a state of the industry report 2017...expense was $85,823 and 31% of municipalities provide some...

1NASC in collaboration with

Sports Events and TourismA State of the Industry Report2017

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KEy FindingS

Visitor Spending is still on the RiseThe most powerful metric for the growth of the sports events and tourism industry is direct visitor spending

associated with sports events. Estimated 2017 direct spending (professional sporting events excluded)

was $11.40 billion in 2017, an increase of 9% from the $10.47 billion reported in 2016. Visitor spending

has increased over the past five years, signaling the continued strength of the industry overall and as a

reflection of the innovative leadership in sports events and tourism in the United States.

Event OwnershipIn 2017, 37% respondents responded that they own their own sports events, an increase from 27% in 2016.

The top three reasons cited for owning sports events were:

1. Increasing revenue

2. Engaging with the community

3. Improving quality of life in the community

Of the respondents that own their own sports events, 14% indicated that the number of owned events

was ten or less events for the past year. Additionally, 67% of respondents reported 26 or more of their

own events. Team events, such as tournaments, were more popular than individual events with 46% of

organizations owning a team event. Fourteen percent (14%) owned at least one individual event and 40%

owned both team and individual events in 2017.

0

2

4

6

8

10

12

2012 2013 2014 2015 2016 2017

Vis

itor S

pend

ing

($ b

illio

n)

Year

Visitor Spending

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Events Hosted

Hosting events is the cornerstone of the industry. The number of events hosted was categorized as follows;

14% hosted less than 25, 15% hosted between 26 and 50, 28% hosted between 51 and 100, 41% hosted

between 101 and 250, and 2% over 250 events. Across all organizations that answered the question of how

many events they hosted, the average was 70. To illustrate visitor spending and events hosted, the average

direct spending per event is $1.66 million.

Stay to PlayIn three of the last four years, organizations requiring “stay to play” has declined. In 2016, 53% of

organizations required “stay to play,” which was down 7% from 2015, but the data rebounded in 2017 with

results indicating 55% of organizations that hosted events required stay to play at some point.

55%

45%

Requiring Stay-to-Play

Yes

No

14%

15%

28%

41%

2%

Events Hosted

Less than 25 Events

Between 26 and 50 Events



Over 250 Events

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gEnERal induSTRy inFORmaTiOn

identificationIn 2017, 62% of respondents classified themselves as a Convention and Visitors Bureau/Destination

Marketing Organization, 8% less than 2016. Sport Commissions were represented by 28% of respondents,

with Chamber of Commerce and “other” responses totaling 10%.

locationFor the second year in a row, the Southeast region had the largest response rate to the survey at 37%,

followed closely by the Midwest at 32%. The Northwest replaced the Southwest for the third greatest

response rate at 12%, followed by the Northeast and Southwest and other (Canada & Puerto Rico) at 10%

and 8% and 1%, respectively.

The geographical regions are divided by the NASC as follows:

Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,

Rhode Island and Vermont

Southeast: Alabama, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina, South

Carolina, Tennessee, Virginia, and West Virginia

Southwest: Arizona, Arkansas, California (Fresno and South), Colorado, Hawaii, Nevada, New Mexico,

Oklahoma, Texas, and Utah

28%

62%

9%

1%

Organizational Breakdown

Sport Commission

Convention and Visitors Bureau/Destination Marketing Organization

Other (please specify)

Chamber of Commerce

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Midwest: Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota,

Ohio, South Dakota, and Wisconsin

Northwest: Alaska, California (north of Fresno), Idaho, Montana, Oregon, Washington, and Wyoming

Other: Canada and Puerto Rico

37%

12%

32%

10%

8%

1%

Regional Breakdown

Southeast (AL, AR, FL, GA, KY, LA, MS, NC, SC, TN, VA, WV)

Northwest (AK, CO, Northern CA, HI, ID, MT, NV, OR, UT, WA, WY)

Midwest (IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI)

Northeast (CT, DC, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT)

Southwest (AZ, Southern CA, NM, OK, TX)

Other (Canada, Puerto Rico)

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Segmenting participants by region to further understand the demographics of responding organizations is

illustrated in the graph. The Midwest and Southeast are home to 33% and 31% of sport commission survey

respondents, respectively. These two regions are also home to the most Convention and Visitors Bureau /

Destination Marketing Organization with the Midwest claiming 32% and the Southeast claiming 38%.

The total population represented by the organizations that responded to the survey was 122,451,375 people.

Further categorizing population by region shows that the Midwest and Southeast dominate with total

market represented. The Southeast and Midwest both represent 28% of the total population respectively.

