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Report Bravo! Vail Valley Music Festival Direct Economic Impact BBC R E S E A R C H & CONSULTING
Report September 26, 2011 Bravo! Vail Valley Music Festival Direct Economic Impact Prepared for Bravo! Vail Valley Music Festival Ms. Meredith Richards Public Relations and Marketing
Director 2271 North Frontage Road W., Suite C Vail, Colorado 81657 Prepared by BBC Research & Consulting 3773 Cherry Creek N. Drive, Suite 850 Denver, Colorado 80209-3868 303.321.2547
fax 303.399.0448 www.bbcresearch.com bbc@bbcresearch.com
BBC Research & Consulting is one of the oldest privately-held economic and market research firms in the Rocky Mountain West. Founded in 1970, BBC provides economic, financial, statistical,
market and policy research and advisory services to businesses and governmental interests nationwide. BBC’s staff of 25 professionals includes market analysts, economists, financial
analysts, urban and land planners, policy analysts, management consultants and statisticians. Experience BBC’s experience is concentrated in the following areas: Real estate development
and planning Retail development Tourism, recreation and resort development Cultural arts and visitor attractions research Market research services State and local governments
Housing needs assessments and market studies Water, energy, mineral and related resource industries. Clients In our 40-year history, BBC has completed more than 4,000 studies for
public and private sector clients across the country. Our work has taken us into all 50 states and several foreign countries. Our clients range from Fortune 500 corporations to local
special districts. Services As specialists in the collection, analysis and dissemination of information, BBC emphasizes real-world services to meet the changing needs of our clients.
BBC’s assistance takes many forms, including: Market analysis Financial feasibility studies Strategic planning Regional economic analysis Cost/benefit analysis Demographic
analysis and forecasting Policy analysis Computer modeling Business valuation Master planning Litigation support Our Credentials BBC’s work has been recognized with awards
from a wide range of associations, including the American Planning Association, the American Marketing Association and the Public Relations Society of America. In addition, our work
is frequently recognized in the media and our staff has been quoted in the Wall Street Journal, the New York Times, USA Today, Forbes Magazine and other publications. BBC principals
frequently serve as expert witnesses in litigation matters. BBC Research & Consulting Background 3773 Cherry Creek North Drive, Suite 850 Denver, Colorado 80209-3827 303.321.2547
fax 303.399.0448 www.bbcresearch.com bbc@bbcresearch.com
Selected Clients BBC Research & Consulting has served well over 2,500 business and public entities over the past 40 years. Consulting assignments have been conducted in all of the 50
United States. A selected list of recent clients is shown below. Angel Fire Resort, New Mexico Arizona Department of Commerce Aspen Skiing Company Aspen, Colorado Aurora, Colorado Austin,
Texas Black Pastors Union -Colorado Springs Boston Museum of Science Boulder Urban Renewal Authority Boulder, Colorado Breckenridge, Colorado Budget Truck Rental California Dept. of
Transportation Chandler, Arizona Cherry Creek Arts Festival, Denver Colorado Department of Local Affairs Colorado Department of Transportation Colorado Division of Wildlife Colorado
Historical Society Colorado Housing and Finance Authority Colorado Springs, Colorado Colorado Tourism Organization Colorado Water Resources and Power Development Authority ConocoPhillips
Crested Butte Mountain Resort Dallas, Texas Denver Art Museum Denver Baseball Commission Denver Center for the Performing Arts Denver Museum of Nature & Science Denver Regional Council
of Governments Denver Regional Transportation District (RTD) Denver, Colorado Flagstaff, Arizona Heavenly Ski Resort, Lake Tahoe Idaho Housing and Finance Association Indiana Department
of Commerce Indiana Dept. of Administration Indianapolis Public Housing Authority International Speedway Corporation Intrawest USA Jackson Hole Mountain Resort Jackson, Wyoming Las Vegas,
Nevada Mammoth Lakes, California MapQuest, Inc. Metropolitan Water District of Southern California Minnesota Historical Society Minnesota Housing Finance Authority Mt. Bachelor Ski Area
National Endowment for the Arts New York Auto Show Park City, Utah Chamber of Commerce Philadelphia Museum of Art Philip Morris Management Company Phoenix, Arizona Pitney Bowes, Inc.
