HomeMy WebLinkAboutSpecial events economic research 2012Economic Impact of Special Events 2012
Economic Development Office
March 4, 2013
Photo by Jack Affleck
Economic Impact of Special Events 2012
Economic Development Office
Chris Cares & David Becher
RRC Associates
Office: 303.449.6558
chris@rrcassoc.com
2 Town of Vail | Economic Development Office | 3/4/13
Economic Impact of Special Events 2012
OUTLINE
Purpose
Methodology
Results
- Aggregate results - Visitor mix
- Per person daily spending in Vail - Adjustments for event importance & stays beyond event timeframe - Economic impact - Event-specific results
- Visitor mix - Per person daily spending in Vail
- Event importance & stays beyond event timeframe - Economic impact
NOTE: Results are subject to continued refinements based on evaluation of attendance.
3 Town of Vail | Economic Development Office | 3/4/13
Economic Impact of Special Events 2012
PURPOSE
4 Town of Vail | Economic Development Office | 3/4/13
•Estimated spending by event attendees on lodging, dining,
shopping, & other activities in TOV
•Estimated return on investment to TOV:
•Additional incremental spending in TOV generated by event
•Ratio of increased revenue to amount of funding received
•Additional sales tax revenue accruing to TOV generated by
event
Evaluate the incremental economic impact to Vail of 30 special events
receiving CSE funding in 2012, via intercept survey research & analysis.
Key measures of economic impact:
Economic Impact of Special Events 2012
EVENTS ANALYZED
5 Town of Vail | Economic Development Office | 3/4/13
Event Dates
1 Vail Film Festival March 29- April 1
2 Taste of Vail April 5-7
3 Spring Back to Vail April 9-15
4 Bud Light Street Beat 1/19, 2/16 , 3/8, 15 ,22 & 29, 4/5 & 12
5 Teva Mountain Games (Summer)May 31- June 3
6 Kick-It 3v3 Soccer Tournament July 27-29
7 Vail America Days July 4
8 Vail Arts Festival June 29- July 1
9 Bravo! Vail Valley Music Festival June 25- August 3
10 Vail Farmers' Market and Art Show 15 Sundays, Jun 17- Sep 23 (Vail Rest Mo market Sep 23)
11 Gran Fondo World: Vail (biking)August 18-19
12 Hot Summer Nights Tuesdays, June 12- August 28
13 International Dance Festival July 26- August 11
14 Vail Jazz Festival & Jazz Party Sun Jun 24- Sep 3; Thurs Jul 5- Aug 30; Aug 31- Sep 3
16 Vail Kids Adventure Race August 10-12
17 King of the Mountain Volleyball June 15-17
18 Vail Lacrosse Shoot-out June 30-July 8
19 Lionshead Family Saturday Afternoon Club 9 Saturdays, June 16-Aug 11
20 Vail Soul Music Fest August 17-19
21 Oktoberfest Sept 7-9 (LH) & 14-16 (VV)
22 Gourmet on Gore September 1-3
23 Colorado Grand (autos)September 14-15
24 Living at Your Peak September 13-15
25 The America Cup @ Vail Int'l Fly Fishing Tourn.September 20-23
26 Tour of Vail (cycling) and USA Crits Final September 29-30
27 Vail Restaurant Month September 17- October 14
28 Vail Valley Challenge Cup (soccer)October 6-7
29 Snow Daze December 10-16
30 Vail Family Holidaze December 16-25 and 31
Economic Impact of Special Events 2012
METHODOLOGY: Survey Questionnaire
6 Town of Vail | Economic Development Office | 3/4/13
•Short, standardized form – largely the same across events
•Key questions:
•Visitor mix: TOV full-time residents, VV seasonal residents,
FT downvalley residents, day visitors, overnight visitors
•Overnight visitors/seasonal residents: lodging location,
lodging type (paid/unpaid), nightly room rate, people/unit
•Importance of event in decision to visit Vail (all except TOV
full-time residents)
•Spending today/tonight in Vail on restaurants/bars, shopping,
recreation, other. (FT TOV residents: spending during
timeframe only)
Economic Impact of Special Events 2012
METHODOLOGY: Survey Questionnaire
7 Town of Vail | Economic Development Office | 3/4/13
•Additional questions:
•Days/dates attended event (multi-day events)
•Likelihood to recommend event to friend/family member
•Annual household income
•Zip code
•Gender
•(Selected events) Party size & party members who are
participants in event (to infer participant/spectator mix)
•(Selected large events) Transportation/parking
characteristics (for triangulating attendance ests.)
