Economic Impact Reports

Maryland Heritage Areas Program

Makes an Impact Across all Reaches of the State Economic Contribution Analysis December 2020

TABLE OF CONTENTS INTRODUCTION

4

ABOUT THE STUDY

11

HERITAGE AREAS PROGRAM CONTRIBUTES

15

CREATING & SUSTAINING JOBS

18

GENERATING LOCAL & STATE TAX REVENUES

20

APPENDIX A: TERMS & DEFINITIONS

22

APPENDIX B: DATA & METHODS

23

APPENDIX C: FAQS

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Maryland Heritage Areas Program

2019 Impact

2.4 BILLION annual economic impact $

319.8 MILLION

$

annual total state and local tax impact

33,815 jobs supported

20,667,176 Heritage Area Visitors

and sustained

23 counties and

Baltimore City 1996 Maryland Heritage Areas Program began led by Maryland Heritage Areas Authority

4,177 square miles of

Heritage Areas — Maryland has an area of 12,407 square miles

13 certified

Heritage Areas

9 participating

state agencies

Since 1996, nearly $43 million in financial assistance awarded and more than $1.6 billion in non-state funds for heritage tourism projects and activities leveraged. *All impact numbers represented reflect FY19

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Maryland Heritage Areas Program Maryland has 13 certified Heritage Areas, covering a portion of every county in the state and the City of Baltimore. Created in 1996, the Heritage Areas Program is one of the primary tools used to encourage heritage tourism to Maryland. In Heritage Areas, individuals, businesses, nonprofits and governments form partnerships to preserve the best of Maryland’s historic sites and towns, unspoiled natural landscapes and enduring traditions.

Maryland’s Heritage Areas are locally designated and state-certified regions where public and private partners make commitments to preserving historical, cultural and natural resources for sustainable economic development through heritage tourism. At the local level, Heritage Areas focus community attention on often under-appreciated aspects of history, living culture and distinctive natural areas, thus fostering a stronger sense of pride in the places where Marylanders live and work.

Socially distanced hiking along the Grist Mill Trail in Patapsco Valley State Park.

Credit: Photo by DJ Scheckelhoff and courtesy of Patapsco Heritage Greenway

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Introduction Heritage Areas exist where the stories of the people, the land and the waters of Maryland, which have been intertwined for thousands of years, are told.

Maryland’s history, culture and landscapes are assets unique to the state, drawing heritage visitors year after year. Each of Maryland’s 13 Certified Heritage Areas are defined by the preservation of irreplicable sites and the amplification of the voices capturing the stories and spirit of the past.

Across Maryland, these distinctive areas help establish the identity of a place or region, creating a unique destination different from all other areas. Heritage Areas are locally operated entities that foster public–private partnership to preserve historic sites and buildings, natural environments, cultural traditions and uniquely Maryland experiences.

Historic Sotterley children’s program Photo courtesy of Historic Sotterley

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Introduction One visit to a Maryland Heritage Area will reveal the relevance of the area through distinctive branding and a well-organized approach to experiencing each site. From major tourist attractions like Baltimore’s Ft. McHenry, to small-scale museums nestled along the byways of the Eastern Shore like the Julia A. Purnell Museum in Snow Hill, the destinations packaged inside each Maryland Heritage Area rely on and hold in high regard their local heritage.

The concept of heritage tourism can be difficult to capture for those who are not regularly engaged in the promotion or administration of it.

Simply stated, it is visitor experiences centered around the culture, history and geography that make a place unique. Heritage tourism celebrates Maryland’s landscapes, history and culture by showcasing the state’s one-of-a-kind assets. Museums, trails, waterways, festivals, parks and historic sites are a defining part of every county in Maryland.

The organization and support of Maryland Heritage Areas helps to sustain historic and cultural treasures that might otherwise be consumed by the pace and price required to compete with a 21st-century society. Encouraging residents and visitors to embrace these living pages of the American story helps define Maryland as a place that respects the past, engages in its preservation, encourages the stewardship of living traditions and understands the economic contribution possible through heritage tourism.