Plano, Texas Pocatello, Idaho Qwest (formerly US West) Rocky Mountain Mutual Housing Association Safeway Stores, Inc. Salt Lake City, Utah San Antonio Water System San Diego County Airport
Authority Silverthorne, Colorado Snake River Associates Snowmass, Colorado Southern Ute Tribe Housing Authority Steadman Hawkins Clinic Steamboat Ski Corporation Steamboat Springs, Colorado
Summit County, Colorado Tahoe Regional Planning Agency, Nevada The Children’s Museum of Denver The Colorado Rockies The Denver Foundation The Denver Nuggets The Trust for Public Land
Thornton, Colorado Truckee, California U.S. Army Corps of Engineers U.S. Air Force U.S. Army U.S. Bureau of Reclamation U.S. Fish and Wildlife Service U.S. Marine Corps U.S. National
Park Service U.S. Navy Vail Resorts Vestar Capital Partners Vilar Center for the Arts, Beaver Creek Western Governors’ Association, Denver Whistler, B.C. White Mountain National Forest
White River National Forest 3773 Cherry Creek North Drive, Suite 850 Denver, Colorado 80209-3827 303.321.2547 fax 303.399.0448 www.bbcresearch.com bbc@bbcresearch.com
Vail Resorts BBC evaluated retail development opportunites at VAil Resorts' proposed Ever Vail site and provided recommendations on the appropriate size, scale and mix of retail development
based on market conditions, site considerations and the broader development objectives. Over a multi-year period, BBC provided public finance expertise and public representation, appearing
before Vail Town Council on several occasions. BBC's research helped faciliatate town and developer discussions to shape a project that can achieve both parties' objectives. Avon Village
BBC conducted an analysis of development opportunites and fiscal impacts associated with a proposed residential and commercial development project adjacent to Avon, Colorado. BBC worked
with the property owner regarding the annexation and design of a tax sharing system for infrastructures cost recovery. This asignment included identification of market opportunites and
development of a detailed model to forecast absorption scenarios related to the propsed plan. Ginn Resorts ‐Battle Mountain BBC developed a spreadsheet-based economic and fiscal impact
model that provides a comprehensive database for representing the construction and operational impact of a proposed private ski and golf resort near Minturn, Colorado. The model allows
for the integration of all assumptions regarding project construction, lodging, pricing, capital investment and schedule, and demonstrates the economic, social, housing, traffic and
fiscal impacts of the project. Steadman Hawkins Clinic, Vail Valley Medical Center & the Town of Vail Between 2004 and 2010, BBC was engaged on multiple occasions by Vail medical institutions
to document the economic value of facility operations on the Vail Valley economy. BBC documented how the medical facilities draw destination, day and local patients, and attract grants
and charitable contributions that support local research. The project involved developing an economic and fiscal model that quantified the amount of employment, economic activity and
tax revenue supported by these unique medical facilities. Eagle River Water & Sanitation District BBC valued a property near the base of Vail Mountain owned by Eagle River Water and
Sanitation District. The analysis offered a third party opinion as to the value of the asset, identified conditions or limitations that might influence the valuation estimate and suggested
practical strategies for realizing the highest value for District customers. Eagle Ranch Retail For the developers of Eagle Ranch, BBC analyzed retail market conditions and commercial
development opportunities for the Eagle Ranch Town Center. The analysis characterizes economic and demographic conditions in Eagle County, details recent and projected development trends
and compares Eagle County’s market conditions with broader regional trends. Eagle County Experience In recent years, BBC has completed many and varied studies in Eagle County. Past projects
include economic and fiscal impact analyses of proposed new resort projects; impact fee fee design for local governments; retail market assessments and a variety of real estate development
strategic studies for private clients. 3773 Cherry Creek North Drive, Suite 850 Denver Colorado 80209‐3827 tel 303.321.2547 fax 303.399.0448 www.bbcresearch.com bbc@bbcresearch.com
BBC RESEARCH & CONSULTING DIRECT ECONOMIC IMPACT, PAGE 1 Bravo! Vail Valley Music Festival Direct Economic Impact Bravo! Vail Valley Music Festival (Bravo) retained BBC Research & Consulting
(BBC) to estimate the direct economic impact created by the 2011 Bravo Festival on Eagle County. Bravo, a six-week annual festival, is a leading cultural attraction in Colorado and Eagle
County and draws guests from around the world. Bravo provides substantial direct benefit to the local community through audience and orchestra member spending and generates tax revenue
for the town, county and state. Nearly 60,000 guests attended the 2011 Bravo Festival, and 715 orchestra members traveled to Eagle County, many with additional people in their party.
Spending and tax revenue estimates indicate that Bravo generated a total direct impact on Eagle County exceeding $16.1 million, and more than $7.6 million was spent in the Town of Vail.
