Does Your Festival or Event Make Cent$
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Presentation given at the TRAPS East Region Workshop on February 5, 2015 in Conroe, TX. The workshop covered how to conduct a DIY economic impact study on a festival or event.
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Does Your Festival or Event Make Cent$
- 1. Does Your Festival or Event Make Cent$? How To Conduct an Economic Impact Analysis (โฆ and why you should) Photo: 401(k) 2013 on Flickr
- 2. Or โฆ Does This Event Make My Budget Look Big?
- 3. Agenda ๏ผBenefits of conducting an EIA ๏ผIs an EIA right for your event? ๏ผDIY Methods of conducting an EIA ๏ผMethod 1 ๏ผMethod 2 ๏ผWhen to seek professional help ๏ผMethod 3 โ Hire professional help ๏ผEIA Case Studies ๏ผQ&A
- 4. Get these slides here: http://sarahtpage.com/TRAPSEast/
- 5. What Is Economic Impact? New money injected into a host economy by people from outside the host economy.
- 6. 7 Benefits of Conducting an EIA on Your Event
- 7. #1 Justifies Financial Support Photo: Michael @ NW Lens on Flickr Anytown City Council
- 8. #2 Proves Return on Investment Photo: 401(k) 2013 on Flickr
- 9. #3 Attracts Sponsorships Photo: 401(k) 2013 on Flickr
- 10. #4 Allows for Benchmarking Photo: 401(k) 2013 on Flickr
- 11. #5 Demonstrates Benefit to Partners Photo: 401(k) 2013 on Flickr
- 12. #6 Paves the Way for Expansion Photo: AlBakker on Flickr
- 13. #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
- 14. Is an EIA Right for Your Event?
- 15. Donโt Conduct an EIA If โฆ ๏ผโฆ your event draws mainly locals ๏ผโฆ you lack the resources ๏ผโฆ economic impact data is not needed
- 16. EIA Example: Run Like the Wind Relay
- 17. Run Like the Wind Relay Photo: Ella Baker Center on Flickr โข Run Like the Wind Relay is held in Conroe, TX โข There are 1,700 race participants
- 18. DIY Method 1
- 19. Use Method 1 If โฆ ๏ผโฆ you only need a very basic and generalized estimate ๏ผโฆ you have little time to prepare and organize prior to the event ๏ผ... there are few volunteers available to survey event attendees ๏ผโฆ no one is available for data entry and analysis ๏ผโฆ you have a good estimate of the number of event attendees
- 20. Method 1 Process
- 21. Method 1 Process
- 22. โข Big Bend โข Gulf Coast โข Hill Country โข Panhandle Plains โข Piney Woods โข Prairies and Lakes โข South Texas Plains Texas Travel Regions
- 24. Calculating the Economic Impact 1,700 race participants * $82.20 pppd spending = $139,740 $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ The economic impact of the Run Like the Wind Relay was $139,740.
- 25. DIY Method 2
- 26. Use Method 2 If โฆ ๏ผโฆ you have little time to prepare and organize prior to the event ๏ผโฆ you can secure the cooperation of local hotels, motels, and B&Bs ๏ผ.. there are few volunteers available to survey event attendees ๏ผโฆ someone is available to contact the lodging places before and after the event and to record the data ๏ผโฆ you have a good estimate of the number of event attendees
- 27. ALGEBRA!!!
- 28. Method 2 Process โข Uses algebra and actual hotel receipts to estimate the total impact โข Solves an equation to determine unknown quantities โข Hotel receipts are the known quantities โข Hotel receipts are a percentage of total travel expenses Photo: katherinedavis on Flickr
- 29. Method 2 Process
- 31. Method 2 Process $10,385 ($ lodging) รท $59,026 ($ total destination) = .1759 or 17.6% 17.6% of all trip expenditures in TX are for lodging.
- 32. Method 2 Process Make this assumption: If 17.6% of all expenditures on trips in Texas are for lodging, then 17.6% of all expenditures on trips in Conroe are also for lodging.
- 33. Method 2 Process โข Before the event โข Step 1: Request that hotels ask guests if they are in town for the Run Like the Wind Relay โข After the event โข Step 2: Call each hotel and request the โrack rateโ 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. โข Step 3: Multiply the number of rooms by the rate for each property and total.
