estimating the impact of tourism events case study: special olympics oklahoma impact on stillwater,...
TRANSCRIPT
Estimating the Impact of Tourism Events
Case Study:
Special Olympics Oklahoma
Impact on Stillwater, OK
Why do tourists visit a community?
Vacation/Sightseeing
Business Trips/Conventions
Special Events: Rodeos, Concerts, Festivals
Participation in Sporting Events
Just Passing Through
Why do tourists visit Stillwater, OK?
Prospective OSU Students
Visit Current Students
Eskimo Joe’s
OSU Sporting Events
Special Olympics Summer Games
• 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 May—Impacts the Economy!
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
Estimating Direct Impacts: Expenditure Surveys
• Coaches Survey– Coach spending– Athlete Spending– Spectator Spending
• Volunteer Survey– Individual Volunteers– Corporate Volunteers
Attendance Statistics
VOLUNTEERS
Total: 1,965
From Stillwater: 636
COACHES
Total: 390
From Stillwater: 6
ATHLETES
Total: 3,473
From Stillwater: 92
Source: SOOK
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.
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
RESULTS
Economic Impact of SOOK on Stillwater, OK
RESTAURANTS
$189,945.78
$389,388.85
GROCERIES
$24,868.51
$36,308.02
GASOLINE
$33,090.74
$48,974.30
RECREATION
$16,243.61
$35,086.20
RETAIL
$280,381.02
$476,647.73
PUBLIC TRANSPORTATION
$94.93
$166.13
PERSONAL SERVICES
$2,711.99
$5,396.86
OFF-CAMPUS LODGING
$91,903.85
$181,050.58
TOTAL ECONOMIC IMPACTS (Payne County)
$643,274.43
$1,178,830.72
TOTAL ECONOMIC IMPACTS
(Stillwater)
$643,274.43
$1,085,108.37
Estimated Economic Impact =
$1.08 million
Estimated Sales Tax Collection
Sales Subject to Tax
Rate Estimated Collection
Direct Impacts
$495,195.31 3% $14,855.86
Induced & Indirect
$179,607.29 3% $5,388.22
TOTAL $674,802.60 3% $20,244.08
Estimated City Sales Tax Collections =
$20,244.08
Steps for Assessing the Economic Impacts of a Tourist Event
I. Collect Direct ImpactsA. Expenditures by Event Organizers
B. Expenditures by Event Participants
II. Apply MultipliersA. Choose the Correct Multiplier
B. Calculate Total Impacts for the County
C. Calculate County Induced & Indirect Impacts
D. If Necessary, Adjust Impacts for the City
Steps for Assessing the Economic Impacts of a Tourist Event
III. Estimate Impact on Sales Tax CollectionsA. Determine City Sales Tax Rate
B. What Portion of Direct Impacts were Subject to Sales Tax?
C. What Portion of Indirect & Induced Impacts were Subject to Sales Tax?
D. Apply Tax Rate to Total Sales Subject to Sales Tax.
QUESTIONS?
Suzette Barta
Assistant Extension Economist
405-744-6186
Mike Woods
Extension Economist
405-744-9837
Derek Cain
SOOK Development Director
918-481-1234
Contact: