Assessment Model. Tony Fisher Senior Research Consultant Canadian Sport Tourism Alliance, 116 Lisgar St., Suite 600 K2P 0C2 Ottawa ON

Transcription

1 The Sport Tourism Economic Assessment Model Tony Fisher Senior Research Consultant Canadian Sport Tourism Alliance, 116 Lisgar St., Suite 600 K2P 0C2 Ottawa ON t: e: TTRA Canada, Victoria BC, October 16 17, 2008

2 The Sport Tourism Economic Assessment Model Tony Fisher Canadian Sport Tourism Alliance, Ottawa ON TTRA Canada, Victoria BC, October 16 17, 2008

3 Outline Background of the Canadian Sport Tourism Alliance The STEAM model what it is and how it works STEAM analyses conducted to date

4 The Canadian Sport Tourism Alliance (CSTA) Membership based organization composed of approximately 110 members municipalities national and provincial sport organizations educational institutions Objective of CSTA is to promote and develop the often substantial tourism aspect associated with the hosting of sporting events

5 The Canadian Sport Tourism Alliance (CSTA) CSTA has developed a number of tools for the promotion of sport Business plan templates Sport exchange STEAM

6 STEAM Motivation One of the objectives of the CSTA, raised by it s members, has been raising the profile of the economic benefits associated with hosting sport events Quickly realized that there were many sources of error associated with measuring economic impact: Number of Visitors Spending of Visitors Multipliers used

7 STEAM Background Standardization of the model was achieved by controlling two of the three sources of variation previously mentioned: Multipliers consistently estimated across Canada Standardized visitor expenditure model Use of model is conditional on obtaining training regarding the proper definition of the inputs as well as interpreting the results

8 STEAM Structure Expenditure Estimates Visitor Estimates Operational Expenditures Capital Costs STEAM Visitor Spending Profiles Economic Impact Multipliers Economic Impact GDP Jobs Wages & Salaries Taxes

9 STEAM Expenditure Estimates Users of STEAM required to provide some projections regarding their event Visitor Attendance Required to project number of out of town visitors and participants attending event Operational Expenditures Need to have an estimate as to aggregate cash expenditures broken down by type of spending Capital Construction Projected total cost of all capital construction and major renovations

10 STEAM The Model The model itself can be thought of as two components Visitor Expenditure Profiles Calibration of model through Statistics Canada s CTS / ITS Supplemented with extensive on site visitor surveys To date, approximately 25 events across Canada Economic Impact Multipliers Developed by the CTRI at the CBoC Input / Output based on 2003 NAICS I/O tables Supplemented with other data LFS Regional tax structures

11 On Site Survey Calibration Conducted on site expenditure surveys at over 25 events across Canada, including: NAIG (2003) World Junior Hockey Championships (2005) Canada Games Summer & Winter (2003, 2005, 2007) FIFA U 20 (2007) Arctic Winter Games (2008) Used results to calibrate model, with interesting results

12 On Site Survey Calibration $90.00 $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Spending per person per day regular vs. sport visitors $81.37 Local TR $72.41 Taxi Car Ops Car Rental Other Costs Clothes Event Merchandise Rec & Ent Food Store During Food & Bev 2004 CTS 2004* CSTA

13 STEAM Outputs Outputs at provincial level Differentiate between host community and rest of province Differentiate between direct, indirect, and induced EI Outputs include Gross domestic product (net econ. activity) Wages & Salaries Jobs Taxes by level and by type Total (gross) economic activity Results available by source (visitors, capital, or ops.) and by 2 digit NAICS

14 STEAM Limitations STEAM explicitly only deals with economic benefits associated with hosting event No displacement costs Not a cost / benefit analysis STEAM is I/O based not CGE bases Cost is that dynamics of mega sporting events may not fully be captured, particularly in face of capacity constraints Benefit is that model is easier to understand less of a black box (i.e. CGE is very sensitive to underlying assumptions)

15 STEAM Adoption We have been actively engaged with a number of federal and provincial sport / tourism partners, including CTC, Sport Canada, and others STEAM has been incorporated into Sport Canada s International hosting program as a bid requirement STEAM was adopted by the Commonwealth Games Canada as the yardstick by which to measure the economic impact of competing jurisdictions

16 STEAM EI Results Event Canada Summer Games Regina, 2005 Description Participant based, 2 weeks considerable capital Attendance Initial Expenditure ($000 s) 4,300 athletes (2,150 per week) 18,000 spectators (60% out of town) $59,757 ($9,285 visitors) World Junior Hockey Championships Vancouver, Kelowna, Kamloops 2006 Spectator based event, 31 games in 3 cities 100k of which 25k out of town, 10k long haul FIFA U 20 Soccer Victoria, Vancouver, Edmonton, Toronto, Ottawa 2007 Spectator based 51 games, 6 cities concurrently over 1 month 1.2 million tickets 271k spectators of which 20% out of town Arctic Winter Games** Yellowknife, 2008 Participant based, circumpolar participants & families 1,800 participants 1,100 spectators, of which 800 were visitors $22,285 $108,362 $4,838 GDP ($000 s) $41,029 $21,375 $113,787 $3,891 Jobs* , Taxes ($000 s)* $13,124 $4,626 $22,101 $1,275 *Taxes and jobs refer to those supported by event, not necessarily created by hosting the event. **Provisional

17 The Sport Tourism Economic Assessment Model