Presented at the 2014 Brand+Aid Marketing and Social Media Conference.

1. Black Hats to White Hats:
Changing the Brand Image
of Parks and Recreation
through Economics
Brand + Aid: Marketing and Social Media Conference
January 2014
John L. Crompton
University Distinguished Professor and Regents Professor
Presidential Professor for Teaching Excellence
Texas A&M University

2. Present Position
 Recreation and park provision is
perceived to be a relatively discretionary,
non-essential government service. It is
nice to have if it can be afforded.

3. Reposition
 Position recreation and park services so
that they are perceived to be a central
contribution to alleviating the major
problems in a community identified by
tax payers and decision makers.

4. Positioning Implications
 Positioning is a relative rather than an
absolute concept

6.  “We are not identified with major
problems which confront our total
American Society [which is a] deep
concern and disappointment…[The field
should] focus park and recreation
services on the great social problems of
our time and develop programs designed
to contribute to the amelioration of those
problems.”
Gray and Greben, 1974

7.  The “big idea” associated with
repositioning is that funds are invested
in solutions to a community’s most
pressing problems. The term “investing”
suggests a positive, forward-looking
agenda with a return on the investments.
Elected officials usually have no
mandate to fund programs; their
mandate is to invest resources into
solutions.

8. Positioning Implications
 Positioning is a relative rather than an
absolute concept
 Legislators’ political platforms represent
residents’ concerns

9. Positioning Implications
 Positioning is a relative rather than an
absolute concept
 Legislators’ political platforms represent
residents’ concerns
 The challenge is not financial, it is
administrative

10. Politically Important Issues
 Economic development (jobs, enhanced
tax base, redevelopment)
 Health (obesity)
 Safety (youth crime)
 Quality of life
 Education (after-school programs)

11. Benefits Related to Economic
Prosperity
 Attracting tourists
 Attracting businesses
 Reducing taxes
 Attracting retirees
 Enhancing real estate values
 Stimulation of equipment sales

12. Benefits Related to Economic
Prosperity
 Attracting tourists

13. Segments of Travel and their Inter-relationship with Parks and
Recreation
Recreation and
Park Attractions in
a Jurisdiction
Opportunities for
Local Residents
Pleasure
Travel –
Sphere of
Interest
Tourism
Conference and
Convention
Travel
Business Travel
Visiting Friends
and Relatives –
Personal
Business
Recreation and park attractions
NOT operated by a public
agency

14. POPULATION
Ability to Travel
Interest in Travel
INFORMATION AND
PROMOTION
TRANSPORTATION
ATTRACTIONS

15. A Taxonomy of Tourist
Attractions

Arts

Heritage Places

Parks

Recreation

Arenas

Other
Theaters, Art Galleries, Museums,
Performing Groups, Music Concerts
Ethnic Cultural Places, Shrines/Churches,
Historical Sites and Structures, Educational
Instructions, Industry Factory Tours
National, State, Regional, Local, Beaches,
Theme Parks
Events and Festivals, Aquatic and Coastal
Areas, Outdoor recreations (e.g. camping,
fishing, hunting), golf, tennis, skiing,
sailing, softball), Fitness and Wellness
Centers
College Sports, Professional Franchises,
Concerts and Exhibitions
Gambling Places, Cruise Ships

16. POPULATION
Ability to Travel
Interest in Travel
INFORMATION AND
PROMOTION
TRANSPORTATION
ATTRACTIONS

17. Tourism is a public/non-profit sector driven business.

18. A comparison of the Financial and Economic Returns to a
City from an Amateur Softball Association Girls 18 & Under
Class A National Softball Championship Tournament
Context
1810 players on 133 teams participated in the tournament. All were from
out-of-town. Because it was an elimination tournament, the length of
time that the teams stayed in the community varied from 4 to 7 nights.
697 players’ parents were interviewed.
Financial Data
Income: Entry fees $300 x 133
$39,900
Tournament costs and staff time
$119,617
Net loss
($79,717)

19. A comparison of the Financial and Economic Returns to a
City from an Amateur Softball Association Girls 18 & Under
Class A National Softball Championship Tournament
Economic Data
Total expenditures in the local area by
the 1810 players and their family/friends
$2,039,000
Economic impact on sales
$3,731,000
Economic impact on income
$1,162,000
Return on investment
For each dollar invested, residents’ income increased by $14.58
(1,162,000/79,717). Facility cost $12 million; payback period to residents is 10
tournaments of this size.

