Wilmington, Tourism and Minor League Baseball

Ballpark Provides Boost to Tourism

• Tourism is a significant component of area economy• Ballpark adds major asset/attraction to local efforts• Fan expenditures add substantial revenues to local

merchants – 40-50% likely out-of-town visitors

• Minor League Teams/Cities are travel tour destinations • Carolina League members bring large market media

exposure – radio, newspaper and internet• Provides unique cross-marketing opportunities and

leverages existing assets

Importance of Tourism to Wilmington

• Historically a large drive-to tourist destination• Per Moody’s, “tourism is a significant component of

the area’s economy” • Wilmington MSA tourism impact– Total Expenditures = $869 million– Total Employment = 9,810 jobs – Total Payroll = $177.5 million– State and Local Taxes = $92.3 million

• Tourist “spend” equals 21% of total MSA retail sales– New Hanover = 14%, Brunswick = 40%, Pender = 28%

• Source: NC Dept of Commerce, DC Dept of Revenue, Moody’s Investor Service

Ballpark Adds Major Attraction

• Ballpark estimated attendance = 350,000• Battleship North Carolina = 209,000• Azalea Festival = 165,000 (93% local)

– UNCW study estimates $50 million impact on local economy

• Thalian Hall 85,000• Airlie Gardens 70,000• Cameron Art Museum = 26,000• Cucalorus Film Festival = 10,000

• Source: UNCW, various local media/news

Fan “Spend” Adds to Industry Revenues

• Attendance expectation = 350,000• Out of town visitors:– Durham Bulls = 51%–Winston-Salem Dash = 40%

• 350,000 x 50% = 175,000 out of town fans• Average “spend” on day trips = $100• Expected “spend” from visiting fans = $17.5 million

• Source: Durham Bulls, Winston-Salem Dash, Mandalay, “Measuring ROI of Tourism Marketing”- Univ of Minnesota

Not ALL Will be “Day Trippers”

• Visiting teams, umpires, etc will bring 1,750 room nights annually

• Assuming 5% of out of town fans spend a night, an additional 8,750 room nights annually

• Average overnight “spend” for lodging, meals, etc = $290• Total overnight “spend” = $2.2 million– Teams, Umps, etc 1,750 x $290 = $507,500– Overnight fans = 8,750 x $190* = $1.7 million

– * net of $100 day spend

• Source: Mandalay/Braves, Wilmington and Beaches CVB

Total “Spend” by Out of Town Visitors Alone Will Approach $20 Million

• Total spending “day trippers” = $17.5 million• Total spending “overnight” = $ 2.2 million– Total Out of Town only “Spend” $19.7 million

• Estimated 10,500 room nights • Locals will add materially to downtown

business activity as well– 175,000 locals will dine, drink and shop

Minor League Teams/Cities are Popular Travel Tour Destinations

Fodor's Baseball Vacations: Great Family Trips to Minor League and Classic Major League Ballparks A Cross America

The Ultimate Minor League Baseball Road Trip: Fan's Guide to AAA, AA, A, and Independent League Stadiums

http://www.minortrips.com/

Carolina League Members Bring Major Market Media Exposure

• Carolina League Teams: Metro Area: Population:• Atlanta Braves Atlanta 5.3 million

• Potomac Nationals Washington, DC 5.6 million• Frederick Keys Washington, DC 5.6 million• Wilmington Blue Rocks Philadelphia, PA 6.5 million• Carolina Mudcats (Zebulon)Raleigh-Durham 1.7 million• Winston-Salem Dash Winston/Greensboro/ • High Point 478 thousand• Salem Red Sox Roanoke, VA 300 thousand• Myrtle Beach Pelicans Myrtle Beach 269 thousand • • Total Market Exposure 20.1 million

Provides Unique Cross-Marketing Opportunities and Leverages Existing Assets

• Kip Damrow, current President of the Wilmington Area Hospitality Association says:

• “This has the potential to be a tremendous boost to our local tourism-related economy.”

• “From an economic / tourism development standpoint, it is my opinion that the location along the northern riverfront, adjacent to the convention center, will allow for synergy between the convention center and the ballpark. They would depend on each other to be successful.”

• “With a ballpark adjacent to the convention center, the center would be able to solicit (and win) larger conventions, thus filling more hotel rooms and increasing mid-week attendance at the ballpark and downtown restaurants. Every convention planner wants to be able to offer evening group functions after a day of seminars, break-outs and trade show networking. During the baseball season, the ballpark would be the perfect venue for this. Off season, the ballpark could be utilized by the convention groups for other functions such as a concert, etc.”

Wilmington MSA Tourist Expenditures Effects of Ballpark + Leverage (Illustrative)

($millions)

Year 0 Ballpark +1

Ballpark +5

Ballpark+10

Ballpark +20

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

No BallparkBallpark + Leverage

$226 million revenue boost - due to stadium + leverage with existing as-sets

2000-2010 CAGR = 3.7%Assume leverage + 0.5% growth

Source: NC Dept of Commerce, PCB Analysis

Conclusions

• Tourism is vital to the economic health and well-being of the Wilmington area

• The proposed ballpark will provide material benefits to the local tourism industry

• Available synergies and leverage with existing assets enhances competitive position and growth

• “ Boost” to growth trajectory of future revenues provides substantial returns to industry participants and area residents