COLORADO HORSE PARK FOUNDATION

Why Valuing Your Industry Has Value!

HORSEPOWER!

Kyle Fenner

Economic Development

Business Development

Land Planning

Non-Profit Management

Marketing

Business Development ManagerCEO CHP FoundationColorado Horse Park

The Colorado Horse Park 501c3

together with the Town of Parker, Douglas

County, The Parker Chamber, Murdoch’s,

The Dumb Friends League, the Douglas-

Elbert County Horse Council and interested

individuals have conducted an Equine

Industry Economic Impact Study for Douglas

and Elbert Counties of Colorado in 2012.

What

“To establish the economic impact of the

equine industry on Douglas and Elbert

Counties in terms of jobs, earnings, tax or fiscal

impacts, advertising and draw of new residents to

the Counties.”

Why

Promote the Industry Educate citizens, business

leaders and elected officials on the size, scope and economic impacts of our specific industry.

Identify business opportunities, voids in the market offerings and barriers to doing business.

Why

What IS the idea? That the Horse Industry and all of its facets, is strong, valuable and worth paying attention to.

First you have to believe in the idea. I guess that is one of the reasons I am here talking with you.

Second you have to sell the idea.

How

It matters because the Horse Industry is worth paying attention to – IT HAS REAL VALUE!.

“Feeding a Horse Feeds the Economy.”

Why Does it Matter?

Frequently laws and regulations are considered that affect (directly or indirectly) horse ownership: land use, animal classification, taxes and water use to name a few.

Often not meant to affect horse ownership but do as an unintended consequence.

Without a clear idea of the value of the horse industry as a whole, the argument that it is worth protecting has little impact.

Why Does it Matter?

Incentives are often offered to new businesses through sales tax rebates, reduced development costs/barriers or streamlined permitting.

Why Does it Matter?

If a clear understanding of the horse industry is established & quantified, it justifies incentives and barrier/ burden reductions can be developed and offered to them.

Why Does it Matter?

FOR EXAMPLE: Douglas County is home to the Colorado

Horse Park, one of the largest horse show facilities in the nation and some of the state’s most valuable horses.

Both Douglas & Elbert Counties are home to many large, competitive show facilities and 1000’s of pleasure horses.

The horse economy in Douglas and Elbert Counties alone is substantial with some of its costliest real estate in the form of high end horse facilities.

About Our Region

Interviews with realtors NOT specializing in horse properties confirmed:

(it pays to know horse property) An average of 19% of all prospective buyers

of residential property in our area specifically mentioned the proximity to horses and horse activities as one of their selection criteria.

Among buyers the general affinity for horses was between 3 and 3.5 on a 5 point scale, 5 being high

About Our Region

TOWN OF PARKER: Average Retail Data

(10 months 2012 – Minus One Large Retailer)

$1,289,786.87 Total Retail Sales$28,060.41 Total Tax Dollars Collected

$128,978.69 (Average Monthly Sales)

* This includes ONLY retail sales, not boarding, horse sales, farrier services, veterinarian services, or local business outside town limits, etc.

A Local Example

The average visitor to CHP stayed slightly over three weeks (out of area visitor).

Total expenditures of the 533 unique visitors were approximately $5.5 million - or about $10,250 per visitor - spread out over an average of 22 days.

Expenditures by both local and non-local visitors sum to approximately $6.3 million.

Non-local spending DIRECT impact $7.2 million.

What We Found!

Expenditures by both non local and local competitors totaled to approximately $4.3 million.

A total of 141 jobs and $2.4 million in earnings is due to non local visitors and competitors at CHP.

The two counties received about $46,000 in additional sales tax revenue, and the town of Parker received about $40,000 in municipal tax revenues (minus top retailer – this figure will likely double).

What We Found!

What We Found! Enthusiasts: people who own or lease horses.

74% of survey respondents indicated an equestrian lifestyle was very important (5 out of 5) to their choice for

their current residence. Another 10% rated the equestrian lifestyle as important in their choice

(4 out of 5).

Expenditures by the LOCAL enthusiasts is estimated to have been approximately $14.5 million over the past 12 months, of which $12.5 million was for horse care, including boarding, and horse products and services.

The amount spent on horse purchases was just under $2 million.