20. The Conceptual Rationale For Undertaking Economic Impact
Studies
FINISH
Inflow of
Revenues
For community
residents who
pay taxes
START
Community
residents &
visitors pay
taxes
Creating income
and jobs in the
community
Outflow of
Funds
To a city
council
Which uses them to
subsidize
development of
recreation
programs and
facilities
Who spend money
in the local
economy
That attract out-oftown visitors

21. State Parks as “Economic
Engines”
 Parks attract non-resident visitors to the
area
 These visitors spend money in the local
area
 This new money creates income and
jobs for area residents

22. Example of a Park as an Economic
Engine
 Mustang Island State Park (145,711 visitor days)
Salaries and operating expenses
Revenue
Net Loss
809,500
632,000
177,500

23. New money into the county:
 $809,500 + $698,500
$1,508,000
 Impact on Sales (1.71):
$1,384,000 + $1,190,000
 Impact on Personal Income
 $753,000 + $631,000
 Impact on Employment
 25 jobs + 21
 Average pay for each job is

$2,574,000
$1,384,000
46 jobs
$30,088

24. So:
 Every $1 of net state funds invested in
Mustang Island State Park yields $7.83
in income for Nueces County residents.
That is: $1,384,000 / $177,500
 The cost of the state of each job created
is $3,850 i.e. $177,500 / 46

25. Economic Success Depends on
What Happens Inside a Facility
 Analogous to retail stores
 Investment in services and amenities
More Visitors
More Per Capita
Expenditures
More Jobs and Income
to Local Residents

26. Economic Return to a
Community From a Festival
Cost to the council of staging the festival
Income to the Council from admission fees,
Vendor concessions, etc.
Net loss to the city
$400,000
$170,000
$230,000
$343,000
Income accruing to city residents outside
the festival gates from visitor spending
in the community
Net gain in income to community residents:
Return on investment to residents on their
$400,000 investment
$113,000
28%

27. Benefits Related to Economic
Prosperity
 Attracting tourists
 Attracting businesses

28.  Conventional wisdom is that development is
the “highest and best use” of vacant land for
increasing municipal revenues.
 Developers claim their projects “pay for
themselves and then some” BUT

29.  Conventional wisdom is that development is
the “highest and best use” of vacant land for
increasing municipal revenues.
 Developers claim their projects “pay for
themselves and then some” BUT
 If a private company had a business plan that
looked only at revenues and ignored costs, it
would be quickly out of business. Why should
the public tolerate such one-sided accounting
by local governments?

30.  Fiscal impact analyses frequently
demonstrate that the public costs associated
with new residential development exceed the
public revenues that accrue from it.
BECAUSE
 The people who reside in developments
require services. IN CONTRAST

31.  Fiscal impact analyses frequently demonstrate
that the public costs associated with new
residential development exceed the public
revenues that accrue from it. BECAUSE
 The people who reside in developments require
services. IN CONTRAST
 Natural parks and open space require few public
services – no roads, no schools, no sewage, no
solid waste disposal, no water, and minimal fire
and police protection.

32. 1.
Allocate total municipal expenditures into
service categories and assign them to
selected land use categories (Residential,
Commercial/Industrial, Farm/Forestry/Open
Space)

33. Allocate total municipal expenditures into
service categories and assign them to
selected land use categories (Residential,
Commercial/Industrial, Farm/Forestry/Open
Space)
2. Categorize municipal revenues by sources
and allocate them to the selected land use
categories
1.

34. 1.
2.
3.
Allocate total municipal expenditures into
service categories and assign them to
selected land use categories (Residential,
Commercial/Industrial, Farm/Forestry/Open
Space)
Categorize municipal revenues by sources
and allocate them to the selected land use
categories
Compare revenues to expenditures for each
land use category

35. $1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.27
$0.00
Commercial &
Industrial

36. $1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.27
$0.35
$0.00
Commercial &
Industrial
Farm/Forest
Open Space

37. $1.40
$1.20
$1.16
$1.00
$0.80
$0.60
$0.40
$0.20
$0.27
$0.35
$0.00
Commercial &
Industrial
Farm/Forest
Open Space
Residential

38. 
Write down the place you would like to live,
given your druthers (i.e., your preferred place,
ignoring practical concerns such as a job, family,
language, and heritage).