The Northeast and Southwest were both equally represented and each accounted for 18% of the total

population. The Northwest had the lowest total population with approximately 10 million and 9% of the

total population.

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10

20

30

40

50

60

Southeast (AL, AR, FL, GA, KY, LA, MS, NC, SC, TN,

VA, WV)

Northwest (AK, CO, Northern CA, HI, ID, MT, NV,

OR, UT, WA, WY)

Midwest (IL, IN, IA, KS, MI, MN,

MO, NE, ND, OH, SD, WI)

Northeast (CT, DC, DE, MA, MD, ME, NH, NJ, NY, PA,

RI, VT)

Southwest (AZ, Southern CA, NM,

OK, TX)

Other (Canada, Puerto Rico)

Organizational Breakdown by Region

Other (please specify)

Chamber of Commerce

Convention and Visitors Bureau/Destination Marketing Organization

Sport Commission

33,986,103

10,657,500

34,660,639

21,587,146

21,559,987

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BudgetRespondents were asked about their budgets to gain an understanding of operating constraints,

opportunities, and trends. The average annual budget across all participating organizations was $1.46

million. Twenty percent (20%) of NASC members operated with a budget of $100,000 or less which is 6%

less than 2016 indicating a positive trend in available budgets (not adjusted for inflation). The remaining

respondents were broken down by budget as follows:

Less than $100,000: 20%

$100,001-$250,000: 18%

$250,001-$500,000: 17%

$500,001-$1,000,000: 10%

More than $1 million: 30%

ViSiTOR SPEnding

The most powerful metric for the growth of the sports events and tourism industry is direct visitor spending

associated with sports events. Estimated 2017 direct spending (professional sporting events excluded)

was $11.40 billion in 2017, an increase of 9% from the $10.47 billion reported in 2016. Visitor spending

has increased over the past five years, signaling the continued strength of the industry overall and as a

reflection of the innovative leadership in sports events and tourism in the United States. The following

provides an annual look at visitor spending over the last five years:

2012: 8.3 billion dollars






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Since 2013, visitor spending in sports events and tourism has increased by 37%. The table below shows the

visitor spending (Series 1) since 2012 and the annual growth rate (Series 2) since 2013. The last two years

have seen the most significant growth with 11% and 9% respectively.

Below is a breakdown of visitor spending per region (and as a percentage of total direct spending):

Northeast: $448,915,851 (21%)

Southeast: $1,115,191,865 (53%)

Southwest: $4,200,000 (0.2%)

Midwest: $373,224,284 (18%)

Northwest: $151,987,401 (7%)

Approximately 37% of respondents used an internal calculator to calculate visitor spending. The second

most popular calculation method used was the Destinations International calculator at 21% (27% in

2016). The NASC Economic Impact Calculator was used by 8% and an additional 16% rely on alternative

calculators.

Participants were also asked about their level of satisfaction with their method of calculating visitor

spending. Results showed that 36% of respondents are neutral or unsatisfied. This creates an opportunity

for the industry to standardize data collection methodologies soon.

2012 2013 2014 2015 2016 2017 Series1 8.3 8.7 8.96 9.45 10.47 11.4

Series2 5% 3% 5% 11% 9%

0%

2%

4%

6%

8%

10%

12%

0

2

4

6

8

10

12

Visitor Spending - Growth

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measure of SuccessThe 2017 survey aimed to identify how NASC member organizations measured their individual success.

Of the respondents, 66% noted they measured success based on room nights and visitor spending was

second with 16%. The remaining results were composed of return on mission, media exposure, and other.

Return on mission is a new category that was observed in 2017 and could see growth in the future or be

part of a combination measure of room nights and return n mission.

Southeast (AL, AR, FL, GA, KY, LA, MS, NC, SC,

TN, VA, WV)

Northwest (AK, CO, Northern

CA, HI, ID, MT, NV, OR, UT,

WA, WY)

Midwest (IL, IN, IA, KS, MI, MN,

MO, NE, ND, OH, SD, WI)

Northeast (CT, DC, DE, MA, MD, ME, NH,

NJ, NY, PA, RI, VT)

Southwest (AZ, Southern CA, NM, OK, TX)

Series1 $6,075,298,966 $827,991,065 $2,033,236,771 $2,445,586,352 $22,880,597

$-

$1,000,000,000

$2,000,000,000

$3,000,000,000

$4,000,000,000

$5,000,000,000

$6,000,000,000

$7,000,000,000

Vis

itor S

pend

ing

Regional Visitor Spending 2017

66%

16%

9%

1% 8%

Measure of Success

Room Nights

Visitor Spending

Return on Mission

Media Exposure

Other

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Funding

Bid FeesOut of all survey respondents, 64% reported they pay bid fees, 15% less from 2016. The average bid fee

expense was $85,823 and 31% of municipalities provide some funding assistance for bid fees. Of those that

paid bid fees in 2017, 64% reported that fees remained the same as compared to 2016, while only 21% saw

an increase and 15% of respondents said they spent less.

