The Economic Impact of the 2015 ASICS Los Angeles Marathon. September 2015
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1 The Economic Impact of the 2015 ASICS Los Angeles Marathon September 2015
2 Introduction and definitions This study measures the economic impact of the 2015 ASICS Los Angeles Marathon held in March Visitors are defined as non-residents of Los Angeles County. The impact of the event includes direct spending, the indirect (supply-chain) effects, and induced (income) effects. Impacts were measured in terms of employment, income, business sales, and tax revenues. 2
3 Headline results A total of 27,675 visitors came to L.A. County to participate in the race or as a spectator to support a specific runner. Total direct spending amounted to $14.4 million, including $7.6 million in visitor spending. The total economic impact was $23.9 million in business sales, supporting 169 full-time equivalent jobs, and generating $9.2 million in labor income, including indirect and induced impacts. Tax benefits included $1.0 million in local revenue and $0.8 million in state revenue. 3
4 Visitor Profile and Spending
5 Visitor origins 40.3% of participants and 38.0% of spectators were from outside of L.A. County, including a total of 3,182 international visitors L.A. Marathon Participant Breakdown Total: 23,681 International 6.7% Day 19.1% Non-local 2015 L.A. Marathon Spectator Breakdown Total: 47,715 International 3.3% Day 14.2% Non-local Local (L.A. County) 59.7% Domestic overnight 14.5% Local (L.A. County) 62.0% Domestic overnight 20.5% Sources: LATCB, Destination Analysts, Tourism Economics Sources: LATCB, Destination Analysts, Tourism Economics 5
6 Days Days Length of stay in L.A. County Nearly 60% of non-local visitors stayed overnight. Participants stayed an average of 4.1 days and spectators an average of 4.9 days. Participant Length of Stay Spectator Length of Stay % shares by days spent % shares by days spent 5 or more 28.8% 5 or more 28.7% % Average stay: 4.1 days % Average stay: 4.9 days % % % % % % 0% 10% 20% 30% 40% 0% 10% 20% 30% 40% Sources: LATCB, Destination Analysts, Tourism Economics Sources: LATCB, Destination Analysts, Tourism Economics 6
7 Visitor accommodations Nearly two-thirds of overnight visitors stayed in hotels and generated 5,782 room-nights. Choice of Accommodations Non-local participants and spectators Private 30.2% Other 5.4% Hotel 64.4% Sources: LATCB, Destination Analysts, Tourism Economics 7
8 Visitor spending Participant and spectator visitors spent an average of $273 per person during their stay. Just under 60% of visitor spending went to lodging and food and beverage, followed by retail shopping at 20.6%. Visitor spending - $7.6 million Total Includes race participants and spectators, $ million Food and bev Lodging $2.2 $ Visitor Spending Profile Includes race participants and spectators Food and bev 29.1% Rec 8.1% Local trans 13.3% Retail $1.6 Local trans $1.0 Rec $0.6 Retail 20.6% $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 Lodging 28.9% Sources: LATCB, Destination Analysts, Tourism Economics Sources: LATCB, Destination Analysts, Tourism Economics 8
9 Total spending by source Direct spending totaled $14.4 million. Visitor participants and spectators accounted for $7.6 million, or 52.6% of direct spending. The remaining $6.8 million was spent by the host organization, sponsors, and exhibitors. The estimated local portion of air transportation was also included as direct spending. Direct Spending by Source Race Participant Spending Sponsor and Exhibitor Spending ($Millions) Spectator Host Spending Air Trans Organization Total Lodging Food and beverage Retail Recreation Local Trans Air Trans (local portion) Event operations Marketing Total
10 Economic Impacts
11 How visitor spending generates impact Direct impact: Visitors create direct economic value within a discrete group of sectors (e.g. recreation, transportation). This supports a relative proportion of jobs, wages, taxes, and GDP within each sector. Indirect impact: Each directly affected sector also purchases goods and services as inputs into production. These impacts are called indirect impacts. Induced impact: Lastly, the induced impact is generated when employees whose incomes are generated either directly or indirectly by the event, spend those incomes in the Los Angeles County economy. 11
12 Total business sales Including indirect and induced business sales, the 2015 ASICS L.A. Marathon generated $23.9 million in total business sales. 12 Business Sales ($Million) Direct Indirect Induced Total Agriculture, Fishing, Mining Construction and Utilities Manufacturing Wholesale Trade Air Transport Other Transport Retail Trade Gasoline Stations Communications Finance, Insurance and Real Estate Business Services Education and Health Care Recreation and Entertainment Lodging Food & Beverage Personal Services Government TOTAL
13 Bus. Services FIRE F&B Retail Trade Lodging Recreation Education Other Transp Comm. Air Transport Gas Personal Serv. Business sales by type of impact Business Sales $ million 6 5 Induced Indirect Direct F&B: Food and Beverage FIRE: Finance, Insurance, Real Estate Bus. Services: Business Services Gas: Gasoline Stations Other Transp: Other Transportation Manu.: Manufacturing Personal Serv.: Personal Services Comm: Communication Significant indirect and induced benefits * Direct sales include cost of goods sold for retail 13
