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The Sport Tourism Economic Assessment Model
Tony FisherSenior Research Consultant
Canadian Sport Tourism Alliance, 116 Lisgar St., Suite 600K2P 0C2 Ottawa ON
t:613‐266‐6964e: [email protected]
TTRA Canada, Victoria BC, October 16‐17, 2008
The Sport Tourism Economic Assessment Model
Tony Fisher
Canadian Sport Tourism Alliance, Ottawa ON
TTRA Canada, Victoria BC, October 16‐17, 2008
Outline
• Background of the Canadian Sport Tourism Alliance
• The STEAM model – what it is and how it works
• STEAM analyses conducted to date
The Canadian Sport Tourism Alliance (CSTA)
• Membership based organization composed of approximately 110 members– municipalities
– national and provincial sport organizations
– educational institutions
• Objective of CSTA is to promote and develop the often substantial tourism aspect associated with the hosting of sporting events
The Canadian Sport Tourism Alliance (CSTA)
• CSTA has developed a number of tools for the promotion of sport– Business plan templates
– Sport exchange
– STEAM
STEAM ‐Motivation
• One of the objectives of the CSTA, raised by it’s members, has been raising the profile of the economic benefits associated with hosting sport events
• Quickly realized that there were many sources of error associated with measuring economic impact:– Number of Visitors– Spending of Visitors– Multipliers used
STEAM ‐ Background
• Standardization of the model was achieved by controlling two of the three sources of variation previously mentioned:– Multipliers consistently estimated across Canada
– Standardized visitor expenditure model
• Use of model is conditional on obtaining training regarding the proper definition of the inputs as well as interpreting the results
STEAM ‐ Structure
Expenditure Estimates
• Visitor Estimates
• Operational Expenditures
• Capital Costs
STEAM
• Visitor Spending Profiles
• Economic Impact Multipliers
Economic Impact
• GDP• Jobs• Wages & Salaries
• Taxes
STEAM – Expenditure Estimates
• Users of STEAM required to provide some projections regarding their event
• Required to project number of out of town visitors and participants attending event
Visitor Attendance
• Need to have an estimate as to aggregate cash expenditures broken down by type of spending
Operational Expenditures
• Projected total cost of all capital construction and major renovations
Capital Construction
STEAM – The Model
• The model itself can be thought of as two components
Visitor Expenditure Profiles
• Calibration of model through Statistics Canada’s CTS / ITS
• Supplemented with extensive on‐site visitor surveys• To date, approximately 25 events across Canada
Economic Impact Multipliers
• Developed by the CTRI at the CBoC
• Input / Output based on 2003 NAICS I/O tables
• Supplemented with other data• LFS• Regional tax structures
On Site Survey Calibration
• Conducted on‐site expenditure surveys at over 25 events across Canada, including:– NAIG (2003)
– World Junior Hockey Championships (2005)
– Canada Games ‐ Summer & Winter (2003, 2005, 2007)
– FIFA U‐20 (2007)
– Arctic Winter Games (2008)
• Used results to calibrate model, with interesting results
On Site Survey Calibration
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
2004 CTS 2004* CSTA
Spending per person per day – regular vs. sport visitors
Local TR
Taxi
Car Ops
Car Rental
Other Costs
Clothes
Event Merchandise
Rec & Ent
Food Store During
Food & Bev
$81.37
$72.41
STEAM ‐ Outputs
• Outputs at provincial level– Differentiate between host community and rest of province
• Differentiate between direct, indirect, and induced EI• Outputs include
– Gross domestic product (net econ. activity)– Wages & Salaries– Jobs– Taxes by level and by type– Total (gross) economic activity
• Results available by source (visitors, capital, or ops.) and by 2‐digit NAICS
STEAM ‐ Limitations
• STEAM explicitly only deals with economic benefits associated with hosting event– No displacement costs– Not a cost / benefit analysis
• STEAM is I/O based – not CGE bases– Cost is that dynamics of mega sporting events may not fully be captured, particularly in face of capacity constraints
– Benefit is that model is easier to understand – less of a black box (i.e. CGE is very sensitive to underlying assumptions)
STEAM ‐ Adoption
• We have been actively engaged with a number of federal and provincial sport / tourism partners, including CTC, Sport Canada, and others
• STEAM has been incorporated into Sport Canada’s International hosting program as a bid requirement
• STEAM was adopted by the Commonwealth Games Canada as the yardstick by which to measure the economic impact of competing jurisdictions
STEAM – EI Results
Event Canada SummerGamesRegina, 2005
World JuniorHockey ChampionshipsVancouver, Kelowna, Kamloops 2006
FIFA U‐20 Soccer Victoria, Vancouver, Edmonton, Toronto, Ottawa 2007
Arctic Winter Games**Yellowknife, 2008
Description Participant based, 2 weeks –considerable capital
Spectator based event, 31 games in 3 cities
Spectator based –51 games, 6 cities concurrently over 1 month
Participant based, circumpolar participants & families
Attendance 4,300 athletes (2,150 per week) 18,000 spectators (60% out of town)
100k – of which 25k out of town, 10k long haul
1.2 million tickets 271k spectators ‐ of which 20% out of town
1,800 participants 1,100 spectators, of which 800 were visitors
Initial Expenditure ($000’s)
$59,757($9,285 visitors)
$22,285 $108,362 $4,838
GDP ($000’s) $41,029 $21,375 $113,787 $3,891
Jobs* 955 275 1,686 38.5
Taxes ($000’s)* $13,124 $4,626 $22,101 $1,275
*Taxes and jobs refer to those supported by event, not necessarily created by hosting the event. **Provisional
The Sport Tourism Economic Assessment Model