does your festival or event make cent$

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 EIA

Is an EIA right for your event?

DIY Methods of conducting an EIAMethod 1

Method 2

Method 3 – Use a survey

When to seek professional help

EIA Case Studies

Q&A

Get these slides here:http://sarahtpage.com/HoosierHospitality/

http://sarahtpage.com/TRAPSAnnualConf/

What Is Economic Impact?

New money injected into a host economy by

people from outsidethe 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


#3 Attracts Sponsorships


#4 Allows for Benchmarking


#5 Demonstrates Benefit to Partners


#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?

daily

2-3 times/week

once/week

2-3 times/month

once/month

never 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 Indianapolis, IN

• There are 1,700 race participants

DIY 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

Calculating the Economic Impact

1,700 race participants * $143.00 pppd spending = $243,100

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

The economic impact of the Run Like the Wind Relay was $243,100.

DIY 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


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

$1,565 ($ lodging) ÷

$10,263 ($ total destination) = .1525 or 15.2%

15.2% of all trip expenditures in IN are for lodging.

Method 2 Process

Make this assumption:

If 15.2% of all expenditures on trips in Indiana are for lodging, then 15.2% of

all expenditures on trips in Indianapolis 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 $32,598

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 ÷ .152 = $32,598(Direct Impact of the Run Like the Wind Relay)

Method 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’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

• Determine local vs. non-local attendance count

• Apply % of those surveyed to total attendance

• Multiply the following:

• Non-local attendance

• Average number of days spent at the event

• Per person per day spending

Analysis

16,200 (non-locals) X $19.54 (pppd spending) X 1.2 days = $379,857.60

Photo: andyde on Flickr

When To Seek Professional Help

Photo: modenadude on Flickr

Accuracy

Avoid This

Credibility

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

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

• Regional economic development organizations

• State agencies

• Economic Development Corporations

• Chambers of Commerce

• Consultants

EIA Case Study #1

Wein & Saengerfest – New Braunfels, TXMay 3, 2014

7,500 attendees

Held in downtown New Braunfels (Main Street City)

Grape stomp

Wine tasting

Chef’s Showdown

Live music

Craft and artisan vendors

Kids’ area

Methodology

• 15 volunteers

• Collected paper surveys and Emails from attendees via intercept surveys and convenience samples

• Surveyed from noon to 8pm

• Offered a local “staycation” package as an incentive

Methodology

• Used SurveyMonkey to send the survey– 1 Email to 100 Email addresses, and 2 reminders to

non-respondents

• Determined per person per day spending for each spending category

• Data from paper surveys was entered into SurveyMonkey

• Used IMPLAN to calculate the impacts on both Email and paper surveys

Impacts

Spending Category $ Impact

Total Economic Impact $476,070

Food & Beverage Impact $255,807

Lodging Impact $121,765

Retail Impact $83,484

Tourist Attraction Impact $15,014

Average per person per day spending $72.89

EIA Case Study #2

TAAF Winter Youth Basketball Festival & State Tournament – Longview, TX

March 14-16, 2014

25,020 players, spectators, and coaches

Held in gyms all over Longview, TX

7 boys’ and 7 girls’ divisions (ages 8 – 14)

Each team played 2 pool games & then a single elimination bracket to determine the winner

Methodology

• 11 paid temps

• Surveyed in 13 of the 19 gyms

• Collected Email addresses from attendees via intercept

• Surveyed throughout the tournament until the semi-finals on the last day

• An iPad was offered as an incentive to participate

Methodology

• Used SurveyMonkey to send the survey

– 1 Email to 385 Email addresses, and 2 reminders to non-respondents


• Used IMPLAN to calculate the impacts on both Email and paper surveys

Impacts


Total Economic Impact $618,000

Food & Beverage Impact $220,507



Transportation Impact $25,034

Average per person per day spending $92.67

EIA Case Study #3

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

45,000 attendees

Held in downtown Georgetown (Main Street City)

Live music (Bellamy Brothers)

Craft and artisan vendors

Kids’ area

Car 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


• Used IMPLAN to calculate the impacts

Impacts


Total Economic Impact $2,510,678

Food & Beverage Impact $1,426,154



Tourist Attraction Impact $21,063

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Sarah Page, PrincipalSarah T. Page Consulting, LLC

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Thank You!Questions?

does your festival or event make cent$

Economy & Finance