This report presents a summary of BBC’s analysis of the direct spending, tax generation and total direct economic impact on Eagle County associated with the 2011 Bravo Festival. The
goal of this report is to help interested parties understand the benefits of Bravo within the Eagle County community. Methodology and Data The total direct economic impact that Bravo
had on Eagle County includes the direct local spending by Festival attendees and orchestra members and the associated tax revenue. These estimates do not include indirect and induced
impact from this economic activity. The most critical factors influencing the economic benefit are the number of attendees; their length of stay; and their food and beverage, lodging,
shopping and activities expenditures. Bravo gathered spending data from audience and orchestra members through intercept and online surveys that were collected throughout the Festival
and via email following the close of Bravo. BBC reviewed and provided recommendations for the audience and orchestra member surveys prior to Bravo using them to collect data. Audience
survey respondents identified expenditures on food and beverage, lodging, shopping and activities. Respondents also identified where – e.g, the Town of Vail, Avon, Minturn, Beaver Creek
– in Eagle County they spent money. Orchestra members identified expenditures on food and beverage, hotel expenses (other than lodging), spa treatments, shopping and activities and indicated
where they spent money. Hotel lodging expenditures for orchestra members were provided by Bravo. BBC aggregated personal responses from the intercept and online surveys and relied on
total concert attendance and orchestra data provided by Bravo. This analysis distinguishes between Festival attendees that live in the Valley and those that traveled from outside the
region and between visitors to Eagle County that listed Bravo as a primary reason for their visit and those that did not. BBC created an economic impact model that identifies spending
in Eagle County and in individual communities within Eagle County by audience and orchestra members.
BBC RESEARCH & CONSULTING DIRECT ECONOMIC IMPACT, PAGE 2 Direct Spending With Bravo, BBC identified expenditures to be included in the impact model. Intercept and online surveys captured
audience and orchestra member expenditures on food and beverage, lodging, hotel expenses, shopping, spa treatments and activities. The model includes conservative estimates of guest
and orchestra member spending, as to not over-state the direct spending in Eagle County associated with Bravo. Figures 1 and 2 present direct spending associated with Bravo for Eagle
County and the Town of Vail, respectively. Associated tax revenue are not included in Figures 1 and 2. Figure 1. Direct spending in Eagle County Source: BBC Research & Consulting. Figure
2. Direct spending in the Town of Vail Source: BBC Research & Consulting. Food and beverage. The 2011 Audience Survey asked Bravo guests how much their party would spend on dining out
and grocery expenditures for one day. The survey data indicated that attendees spent just under $70 70 a day on dining and groceries per person, on average. For guests that indicated
that Bravo was a primary reason for their trip, BBC included all of their dining and grocery expenditures for the average trip length.1 For those audience members that indicated that
Bravo was not a primary reason for their trip to Eagle County, BBC included the expenditures for one evening of dining out. Because the 2011 audience survey did not identify how much
guests spent dining out just for dinner, BBC used estimates gathered from the 2010 audience survey ($49.66 per person) to estimate spending for those guests that did not list Bravo as
a primary reason for their visit to Eagle County. As shown in Figure 1, Bravo audience members spent more than $7 million on food and beverages. Audience members spent about $3.4 million
on food and beverage in the Town of Vail (Figure 2). 1 Average trip length was calculated from survey respondents who indicated that they were not residents of Eagle County and did not
stay for more than 14 nights. The average total nights spent in Eagle County was 4.8 nights. Expenditure Audience Impact Orchestra Impact Total Direct Impact Food and beverage $7,467,702
$429,759 $7,897,461 Lodging and Hotel expenses 2,046,328 388,485 2,434,813 Shopping 3,594,811 134,119 3,728,929 Activities 1,253,739 91,477 1,345,216 Total Direct Spending $14,362,580
$1,043,840 $15,406,419 Expenditure Audience Impact Orchestra Impact Total Direct Impact Food and beverage $3,413,284 $326,861 $3,740,145 Lodging and Hotel expenses 1,172,797 388,485
1,561,281 Shopping 1,314,494 88,153 1,402,647 Activities 522,204 91,477 613,681 Total Direct Spending $6,422,779 $894,976 $7,317,755
BBC RESEARCH & CONSULTING DIRECT ECONOMIC IMPACT, PAGE 3 The 2011 Orchestra Survey asked orchestra members how much their party would spend on dining out, grocery and liquor expenditures
during the duration of their stay in Eagle County. As shown in Figure 1, orchestra members and their parties spent more than $400,000 in dining out, groceries and liquor while in Eagle
County. Orchestra members spent the majority of their money for food and beverage in the Town of Vail (about $327,000), as shown in Figure 2. BBC also included concessions expenditures
from Bravo concerts throughout the summer. During the season, audience members spent over $175,000 on concessions. Lodging and hotel expenses. Audience members were asked how much their
party would spend per night on lodging. BBC only included lodging expenditures for audience members that indicated that Bravo was a primary reason for their trip to Eagle County. BBC
calculated lodging expenditures for guests based on the average trip length (4.8 nights). Figure Figure 1 shows that Bravo guests spent more than $2 million in lodging in Eagle County.