Organizational FundingThis is the first year the study captured how organizations were funded including: City, County, State;

Business Improvement District / Tourism District; and Membership. The graphs depict the major findings:

County/ State: 46% of organizations receive more than 75% of funding

0 5 10 15 20 25 30 35 40

Less than 25%

Between 26% and 50%

Between 51% and 75%

Between 75% and 100%

Equals 100%

City/County/State Funding

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Business Improvement District/ Tourism Improvement District: 83% receive less than 25%

Membership: 92% receive less than 25%

0 10 20 30 40 50 60 70 80 90 100

Less than 25%

Between 26% and 50%

Between 51% and 75%


Equals 100%

Business/Tourism Improvement District

Membership: 92% receive less than 25%

0 10 20 30 40 50 60 70 80 90 100

Less than 25%

Between 26% and 50%

Between 51% and 75%


Equals 100%

Membership Funding

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Funding Of the facilities improvements reported, 45% of improvements were fully publicly funded, 20% were fully

privately funded, and the remaining 35% of facility improvements utilized a combination of public and

private dollars. These ratios are noticeably different from 2016 (fully publicly funded = 30% / fully privately

funded 9% / combination = 61%).

Events Hosted The number of events hosted was categorized as follows; 14% hosted less than 25, 15% hosted between 26

and 50, 28% hosted between 51 and 100, 41% hosted between 101 and 250, and 2% over 250 events. Across

all organizations that answered the question of how many events they hosted, the average was 70. To

illustrate visitor spending and events hosted, the average direct spending per event is $1.66 million.

Organizations hosted on average, 70 sports events. This is a 30% increase from 2016’s average of 54 sports

events per organization. The Southeast hosted more events than the rest of the other regions accounting

for 47% of the total events hosted. Next was the Midwest with 24% of the total events hosted and then

Northwest (14%), Northeast (11%), and Southwest (4%) of total events hosted.

Below is a regional breakdown of events that were hosted in 2017:

45%

20%

35%

Funding

Public Funding

Private Funding

Public Funding,Private Funding

3185

932

1658

756

295

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EVEnT OwnERSHiP

In 2017, 36% respondents responded that they own their own sports events, an increase from 27% in 2016.

The top three reasons cited for owning sports events were:

1. Increasing revenue

2. Engaging with the community

3. Improving quality of life in the community

Of the respondents that own their own sports events, 14% indicated that the number of owned events was

ten or less events for the past year. Additionally, 67% of respondents reported that the own and operate 26

or more of their own events. Team events, such as tournaments, were more popular than individual events

with 47% of organizations owning a team event. Fourteen percent (14%) owned at least one individual event

and 40% owned both team and individual events in 2017.

Community wellnessFor the second year in a row, the survey explored community health and wellness activities. Results

found that 42% of total respondents were involved with some form of community health and wellness. Of

those respondents who were involved in community health and wellness, many indicated youth-based

programming. The principal ways that sports organizations supported community health and wellness in

2017 include:

1. Youth Festivals and After-School Programs

2. Partnerships with Parks & Recreation Departments for Community Runs and Walks

3. Coaching and Peer Consulting

36%

64%

Organization Owned Events

yes

no

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maRKETing STRaTEgyMarketing strategies for sports tourism organizations were even more digitally inclined than one year ago.

In previous years, personal selling and trade shows were highly rated marketing strategies and while still

vital – the digital presence is increasingly essential.

In 2017, 63% of respondents indicated that their organization’s website was “extremely important” or

“very important” to their organization’s marketing strategy. Event owner marketplaces were also ranked

“extremely important” or “very important” for 69% of respondents, while personal selling was highly valued

by 93% of respondents who determined that personal selling was with “extremely important” or “very

important” to their marketing strategy.

Social media was “extremely important” or “very important” to marketing by 64% of respondents. Only

13% of reported Conference and Tradeshow sponsorship as “extremely important” or “very important” and

most organizations viewed exhibiting and/or participating at conferences and tradeshows as “extremely

important” or “very important.” Direct mail was not viewed favorably in 2017 with only 8% responding that it

was “extremely important” or “very important.”

