Assessing economic impact of your special event

Measuring
Special Event
Economic Impact
March 25, 2013 South Lake CFDC

Aileen Murray
• Economic development consultant
• 25+ years helping businesses and communities grow
• Clients include
municipalities, counties, BIAs, workforce
development councils, economic development
agencies and for profit organizations
• Specializing in strategic planning, marketing and
communication

Goals for today’s
presentation
• Prepare credible statements on the
contribution your event makes to the
community
• Become familiar with “acceptable
research standards”
• Determine whether economic impact
analysis is feasible
• Select the most appropriate
measurement tools
http://www.psdgraphics.com/backgrounds/bulls-eye-target/

Agenda
• Defining Economic Development
• Tourism’s contribution to the local economy
• Economic impact statements
• Multiplier effect
• Economic impact study components
• TREIM model
• Other tools
• Beyond Economic Impact Measurement

Question #1
How many
overnight tourists
in Ontario attend
festivals and
sporting events
annually?

Question #1
How many
overnight tourists
in Ontario attend
festivals and
sporting events
annually?
A. 7.3 million
B. 5.1 million
C. 3.8 million
D. I have no idea

Question #1
How many
overnight tourists
in Ontario attend
festivals and
sporting events
annually?
5.1
million
Source: Ontario major Festivals and Events Attraction Research Study, Ministry of Tourism, February 2009

#2 True or False?
There were over
3 million tourist
visits to York
Region in 2008.

True!
There were
3,079,000
total tourist visits
to York region in
2008.

Question # 3
What
percentage of
York region’s
tourists are
Canadian?

Question # 3
of York region’s
tourists are
Canadian
81%
Source: Ministry of Tourism, Culture and Sport Geo Travel Statistics, Travel Statistics for Ontario 2008, http://www.mtr-geotravelstats.com

Question # 3
of York region’s
tourists are
Canadian
81%
Domestic
81%
Own CD
11%
USA
5%
Overseas
3%

Question # 4
True or False
• The majority of jobs in the tourism sector are in the
accommodations sector.
Photo http://helloimmrwright.blogspot.ca/2012/08/im-letting-you-in-on-little-secret.html

False!
• The largest share of jobs in the tourism sector is in
food and beverage services at 46%
Source : http://discovertourism.ca/en/about_tourism/industry_information

Tourism’s Contribution to
Ontario’s Economy
$23 Billion
Source: http://www.mtc.gov.on.ca/en/research/quick_facts/facts.shtml
Cdn Total Tourism Receipts
2010

Tourism’s Contribution to
Ontario’s Economy
305,400 jobs 2010
Source: http://www.mtc.gov.on.ca/en/research/quick_facts/facts.shtml

Special Events Contribution to
Ontario’s GDP
Annual Contribution by overnight inbound tourist trips
where the special events were the primary reason for trip
Ontario Major Festivals and Events Attraction Research Study, PKF Consulting 2009
$100 to $400 million

RTO #6 Purpose of Trip
Pleasure
29%
VFR
59%
Business
5%
Other
Personal
7%
VFR: Visiting Friends and Relatives

RTO #6 Tourist Activities
Festivals/Fairs
4%
Cultural
Performances
9%
Museums/Art
Galleries
6%
Zoos/Aquariums/B
otanical Gardens
4%
Sports Events
12%
Casinos
9%
Theme Parks
7%
National/Provinci
al Nature Parks
9%
Historic Sites
7%
Any
Outdoor/Sports
Activity
33%

York Region
Travel Statistics 2008
Visits (000s) Spending
$ millions
Total 3,079 $338
Domestic 2,796 $238
Own CD 379 $ 52
US 159 $ 41
Overseas 123 $ 59
Source: Ontario Ministry of Tourism, Derived from Statistics Canada data www.mtr-geotravelstats.com

Durham Region
Travel Statistics 2008
Visits (000s) Spending
$ millions
Total 2,948 $197
Domestic 2,770 $148
Own CD 213 $ 11
US 108 $ 24
Overseas 70 $ 25
Source: Ontario Ministry of Tourism, Derived from Statistics Canada data www.mtr-geotravelstats.com