On a warm, late summer's day, everyone takes a break from hiking, biking and shopping to enjoy the fountain at Canal Place in the Passages of the Western Potomac Heritage Area.

Photo Credit: Dave Romero

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Introduction

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“When the Maryland Heritage Areas Program was conceived, the instigators hoped that it would result in a more meaningful understanding and interpretation of the heritage and culture of Maryland's diverse regions, increased compatible economic development (particularly heritage tourism), and greater collaboration among private stakeholders and local and state governments. As one who was there at creation, I can authoritatively state that the mature Heritage Areas Program has exceeded expectations.”

- J. Rodney Little, Former Director and State Historic Preservation Officer, Maryland Historical Trust

“

Photo courtesy of Mountain Maryland Gateway to the West Heritage Area

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DEFINITION OF HERITAGE TOURISM “Traveling to experience the places, artifacts, and activities that authentically represent the stories and people of the past and present. It includes cultural, historic and natural resources” National Trust for Historic Preservation, 2008.

State-Level Funding for Maryland Heritage Areas Authority

Management Grants to Maryland's 13 Heritage Areas

Leveraged Cash and In-Kind Match

Marketing Grants to Heritage Areas

Leveraged Cash and In-Kind Match

Project Grants and Mini-Grant Funds to Heritage Area Related Sites and Partners

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Leveraged Cash and In-Kind Match

Introduction Maryland’s Heritage Areas Program recognizes the value of each area’s unique heritage resources, and through state, government, and private-sector partnerships, strives to preserve and enhance the resources that make the area attractive to visitors. Cultivating stakeholder connections are part of the program’s secret sauce. Through local grants and the leveraging of those grants, each area is playing a capacitybuilding role by connecting sites to resources and to expertise at other sites.

The program fosters partnerships and prioritizes promotion to enhance local sites and markets each area effectively by defining what visitors can expect when they are traveling in or to an area. On any given day or weekend regardless of the season, throughout Maryland, heritage tourism is happening. From the Autumn Glory Festival, the Captain Avery Oyster Festival, Maryland Days, Antietam Battlefield living history programs, the Kunte Kinte Festival, train rides on the Frostburg Flyer, walks down the beaches of Assateague, and the Poe Fest — to name a few — people from all over the state, country and world are coming to Maryland to learn about and enjoy one-of-a-kind experiences and celebrations throughout the state.

The Maryland Heritage Areas Authority (MHAA) grants administered through the Maryland Historical Trust are evidence of the strategic approach to locally investing in Heritage Areas, and it makes sense. The Douglas G. Bast Museum of History and Preservation was granted $17,264 to complete work on their historic building, which will become a new heritage tourism resource in Boonsboro, MD to make the area more attractive to visitors. The grant to Washington College for the Chesapeake Heartland African American Humanities Truck will create a traveling resource center to help collect and disseminate the African American history of the Eastern Shore. These grants are two examples of how funding is enhancing heritage tourism throughout the state.

Each Maryland Heritage Area’s strategic investments of public dollars to create tourism-related products sparks matching private investment and motivates local leadership to invest in these one-of-a-kind resources. The Maryland Heritage Areas Authority’s stewardship of sustainable funding of heritage tourism helps strengthen communities, improves the state’s quality of life and helps generate economic energy.

Collectively, the power of that Heritage Area network of organizations, resources and the stories behind them is more powerful than any one individual or any subset of them.

ABOUT MHAA The Maryland Heritage Areas Authority (MHAA) is an independent unit within the Executive branch of state government and is administered by the Maryland Historical Trust, an agency of the Maryland Department of Planning. Funding which is currently $6 million annually comes out of Program Open Space funds. In 2019, approximately $5.1 million was allocated in grants.