- 34. Method 2 Process The economic impact of the Run Like the Wind Relay was $27,585 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 รท .176 = $27,585 (Direct Impact of the Run Like the Wind Relay)
- 35. Photo: andyde on Flickr When To Seek Professional Help
- 36. Photo: modenadude on Flickr Accuracy
- 37. Avoid This
- 38. Credibility
- 39. Method 3
- 40. Use Method 3 If โฆ ๏ผโฆ you need the most accurate data possible ๏ผโฆ there is ample time available to plan and organize prior to the event ๏ผ.. there are plenty of volunteers available to survey event attendees ๏ผโฆ you have a good estimate of the number of event attendees
- 41. Consultant Responsibilities โข Design the survey โข Estimate sample size needed โข Develop a sampling plan and surveying schedule โข Guide in survey team selection and provide training โข Determine/estimate event attendance โข Collect and analyze the data โข Produce a report detailing the results
- 42. Youโll Need a Questionnaire
- 43. Youโll Need a Questionnaire โข Zip code โข Number in the traveling party โข Number of days spent in your town โข Amount (or estimated amount) spent in the following categories: โ Dining โ Lodging โ Shopping โ Gas โ Attractions/entertainment โ Other expenses
- 44. Sampling โข Survey โ or sample โ throughout the entire event. โข This is the number of completed non-local surveys you need. โข Local survey responses DO NOT contribute to the economic impact.
- 45. Estimating Attendance โข Guest book โข Polling โข Visitor counts โข Traffic counts and average number of people per vehicle โข Interval counts from a high vantage point or in quadrants โข Tag and recapture โข Aerial photography
- 46. Analysis โข Spending from the surveyed attendees is applied to the entire population (all non-local attendees) โข Data is analyzed with economic modeling software โข The software produces the impacts: โข Total impact โข Direct impact โข Indirect and induced impacts โข Number of FTEs created โข FTE income โข Tax impacts (sometimes)
- 47. Where To Find Help Photo: Theo La Photo โข Colleges and universities โข Councils of Government (COGs) โข State agencies โข Economic Development Corporations โข Chambers of Commerce โข Consultants
- 48. EIA Case Study #1
- 49. Red Poppy Festival โ Georgetown, TX April 26-27, 2014 ๏ผ45,000 attendees ๏ผHeld in downtown Georgetown (Main Street City) ๏ผLive music (Bellamy Brothers) ๏ผCraft and artisan vendors ๏ผKidsโ area ๏ผCar show
- 50. Methodology โข 20 volunteers โข Collected Emails from attendees via intercept surveys and convenience samples โข Surveyed Friday through Saturday evening โข Offered an iPad as an incentive โข 45,000 people attended
- 51. Methodology โข Used SurveyMonkey to send the survey โ 1 Email to 580 attendees, and 3 reminders to non- respondents โข Determined per person per day spending for each spending category โข Used IMPLAN to calculate the impacts
- 52. 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
- 53. EIA Case Study #2
- 54. TAAF Winter Youth Basketball Festival & State Tournament โ Longview, TX March 14-16, 2014 ๏ผ25,020 players, spectators, and coaches ๏ผHeld in gyms all over Longview, TX ๏ผ7 boysโ and 7 girlsโ divisions (ages 8 โ 14) ๏ผEach team played 2 pool games & then a single elimination bracket to determine the winner
- 55. Methodology โข 11 paid temps โข Surveyed in 13 of the 19 gyms โข Collected Email addresses from attendees via intercept โข Surveyed throughout the tournament until the semi-finals on the last day โข An iPad was offered as an incentive to participate
- 56. Methodology โข Used SurveyMonkey to send the survey โ 1 Email to 385 Email addresses, and 2 reminders to non-respondents โข Determined per person per day spending for each spending category โข Used IMPLAN to calculate the impacts on both Email and paper surveys
- 57. Impacts Spending Category $ Impact Total Economic Impact $618,000 Food & Beverage Impact $220,507 Lodging Impact $345,114 Retail Impact $27,345 Transportation Impact $25,034 Average per person per day spending $92.67
- 59. Follow Me Linkedin.com/in/sarahpage Facebook.com/SarahTPageConsulting @pagetx Sarah Page, Principal Sarah T. Page Consulting, LLC http://sarahtpage.com sarah@sarahtpage.com 512.914.8873 Instagram.com/stpconsulting Pinterest.com/sarahtpage
Editor's Notes
- Once you know the value of the event, itโs easy to prove that the return was worth the expense.
- Sponsors will be more inclined to return next year and new sponsors can be attracted with the kind of data you get from an economic impact analysis. Sponsors will know not only how much money is being spent at your event, they will also learn: some demographic information like where the attendees live; product and venue information like what specific activities the attendees liked or wanted to improve upon; what media outlet they heard about the event from; and what new activities they would like to see at next yearโs event.
- Now that you have some data, you know what areas need to be improved upon in future events. Without benchmarking, youโve got no way to know if youโre meeting your goals.
- In many towns, itโs not just one organization that puts on the event โ itโs typically a partnership between 2 or more sponsoring entities. Many of these organizations will continue to participate because of community pride or just because itโs the right thing to do. But wouldnโt it be nice if you could show them the value of their participation?
- With the data, you now know what the people want โฆ what theyโll spend their money on โฆ what will bring them back next year. When additional funding is available, youโll know exactly where to spend it. Attendees may have told you that you need more childrenโs activities. The data will prove it and you can request the funding to add that kidsโ area with confidence.