Tourism and
Economic Development

“Improving the economic well being
of a community through efforts that
entail job creation, job retention, tax
base enhancements and quality of
life.”
The International Economic Development Council

The Leaky Bucket
Photoshttp://www.flickr.com/photos/kelehen/6219220797/sizes/z/in/photostream/

Local Economy
The Leaky Bucket

Local Economy
Exports of Goods
and Services
Tourism
Foreign
Investment
Goods and
services
purchased
outside region
Payments for
Imports

Local Economy
Maximize Inputs
Minimize Outputs
(Leakage)
Economic Development Goals

Supply & Demand
Tourism System
POPULATION
Interest in Travel
Ability to Travel
TRANSPORTATION
ATTRACTIONS
INFORMATION &
PROMOTION
SERVICES
• Hotels/Motels
• Restaurant
• Retailing
Demand
Supply

Tourism Impacts
Social
• Brings in outside dollars to support community
facilities and services that otherwise might not be
developed.
• Encourages civic involvement and pride.
• Provides cultural exchange between hosts and
guests.
• Facilities developed for tourism can also benefit
residents.
.

Tourism Impacts
Environmental
• Fosters conservation and preservation of natural,
cultural and historical resources.
• Encourages community beautification and
revitalization.
• Is a clean industry.
Photo: http://bigwaveproject.org/wp-content/uploads/2011/03/sky-environment.jpg

Photo: http://blogs.calgaryherald.com/2011/10/30/is-the-canadian-economy-starting-to-creep-you-out/
Tourism Impacts
Economic
• Helps diversify and stabilize the local economy.
• Contributes to tax base.
• Creates local jobs and business opportunities.
• Brings new money into the economy.
• Helps attract additional businesses and services to
support the tourist industry.

Tourist Attractions
• Arts
o Theatres, art galleries, museums, performing groups
• Heritage Places
o Churches, historical sites
• Parks
o National, provincial, local, beaches, theme parks
• Recreation
o Events & festivals, outdoor recreation, sports, fitness
centres
• Others
o Cruise ships, casinos

Types of Events
• Regional Fairs
• Art Shows
• Entertainment Events
• Livestock shows
• Sporting Events
• Others…

Why Measure Economic Impact?
• Accountability
• Sponsorship
• Funding Programs
• Government support
• Community support
• Compare event performance
o To previous events
o To similar events in other regions
o To other events in the community

What information?
• Sponsors:
total attendees and
attendee profile
• Local government:
incremental economic
impact, community
benefits

Community
residents
pay taxes
To County
Council
Who use them to
subsidize services,
facilities & special
events
That attract out of
town visitors
Who spend money
in the local
community
Creating income and
jobs in the local
community
For community
Residents who pay
taxes
Why do municipalities
host & sponsor special events?

The Economic Impact
Statement
The Megaphone Festival
brought ______ tourists to the
community.
These tourists generated
$_______ in economic
impact, ______ jobs for the
community and added
$______ to the local coffers.
Photo: http://allareoneplus.blogspot.ca/2012/03/quote-58-pride-megaphone.html

Economic Impact
Calculation
Economic Impact
of Visitor Spending
= # of visitors ×
Average
spending
per visitor
× Multiplier

Economic Impact
Calculation
Economic Impact
of Visitor Spending
= Direct
impact
+
Indirect
impact
+
Induced
impact

Definitions
• Basic Industry – industries that
produce goods and services
sold to consumers outside the
region
• Non-basic industry – industries
that produce goods and
services consumed locally
Photo: http://www.sfl2000.com/wp-content/uploads/2011/03/Export-box.jpg

Definitions
• Multiplier – the ratio of total
economic activity to basic
economic activity
• Employment multiplier – the
ratio of total employment
impact to direct employment
impact

The Multiplier
The ripple effect from the contribution of new
money to the community.
Photo: http://beta.images.theglobeandmail.com/b19/migration_catalog/article3966214

The Multiplier Effect
Out of Town Visitor Spending
Restaurant Motel Retail Admission /Concessions
Local Business
Purchases
Direct
Household
Income
Local Taxes Non local
Purchases
Non local
household
income
Non local
taxes
Local Business
Purchases
Direct
Household
Income
Local Taxes Non local
Purchases
Non local
household
income
Non local
taxes
Direct Impact
Indirect Impact
Induced Impact