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Introduction Passages of the Western Potomac

Lower Susquehanna

Baltimore National

Heritage Area Square Miles

Heritage Area Square Miles

Heritage Area Square Miles

1.67

73.23

25.45

Certification Year*

Certification Year*

Certification Year*

1996

2000

2001

Total Heritage Area Tourists in 2019

Total Heritage Area Tourists in 2019

Total Heritage Area Tourists in 2019

159,080

942,300

3,850,000

Key Counties/City

Key Counties/City

Key Counties/City

Allegany County

Harford County Cecil County

Baltimore City

Total Population (estimated)

Total Population (estimated)

Total Population (estimated)

70,975

356,782

602,495

Four Rivers

Maryland Milestones

Heart of Chesapeake Country

Heritage Area Square Miles

Heritage Area Square Miles

Heritage Area Square Miles

86.45

100.70

732.14

Certification Year*

Certification Year*

Certification Year*

2001

2001

2002

Total Heritage Area Tourists in 2019

Total Heritage Area Tourists in 2019

Total Heritage Area Tourists in 2019

2,074,436

614,088

325,380

Key Counties/City

Key Counties/City

Key Counties/City

Anne Arundel County

Prince George’s County

Dorchester County

Total Population (estimated)

Total Population (estimated)

Total Population (estimated)

576,031

909,308

31,998

* Becoming a Maryland Heritage Area is a two-step process — certification is the second and final step.

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Introduction Beach to Bay

Heritage Montgomery

Destination Southern

Heritage Area Square Miles

Heritage Area Square Miles

Heritage Area Square Miles

341.01

262.60

397.76

Certification Year*

Certification Year*

Certification Year*

2003

2004

2004

Total Heritage Area Tourists in 2019

Total Heritage Area Tourists in 2019

Total Heritage Area Tourists in 2019

1,755,006

3,193,023

1,578,287

Key Counties/City

Maryland

Key Counties/City

Key Counties/City

Somerset County Worcester County Wicomico County

Montgomery County

Total Population (estimated)

Total Population (estimated)

Calvert County Charles County St. Mary’s County

180,693

1,052,570

Total Population (estimated)

366,170

Stories of the Chesapeake

Heart of the Civil War

Mountain Maryland Gateway to the West

Patapsco Valley

Heritage Area Square Miles

Heritage Area Square Miles

Heritage Area Square Miles

Heritage Area Square Miles

1,201.57

732.06

185.54

37.15

Certification Year*

Certification Year*

Certification Year*

Certification Year*

2005

2006

2011

2015

Total Heritage Area Tourists in 2019

Total Heritage Area Tourists in 2019

Total Heritage Area Tourists in 2019

Total Heritage Area Tourists in 2019

824,800

3,816,250

781,152

753,374

Key Counties/City

Key Counties/City

Key Counties/City

Key Counties/City

Caroline County Kent County Queen Anne’s County Talbot County

Carroll County Frederick County Washington County

Garrett County

Baltimore County Howard County

Total Population (estimated)

Total Population (estimated)

Total Population (estimated)

Total Population (estimated)

366,170

575,003

29,163

1,151,627

* Becoming a Maryland Heritage Area is a two-step process — certification is the second and final step.

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“

About the Study

"Anacostia Trails Heritage Area keeps the community inspired and engaged with experiences that truly give Marylanders a reason to have pride of place values"

“

-- Jessica Smith Hebron Prince George’s African American Museum & Cultural Center

In June 2019, MHAA engaged Parker Philips Inc. to measure the economic and societal contribution of Maryland’s 13 Heritage Areas,

MARYLAND HERITAGE AREAS STUDY PROFILE

and their visitors, across the state. The goal of this analysis is to provide a complete assessment of the total economic, employment, and state and local tax impact of Maryland’s Heritage Areas and

Data Source: Maryland Heritage Area Authority, Individual Heritage Areas, Heritage Tourist Survey Data

related heritage tourism. Beyond the economics, the goal of the project is to tell the story of Maryland’s Heritage Areas and their cultural impact. Each individual Heritage Area represents a facet of Maryland’s one-of-a-kind story.

Geography: Maryland

Study Type: Economic Contribution Analysis Study Year: 2019 Methodology: IMPLAN

The primary tool used in the performance of this study is the I-O model and dataset developed by IMPLAN Group LLC. Primary financial data used in this study was obtained from MHAA and individual Heritage Areas and included the following data points: operational expenditures, grants and leveraged grant dollars for 2019. Primary data collected from 2,612 surveys was used to calculate spending by visitors (local day, non-local day and overnight). Surveys were collected throughout the Heritage Areas and online. In addition, 55 interviews were conducted with key stakeholders at the Heritage Area level to capture the unique voice and story of Maryland’s Heritage Areas. Additional information on the methodology and assumptions used to complete this study can be found in Appendix B.