39. 
Write down the place you would like to live,
given your druthers (i.e., your preferred place,
ignoring practical concerns such as a job, family,
language, and heritage).

Write in one sentence, why you picked that
place.

40. 
Write down the place you would like to live,
given your druthers (i.e., your preferred place,
ignoring practical concerns such as a job, family,
language, and heritage).

Write in one sentence, why you picked that
place.

More than 80% of participants will cite some
park, recreational, cultural, or environmental
ambiance dimension in their responses.

41. Business Relocation
Context



More than 10,000 economic
development groups are competing to
attract businesses.
Footloose Industries
“Information Factories” whose main
asset is highly educated professional
employees.

42. Parks, Trails and Recreation:
An Indicator Species
 American Heritage Dictionary:
“The presence, absence,
or relative well-being in a
given environment is
indicative of the health of
its ecosystem as a
whole.”

43. Drivers

Beyond a threshold salary level, people are
persuaded to relocate by quality of life
factors rather than money.

45. Drivers


Beyond a threshold salary level, people are
persuaded to relocate by quality of life
factors rather than money.
No matter how “quality of life” is defined,
parks, recreation, and open space are part
of it.

46. Drivers



Beyond a threshold salary level, people are
persuaded to relocate by quality of life
factors rather than money.
No matter how “quality of life” is defined,
parks, recreation, and open space are part
of it.
There are no great cities in this world that
do no have a great park (recreation and
culture) system.

47. Drivers




Beyond a threshold salary level, people are
persuaded to relocate by quality of life
factors rather than money.
No matter how “quality of life” is defined,
parks, recreation, and open space are part
of it.
There are no great cities in this world that
do no have a great park (recreation and
culture) system.
“Disamenity compensation” – companies
located where there is only mediocre quality
of life have to pay higher wages to attract
the same quality work (and vice-versa).

48. Comparison of the Perceptions of the
Relative Importance of General
Elements in Location Decisions
Between Decision Makes in Large and
Small Companies
Elements
Small Company
Means
(n=38)
Large Company
Means
(n=42)
Government Incentives
3.9
14.2
Quality of Life
33.3
14.7
Labor
10.3
24.0
Proximity to Customers
28.4
11.6
Operating Costs
17.2
24.3
Transportation
6.7
7.7

49. Comparison of Perceptions of the
Relative Importance of Quality-of-Life
Elements in Location Decisions in
Large and Small Companies
Elements
Small Company
Means
(n=38)
Large Company
Means
(n=42)
Primary/Secondary
Education
19.4
18.0
Recreation/Open Spaces
26.4
12.1
Cost of Living/Housing
23.0
34.5
Personal Safety/Crime
Rate
12.9
13.2
Cultural Opportunities
10.6
9.5
Health/Medical Services
7.1
9.2

50. Significance

“Companies that are 5 years old or
younger account for all the country’s
net job creation.”
(i.e. 2.7 million jobs in 2012)

On average, they produce 5 jobs each

51. Significance



Most new business growth comes
from small companies.
90% of businesses in the U.S. employ
10 or fewer people.
Small business owners often
“satisfice” rather than “optimize” their
profit potential.

52. A Business Leader’s
Lament
“What’s the greatest problem a business
has today? Workforce. If you interview
50 businesses at random, I’ll bet 49
would say that my biggest problem is
getting qualified workers. To get
workers, you have to get people who
want to be in your community because
they love the community, it’s got things
to offer.

53. A Business Leader’s
Lament
As the incoming CEO of [a local]
company said, I’ve got 80 people
making over $100,000 in this operation.
All of them are young, aggressive, highly
compensated people. They went to the
best schools in the country, they could
go anywhere they wanted, they are the
A players in the business world. I need
things that A players want.

