does your festival or event make cent$ - missouri main street

Does Your Festival or Event Make

Cent$? How To Conduct an Economic Impact

Analysis (… and why you should)

Photo: 401(k) 2013 on Flickr

Or … Does This Festival Make My Budget Look Big?

Agenda

Benefits of conducting an EIAIs an EIA right for your event?DIY Methods of conducting an EIA

Method 1Method 2

When to seek professional helpMethod 3 – Hire professional helpEIA Case StudiesQ&A

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What Is Economic Impact?

New money injected into a host economy by

people from outside the host economy.

7 Benefits of Conducting an

EIA on Your Event

#1 Justifies Financial Support

Photo: Michael @ NW Lens on Flickr

Anytown City Council

#2 Proves Return on Investment

Photo: 401(k) 2013 on Flickr

#3 Attracts Sponsorships

Photo: 401(k) 2013 on Flickr

#4 Allows for Benchmarking

Photo: 401(k) 2013 on Flickr

#5 Demonstrates Benefit to Partners

Photo: 401(k) 2013 on Flickr

#6 Paves the Way for Expansion

Photo: AlBakker on Flickr

#7 Provides Market Research

12%

13%

19% 20%

28%

4%

How often do you come downtown?

daily2-3 times/weekonce/week2-3 times/monthonce/monthnever before today

Is an EIA Right for Your Event?

Don’t Conduct an EIA If …

… your event draws mainly locals… you lack the resources… economic impact data is not needed

EIA Example:Run Like the Wind

Relay

Run Like the Wind Relay

Photo: Ella Baker Center on Flickr

• Run Like the Wind Relay is held in Clayton, MO• There are 1,700 race participants

#1DIY Method 1

Use Method 1 If …

… you only need a very basic and generalized estimate

… you have little time to prepare and organize prior to the event

... there are few volunteers available to survey event attendees

… no one is available for data entry and analysis… you have a good estimate of the number of

event attendees

Method 1 Process

Method 1 Process

Calculating the Economic Impact

The average of $94 and $83 = $88.50

1,700 race participants * $88.50 pppd spending = $150,450

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

The economic impact of the Run Like the Wind Relay was $150,450.

#2DIY Method 2

Use Method 2 If …

… you have little time to prepare and organize prior to the event

… you can secure the cooperation of local hotels, motels, and B&Bs

.. there are few volunteers available to survey event attendees

… someone is available to contact the lodging places before and after the event and to record the data

… you have a good estimate of the number of event attendees

ALGEBRA!!!

Method 2 Process

• Uses algebra and actual hotel receipts to estimate the total impact

• Solves an equation to determine unknown quantities• Hotel receipts are the known quantities• Hotel receipts are a percentage of total travel expenses

Photo: katherinedavis on Flickr

Method 2 Process

Method 2 Process

Method 2 Process

$1,379,606,436 ($ lodging) ÷

$11,062,867,731 ($ total destination) = .1247 or 12.5%

12.5% of all trip expenditures in MO are for lodging.

Method 2 Process

Make this assumption:

If 12.5% of all expenditures on trips in Missouri are for lodging, then

12.5% of all expenditures on trips in Clayton are also for lodging.

Method 2 Process

• Before the event• Step 1: Request that hotels ask guests if they are

in town for the Run Like the Wind Relay• After the event• Step 2: Call each hotel and request the “rack

rate” charged during the event. Also ask for the number of rooms sold and number of nights stayed specifically for the Run Like the Wind Relay.

• Step 3: Multiply the number of rooms by the rate for each property and total.

Method 2 Process

The economic impact of the Run Like the Wind Relay was $39,640

Hotel # of Rooms Sold for

Event

# of Nights Stayed for

Event

Rack Rate Revenue

Hotel 1 10 1 $65 $650

3 2 $65 $390

Hotel 2 15 1 $85 $1,275

Hotel 3 30 1 $60 $1,800

7 2 $60 $840

TOTALS 65 7 $4,955

$4,955 ÷ .125 = $39,640 (Direct Impact of the Run Like the Wind Relay)

Photo: andyde on Flickr

When To Seek Professional Help

Photo: modenadude on Flickr

Accuracy

Avoid This

Credibility

#3Method 3

Use Method 3 If …

… you need the most accurate data possible… there is ample time available to plan and

organize prior to the event.. there are plenty of volunteers available to

survey event attendees… you have a good estimate of the number of

event attendees

Consultant Responsibilities

• Design the survey• Estimate sample size needed• Develop a sampling plan and surveying schedule• Guide in survey team selection and provide

training• Determine/estimate event attendance• Collect and analyze the data• Produce a report detailing the results

You’ll Need a Questionnaire

You’ll Need a Questionnaire• Zip code• Number in the traveling

party• Number of days spent in

your town• Amount (or estimated

amount) spent in the following categories:– Dining– Lodging– Shopping– Gas– Attractions/entertainment– Other expenses

Sampling

• Survey – or sample – throughout the entire event.• This is the number of completed non-local surveys you

need.• Local survey responses DO NOT contribute to the

economic impact.

Estimating Attendance

• Guest book• Polling• Visitor counts• Traffic counts and average number of people per

vehicle• Interval counts from a high vantage point or in

quadrants• Tag and recapture• Aerial photography

Analysis• Spending from the surveyed attendees is applied

to the entire population (all non-local attendees)• Data is analyzed with economic modeling

software• The software produces the impacts:• Total impact• Direct impact• Indirect and induced impacts• Number of FTEs created• FTE income• Tax impacts (sometimes)

Where To Find Help

Photo: Theo La Photo

• Colleges and universities• Councils of Government (COGs) or

Regional Planning Commissions (RPCs)• State agencies• Economic Development Corporations• Chambers of Commerce• Consultants

EIA Case Study #1

Red Poppy Festival – Georgetown, TXApril 26-27, 2014

45,000 attendeesHeld in downtown Georgetown

(Main Street City)Live music (Bellamy Brothers)Craft and artisan vendorsKids’ areaCar show

Methodology

• 20 volunteers• Collected Emails from

attendees via intercept surveys and convenience samples

• Surveyed Friday through Saturday evening

• Offered an iPad as an incentive

• 45,000 people attended

Methodology

• Used SurveyMonkey to send the survey– 1 Email to 580 attendees, and 3 reminders to non-

respondents• Determined per person per day spending for each

spending category• Used IMPLAN to calculate the impacts

Impacts

Spending Category $ Impact

Total Economic Impact $2,510,678

Food & Beverage Impact $1,426,154

Lodging Impact $419,064

Retail Impact $644,396

Tourist Attraction Impact $21,063

EIA Case Study #2

Centennial Celebration – Round Rock, TXApril 27, 2013

4,000 attendeesHeld in downtown Round

Rock, TXLive music (regional bands)Craft and artisan vendorsCar show

Centennial Celebration – Round Rock, TXApril 27, 2013

Economic impactLocal spending impact

(“Community Capture”}Return on investmentMerchant support

GOALS:

Methodology

• 10 volunteers• Collected completed paper surveys from

attendees via intercept• Surveyed throughout the day and until the

headline musical act began• No incentive offered• Determined per person per day spending for each

spending category• Used IMPLAN to calculate the impacts

Impacts

Spending Category $ Impact

Total Economic Impact $24,617

Food & Beverage Impact $16,912

Lodging Impact $4,228

Retail Impact $2,911

Can I Help?

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Sarah Page, PrincipalSarah T. Page Consulting, LLC

http://sarahtpage.comsarah@sarahtpage.com

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Thank You!Questions?