The Multiplier Effect
Photos: http://maytermthailand.files.wordpress.com/, http://www.crucell.com http://fourteenip.com
Direct Indirect Induced

Direct
impact
• The impact generated in businesses that provide
goods and services directly to travelers
• ie. restaurants and accommodations
Source: www.mtc.gov.on.ca/en/research/treim/treim.shtml

Indirect
impact
• The impact resulting from the expansion of demand
from businesses that directly provide goods and
services to travelers to other businesses or sectors
• ie. Food suppliers

Induced
impact
• The impact associated with the re-spending of
labour income and/or profits earned that serve
travelers directly and indirectly
• ie. shelter, food, clothing, recreation

The Multiplier
• Most impact at the centre
• Manufacturing multipliers are typically larger than service industry
multipliers
• Manufacturing multipliers ~ 2 to 3 net jobs for every 1 new job
• Service industries <1.2 jobs for every 1 new job created

Economic Multipliers
• Large community = larger multiplier
• Small community = smaller multiplier
City
County
Region
Province
Measuring the Economic Impact of Park and Recreation Services, National Recreation and Park Association

The Tourist/ Visitor
Same Day domestic tourist
• Out of town trip that
takes the traveller at
least 40 km. (25 mi.)
one way from home
• Not for commuting or a
routine trip
Source: Guidelines: Survey Procedures for Assessment of On-Site Spending at Gated Events and Festivals p. 90

The Tourist/ Visitor
Overnight domestic
tourist
• Out of town trip of at
least one night away
from home
• Not for commuting or a
routine trip
Source: Guidelines: Survey Procedures for Assessment of On-Site Spending at Gated Events and Festivals p. 90

Special Event Tourists
Source: Guidelines: Survey Procedures for Tourism Economic Impact Assessments of Gated Events and Festivals p. 19
Ministry of Tourism does not include:
o Locals
o Time switchers
o Casuals

Tourism Economic Impact
• Change in sales, income and jobs because
tourists came to the community and spent
money there.
Guidelines: Survey Procedures for Tourism Economic Impact assessment of Ungated or Open Access Events and Festivals

On-Site Spending
Money spent at the event site
incl. parking, refreshments, souvenirs
Guideliness: Survey Procedures for Tourism Economic Impact assessment of Ungated or Open Access Events and Festivals

Tourist Spending
≠
Tourism
Economic Impact
• Remember the leaky bucket
• Not all purchases are made locally
• Not all vendors source locally

Survey Resources*
Gated Events Ungated Events
Economic Impact
Estimate
Guidelines: Survey Procedures
for Tourism Economic Impact
Assessment of Gated Events
and Festivals
Guidelines: Survey Procedures for
Assessment of Ungated or Open
Access Events and Festivals
On-site spending
estimate
Guidelines: Survey Procedures
for Assessment of On-site
Spending at Gated Events and
Festivals
Guidelines: Survey Procedures for
Assessment of On-site Spending
at Ungated or Open Access
Events and Festivals
Research Resolutions & Consulting, 2005
Canadian Tourism Commission & 8 other partners including Ontario
Ministry of Tourism

Study Components
Attendee
Counts
Tallying
Attendees
Attendee
Survey
Analysis
Plan
Guidelines: Survey Procedures for Tourism Economic Impact assessment of Ungated or Open Access Events and Festivals

Complexity
Gated Ungated
Single site Multiple sites
Single day Multiple days
MoreLess

Attendee Counts
Gated Events Ungated Events
Attendee
Counts
Tallying
Attendees
Attendee
Survey
Analysis
Plan

Gated Events
Controlled points of entrance and exit

Ungated Events
Access to event is not controlled

Gated Event
Attendee Counts
• Systematic approach
o # of tickets sold
Attendee
Counts
Tallying
Attendees
Attendee
Survey
Analysis
Plan