14 Employment impact details The L.A. Marathon supported 169 full-time equivalent, annualized jobs in L.A. County, including indirect and induced impacts. 14 Employment Impacts Direct Indirect Induced Total Agriculture, Fishing, Mining Construction and Utilities Manufacturing Wholesale Trade Air Transport Other Transport Retail Trade Gasoline Stations Communications Finance, Insurance and Real Estate Business Services Education and Health Care Recreation and Entertainment Lodging Food & Beverage Personal Services Government TOTAL
15 Income generation details Labor Income (Compensation) ($Millions) Direct Indirect Induced Total Agriculture, Fishing, Mining Construction and Utilities Manufacturing Wholesale Trade Air Transport Other Transport Retail Trade Gasoline Stations Communications Finance, Insurance and Real Estate Business Services Education and Health Care Recreation and Entertainment Lodging Food & Beverage Personal Services Government TOTAL The jobs sustained by the L.A. Marathon generated $9.2 million in income for employees in Los Angeles County. 15
16 L.A. Marathon generation of tax revenues State and Local Tax Revenues $Millions Amount State 0.8 Personal Income 0.2 Corporate 0.1 Sales 0.4 Social Security 0.0 Other Taxes and Fees 0.1 Local 1.0 Sales 0.1 Lodging 0.3 Property 0.5 Other Taxes and Fees 0.1 TOTAL 1.8 The ASICS L.A. Marathon generated state and local tax proceeds of $1.8 million. Local taxes generated included property, sales, and lodging tax revenues, and amounted to $1.0 million in
17 Methodology and Background
18 Methods: visitor survey A visitor survey was conducted by Destination Analysts on behalf of the Los Angeles Tourism and Convention Board. ASICS Los Angeles Marathon Participants An online survey, available in English, Spanish, and Japanese, was sent to the ASICS event participant list from April 3rd through May 6th. 4,647 surveys were completed of which 1,717 were completed by visitors to L.A. - defined as residing outside of L.A. County. Incidence Test To accurately estimate the proportion of participants from outside L.A. County and the proportion staying in different lodging options, a team of interviewers administered a short survey to 1,284 participants at the packet pick-up area of the NutriBullet Health & Fitness Expo at the L.A. Convention Center. This was done to maximize data used to design data weighting protocols Spectators Destination Analysts field research team randomly approached spectators from 8:30 a.m. to 3:00 p.m. on March 15th in Santa Monica and asked them to complete a brief survey. Respondents were asked to complete the survey if they were a visitor to L.A. defined as residing outside of L.A. County and were there to observe the marathon. A total of 389 surveys completed. An incidence test was also conducted among 1,205 spectators. 18
19 Methods: economic impact Estimates of visitor volume and expenditures in Los Angeles County were based on the on-site survey and visitor profile conducted by Destination Analysts. Host organization spending on race operations and marketing were obtained from the host s financial pro forma. Sponsor and exhibitor spending was obtained directly from the key sponsor ASICS and an additional 13 other organizations and covered expenditures on exhibiting, race operations, and any expenses associated with on-site staffing. The local portion of air transportation spending was estimated by Tourism Economics. An IMPLAN input-output model was constructed for Los Angeles County. The model traces the flow of visitor-related expenditures through the local economy and their effects on employment, wages, and taxes. IMPLAN also quantifies the indirect (supplier) and induced (income) impacts of incremental direct spending. Annual full-time equivalent (FTE) jobs were calculated from a full-time and part-time employment concept using IMPLAN s conversion table, which is based on industry output and wages. 19
20 Methods: economic impact The visitor profile included the spending category Other and this category was treated as retail spending for economic impact modeling purposes. This step makes the impact modeling conservative since retail spending is heavily margined and generates less of a jobs and income impact. Based on the visitor survey and profile study, visitor spending was categorized in the groups displayed in the table below. Spend Category Lodging Recreation Local transport Retail shopping Food and beverage Description Includes visitor spending on overnight accommodations. Includes visitor spending within the arts, entertainment and recreation sub-sector, such as theme parks and spas. Includes all costs associated with local transporation such as taxis, limos, trains, rental cars, buses, and spending on gasoline and parking. Includes visitor spending in all retail sub-sectors within the Los Angeles County economy. Includes all visitor spending at restaurants, bars, and on groceries. 20
21 For more information: 21
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