ESTIMATED ECONOMIC IMAPCTS OF 2011 RIVER REGATTA ON THE COLORADO RIVER REGION
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1 TECHNICAL REPORT UCED 2011/12-02 ESTIMATED ECONOMIC IMAPCTS OF 2011 RIVER REGATTA ON THE COLORADO RIVER REGION UNIVERSITY OF NEVADA, RENO 1
2 Estimated Economic Impacts of 2011 River Regatta on the Colorado River Region Report Prepared by George Buddy W. Borden George Buddy W. Borden is Area Community Development Specialist, University of Nevada Cooperative Extension, Clark County Office and Researcher with the University Center for Economic Development at the University of Nevada, Reno. University Center for Economic Development Department of Resource Economics University of Nevada, Reno Reno, Nevada (775) October 2011 The University of Nevada, Reno is an equal opportunity, affirmative action employer and does not discriminate on the basis of race, color, religion, sex, age, creed, national origin, veteran status, physical or mental disability or sexual orientation in any program or activity it operates. The University of Nevada employs only United States citizens and aliens lawfully authorized to work in the United States. 2
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4 This publication, Estimated Economic Impacts of 2011 River Regatta on the Colorado River Region, was published by the University of Nevada Economic Development Center. Funds for the publication were provided the Laughlin Tourism Commission, the United States Department of Commerce Economic Development Administration under University Centers Program contract # This publication's statements, findings, conclusions, recommendations, and/or data represent solely the findings and views of the author and do not necessarily represent the views of the Laughlin Tourism Commission, the United States Department of Commerce, the Economic Development Administration, University of Nevada, or any reference sources used or quoted by this study. Reference to research projects, programs, books, magazines, or newspaper articles does not imply an endorsement or recommendation by the author unless otherwise stated. Correspondence regarding this document should be sent to: Thomas R. Harris, Director University Center for Economic Development University of Nevada, Reno Department of Economics Mail Stop 204 Reno, Nevada UCED University of Nevada, Reno Nevada Cooperative Extension Department of Resource Economics 4
5 The River Regatta is fast becoming a significant tourism event in the Colorado River Region. This three day event begins on Thursday with a wake boarding completion, a Kayak and Canoe race on Friday, and the River Regatta on Saturday. The first River Regatta was held in 2007 with 642 registered participants and has grown to 25,117 registered participants in 2011 (Figure 1). This does not account for the additional non registered visitors that attend the River Regatta but do not actually float the Colorado River as a registered participant. Several non participants will provide transportation for registered participants and will be spectators from the shore lines along the Colorado River. It is estimated by the Laughlin Tourism Commission and Las Vegas Convention Visitor Authority that non registered visitors that attend the River Regatta are upwards to 4,000 additional visitors. The follow preliminary report estimates the economic contributions that the three day River Regatta event has on the Colorado River Region. Through the assistance of Bullhead City Mangers office, and the Laughlin Tourism Commission several assumptions were made to estimate the total number of River Regatta visitors and their expenditure patterns while in the Colorado River Region. Economic Impact Model A multi-regional input-output model was developed for the Laughlin, Bullhead City and surrounding communities in 1999 and updated in This model was designed to estimate the economic impacts of business activity in Laughlin, Bullhead City and other Mohave County. The model estimates the impact in terms of total economic activity, personal income and employment for a given level of business activity originating in the region. Future model updates are scheduled for
6 30,000 25,000 Figure 1. River Regatta Paid Registered Participants 25,117 20,000 15,000 10,000 5, ,909 3,650 5, Table 1 reports the River Regatta participant and registration characteristics for Over 29,000 people were estimated to have participated in the 2011 River Regatta, paying and non-paying participants. Given the sliding scale of registration rates by date-of-payment, Bullhead City collected $404,082 in registration fees from 25,117 paying participants. These fees were paid directly to Bullhead City and used to offset costs associated with planning and operating this event. Actual event costs will be reported at a future date. 6
7 Table 1. River Regatta Participant and Registration Characteristics, GENERAL CHARATERISTICS/ASSUMPTIONS Total Registration Participants 25,117 Non-Registered Participants (Estimate) 4,000 Total Participants 29,117 Registration Fees Rates Laughlin Tourism Commission $12.00 Before August 8, 2011 $15.00 After August 8, 2011 $20.00 Participation by Location/Date of Registration Purchase Laughlin Tourism Commission 5,826 Before August 8, ,330 After August 8, ,961 Total 25,117 Registration Fee Collections by Location/Date Laughlin Tourism Commission $69,912 Before August 8, 2011 $154,950 After August 8, 2011 $179,220 Total (Paid to BHC) $404,082 Table 2 estimates the total visitor days and lodging characteristics for participants of the 2011 River Regatta. Of the total 29,117 total participants, it was estimated that 20 percent or 5,823 participants were residents of the Colorado River region. So, 23,294 visitors attending the 2011 River Regatta were estimated to be from outside the region, resulting in 69,882 total visitor days (23,294 visitors X 3 days). It was then estimated that, on the conservative side, the average party size was 5 people requiring 4,659 rooms or 9,318 room nights (4,659 rooms X 2 night lodging). Room nights were distributed between the two markets at an estimated rate of 8% in Bullhead City and 92% in Laughlin. The average room rate per night for Bullhead City was $85 versus $95 for Laughlin. The estimated total room revenue for the region for the 2011 River Regatta was $877,750. 7