Bravo attendees spent more than half of their lodging expenditures in the Town of Vail. Bravo provided BBC with the total lodging expenditures for orchestra members. Orchestra members
spent nearly $300,000 on lodging, all of which was in the Town of Vail. Bravo collected data on how much orchestra members planned to spend on hotel expenses other than lodging – e.g.,
room service and private functions – during the duration of their trip. Orchestra members reported spending almost $100,000 in hotel expenses, all of which was in the Town of Vail. Bravo
did not collect data on hotel expenses other than lodging for audience members. Shopping. The 2011 Audience Survey asked guests how much their party planned to spend on shopping while
in Eagle County. BBC included shopping expenditures only for those guests that indicated that Bravo was a primary reason for their trip. Figure 1 shows that audience members spent more
than $3.5 3.5 million shopping in Eagle County during the duration of their stay. Bravo attendees spent about $1.3 million shopping in the Town of Vail (Figure 2). Bravo also collected
data on orchestra members shopping expenditures. As shown in Figure 1, orchestra members spent about $130,000 shopping in Eagle County and nearly $90,000 shopping in the Town of Vail
(Figure 2) during their stay. Activities. The audience and orchestra member surveys asked respondents how much they spent on activities – e.g., spa visits, bike rentals, rafting, tours
– during their stay in Eagle County. BBC only included activities expenditures for audience members that indicated that Bravo was a primary reason for their visit. Figure 1 shows that
audience members spent nearly $1.3 million on activities in Eagle County and spent more than $500,000 on activities in the Town of Vail (Figure 2). Orchestra members spent more than
$90,000 on activities in Eagle County (Figure 1) during the duration of their stay, all of which was spent in the the Town of Vail. Tax Revenue Direct spending associated with Bravo
generated substantial tax revenue for Eagle County and for the Town of Vail. Figure 3 presents a breakdown of tax revenue collected in Eagle County and the Town of Vail. Direct spending
estimates are not included in Figure 3. In total, BBC estimates that spending
BBC RESEARCH & CONSULTING DIRECT ECONOMIC IMPACT, PAGE 4 associated with Bravo generated nearly $700,000 in tax revenue for the county and municipalities. Bravo guests and orchestra
members generated nearly $300,000 in tax revenue for the Town of Vail. Figure 3. Tax revenue generated Source: BBC Research & Consulting. Total Direct Economic Impact Summing direct
spending and tax revenue generated by Bravo audience members, Festival guests spent more than $15 million in Eagle County and more than $6 million in the Town of Vail. Orchestra members
spent more than $1 million in Eagle County, nearly all of which was spent in the Town of Vail. Figure 4 shows that the total direct economic impact – direct spending plus tax revenue
– generated by Bravo exceeded $16 million in Eagle County, and more than $7 million was spent in the Town of Vail alone. Figure 4. Total direct impact on Eagle County and the Town of
Vail (including tax revenue) Source: BBC Research & Consulting. Figure 5 presents a flow chart of the total direct economic impact generated by Bravo on Eagle County. Combined, audience
and orchestra members spent more than $15 million in Eagle County and generated nearly $700,000 in tax revenue. Figure 6 presents a similar flow chart with information on the direct
economic impact on the Town of Vail. All Eagle County Expenditure Governments Town of Vail Food and beverage $325,239 $149,606 Lodging 130,642 67,105 Shopping 175,787 56,106 Activities
64,340 24,547 Total Tax Revenue $696,008 $297,364 Expenditure Eagle County Town of Vail Food and beverage $8,222,700 $3,889,751 Lodging 2,565,455 $1,628,386 Shopping 3,904,716 $1,458,753
Activities 1,409,556 638,228 Total Direct Impact $16,102,427 $7,615,119
BBC RESEARCH & CONSULTING DIRECT ECONOMIC IMPACT, PAGE 5 Figure 5. Total direct impact on Eagle County Note: The total Bravo attendance figure used in the impact model (45,053) excludes
Community Impressions and Music Matters attendance. Source: BBC Research & Consulting. Figure 6. Total direct impact on the Town of Vail Note: The total Bravo attendance figure used
in the impact model (45,053) excludes Community Impressions and Music Matters attendance. Source: BBC Research & Consulting. $ 16,102,427 Tax Revenue Total Impact Direct Impact Bravo!
Vail Valley Music Festival Attendees: 45,053 Orchestra members: 715 $ 696,008 Food & Beverage $7,897,461 Shopping $ 3,728,929 Lodging and Hotel Expenses $ 2,434,813 Activities $ 1,345,216
$ 7,615,119 Town of Vail Tax Revenue Town of Vail Total Impact Town of Vail Direct Impact Bravo! Vail Valley Music Festival Attendees: 45,053 Orchestra members: 715 $297,364 Food & Beverage
$3,740,145 Shopping $ 1,402,647 Lodging and Hotel Expenses $ 1,561,281 Activities $613,681