Ungated Event
Attendee Counts
• Aerial Photography
• Parking Lot Counts
• Parade Counts
• Entrance/ Exit counters
• Accommodation data
Attendee
Counts
Tallying
Attendees
Attendee
Survey
Analysis
Plan

Ungated Event
Attendee Counts
Aerial Photography
o Peak volume times
o Ground counts of covered
areas
o Not suitable for indoor or
night events
o Not just airplanes,
o Remote control airplane
enthusiasts, tallest building
in town
http://rwrant.co.za/

Aerial Photography
• Site map
• Identify count zones
• Identify peak attendance periods
• Aerial photography
• Counts from photographs
• Estimates of capacity and occupancy of
covered areas
• Calculations for counting attendees
• Special questions for tally questionnaire
o How many days to you plan to attend the
event
o Which events do you plan to attend
(by day)
Source: Guidelines: Survey procedures for Assessment of On-Site Spending at Ungated or Open Access Events and Festivals

Parking Lot Counts
• # of vehicles
• Type of vehicle
• Parking lot used
• Number of occupants
per vehicle
• # of households
represented by the
number of occupants

Ungated Event
Attendee Counts
• Parade Counts
o Events where parade is the
peak attendance activity
o Grid count
• Entrance/ Exit counters
o Sample of total # attending
• Accommodation data
o Ask hotels to record # of visitors
attending the event
• Traffic counters
o Compare event vehicle traffic
to non-event average traffic
Photo: http://www.dailymail.co.uk/home/moslive/article-419501/Welcome-worst-hotel-world.html

Not everyone counts
Excluded groups
• Vendors, staff, volunteers
• People who attend more than once

Tallying attendees
• Characteristics of the attendees
• Local or visitors
• Attendee tallies
o Randomly selected stints
o Randomly selected attendees
o Survey to determine if they are local, casual or
time switchers
Attendee
Counts
Tallying
Attendees
Attendee
Survey
Analysis Plan

Tally Questions
• Postal / Zip code
• Type of visitor
o Spectator, exhibitor, athlete, entertainer,
coach, vendor, exhibitor, referee, media
, sponsor, other
• Days at the event
• # people in your immediate
group

Tally Questions
• Nights spent in the area
o Motel, private
residence, camping, B & B
• Timing of visit
o Would you have come at this time
even if the event had not been
held?
• Impact on length of stay
o Did you stay longer than you would
have done if this event had not
been held?
• Decision to visit
o How important was this event in
your decision to visit on this trip?

Tallies &
Random Sampling
• Stints – unique measurement time period at your
event
• Stint sample – a randomly selected set of stints
when you will count and/or tally attendees at your
event
• Tally interview – short interview to determine
attendee characteristics (local vs. tourists)
• Counts – all attendees at an event during tally stint.
Source: Guidelines: Survey Procedures for Assessment of On-Site Spending at Ungated or Open Access Events and Festivals

Attendee Survey
Attendee
Counts
Tallying
Attendees
Attendee
Survey
Analysis
Plan

Economic Impact
What is the approximate amount your immediate group will
spend during your visit?
Amount In
Georgina
Outside
Georgina
Entry Fees
Restaurants, Concessions
Groceries
Retail shopping
Lodging
Gas & oil
Private Auto expenses
Taxis, rental vehicles
Others

Survey Training
• Survey goals and process
o Objectives, objectives of the study, how
to handle difficult respondents,
• Implementation of the survey
o Practice interviews, respondent
selection

Analysis Plan
• How you will identify the
incremental spending
• (The math)
Attendee
Counts
Tallying
Attendees
Attendee
Survey
Analysis
Plan

The Magic Number
Recommended minimum # of visitors/tourists to measure economic impact

Aerial photography
calculation
1. Convert party to people from tally
o (ie 9 parties interviewed = 31 people)
2. Adjust tally and aerial photo counts for exclusions
o (vendors, volunteers, staff)
o (ie. 10% of attendees are vendors, volunteers, staff and are removed from
total attendee counts)
3. Adjust aerial photo counts for duplication
o If they were taken at multiple times

Aerial photography
calculation
4. Adjust tally respondents for duplication
o (attendees for multiple days only count once)
5. Expand stints to total events
o (ie. Total stints (36) ÷ sampled stints (6) = Stint weight (6.0)
6. Expand weighted tallied persons to adjusted
attendee counts