54. People working in high tech companies are used to there
being a high quality of life in the metropolitan areas in
which they live. When we at Dell go and recruit in those
areas, we have to be able to demonstrate to them that the
quality of life in Austin is at least comparable or they won’t
come. It’s not just about salary. It’s about what’s the
community like where I’m going to live.
- Vice President, Dell Corp., Austin

55. Benefits Related to Economic
Prosperity
 Attracting tourists
 Attracting businesses
 Reducing taxes

56. $1.40
$1.20
$1.16
$1.00
$0.80
$0.60
$0.40
$0.20
$0.27
$0.35
$0.00
Commercial &
Industrial
Farm/Forest
Open Space
Residential

57.  Section G – last underdeveloped part of a city
available

58.  Section G – last underdeveloped part of a city
available
 Original master plan - 7,711 population of
which 1,820 would be school age. 125 acres
of open space
 Revised master plan – 205 acres of open
space; reduction of school age population to
1,104 (716 fewer)

59. Section G – last underdeveloped part of a city
available
 Original master plan - 7,711 population of which 1,820
would be school age. 125 acres of open space
 Revised master plan – 205 acres of open space;
reduction of school age population to 1,104 (716
fewer)
 Result: 1 less school to build and operate
 Cost savings substantially greater than revenues from
residences on the additional 80 acres available in the
original plan would have generated


60. Fiscal Impact Analysis revealed
 If do nothing, taxes for an average
homeowner will increase $250 per year to
support growth
 Break-even value of a new home was over
$300,000

61.  Breakeven cost for the town to purchase
development rights on farms and other open
space was $10,000 per acre, i.e., annual cost
of servicing bonds for this purpose equals
annual costs accruing town residential use

62. Protected 2000 acres, i.e., 2/3 of remaining open
space in the town by:
Purchasing development rights on 1,200 acres
Incentive zoning (TDRs) on 200+ acres
Mandatory clustering protecting 600+ acres

63. Annual cost of purchasing development rights
was $50 per year (cf. $250 from development).
Over the life of the bonds the average
homeowner saved $5,000

64. Benefits Related to Economic
Prosperity
 Attracting tourists
 Attracting businesses
 Reducing taxes
 Attracting retirees

65. Retirement Relocation
The new clean growth industry in
America

66. Target Market
 G rowing number of R etired A ctive
M onied P eople I n E xcellent S hape

67. Target Market
 G rowing number of R etired A ctive
M onied P eople I n E xcellent S hape
G.R.A.M.P.I.E.
S.

68. Life Expectancy at Age 65 and
Age of Exit from the Labor Force
(Medians)
Age of Exit from
the Labor Force
Life Expectancy
at 65
Males
Females
Males
Females
Early 1950s
66.9
67.6
77.8
80.1
2011
61.6
60.5
82.8
85.4
5.3
7.1
5.0
5.3

69. Economic Impact

Annual inflow of 100 retired
households with $40,000 annual
income = a new $4 million annual
“payroll”

70. Median Net Worth of Households,
and Homeownership and Equity in
Different Age Groups in 2011
Head of Household
Median Net Worth
Homeownership
Equity in Own
Age
($)
68,828
(%)
66.9
Home ($)
80,000
Under 35
6,676
39.1
20,000
35-44
35,000
65.0
40,000
45-54
84,542
73.5
70,000
55-64
143,964
79.0
97,000
Over 65
170,516
80.5
130,000
65-69
194,226
81.6
125,000
70-74
181,078
82.4
130,000
Over 75
155,714
78.9
130,000
All

71. Median Income of Households
1980-2011 in 2011 Adjusted
Dollars
Mean Size of
% Change
Age of Head of
Per Capita
Household in
Income in
Household
15-24
1980
33,033
1990
30,031
2000
36,370
2011
30,460
1980-2011
-8%
2011
2.82
2011
10,801
25-34
50,252
50,644
58,007
50,774
1%
2.85
17,815
35-44
61,400
64,327
70,216
61,916
1%
3.35
18,482
45-54
65,283
69,934
75,283
63,861
-2%
2.81
22,726
55-64
50,798
53,991
58,580
55,937
10%
2.18
25,659
65 and over
22,840
28,117
30,148
33,118
45%
-
-
65-74
N/A
33,851
36,767
41,598
1.91
21,779
75 and over
N/A
21,997
24,572
26,277
1.60
16,423
50,854
2.55
19,943
National average