Economic Impact of Special Events 2012
METHODOLOGY: Generic Questionnaire (customized slightly by event)
8 Town of Vail | Economic Development Office | 3/4/13
Economic Impact of Special Events 2012
METHODOLOGY: Key terms & formulas
ECONOMIC SIGNIFICANCE, i.e. Total event-related spending. Formula:
Event attendance
x Per capita daily spending of event attendees in TOV
x Ratio of days in Vail to days attended event (1, except for overnt visitors staying in TOV)
= Total event-related spending in TOV
ECONOMIC IMPACT, i.e. Incremental spending in TOV. Formula:
Event attendance
x Per capita daily spending of event attendees in TOV
x Ratio of days in Vail to days attended event (1, except for overnt visitors staying in TOV)
x Importance of event in driving decision to visit (0-100%; TOV residents counted as 0%)
= Total economic impact in TOV
9 Town of Vail | Economic Development Office | 3/4/13
Economic Impact of Special Events 2012
AGGREGATE RESULTS: Visitor Type
10 Town of Vail | Economic Development Office | 3/4/13
Overnight visitor50%
Seasonal resident of Vail Valley8%
Full-time resident of Town of Vail19%
Full-time downvalley resident15%
Day visitor9%
Overnight visitor detail:27% -TOV paid lodging10% -TOV unpaid lodging (stay w/ family, etc.)5% -Elsewhere paid lodging7% -Elsewhere unpaid lodging
Economic Impact of Special Events 2012
AGGREGATE RESULTS: Per Capita Daily Spending
11 Town of Vail | Economic Development Office | 3/4/13
$44 $3 $22
$91
$54
$80
$39 $47
$71
$51
$17
$58
$11 $17
$36
$27
$13
$23
$6 $6
$19
$22
$15
$21
$15 $7
$18
$236
$99
$184
$71 $77
$166
$0
$50
$100
$150
$200
$250
Overnight visitor to region Day visitor to Vail Seasonal resident of Vail Valley Full-time downvalley resident Full-time resident of Town of Vail Total
Av
e
r
a
g
e
S
p
e
n
d
i
n
g
T
o
d
a
y
&
T
o
n
i
g
h
t
i
n
V
a
i
l
How much will you spend for yourself only today and tonight in the Town of Vail?
Other items (admission fees, parking, etc.)
Recreation (golf, bike rental, etc.)
Shopping (groceries, souvenirs, clothing, etc.)
Restaurants/ bars/ food concessions
Lodging (in TOV only)
Full-time and seasonal residents of Town of Vail: answer for the event timeframe only.
Overnightin paid lodging in TOV(i.e. subset of all overnt to region):Total spend: $298Other: $26Recreation: $29Shopping: $61Restaurants/bars: $101Lodging: $82
Economic Impact of Special Events 2012
AGGREGATE RESULTS: Importance of Event in Decision to Visit
12 Town of Vail | Economic Development Office | 3/4/13
10%8%
66%
14%
10%
62%
26%
8%
47%
23%
9%
35%
22%
8%
51%
0%
10%
20%
30%
40%
50%
60%
70%
0 -None: I would have
come to Vail anyway
1 2 3 4 5 -Half of my reason
for coming to vail
6 7 8 9 10 -My only reason for
coming to Vail
Pe
r
c
e
n
t
o
f
R
e
s
p
o
n
d
e
n
t
s
How important was this event in your decision to visit Vail this trip?