Key Stakeholder Interview Top 3 Findings 1.

Maryland Heritage Areas drive heritage tourism and build capacity at the local and state level.

2.

Strong partnerships and relationships exist between Heritage Area Program directors and the key community stakeholders

3.

Increased state funding of the Heritage Areas Program expands the operating capacity and impact of heritage tourism at the local and state level.

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About the Study

Heritage tourism has a variety of economic impacts. Heritage tourists contribute to sales, profits, jobs, tax revenues and income throughout the Maryland economy. The most direct effects occur within the primary tourism sectors such as lodging, restaurants, transportation, amusements and retail. Through secondary effects, tourism affects most sectors of the economy. This economic impact analysis of heritage tourism activity focuses on changes in sales, income and employment in a region resulting from heritage tourism.

The impact presented in this analysis is broken down into three categories: direct impact, indirect impact and induced impact. The indirect and induced impacts are commonly referred to as the “multiplier effect.”

Direct effects are the changes in economic activity during the first round of spending. For Maryland heritage tourism this involves the impacts on the tourism industries (businesses selling directly to tourists) themselves.

Indirect effects are the changes in sales, income or employment within the region in backward- linked industries supplying goods and services to heritage tourism- related businesses. For example, the increased sales in restaurant supply firms resulting from more food and beverage sales is an indirect effect of visitor spending.

Induced effects are the increased sales within the region from household spending of the income earned in heritage tourism and supporting industries.

Employees in heritage tourism and supporting industries spend the income they earn from tourism on housing, utilities, groceries and other consumer goods and services. This generates sales, income and employment throughout Maryland’s economy.

Photo Contribution:“Dawn Peloton” by Geoffrey Baker

Draft: Not for Public Distribution

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Heritage tourism is a branch of tourism focused on the cultural heritage of the location where tourism is occurring. It showcases the uniqueness of place, and by its nature is a one-of-a-kind experience.

“Heritage tourism is the best of both worlds for Maryland; it is a business which cherishes the very things that make the state a great place to live and work, while bringing into the state the dollars of people who come from elsewhere to share those experiences.

The jobs created in heritage tourism can never be outsourced to any other region; they are a return on investment that will always be uniquely local and our own. Heritage Area benefits allow nonprofits and local jurisdictions to enhance and preserve the heritage product, giving travelers reasons to extend their stays, return often and recommend the Maryland Heritage Areas to friends.”

Source: Maryland Heritage Areas, “What is a Heritage Area”

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“Collectively, the power of the Four Rivers Heritage Area network of organizations in protecting the resources and the stories behind them is way more powerful than of any one individual site or any subset of them.”

– Anson “Tuck” Hines Director of the Smithsonian Environmental Research Center

Family enjoys the exhibits in the Maryland State House.

Photo courtesy of Visit Annapolis and Anne Arundel County.

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“

“

About the Study

Maryland Heritage Areas Program Contributes to the State and Local Economy Maryland’s Heritage Areas Program contributes to the local and statewide economies through expenditures on operations, capital projects and wages, and the spending of heritage tourists to sites and events throughout the state of Maryland. The direct, day-to-day expenditures of Maryland’s Heritage Areas, combined with heritage tourism spending, cause a ripple effect throughout the statewide economy.

The economic impact of Maryland’s Heritage Areas and heritage tourism in the state of Maryland totaled $2.4 billion in FY 19. This contribution to the local and statewide economies is a point-in-time snapshot depicting how the expenditures of Maryland’s Heritage Areas and heritage tourism make an impact. The impact can increase or decrease depending on state funding and number of heritage tourists.2 In response to the global pandemic, MHAA quickly awarded emergency COVID-19 funds, extended deadlines and allowed current grantees to convert their grants to be used for operations.