Attendee calculation
((Household party tally record X #of people in party)
÷
# of days at event)
X
stint weight
X
individual attendee adjustment weight
(from adjusted aerial photo counts)

Estimating attendance by
place of residence
Calculation for each place of origin
Adjusted Tallied Persons by Place of Origin
X
stint weight
X
individual attendee adjustment weight
(from adjusted aerial photo counts)

Estimating attendance
by place of residence
Weighted, Projected Visitors, Stints 1, 2 by Place of Residence
Place of Residence Stint 1 Stint 2 Total Percent
Total (All) 3,104 + 2,815 = 5,919 100%
Local 2,341 + 1.973 = 4,314 73%
Non-local – same province 473 + 421 = 894 15%
Other provinces 184 + 289 = 473 8%
Other country 132 + 132 = 264 4%

Estimating attendance by
place of residence
• Apply ratios by place of resident to the
information on spending and attendee
characteristics

Which study is most suitable?
Minimum 200 surveys from randomly selected tourists?
Yes
At least 10% attendees non-local?
Yes
Can you estimate total
attendance?
Yes
Economic Impact Feasible
No
No
No
Economic
Impact may
not be
feasible
attendance?
No
Qualitative assessment only
Yes
On-site Spending
Measure only
Guidelines: Survey Procedures for Tourism Economic Impact Assessments of Ungated or Open Access Events and Festivals p. 34

Economic Impact Decision Tree
Minimum 200 surveys from randomly
selected tourists?
Yes
At least 10% attendees non-local?
Yes
Can you estimate total attendance?
Yes
Economic Impact Feasible
No
No

On-Site Spending Measure
Decision Tree
Minimum 200 surveys from randomly selected tourists?
Yes No
attendance?
No Yes
On-site Spending Measure only

Which study is most suitable?
Minimum 200 surveys from randomly
selected tourists?
Yes
At least 10%
attendees non-local?
Yes
Can you estimate
total attendance?
Yes
Economic Impact
Feasible
No
No
No
Economic Impact may
not be feasible
attendance?
No
Qualitative
assessment only
Yes
On-site Spending
Measure only

On-Site Spending Survey
• Vendor survey may be an easier/ more accurate
assessment
• May be more important to your sponsors than
economic impact
• Definitely more important to your vendors

Get help
• Partner with another special
event to measure both events
• Local high school, community
college
• Event volunteers
• Recruit a service organization
• Hire a specialist

Economic Impact Analysis
is not the solution when….
• The event draws few people from
outside the community
(less than 10%)
• Tourists attending the event are
coming to the community for some
other reason
• You don’t have the budget or
human resources to provide the
data required
Guideliness: Survey Procedures for Tourism Economic Impact assessment of Ungated or Open Access Events and Festivals

TREIM
Ontario’s Tourism Regional Economic Impact Measurement Tool
• What
Easy way to determine the economic impact of visitors' and businesses' spending
• Who
Developed by the Ontario Ministry of Tourism, Culture and Recreation
• When
1st in 2004, updated in 2008
• How
Multi-region input-output model,
• 49 Census Divisions, 14 Census Metropolitan Areas / Census Agglomerations, 13
Travel Regions, and the entire province.

Introduction to TREIM
Tourism Region Economic Impact Model
• Direct, Indirect &
Induced impacts
• Gross Domestic
Product
• Labour Income
• Employment
• Tax Impacts

TREIM Tool
www.mtc.gov.on.ca/en/research/treim/treim.shtml
or search
Ontario Tourism Economic Impact

What does it measure?
Economic Impact of:
• Visitor Spending
• Operational Expenses
• Investment Expenditures
• Convention Centre
Activity

Using TREIM: ArtXtreme
Photo: http://www.kinnearandchung.com/gacg-dccc-2011/gacg-dccc-2011.html

Using TREIM: ArtXtreme
• 550 students and
teachers on day 1
• 600 people on day 2
• Incl 30 overnight visitors
• If 10% were visitors
115 visitors & 26%
overnight
• If 20% were visitors
230 visitors & 13%
overnight
Photo: http://www.kinnearandchung.com/gacg-dccc-2011/gacg-dccc-2011.html