8 Table 2. River Regatta Visitor Day and Lodging Characteristics, VISITOR DAYS & LODGING CHARACTERISTICS & ASSUMPTIONS Total Participants Paid Registration Participants 25,117 Non-Registered Participants (Estimate) 4,000 Total Participants 29,117 Place of Resident Participation Assumption Local Residents (20%) 5,823 Out-of-Region Visitors (80%) 23,294 Total Participants 29,117 Length of River Regatta (Fri-Sun) 3 Days Out- of-region Visitor Days (23,294 X 3) 69,882 Average Party Size from Out-of-Region 5 Rooms Rented Rooms Rented in BHC (8%) including house rentals 373 Rooms Rented in Laughlin (92%) 4,286 Total Rooms Rented (23,294 / 5) 4,659 Average Rooms Nights Rented per Party 2 Days Total Room Nights Room Nights in BHC (8%) 746 Room Nights in Laughlin (92%) 8,572 Total Room Nights (4,659 X 2) 9,318 Lodging Rates Per Night Average Hotel Room Rate BHC $85.00 Average Hotel Room Rate Laughlin $95.00 Lodging Revenues Hotel Revenues for BHC $63,410 Hotel Revenues for Laughlin $814,340 Total Lodging Revenues $877,750 8
9 Table 3 summarizes the estimate per visitor day expenditures for major categories as reported by the 2010 Laughlin Visitor Profile Study conducted by the Las Vegas Convention Visitor Authority. Per visitor day expenditures were estimated using the actual estimated collections during the 2011 River Regatta. At the advice of the Laughlin Tourism Commission, total gaming expenditures were adjusted at 50% of normal per visitor gaming expenditures because several of the River Regatta participants are under the legal age of 21 and thus do not gamble. Total per visitor expenditures across all categories was estimated at $81.00 per day. However, the Las Vegas Convention Visitor Authority did survey River Regatta participants and will provide visitor expenditures specifically for the River Regatta event at a future date. When this data is available new per visitor day expenditure across categories will be reported and used to update economic impact assessment. Table 3. River Regatta Per Visitor Day Expenditures, TOTAL PER VISITOR DAY EXPENDITURES ASSUMPTIONS Total Lodging $12.56 Total Food and Beverage* $26.35 Total Misc Shopping* $7.41 Total Local Transportation* $4.40 Total Entertainment* $0.92 Total Gaming* (assume 50% of normal activity) $29.36 Total $81.00 Based on 2010 Laughlin Visitor Profile Study. Table 4 summarizes the total visitor expenditures across categories for the 2011 River Regatta. Total visitor days, 69,882 was multiplied by the per visitor day expenditure and distributed between Laughlin and Bullhead City based on estimates provided by the Bullhead City manager s office and Laughlin Tourism Commission. In total, the region 9
10 generated $5,660,474 total direct economic activity of which $4,465,745 was in Laughlin and $1,194,729 was in Bullhead City and surrounding Arizona communities. Per category percentage estimates are in parentheses. Table 4. River Regatta Total Expenditure Estimates, TOTAL VISITOR DAY EXPENDITURES/ASSUMPTIONS Total Total Visitor Days 69,882 Total Lodging Revenue $877,750 In BHC (assume 4.5%) $63,410 In Laughlin (assume 95.5%) $814,340 Total Food and Beverage Revenue $1,841,391 In BHC (assume 40%) $736,556 In Laughlin (assume 60%) $1,104,835 Total Misc Shopping Revenue $517,825 In BHC (assume 50%) $258,913 In Laughlin (assume 50%) $258,913 Total Local Transportation Revenue $307,481 In BHC (assume 40%) $122,992 In Laughlin (assume 60%) $184,498 Total Entertainment Revenue $64,291 In BHC (assume 20%) $12,858 In Laughlin (assume 80%) $51,433 Total Gaming Revenue $2,051,736 In BHC (assume 0%) $0 In Laughlin (assume 100%) $2,051,736 Total Revenue for 2011 River Regatta $5,660,474 In BHC $1,194,729 In Laughlin $4,465,745 10
11 Table 5 presents the estimated economic impact on the Colorado River regional economy from 69,882 visitor days attending the 2011 River Regatta. Visitors during their stay in the region were estimated to of spent over $5.6 million in lodging, food and beverage, general shopping, entertainment, transportation and gaming. Direct expenditures generated an additional $3.7 million through secondary effects for a total economic activity of over $9.4 million. This level of economic activity also included over $2.3 million in personal income (wages, salaries, and tips), and supported nearly 113 jobs in the regional economy. Table 5. River Regatta Estimated Total Economic Impact of 69,882 Visitor Days, PRELIMINARY ESTIMATED IMPACTS 69,882 Visitor Days In Laughlin In BHC/Mohave Total Impact TOTAL ECONMIC ACTIVITY Direct $4,465,745 $1,194,729 $5,660,474 Secondary $729,412 $3,063,105 $3,792,517 Total $5,195,157 $4,257,834 $9,452,991 TOTAL PERSONAL INCOME Direct $1,264,908 $285,736 $1,550,644 Secondary $162,631 $654,126 $816,757 Total $1,427,539 $939,862 $2,367,391 TOTAL EMPLOYMENT Direct Secondary Total
12 Figure 2. Estimated Economic Activity Impacts for 2011 River Regatta. $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 $4,257,834 $1,194,729 $3,063,105 $5,195,157 $4,465,745 $729,412 Direct Impact Secondary Impact Total Imapct Laughlin, NV BHC/Mohave 12
13 Figure 3. Estimated Total Personal Income Impacts for 2011 River Regatta. $2,500,000 $939,862 $2,000,000 $1,500,000 $285,736 $1,000,000 $500,000 $1,264,908 $654,126 $1,427,539 $0 $162,631 Direct Impact Secondary Impact Total Imapct Laughlin, NV BHC/Mohave 13
14 Figure 4. Estimated Employment Impacts for 2011 River Regatta Direct Impact Secondary Impact Total Imapct Laughlin, NV BHC/Mohave 14
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