What We Found!

74% of the horse enthusiast respondents said that the equestrian lifestyle was extremely important in their choice of their current residence, with another 9% saying it was important.

What We Found!

In 2005, the Colorado horse industry produces goods and services valued at $956 million.

The national industry had a $1.6 billion impact on the Colorado economy when the multiplier effect of spending by industry suppliers and employees is taken into account.

Accounting for off-site spending of spectators would result in an even higher figure.

The Data of the Past

102,400 Coloradans were involved in the industry as horse owners, service providers, employees, and volunteers. Even more participated as spectators.

The Colorado horse industry directly provided 5,800 full-time equivalent (FTE) jobs. Spending by suppliers and employees (in Colorado and other states) generated additional jobs in Colorado for a total employment impact of 21,300.

There were 256,000 horses in Colorado, over 70 percent of which were involved in showing and recreation.

The Data of the Past

Since the peak in the housing market, home values have dropped 29.5%.

Lets pretend the value of Colorado’s Horse Industry fell by 30% (rounding up)2005 PERCENTAGE

LOSS2012 IMPACTED

DATA

$ 956,000,000 30% $ 669,200,000 Direct Value

$ 1,600,000,000,

30% $ 1,120,000,000

National Impact on Colorado

$ 102,400 30% 71,680 Coloradans Involved

5,800 30% 4,060 Full Time Jobs

A Comparison to Home Values

Using the same value assumptions over time let’s make a comparison

to the Golf IndustryGOLF INDUSTRY

HORSE INDUSTRY

IMPACTED DATA

$910,000,000 $1,120,000,000

National Impact on Colorado

$392,000,000 $669,200,000 Direct Value

A Comparison to GOLF!

SOLHEIM CUP WILL BRING 140,000 PEOPLE AND $19M IN LOCAL IMPACT DOLLARS OR $135 PER PERSON.

THE HORSE PARK HAD 18,500 VISITORS, WITH A LOCAL IMPACT OF $7.4M /$400 PER PERSON

Colorado Economic Development often focuses on industry clusters

Economic Development

What is a “Cluster”?

“An economic cluster is a geographic concentration of firms and institutions whose activities are interconnected and interdependent within a particular economic sector.”

Economic Development

The idea of an economic cluster encourages us to consider the ways in which value‐added activities might coalesce or gather around something like an agricultural or natural resource and then attracts other firms which seek to capture spillover economic opportunities.

Economic Development

Aerospace NO

Bioscience YES

Creative Industries YES

Defense & Homeland Security NO

Electronics NO

Energy & Natural Resources YES

Financial & Business Services YES?

Food & Agriculture YES

Health & Wellness YES

Information & Technology NO

Engineering & Construction YES

Manufacturing YES

Tourism & Recreation YES!!!

Transportation & Logistics NO

Denver & N. Colorado

For county officials, even state officials, to make informed decisions on anything that affects horse ownership, directly or indirectly, they must first know how valuable that industry is to them.

When officials DO make decisions supporting horse-related issues and they are armed with clear, concise data supporting WHY they made their decision, they can easily defend these decisions and educate their constituents.

Empowering Officials

Prepare, Test and Implement and Intercept Survey of CHP competitors in 2012.

Prepare, Test and Implement and Intercept Survey of Douglas/Elbert County Equine Participants.

Research Equine Industry Trends & Impacts in the U.S.

Document Regional Equine Industry. Research the Availability of Advertising

Value Equivalency (AVE) Studies. Provide Economic Impact Analysis.

The Approach

One Regional Study Is Not Enough To Support the Industry

1. We hope our study spawns others.2. Coalitions – the bigger the better.3. We are more than happy to share

our process with you.4. How much do YOU value the

industry? Isn’t it worth it?

Call to Action

The “HORSE” is important – to each of us personally, to our region and the state economy.

The best way to protect our passion or our profession is to highlight that “THE HORSE” is an economic driver in our state.

If “The Horse” becomes fiscally important – it is not just a “lifestyle”.

The time is right for this positioning – economic development is a “hot topic”.

It makes sense…

Conclusion

Douglas/Elbert County Equine Economic Impact Study

COLORADO HORSE PARK FOUNDATION

Thank You

Questions?