- The same type of information that is valuable to sponsors is also be valuable to you. Use an economic impact analysis as an opportunity to get to know your attendees a little better. This is some actual data from a study I did recently in Round Rock. During a downtown event, we asked local attendees how often they came to downtown and these were the results. With this and a few other questions, the City now has a better understanding of how and why locals patronize downtown and downtown businesses.
- The economic impact comes ONLY from spending generated by out of town attendees at your event. Otherwise that money comes from locals and would have been spent elsewhere in your community. There are other studies you can do to get data from local event attendees. Local spending data CAN help you determine your ROI. Doing an EIA will take man-power. Youโll need volunteers to help with data collection. It will also take time and planning. If none of these are available to you, an EIA is not right for you. If youโre only interested in getting data from local attendees, you do not need an EIA.
- Weโre going to use a fictitious event to illustrate the three methods of conducting an EIA. Each method has varying degrees of complexity and accuracy. Each method also has its strengths and flaws, and only local leaders and event organizers can decide which method will work best for them.
- Method 1 is the easiest and fastest way to produce an EIA. No surveying is required. However, it is also the least accurate.ย
- The average per person per day spending accounts for spending on categories like lodging, retail shopping, dining, visiting attractions, and all the typical activities people would participate on during a trip โ whether for business or leisure purposes. But it is an *average* of all the spending that takes place across the Piney Woods region, and it is not specific to Conroe.
- This is just an estimate of the actual impact. This method assumes that every single participant spent $82.20, when in reality, some may have spent nothing. This method also doesnโt account for spectator spending, which could effect the result.
- Method 2 is still relatively easy to do, but does require a little more work. Surveying is still not required, but there is some primary data collection. The accuracy is improved over Method 1. You also have to be comfortable making some assumptions. ย Credit for the development of this method goes to Roger Hanagriff, Assistant Professor in the Department of Agricultural Leadership, Education, and Communications at Texas A&M University.
- Again, this is just an estimate. However, this time itโs based on some actual spending that took place in Conroe. But making the assumption that the spending on lodging in Conroe was the same percentage of lodging in Texas may have under-estimated your impact. Your hotels may have been full and lodging may have represented a higher percentage than 17.6% for this event.
- Or maybe you want some professional help. Wait, not THAT kind of professional help โฆ
- Accuracy. EIAs done by a professional will be much more accurate. They are based on actual spending data and not generalized estimates. That being said, they are still an inexact science. They will be based on actual attending spending data and should use a model to determine the impact that represents your local economy.
- You can avoid the perception of the fox watching the hen house by using an unbiased 3rd party to conduct the study and present the results. Not to mix metaphors, but this eliminates the ability for critics to say that youโre cooking the books.
- Credibility. Itโs as if you put the Good Housekeeping seal of approval on the project. Youโre hiring a professional to do your study. This is what they do. They are experienced in conducting EIAs, and their results will be credible.
- Method 3 is hiring a professional. Every professionalโs process will vary slightly, but there are a few commonalties that you should look for. These are based on primary data โ or surveys โ and will provide results based on your local economy.
- But they canโt do any of this in a vacuum. They will need your input during every phase of the project.
- Other spending categories can be added: Specific retail categories (boutiques, sporting goods, craft vendors, etc.) Food vendors Bars Other questions can be added to find out more about your attendees and what they liked or didnโt like about your event. favorite/least favorite activity how did you hear? first time attendee or repeat customer? where did you stay? what would you add?
- Require survey volunteers to approach every Nth person to ensure that any festival attendee has an equal chance to be surveyed. This also eliminates surveying bias on the part of the volunteers. Once you know how many people to sample, how many volunteers are available, and how many hours the volunteers will work, you can determine the sampling interval (e.g., every 4th, 7th, 10th person, etc.). Sample size estimator developed by John Crompton, PhD from Texas A&M University.
- Visitor counts = Have volunteers stationed at the major points of entry. Every hour, have them count every person they see for 15 minutes. 15 minutes represents 25% of the visitor count for that hour. The counts can then be extrapolated to produce the total attendance. Traffic counts = Counting the number of cars and an average number of people per vehicle. High vantage point = Use a tall building, etc. where most of the event can be seen. Then count visitors using a grid overlay of the event at either a peak attendance time or at scheduled intervals throughout the day. Tag and recapture = Distribute buttons or stickers to a randomly selected group of attendees for them to wear prominently during the event. When the crowd reaches a maximum size, volunteers can count โtaggedโ and untagged attendees within a defined boundary. Then use a formula to calculate total event attendance. Aerial photography = Similar to a high vantage point, but from an airplane. Schedule fly-overs for a peak attendance time or at intervals and apply the grid system to count.