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“Now is an incredibly important time for the state to invest in our shared cultural attractions — museums and historic sites across the state are rising to the challenge of transitioning their efforts to digital outreach. Many of the selected MHAA grantees showed great creativity and dedication to pursuing inclusive history and interpretation that will have a positive change on the way we all see and understand Maryland history.”

“

– Meagan Baco Preservation Maryland Director of Communications member of MHAA grants review panel

2 The 2020 COVID-19 pandemic will have a significant impact on the economic impact of heritage tourism in Maryland. Given travel restrictions imposed for public health and safety, tourism numbers declined to many heritage sites and in the tourism industry overall.

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“Take My Hand” by Michael Rosato depicts Harriet Tubman and is located on the wall of the Harriet Tubman Museum and Educational Center in Cambridge Maryland.

Maryland Heritage Areas Program Contributes

Emancipation Day at Button Farm in the Montgomery County Heritage Area. The Menare Foundation, which operates Button Farm, was able to convert their FY 2020 MHAA grant to use for emergency operating expenses as a result of the COVID-19 pandemic. Photo by Sarah Rogers and courtesy of Heritage Montgomery.

Weathering the COVID-19 Storm Together In response to the unprecedented economic impact of the COVID-19 pandemic, the Maryland Heritage Areas Authority took the initiative to support the state’s heritage nonprofits with much-needed financial liquidity. In March 2020, MHAA approved 59 Emergency COVID Operating Grants, providing $600,440 to support partner organizations. These funds were used to pay rents, utilities, salaries and other basic operational expenses, providing a vital lifeline for their network of partners. This infusion of support generated $968,891 in economic impact in the Maryland economy.

Additionally, recipients of fiscal year 21 grants can convert up to $20,000 of their award and all previous open grants can convert the unexpended portion of their grant award COVID-related operating expenses. In total, 23 grantees have converted approximately $400,000 from their original awards into operating expenses. Many grantees have used these funds to transfer their exceptional projects to the digital world, creating much-appreciated opportunities to enjoy Maryland’s culture and heritage from home.

MHAA is dedicated to working with their partner organizations to ensure they remain strong during this period of adversity. In addition to offering emergency funding, MHAA has provided automatic extensions to grant deadlines and worked one-on-one with grantees to offer support. They have also made changes to match requirements to provide grantees with greater opportunities to leverage in-kind donations. MHAA continues to work with their partners to ensure Maryland's heritage is protected, to ensure sites are visitor-ready once the threat is lifted to open their doors and generate revenue for the statewide economy.

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Maryland Heritage Areas Program Contributes The Maryland Heritage Areas Program contributes a combined total of $2.4 billion annually to the Maryland economy.

OPERATIONS AND GRANTS CONTRIBUTION The Maryland Heritage Areas Program supports and sustains a combined total of 33,815 full-time and part-time jobs throughout the state.

A total of $17.9 million as a result of operational spending. Operations and grantmaking generated $10.4 million direct economic impact, $3.7 million indirect economic impact and $3.8 million induced economic impact.

HERITAGE TOURISM CONTRIBUTION Heritage Area visitor spending contributed a total of $2.4 billion. Visitors to Maryland’s Heritage Area’s generated $1.4 billion direct economic impact, $482.2 million indirect economic impact and $520.5 million induced economic impact.

Operations and Grantmaking

Heritage Tourism

TOTAL Impact

Direct

$10,364,913

$1,381,095,539

$1,391,460,452

Indirect

$3,735,786

$478,552,412

$482,288,198

Induced

$3,810,034

$516,723,287

$520,533,321

Total

$17,910,733

$2,376,371,238

$2,394,281,971 Source: Parker Philips using IMPLAN

Havre de Grace Lighthouse in the Lower Susquehanna Heritage Greenway.

Credit: Photo by Malgorzata Baker and courtesy of the Lower Susquehanna Heritage Greenway

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Creating and Sustaining Jobs Throughout Maryland The Maryland Heritage Areas Program supports and sustaints a combined total of 33,815 full-time and part-time jobs throughout the state.

