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

sdb1113@okstate.edu

Mike Woods

Extension Economist

405-744-9837

mdwoods@okstate.edu

Derek Cain

SOOK Development Director

918-481-1234

derek@sook.org

Contact: