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TRANSCRIPT
Measures That Ma+er℠
Economic Benefits of Sister City Rela5onships
SCI Annual Conference Washington DC
Jay Mathur Founder & CEO, valueideas [email protected]
July 15, 2016
© 2016 valueideas. All rights reserved. valueideas® confiden@al & proprietary 1
Session Flow
Background on SCI and valueideas collabora@on
Overview of Network Economic Impact Study results
Lessons learned
Member Data Collec@on Process
Case Studies results
Early Insights
Next Steps
© 2016 valueideas. All rights reserved. valueideas® confiden@al & proprietary 2
Economic Impact of SCI Network Why Measures That MaOer℠?
Recession of 2008 had huge impact on economies of ci5es and states
Stakeholders such as grantors, sponsors, city officials, sister ci5es supporters needed to jus5fy every dollar spent
Over 60 years of its existence, SCI did not have comprehensive informa5on or a process to understand its economic significance
Offered to help in measuring the economic impact of the SCI network using valueideas’ Measure That MaOer℠ methodology
Kicked off project in late 2014 and released the final report in October, 2015 5med to the start of the 60th year of SCI’s existence
Sister Ci5es Interna5onal
Network Economic Impact Results Highlights
Over 14,000 visitors from 1100 inbound
exchanges
10,000 U.S. residents par5cipa5ng in about
1000 outbound exchanges
33,000 volunteers involved throughout
the U.S.
Over 15,000 youth involved
Over 2300 total sister city events in the U.S. with par5cipa5on from 1.13 million
people
Sister Ci5es Interna5onal Network Annual Economic Impact
U.S. Economy Total $525.7 million Some highlights: Inbound Exchanges: $63.7 million Sister City hosted events: $56.5 million Foreign host students: $70.1 million Total jobs supported: 3715 Payroll contribu@on: $45.5 million Taxes contribu@on: $29 million
Sister Ci5es Interna5onal Network Annual Economic Impact
Global Economy
Total -‐ U.S. Dollars $537.7 million Total -‐ Global Purchase Price Parity (PPP)* $41.9 billion Some highlights: Outbound Exchanges (USD): $29.7 million U.S. host students (USD): $17.5 million Total Global Direct (PPP) $18.5 billion *Global Purchase Price Parity Index (PPP) compares the value of goods and services in local currencies and assigns a mul@plier against US dollar
Sister Ci5es Interna5onal Network Economic Impact Study
Key Lessons
Es5mated only a small frac5on of the economic drivers • Need to expand economic benefit dimensions
Understand the economic impact of the SCI members in their communi5es and globally
Need to share the complete story with city leaders, sponsors, grantors, supporters etc., by including the economic effect of the sister city rela5onships
Member Economic Impact Study Pilot Process
Refined and expanded survey • Included Business and Foreign Direct Investments impact
Solicited members
for the pilot study
Had one on one
discussions with
interested par5es
Conducted webinar for par5cipants
Helped clarify and assist in data
collec5on as
necessary
Major Areas of Economic Impact
Travel and Tourism • Exchanges • Events • Host students • Visitors
Volunteers and In-‐Kind Contribu5ons
Business and Investments • Local and Foreign investments
• New Jobs, payroll and incremental tax revenues
• Tourism
Case Study: Atlanta Economic Profile
Local Impact $84.5 million
Direct & Indirect Travel & Tourism $53 million
Total Direct $23.4 million
In-‐Kind Contribu5on $1.2 million
Foreign Direct Investment $3.0 million
New Jobs $24.4 million
Increased Tax Revenue $ 3.0 million
Total Global Impact (USD) $153 million
Total Global Impact (PPP) $706 million
Local Impact per Capita $189
Global Impact per Capita (USD) $342
Global Impact per Capita (PPP) $1575
Case Study: Fort Worth Economic Profile
Local Impact $14 million Direct & Indirect Travel & Tourism $11.1 million
Total Direct $5 million
In-‐Kind Contribu5on $2.3 million
Other Economic Benefits $0.5 million
Jobs Supported 97
Payroll & Tax Supported $1.9 million
Total Global Impact (USD) $16.6 million
Total Global Impact (PPP) $1.6 billion
Local Impact per Capita $17
Global Impact per Capita (USD) $21
Global Impact per Capita (PPP) $2031
Case Study: Nashville Economic Profile
Local Impact $25.8 million Direct & Indirect Travel & Tourism $5.9 million
Total Direct $2.6 million
In-‐Kind Contribu5on $0.6 million
Foreign Direct Investment $12.3 million
New Jobs $7.0 million
Other Economic Benefits $5000
Total Global Impact (USD) $29.6 million
Total Global Impact (PPP) $54.1 million
Local Impact per Capita $38
Global Impact per Capita (USD) $44
Global Impact per Capita (PPP) $81
Data Sources
Some of the data sources include
U.S. Department of Commerce
White House Studies
U.S. Tourism Associa5on
U.S. Bureau of Labor & Sta5s5cs
NAFSA: Associa5on
of Interna5onal Educators
Independent Sector
City specific local, state and na5onal economic
performance data
Local Chambers of Commerce, Tourism and Economic
Development organiza5ons
Early Insights
The economic impact of sister ci5es is vastly underes5mated
Each member story is unique, comparing economic benefits is wasteful
Business Investments and tourism have huge impact on the economic benefits, but they are also much harder to measure
Local enthusiasm and deeper sister city rela5onships are leading indicators of economic vitality
Survey template as the basis for a measurement system will help document economic impact faster
Next Steps
Further refine the survey document
Develop a standard template for repor@ng
Invite members to join in the effort
Update informa@on on the SCI network
Learn and improve the process
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