72. GRAMPIES Are an Appealing
Economic Target Market
Because:

Social Security and Private Retirement incomes are stable –
not subject to the vicissitudes of economic business cycles

“Positive” taxpayers i.e., generate more tax revenue than the
cost of serving them (e.g., schools, criminal justice)

Contribute to development of the health care industry

Volunteer pool – active in churches, service organizations,
and philanthropic organizations

Stimulate housing and retail, but do not put pressure on local
job markets or social services

73. Key Requirement

Amenity rich community especially
recreation: socialization; active
lifestyle

74. Key Requirement


Amenity rich community especially
recreation: socialization; active
lifestyle
Sun City and Leisure World
communities

75. Key Requirement



Amenity rich community especially
recreation: socialization; active
lifestyle
Sun City and Leisure World
communities
Retention is as valuable as
recruitment

76. Survey: 270 Recently
Relocated GRAMPIES in the
Lower Rio Grande Valley

Top 3 out of 40 reasons for moving
away from the previous residence
were:
– Desire to live in a more recreationally
enjoyable area
– Desire to get away from cold weather
– Desire to live in a place where recreation
opportunities are plentiful

77. Benefits Related to Economic
Prosperity
 Attracting tourists
 Attracting businesses
 Reducing taxes
 Attracting retirees
 Stimulation of equipment sales

80. Twelve years ago there was almost no
pleasure driving in New York. There are
now at least ten thousand horses kept for
pleasure driving.
Frederick Law Olmsted, 1870

81. 
…to enjoy the use of the park, within a few
years after it became available, the dinner
hour of thousands of families was
permanently changed, the number of private
carriages kept in the city was increased
tenfold, the number of saddle horses a
hundredfold, the business of livery stables
more than doubled, the investment of many
millions of private capital in public conveyance
made profitable.
Frederick Law Olmsted, 1886

83. Economic Partners’ Support
Group
To lobby for better funding for the recreation and park
agency
Comprised of:
- Recreation equipment retailers
- Department suppliers
- Concessioners
c.f. State and National Tourist Associations
Recreation Coalition at the Federal level
Armed forces and defense contractors

84. Benefits Related to Economic
Prosperity
 Attracting tourists
 Attracting businesses
 Reducing taxes
 Attracting retirees
 Stimulation of equipment sales
 Enhancing real estate values

85.  1,300 acres total
150- acres for a golf course
 Cost of golf course development = $4 million

86.  1,300 acres total
150- acres for a golf course
 Cost of golf course development = $4 million
 College Station sub-division lots = $30,000
 Pebble Creek averages 3 lots per acre
Golf course replaced 450 lots
 450 lots at $30,000 = 13.5 million

87.  1,300 acres total
150- acres for a golf course
 Cost of golf course development =
$4 million
 College Station sub-division lots = $30,000
 Pebble Creek averages 3 lots per acre
Golf course replaced 450 lots
 450 lots at $30,000 =
13.5 million
 Total cost of the golf course -
$17.5 million

88.  Pebble Creek lots = $40,000 on average
($10,000 more per lot because of golf
course)

89.  Pebble Creek lots = $40,000 on average
($10,000 more per lot because of golf
course)
 1,150 remaining acres X 3 lots per acre =
3,450 lots
 3,450 x $10,000 premium = $34.5 million

91.  Nash established as the central principle of
his plan: “that the attraction of open Space,
free air and scenery of Nature, with the
means and invitation of exercise on
horseback, on foot and in Carriages, shall be
preserved in Marylebone Park, as allurements
or motives for the wealthy part of the public
to establish themselves.”

92.  At Regent’s Park, Nash brought to the urban
landscape the principles of picturesque
landscapes that had been developed by
Capability Brown in country estates half a
century earlier, and his erstwhile partner
Humphry Repton

96. Liverpool City Council (1837):
The Council is well disposed to provide a public
park and the subject has been discussed, but
the value of the land is so great in the vicinity of
Liverpool and the council have had so many
demands upon it that they do not consider
justified in incurring such an expense.

