code at your primary home address? ______________

7. How many people (including yourself) are in your immediate group? (This number should include the people for whom you typically pay the bills. E.g. family and close friends) __________people

8. To better assess the economic impact of the Hilton Head Golfweek Amateur Golf Tour

Championship, we are interested in finding out the approximate amount of money you and other visitors in your immediate group will spend. We understand the complexity of this question, but please do your best to answer as accurately as possible. During the course of your visit, what is the approximate amount your immediate group will spend in each of the following categories:

Type of Expenditure Amount Spent in the Hilton

Head Island Area Amount Spent outside the Hilton Head Island Area

Food and Beverages (restaurants, concessions, cafeterias, etc.)

Night Cubs, Lounges & Bars (cover charges, drinks, etc.)

Retail Shopping (souvenirs, gifts, clothing, etc.)

Lodging Expenses (hotel, condos, villa, house, etc.

Transportation Expenses (Personal car, rental car, taxi, hired driver, etc.)

Any other Expenses Please Identify ____________________

9. In the past ten years, how many times have you played at this tournament?

_______________________ times.

10. Would you consider this visit your biggest vacation of the year? Yes____________ No_________


ClipboardSurveyClipboard Survey

1. How many years have you been golfing?

_________________________years.

2. How many years have you been participating as a golfer in this tournament? ________________________years.

3. What flight are you playing in?

4. Did you bring all of your own golf equipment? Yes________ No___________

5. Have you purchased any golf equipment on the island? Yes________ No___________

6. If yes (in 5), where did you purchase your golf equipment?

7. If yes (in 6), how much did you spend on your golf equipment (in U.S. Dollars)?

8. Have you participated in any practice rounds of golf in Hilton Head? Yes No

9. If yes (in 8), where did you play your practice rounds?

10. Do you know about Edwin Watts Golf 90-Day, 100% Satisfaction Guarantee? Yes No

11. Do you receive email communications from Edwin Watts Golf? Yes No

12. Do you receive Edwin Watts Golf mail catalog? Yes No

13. Are you likely to visit Edwin Watts Golf website when considering a purchase? Yes No

14. Does Edwin Watts carry a mix of product that appeals to you? Yes No

15. Which brand of Golf Ball do you prefer?

16. What type of platform do you consume most of your golf media on?

17. What is your favorite Golf Publication?

18. How often do you replace your equipment?

19. What is your most trusted website for sports and news (outside of golf)?


20. On a scale of 1 to 10, 10 being very high 1 being very low, how would you

classify your brand loyalty?

21. On a scale of 1 to 10, 10 being very high 1 being very low, how would you classify your brand loyalty with Golf brands?

22. Do you have a preferred golf brand?

Yes________ No___________ 23. If “Yes” (in 22), What is your preferred brand?

24. Does anyone else in your immediate group (People in your immediate group are

classified by those for whom you would typically pay the bills e.g. family and close friends) golf? Yes________ No___________

25. If “Yes” (in 24), how many people in your immediate group (including yourself)

are participating as golfers in this event? Yes________ No___________

26. Are you a member of a country club back home?

Yes________ No___________

27. Are you content with the time commitment of the tournament? Yes________ No___________

28. Are you involved in any activities other than golf while on the Hilton Head Island? Yes________ No___________

29. If “yes” (in 27), what other activities are you involved?

30. Would you consider returning to the Hilton Head area for vacation purposes as a result of your tournament experience? Yes________ No___________

31. Are you planning to attend the event for the full duration of the event?

Yes________ No___________

32. If “Yes (in 31), How many days do you plan to spend at the event this year? ___________________Days


E-mailSurvey LinkUsedforEmailSurvey

www.houghton.edu/golfweek-survey

ThroughHoughtonCollege’scommunicationdepartmentwemadethislinktoredirectthesurveyorstoSurveyMonkeytotakethesurvey.Wedeliveredthislinktothembytwomeans.Thefirstwasthroughabusinesscardandthesecondwasthroughanemailthatwassentouttoallofthegolfersafterthetournament.

hilton head economic impact analysis

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