Full-time downvalley resident
Day visitor to Vail
Overnight visitor to the region
Seasonal resident of Vail Valley
Total
Note: Full-timeTOV residents excluded from question (since in TOV already)
Economic Impact of Special Events 2012
AGGREGATE RESULTS: Average Importance of Event in Decision to Visit
13 Town of Vail | Economic Development Office | 3/4/13
8.1 7.5
6.2 5.8
6.7
0
1
2
3
4
5
6
7
8
9
10
Full-time downvalley resident Day visitor Overnight visitor Seasonal resident of Vail Valley Full-time resident of Town of Vail Total
Av
e
r
a
g
e
I
m
p
o
r
t
a
n
c
e
(0
=
N
o
n
e
/
5
=
H
a
l
f
m
y
r
e
a
s
o
n
f
o
r
c
o
m
i
n
g
/
1
0
=
M
y
o
n
l
y
r
e
a
s
o
n
f
o
r
c
o
m
i
n
g
)
How important was this event in your decision to visit Vail this trip? (Average)
Not asked --already in Vail
Economic Impact of Special Events 2012
AGGREGATE RESULTS: Ratio of days in Vail to days of event attendance
14 Town of Vail | Economic Development Office | 3/4/13
2.1
1.0 1.0 1.0 1.0
1.6
0
0.5
1
1.5
2
2.5
Overnight visitor to the region Day visitor to Vail Seasonal resident of Vail Valley Full-time downvalley resident Full-time resident of Town of Vail Total
Ra
t
i
o
o
f
T
r
i
p
D
a
y
s
t
o
E
v
e
n
t
D
a
y
s
Ratio of total days in Vail to days of attendance at event
Ratio of total days in Vail to days of attendance at event
Note:Overnight visitors staying outside of Vail (e.g. downvalley, etc.) are assumed to be in Vail for their days of event attendance only.
Economic Impact of Special Events 2012
AGGREGATE RESULTS: Economic Impact
15 Town of Vail | Economic Development Office | 3/4/13
Aggregate Economic Impact for 30 events
Summary calculation method:
651,413 Attendance (i.e. visitor days) at 30 events
$136.53 * Per capita daily economic impact (adjusted for importance of event & TOV overnt stays beyond event timeframe)
$88,938,475 = Direct economic impact
Note: Impact assumes 140,000 Farmers Market attendance. Impact would be $82.8 million at 105,000 Farmers Market attendance.
Note: Secondary/"multiplier" economic impacts (from indirect and induced effects) are excluded.
Economic Impact of Special Events 2012
AGGREGATE RESULTS: Economic Impact – by Sector
16 Town of Vail | Economic Development Office | 3/4/13
Aggregate Economic Impact for 30 events - by Sector
Breakout by sector:
$37,848,795 Restaurants/bars/food concessions
$18,839,459 Shopping (groceries, souvenirs, clothing, gifts, etc.)
$11,432,523 Recreation (race entry fees, golf, bike rental, skiing, etc.)
$12,157,159 Lodging
$8,660,538 Other (gas, parking, movie, admission fees, etc.)
$88,938,475 Direct economic impact
Note: Impact assumes 140,000 Farmers Market attendance.
Note: Secondary/"multiplier" economic impacts (from indirect and induced effects) are excluded.
Economic Impact of Special Events 2012
AGGREGATE RESULTS: Economic Impact – Sales Tax
17 Town of Vail | Economic Development Office | 3/4/13
Aggregate TOV Sales Tax Collections (4% rate) - Attributable to 30 events
Approximate sales tax collections:
$1,362,557 Restaurants/bars/food concessions: assume 90% taxable (e.g. exclude tips)
$602,863 Shopping: assume 80% taxable
$228,650 Recreation: assume 50% taxable
$486,286 Lodging: assume 100% taxable
$69,284 Other (gas, parking, movie, admission fees, etc.): assume 20% taxable
$2,749,640 Total sales tax collections
Note: Impact assumes 140,000 Farmers Market attendance.
Note: Sales taxes associated with secondary/"multiplier" economic impacts are excluded.
Economic Impact of Special Events 2012
AGGREGATE RESULTS: Economic Impact – ROI
18 Town of Vail | Economic Development Office | 3/4/13
Return on Investment Ratios - Attributable to 30 events
Ratio of direct economic impact to event funding received:
$88,938,475 Event economic impact
$1,158,506 Event funding provided by CSE/VLMD/Council
$76.77 Payback ratio (incremental community economic impact per dollar of event funding)
Ratio of direct sales tax impact to event funding received:
$2,749,640 Sales tax collections
$1,158,506 Event funding provided by CSE/VLMD/Council
$2.37 Payback ratio (incremental TOV sales tax revenue per dollar of event funding)
Note: Impact assumes 140,000 Farmers Market attendance.
Note: Secondary economic and sales tax impacts (from indirect and induced effects) are excluded from estimates.
Economic Impact of Special Events 2012
INDIVIDUAL EVENT RESULTS
19 Town of Vail | Economic Development Office | 3/4/13
Remainder of presentation focuses on individual event results.