TREIM: ArtXtreme
Impact by Industry

Festival & Events Ontario
Economic Impact Study Grants (Trillium Foundation)
• Economic impact and strategic alliance research
studies for $1500 fee
o 25 studies (between 2012-2014).
o 20 small budget festivals (annual <$250,000)
o 5 medium budget festivals (annual budget $250,000 to $500,000).
• Applications open for 2013 to FEO Members
• www.festivalsandeventsontario.ca

STEAM
Sport Tourism Economic Assessment Model
• Canadian Sport Tourism Alliance
• Sport Canada
• Canadian Association of Convention & Visitor
Bureaus
• http://canadiansporttourism.com
• Free with membership to the CSTA

Elvis Festival
Collingwood
Photo: http://0.tqn.com/d/gocanada/1/0/k/F/-/-/Elvis_impersonators.jpg

Motor Coach Estimates
Rural Ethnic/Heritage Destinations
(MSU 2002)
• $2,415 per day trip bus
• $5094 per one night bus trip
West Virginia Impact Study (2007)
• $3800 per day trip bus
Pigeon Forge, TN Impact Study (2007)
• $3250 per day trip bus
http://www.tourismcenter.msu.edu/virtualtourism/aba%20economy.pdf
http://www.wvcommerce.org/App_Media/assets/pdf/industryinformation/reports/2006_WV_Motorcoach_Economic_Impact.pdf
http://www.buses.org/files/Pigeon%20Forge.pdf

Beyond Economic Impact
Legacies of Sports Tourism
• Municipal Impact –– economic development, downtown
renewal, municipal profile, media exposure, support facilities,
political environment
• Socio Cultural Impact –– job creation, civic pride, volunteer
and leadership development, enhanced infrastructure,
partnership development
• Sport Impact –– enhanced sport capacity, sport
development, support to local sport organizations
• Tourism Impact –– increased room nights, showcase
community attractions, regional events
Source: http://canadiansporttourism.com/sites/default/files/docs/clinton_sport_tourism_presentation_jan_21_blair.pdf

Other Measurements
• Attendee Satisfaction
• Attendee Profile
o (Age, gender, income, media preferences, etc.)

Other Ministry of Tourism
Research Materials
• Travel Activities and Motivation Survey
• GeoTravelStats – map-based tourism statistics.
• Tourism Outlook
• Historical Stats
• Much more

Some Tips
1. Be as accurate as you can
2. Providing a range is okay.
3. Recognize the difference
between a local and a visitor
4. Can you incorporate tallies/
surveys into your existing event
process?

Some Tips
5. Get your event partners and
volunteers onside.
6. Be prepared to explain your
analysis
7. Ask for help
8. Play with the TREIM tool on-line.
(It won’t bite )

"Do what you can,
with what you
have, where you
are."
Theodore Roosevelt

Further
information
• TREIM http://www.mtc.gov.on.ca/en/research/treim/TREIM%20Model%20Design.pdf
• Ontario Major Festivals and Events Attraction Research Study, PKF Consulting 2009
• Measuring the Economic Impact of Park and Recreation Services, National Recreation and
Park Association
• Guidelines: Survey Procedures for Tourism Economic Impact assessment of Ungated or
Open Access Events and Festivals
• Guidelines: Survey Procedures for Tourism Economic Impact Assessment of Gated Events
and Festivals
• Guidelines: Survey Procedures for Assessment of On-site Spending at Gated Events and
Festivals
• Guidelines: Survey Procedures for Assessment of On-site Spending at Ungated or Open
Access Events and Festivals
• Sport Tourism Planning Template
www.mtc.gov.on.ca/en/publications/sport_tourism_planning_template.pdf
Photo: http://mikeduran.com/2011/02/should-everyone-get-you/

Thank you
Aileen Murray Ec.D. (F)
Mellor Murray Consulting
amurray@mellormurray.ca
519-784-7944
mellormurray

Assessing economic impact of your special event

Assessing economic impact of your special event

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