Social media use With the dramatic increase of social media across all industries, sports events and tourism organizations

continue to expand their presence across various platforms. Facebook is the social media platform

of choice with 97% of respondents reporting having a Facebook presence. Fifty-two (52%) percent of

organizations that use Facebook established their account in 2010 or earlier; while 55% of organizations

note that they use Facebook Live, which is a new function that the used in the industry in 2017.

Twitter is consistently the second favorite social media platform sports events and tourism organizations

with 92% having a Twitter account. Instagram usage flattened out in 2017, with 81% of respondents reporting

0% 5% 10% 15% 20% 25% 30% 35%

Not at all Important

Slightly Important

Moderately Important

Very Important

Extremely Important

Social Media Importance

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Instagram usage in 2016 and 83% in 2017. YouTube usage was 65% in 2017 while LinkedIn was 59%. Moving

forward, it will be continually important to monitor emerging platforms, such as Snapchat. The 2016 survey

was the first to include Snapchat, which was used by 32% of respondents at that time. In 2017 results

showed that number dropping to 29%, so it can be assumed that Snapchat has not found its niche in sports

events and tourism yet. It is unclear how each platform is being used in the industry and provides an area

for future investigation into best practices for use.

Sponsorship In 2017 the results indicated the importance of various sponsorship/partnership development strategies.

Below are some of those findings:

65% of respondents rated personal relationships as very important

0%

10%

20%

30%

40%

50%

60%

70%


Slightly Important


Very Important Extremely Important

Sponsorship Importance- Personal Relationships

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51% of respondents rated board members as an average or not important for sponsorship development

51% of respondents rated board members as an average or not important for sponsorship development

0%

5%

10%

15%

20%

25%

30%

35%

40%


Slightly Important



Sponsor Importance - Board Members

0%

10%

20%

30%

40%

50%

60%


Slightly Important



Sponsor Importance - Dedicated Sales Staff

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Organization SponsorshipThirty-seven percent of respondents reported they had sponsors and the average amount of sponsorship

revenue that organizations received was $149,742 (median = $62,500). Both cash and Value in Kind were

part of sponsorship agreements for 78% or survey respondents.

Compared to 2016 (61%), 6% more organizations (67%) have realized sponsorship revenue. In 2017, 21%

of responding organizations had an increase in sponsorship revenues as compared to 2016 while 12%

experienced a decline in revenue from sponsorship.

Event SponsorshipEvent sponsorship was another new metric analyzed in 2017. Results were like that of organizational

sponsorship. The average sponsorship per organization for events was $142,362. Sixty-four percent (64%)

of respondents received cash and Value in Kind sponsorships, 24% only received Value in Kind, and 12%

received only cash sponsorship.

Of all the respondents, 70% conveyed that event sponsorship remained the same, 26% had an increase in

event sponsorship, and only 4% had a decrease in event sponsorship as compared to 2016.

70%

26%

4%

Event Sponsorship Revenue

Event Sponsorship Revenue Stayed the Same

Event Sponsorship Revenue Increase

Event Sponsorship Revenue Decrease

16%

16%

38%

16%

16%

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mETHOdOlOgy

A research team from Ohio University Sports Administration worked with the National Association of Sports

Commissions (NASC) to create the 2017 State of the Industry Report. The research team was tasked with

creating and distributing a survey, collecting and analyzing data, and identifying current trends within the

Sports Tourism Industry.

Survey Coordination Together, the NASC and Ohio University research teams reviewed and edited the annual survey based on

member feedback and industry trends.

Survey distribution The survey was created using Qualtrics and distributed via email to NASC members by NASC leadership

in December 2017. The survey closed in February 2018 after periodic reminders to members to participate.

All information was submitted anonymously and confidentially accessible only to the Ohio

University researchers.

To increase survey participation, the NASC offered the chance to win an Amazon Show with the winner

being selected and announced at the 2018 NASC Symposium. Those interested in entering to win chose to

submit their name and email address, but the information was kept separate from response data.

data analysisThe Ohio University research team exported the data into Microsoft Excel before sorting and organizing the

information for analysis. The researchers cleaned the data, removed outlier data, analyzed the data, and

provided results to NASC members during the 2018 Symposium as well as a full report to NASC leadership

in May 2018.

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national association of Sports Commissions9916 Carver Road, Suite 100 | Cincinnati, Ohio 45242 [email protected]

a state of the industry report 2017...expense was $85,823 and 31% of municipalities provide some...

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