The charts to follow illustrate key event characteristics, and the range of
variability / commonality across events.
Economic Impact of Special Events 2012
INDIVIDUAL EVENT RESULTS – Visitor Type
20 Town of Vail | Economic Development Office | 3/4/13
89%83%81%77%70%70%63%60%60%57%53%51%49%49%47%47%45%43%40%40%39%35%34%34%33%30%27%24%18%
50%
4%
3%3%13%
4%9%21%
8%9%7%7%11%12%16%
5%11%14%
8%7%1%
21%
16%19%16%
7%6%6%3%
4%
9%
6%
3%1%
6%
12%2%
11%6%12%13%9%
4%
4%
8%
11%3%
6%7%
10%
3%
4%4%
17%
9%
2%
3%18%
8%
2%
2%
4%
5%16%13%
8%14%16%16%
5%12%
21%
7%
19%
15%
14%
29%
22%
18%
19%21%32%21%
26%
30%
14%
39%
15%
9%15%8%2%4%
13%11%8%10%
24%23%
10%
33%
12%
23%29%
17%
26%18%26%22%18%22%30%34%
55%
21%19%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pe
r
c
e
n
t
o
f
R
e
s
p
o
n
d
e
n
t
s
Visitor type
Full-time resident of Town of Vail
Full-time downvalley resident
Seasonal resident of Vail Valley
Day visitor to Vail
Overnight visitor to the region
Economic Impact of Special Events 2012
INDIVIDUAL EVENT RESULTS – Per Capita Daily Spending
21 Town of Vail | Economic Development Office | 3/4/13
$322
$291
$271
$251 $242 $235
$216 $215
$192 $185 $179 $178 $177 $175 $165 $152 $144 $142
$125 $122 $118 $116 $113 $112 $100 $96 $95 $89
$50
$166
$0
$50
$100
$150
$200
$250
$300
$350
Sp
e
n
d
i
n
g
f
o
r
Y
o
u
r
s
e
l
f
O
n
l
y
T
o
d
a
y
a
n
d
T
o
n
i
g
h
t
i
n
V
a
i
l
Total amount you will spend today and tonight in TOV*
Mean
*TOV full-time and seasonal residents: spending during the event timeframe only.
Overall average=$166
Economic Impact of Special Events 2012
INDIVIDUAL EVENT RESULTS – Importance of Event in Decision to Visit
22 Town of Vail | Economic Development Office | 3/4/13
9.7 9.6 9.5
8.9 8.6
8.0 8.0 8.0 8.0 7.8 7.8 7.4
6.8 6.7 6.5 6.1 6.0 5.9 5.8 5.8 5.8 5.5 5.1 5.1 4.9 4.8 4.8
3.6
3.1
6.7
0
1
2
3
4
5
6
7
8
9
10
Av
e
r
a
g
e
I
m
p
o
r
t
a
n
c
e
(0
=
N
o
n
e
/
5
=
H
a
l
f
m
y
r
e
a
s
o
n
f
o
r
c
o
m
i
n
g
/
1
0
=
M
y
o
n
l
y
r
e
a
s
o
n
f
o
r
c
o
m
i
n
g
)
How important was this event in your decision to visit Vail this trip?(TOV full-time residents excluded)
Overall average=6.7
Economic Impact of Special Events 2012
INDIVIDUAL EVENT RESULTS – Days in Vail vs. Days at Event
23 Town of Vail | Economic Development Office | 3/4/13
3.5
2.5 2.5 2.3 2.1
1.9 1.8 1.8 1.7 1.6 1.6 1.6 1.5 1.4 1.4 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.2 1.2 1.1 1.1 1.1 1.0 1.0
1.6
0
0.5
1
1.5
2
2.5
3
3.5
4
Ra
t
i
o
o
f
D
a
y
s
i
n
V
a
i
l
t
o
D
a
y
s
o
f
E
v
e
n
t
A
t
t
e
n
d
a
n
c
e
Ratio of days in Vail to days of event attendance
Overall average=1.6
Note: TOV residents, downvalley residents, day visitors, and overnight visitors not staying in Vail are assumed to have 1 day in Vail per day of event attenance.