97. 
Richard Vaughn Yates purchased 97
acres for around £50,000: 40 acres for a
park

98. 



Joseph Paxton

Richard Vaughn Yates purchased 97
acres for around £50,000: 40 acres for a
park
Hired Joseph Paxton, the leading
botanist-garden in the country based at
Chatsworth
“A marketing coup”
Paxton’s first venture into municipal
design
Assisted by James Pennethorne – a
protégé of Nash – worked with him at
Regent’s Park

103. 1843-1850
 Cost of land acquisition and development of the park
 Projected income from lot sales
 Surplus

₤146,619 ($236,057)
₤155,872 ($250,954)
₤9,253
($14,897)
₤1 in 1850 = ₤43 in 2013 (using the retail price index)
 Contemporary value using the average earnings index: ₤1 in 1850 = ₤699 in
2013

Cost of land acquisition and development of the park
 Projected income from lot sales
 Surplus

₤103 million ($166m)
₤109 million ($181m)
₤6 million
($15m)

106.  “A perfection that I had never dreamed of. I
cannot undertake to describe the effect of so
much taste and skill as had evidently been
employed…and all this magnificent pleasureground is entirely, unreservedly, and forever the
people’s own…but you are inquiring who paid for
it. The honest owners—the most wise and
worthy people of Birkenhead—in the same way
that New Yorkers pay for ‘The Tombs’, and the
hospital, and the cleaning (as they amusingly
say) of their streets.”

108. Ward
Twelfth
Nineteenth
Twenty-Second
Value of Real Estate
1856
8,149,360
8,041,183
10,239,022
$26,429,563
Increase in Assessed Valuation =
Tax rate in 1873 was $2.50
so Tax revenue on increased AV =
1873
62,457,680
110,519,303
63,104,530
$263,081,515
$209,651,950
$5,241,200

109. Ward
Twelfth
Nineteenth
Twenty-Second
Value of Real Estate
1856
8,149,360
8,041,183
10,239,022
$26,429,563
1873
62,457,680
110,519,303
63,104,530
$263,081,515
Increase in Assessed Valuation =
Tax rate in 1873 was $2.50
so Tax revenue on increased AV =
$209,651,950
Total Cost of land and development
for Central Park
Annual debt charges
$13,902,515
$5,241,200
$830,158

110. Ward
Twelfth
Nineteenth
Twenty-Second
Value of Real Estate
1856
8,149,360
8,041,183
10,239,022
$26,429,563
1873
62,457,680
110,519,303
63,104,530
$263,081,515
Increase in Assessed Valuation =
Tax rate in 1873 was $2.50
so Tax revenue on increased AV =
$209,651,950
Total Cost of land and development
for Central Park
Annual debt charges
$13,902,515
Excess of tax revenues over debt charges
(In 2013 dollars
$4,411,140
$8,110,000,000)
$5,241,200
$830,158

111.  1868 - Writing to the developers of Riverside
Chicago: FLO cited “the vast increase in value
of eligible sites for dwellings near public
parks.”

112.  1868 - Writing to the developers of Riverside
Chicago: FLO cited “the vast increase in value of
eligible sites for dwelling near public parks.”
 1919 – FLO Jr: “It has been established that…a
local park of suitable size, location and
character, and of which the proper public
maintenance is reasonably assured, adds more
to the value of the remaining land in the
residential area which it serves than the value of
the land withdrawn to create it.”

113. Increase in property value
Decrease in property value
Distance from park

114. Benefits Related to Economic
Prosperity
 Attracting tourists
 Attracting businesses
 Reducing taxes
 Attracting retirees
 Stimulation of equipment sales
 Enhancing real estate values

115.  Critics who argue there is inadequate
evidence to support the potential
contributions of these benefits are
wrong. There is strong enough empirical
support for all of the benefits listed to
justify their advocacy in formulating
policy.

116. Credibility of the Evidence
“we have come a long way in essentially
less than a half-century and have much
to be proud of…In fact, few areas of
scientific inquiry have realized such
advancements in so short a time.”
Driver, 1999

117. Presentation available at:
 Google “TAMU Crompton”
 Go to “Recent Presentations”