Estimating the Impact of Tourism Events

1
Estimating the Impact of Tourism Events

• Case Study
• Special Olympics Oklahoma
• Impact on Stillwater, OK

2
Why do tourists visit a community?

• Vacation/Sightseeing
• Business Trips/Conventions
• Special Events Rodeos, Concerts, Festivals
• Participation in Sporting Events
• Just Passing Through

3
Why do tourists visit Stillwater, OK?

• Prospective OSU Students
• Visit Current Students
• Eskimo Joes
• OSU Sporting Events
• Special Olympics Summer Games

4

• Established in 1969.
• Sports program for adults and children with
  mental retardation.
• Competition offered in 14 sports.
• Over 8,100 Oklahoma athletes participate.
• Annual Summer Games held in Stillwater, OK each
  MayImpacts the Economy!

5
3 Impacts of an Event

• Direct Impacts
• SOOK spends money in Stillwater
• Athletes and Coaches spend money in Stillwater
• Indirect Impacts
• Motels bring in extra maid-staff
• Restaurants place larger orders with their
  suppliers
• Induced Impacts
• Local business owners spend the additional income
  they earned due to the event

6
Estimating Direct Impacts Expenditure Surveys

• Coaches Survey
• Coach spending
• Athlete Spending
• Spectator Spending
• Volunteer Survey
• Individual Volunteers
• Corporate Volunteers

7
Attendance Statistics
VOLUNTEERS Total 1,965 From Stillwater 636

ATHLETES Total 3,473 From Stillwater 92
COACHES Total 390 From Stillwater 6
Source SOOK
8
Estimating Indirect Induced Impacts Multipliers

• Direct spending is multiplied throughout the
  economy.
• Western Rural Development Center suggests a
  conservative multiplier of 1.5.
• IMPLAN can estimate the value of the multiplier
  for a county.

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Example of Multiplier
Direct Expenditures Grocery Stores 24,868.51
IMPLAN Multiplier for Payne County 1.46
Total Impacts for Grocery Stores 36,308.02
Indirect Induced Impacts 11,439.51
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RESULTS

• Economic Impact of SOOK on Stillwater, OK

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RESTAURANTS
189,945.78
389,388.85
12
GROCERIES
24,868.51
36,308.02
13
GASOLINE
33,090.74
48,974.30
14
RECREATION
16,243.61
35,086.20
15
RETAIL
280,381.02
476,647.73
16
PUBLIC TRANSPORTATION
94.93
166.13
17
PERSONAL SERVICES
2,711.99
5,396.86
18
OFF-CAMPUS LODGING
91,903.85
181,050.58
19
TOTAL ECONOMIC IMPACTS (Payne County)
643,274.43
1,178,830.72
20
TOTAL ECONOMIC IMPACTS (Stillwater)
643,274.43
1,085,108.37
21
Estimated Economic Impact 1.08 million
22
Estimated Sales Tax Collection
23
Estimated City Sales Tax Collections 20,244.08
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Steps for Assessing the Economic Impacts of a
Tourist Event

• Collect Direct Impacts
• Expenditures by Event Organizers
• Expenditures by Event Participants
• Apply Multipliers
• Choose the Correct Multiplier
• Calculate Total Impacts for the County
• Calculate County Induced Indirect Impacts
• If Necessary, Adjust Impacts for the City

25
Steps for Assessing the Economic Impacts of a
Tourist Event

• Estimate Impact on Sales Tax Collections
• Determine City Sales Tax Rate
• What Portion of Direct Impacts were Subject to
  Sales Tax?
• What Portion of Indirect Induced Impacts were
  Subject to Sales Tax?
• Apply Tax Rate to Total Sales Subject to Sales
  Tax.

26
QUESTIONS?
Contact
Suzette Barta Assistant Extension
Economist 405-744-6186 sdb1113_at_okstate.edu
Mike Woods Extension Economist 405-744-9837 mdwood
s_at_okstate.edu
Derek Cain SOOK Development Director 918-481-1234
derek_at_sook.org