Economic Impact of Special Events 2012
INDIVIDUAL EVENT RESULTS – Direct Economic Impact
24 Town of Vail | Economic Development Office | 3/4/13
$1
0
,
2
0
8
,
2
4
2
$9
,
7
5
3
,
6
8
4
$4
,
8
1
0
,
2
4
1
$4
,
6
5
2
,
0
9
6
$3
,
7
8
2
,
5
1
0
$3
,
5
8
2
,
6
9
9
$3
,
4
7
7
,
1
4
1
$2
,
4
9
4
,
1
8
6
$2
,
3
8
8
,
7
6
9
$2
,
3
0
3
,
1
0
8
$2
,
3
0
2
,
3
1
0
$2
,
2
9
5
,
3
3
5
$2
,
1
7
5
,
0
1
9
$1
,
9
9
1
,
9
6
0
$1
,
4
8
9
,
1
0
6
$1
,
3
7
1
,
9
8
1
$1
,
1
9
5
,
0
8
0
$7
7
5
,
2
8
8
$7
3
7
,
3
3
7
$6
7
5
,
6
7
0
$6
1
7
,
4
8
6
$4
9
7
,
1
8
3
$2
7
2
,
1
7
9
$2
0
0
,
4
6
4
$1
9
2
,
9
4
2
$1
3
4
,
4
7
7
$5
9
,
4
6
0
$3
2
,
3
3
0
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
Di
r
e
c
t
E
c
o
n
o
m
i
c
I
m
p
a
c
t
Estimated direct economic impact to TOV
Overall average=$3.1 million(if Farmers Market @ $24.5M)
Farmers Market: $24.5M@ 25% less attendees: $18.4M
Economic Impact of Special Events 2012
INDIVIDUAL EVENT RESULTS – Median Household Income
25 Town of Vail | Economic Development Office | 3/4/13
$1
7
5
,
0
0
0
$1
6
0
,
0
0
0
$1
5
5
,
0
0
0
$1
4
6
,
0
0
0
$1
4
2
,
0
0
0
$1
4
1
,
0
0
0
$1
3
7
,
0
0
0
$1
3
6
,
0
0
0
$1
3
5
,
0
0
0
$1
3
1
,
0
0
0
$1
3
0
,
0
0
0
$1
2
2
,
0
0
0
$1
1
6
,
0
0
0
$1
1
3
,
0
0
0
$1
0
9
,
0
0
0
$1
0
8
,
0
0
0
$1
0
7
,
0
0
0
$9
5
,
0
0
0
$9
0
,
0
0
0
$8
8
,
0
0
0
$8
3
,
0
0
0
$8
3
,
0
0
0
$8
1
,
0
0
0
$8
1
,
0
0
0
$7
6
,
0
0
0
$7
5
,
0
0
0
$7
5
,
0
0
0
$5
2
,
0
0
0
$3
9
,
0
0
0
$1
0
5
,
0
0
0
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
In
t
e
r
p
o
l
a
t
e
d
M
e
d
i
a
n
H
o
u
s
e
h
o
l
d
I
n
c
o
m
e
Median annual household income (interpolated)
Median Household Income
Overall median=$105,000
Economic Impact of Special Events 2012
INDIVIDUAL EVENT RESULTS – Likelihood to Recommend Event
26 Town of Vail | Economic Development Office | 3/4/13
9.8 9.7 9.3 9.3 9.2 9.2 9.1 9.1 9.0 8.9 8.8 8.8 8.8 8.6 8.6 8.6 8.5 8.2 8.2 8.1 8.1 7.7 7.6 7.6
6.6
8.6
0
1
2
3
4
5
6
7
8
9
10
Av
e
r
a
g
e
L
i
k
e
l
i
h
o
o
d
t
o
R
e
c
o
m
m
e
n
d
E
v
e
n
t
(0
=
N
o
t
a
t
a
l
l
l
i
k
e
l
y
/
5
N
e
u
t
r
a
l
/
1
0
=
E
x
t
r
e
m
e
l
y
l
i
k
e
l
y
)
Likelihood of recommending this event to a friend or family member
How likely are you to recommend this event to a friend or family member?
Not asked for four events
Overall average=8.6
Economic Impact of Special Events 2012
Economic Development Office
Chris Cares & David Becher
RRC Associates
Office: 303.449.6558
chris@rrcassoc.com
27 Town of Vail | Economic Development Office | 3/4/13
Thank you!