economic impact of parks 2016
TRANSCRIPT
50
77
234
WARDS
COMMUNITIES
SQUARE MILES
550
7,000employees
Learning Objectives
Why economic impact is important
Measuring value through tourism
Measuring value through property
Florida tourism 2014 – 93.7 million visitors
$82 billion in spending
$4.9 billion in tax revenues
State parks June 2013 – July 2014
27.1 million visitors
$2.1 billion in economic impact
Supports 29,396 jobs for Floridians
Golden Gate Park 13M visitors
Magic Kingdom 19.3M visitors
Chicago Park District 40M
Central Park 40M visitors
National Parks 292.8M visitors
2014 snapshot
Economic impact of over $1,174,848,582
$75,771,234 state sales taxes generated
More than 500 jobs were created
Florida state parks receive NO general revenue funds and they raise 64% of their operating costs through entry and camping fees, concessionaire income sharing and other partnerships.
2013 - http://friendsoffloridastateparks.org/page-1771423
Parks are an economic driver for the town, village or city.
What is our impact?
How do we measure it?
The approach
Economic impact of the parks
Park District non-tax revenues
Park District strategic metrics
Case studies
Impact of tourism
The approach
Revenues generated by major events, special assets, and tourism are estimated in four key analyses
Major Park Events
Museum Revenues
Harbor Revenues
Incremental Tourism
Park events drive a positive impact
Events and museums
Incremental tourism
Music festivals and sports
While direct revenue may
be small, indirect impact
can be significant
Direct revenue Actual revenue
ticket prices
attendance
concessions and merchandise
Estimated revenue
attendees x (avg ticket price + avg merch & concessions)
(attendees x avg ticket price) + (total merch & concessions)
(total ticket spend) + (attendees x avg merch & concessions spend)
total ticket spend + total merch spend
Indirect revenue Depending on available data either:
(#attendees x %tourists) x (spend per visitor per day x length of stay attributable to event)
total tourism spend outside event
Depending on the nature of the event, number of days of attributable tourism impact differs:
Typically 1 day of visitor spending for each day visitor attends event
Marathon and Triathlon are 2 days of visitor spending outside event
Parks increase tourism overall Number one factor in destination selection for leisure
travelers is a location that is “beautiful or scenic”
Parks play a major role in making Chicago more beautiful and scenic, and therefore help influence Chicago’s tourism
Museums draw tourists to Chicago, with 56% of cultural travelers rating museums as “important”
Total Impact
Grant Park and Soldier Field
Jackson
Burnham1)
Washington
Humboldt
Union
Northerly Island
Lincoln
Soldier Field 23249 83 100
Grant 31434 63 217
Incremental tourismDirect rev - non-touristsDirect rev - tourists
2
2
142 6 6
346 12 16
452 12 32
0.3
30.03
0.4 2.0
4
63 5 14
2
Music festivals and sports
Music festivals and sports
44
211
Chicago
Marathon
15
44
6
Blues
Festival
33
36
25
Northerly
Island
Concerts
34
6
12
16
Taste of
Chicago
98
7
15
76
Soldier
Field
(Non-
Bears)
113
19
16
78
Soldier
Field
(Bears’
Games)
119
30
67
22
Lollapalooza
127
17
30
80
Chicago
Air &
Water
Show
31
Direct rev - tourists
Direct rev - non-tourists
Incremental tourism
Impact to property value Assessed value scaled up to
market value
Controlled for factors
Statistically significant
43% of all residential properties
in Chicago
Methodology
Based on the application of hedonic pricing method
Based on a conservative approach, consistent with economic theory
1 2 3 4 5Property pricing regression
Definition of "park markets"
Data clean-up
Acquisition of necessary data
Measure of total impact by park
Park markets Analyze the environment around each park and note
confounding attributes
Using Google Earth, draw the park market so as to include only similarly-situated properties
The resulting park markets were oftentimes narrowly defined
Therefore, create a broader market to encompass all properties that have reasonable access to the park, regardless confounding attributes
Narrowly defined market
Broadly defined market
Impact to property value
0.10 – 0.15 miles
0.05 – 0.10 miles
Zero – 0.05 miles +2% or $255.8M
+1.64% or $376.4M
+1.12% or $276.9M
Total and relative impact by category
Mini-parks
> 141 parks or 24% of all parks
> Less than 1% of all acreage, but over 35% of total dollar impact
> Have above average percentage impact across the city
> Less numerous in south/southwest side
Other ParksMini-parks
Overall impact to property value
Positive and significant
Properties within 0.15 miles of a park 1.5% higher on average
$909 M in aggregate
43% of residential properties
Positive impact is consistent across park types and regions
Lessons learned Parks add to property value
Parks positively impact tourism
Positive impact across all park categories – although with differentiated intensity
Magnet parks add the most absolute value per park for both property value and tourism impact
Mini-parks (25% of all parks) add the most relative impact to property value
Generate the largest share of non-tax revenues
Highly attractive for engaging tourists and residents alike
Have the highest property value impact on the city
Residents primarily benefit through access to green spaces in urban neighborhoods
Generate the most community engagement through programming and special events
Positive community engagement and property value improvement, despite minimal ongoing investment
Attractions Mini-parks Amenities Open space
Assets can be managed as a portfolio
Your next steps … Identify your data sources
Government agency that assesses property value
Identify resources
Local universities with GIS or Planning students
Local realtor associations
Identify confounding factors around your park
Commercial corridors
Trains, waterways, interstates
Other parks
Brendan Daley, CPRP, LEED AP O&M
Director of Strategy & Sustainability
Chicago Park District
On Twitter @parksgreenguy
Thank you.