OPERATIONS AND GRANTS CONTRIBUTION The Maryland Heritage Areas Program supports and sustains a total of 216 jobs — 137 direct jobs, 41 indirect jobs and 38 induced jobs.

HERITAGE TOURISM CONTRIBUTION Visitors to Maryland’s Heritage Areas Program supported and sustained a total of 33,599 jobs as a result of visitor spending — 23,886 direct jobs, 4,610 indirect jobs and 5,103 induced jobs.

Operations and Grantmaking

Heritage Tourism

TOTAL Employment

Direct

137

23,886

Indirect

41

4,610

Induced

38

5,103

Total

216

33,599

24,023 4,651 5,141 33,815 Source: Parker Philips using IMPLAN

Based on analysis by industry sector, jobs Chesapeake Heartland African American Humanities Truck.

supported in the Maryland economy impacted as a result of Maryland Heritage Areas and heritage tourism include: 1) tourism-related jobs — hotels, restaurants, retail, museums, parks; and 2) sectors in the economy supporting the heritage tourism industry workforce — hospitals/healthcare,

MHAA has awarded grants to Washington College for the purchase of the vehicle and for traveling exhibits, digital archiving technology and oral history recording equipment that will be used to outfit the truck.

real estate, insurance carriers and employment services.

Photo courtesy of Washington College.

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Creating and Sustaining Jobs

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“In Baltimore, we have had a willingness to embrace cultural challenges to achieve a better understanding of ourselves historically. The Baltimore National Heritage Area encourages collaboration between the historical community and cultural community because they are intertwined. When the two communities work together without compromising either side, real collaboration happens, and progress is made throughout the City of Baltimore.”

– Jeannie Howe Board of Directors of the BNHA Executive Director of the Greater Baltimore Cultural Alliance

“

Pride of Baltimore II in Baltimore's Inner Harbor.

Photo by Jeffrey G. Katz.

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Generating Local and State Tax Revenues The Maryland Heritage Areas Program, its employees, Heritage Area tourists, suppliers and its related constituencies contribute significantly to the local and statewide tax bases. In FY 19, Maryland’s Heritage Areas and related tourism contributed an estimated $319.8 million in state and local taxes through local spending (operational, grantmaking, heritage tourism), as well as direct and indirect support of jobs.

At the state and local levels, Maryland Heritage Areas and related tourism contributes to the tax bases through its purchasing. Specific taxes include employee and employer contributions to state and local social insurance funds, sales taxes, personal property taxes, taxes paid on motor vehicle licenses and payments of fines and fees.

$2,105,144 $263,579,666 $4,961,935 $49,186,164

$319,832,909

Social Insurance Tax:

Employee and Employer Contribution

Taxes on Production and Imports:

Sales Tax, Property Tax, Motor Vehicle License, Other Taxes, and Special Assessments

Corporate Profits Tax Personal Tax:

Income Tax, Motor Vehicle Licenses, Property Taxes, Other Taxes

Total State and Local Taxes Source: Parker Philips using IMPLAN

Memorial Illumination at Antietam National Battlefield. Courtesy of the National Park Service.

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“

“The Heart of the Civil War Heritage Area is doing an incredible service in creating interest in the area and its many resources. Linking sites and stories creates connections to the Heritage Area. The Heritage Area really fosters relationships and encourages creativity on how to enhance the area.”

– Jake Wynn Director of Interpretation at the National Museum of Civil War Medicine

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Appendix A: Terms & Definitions Direct Employment

Total number of employees, both full-time and part-time, at the organization based on total jobs, not FTEs

Direct Impact

All direct expenditures made by an organization due to its operating expenditures. These include operating expenditures and pay and benefits expenditures.

Dollar Year Government Revenue/ State and Local Tax Impact

Indirect Employment

Indirect Impact

Induced Employment

Presented in 2019 dollars Government revenue or tax revenue that is collected by governmental units at the state and local level in addition to those paid directly by an organization. This impact includes taxes paid directly by the organization itself, employees of the organization and vendors who sell products to the organization and at the household level.

Additional jobs created as a result of an organization’s economic impact. Local companies or vendors that provide goods and services to an organization increase their number of employees as purchasing increases, thus creating an employment multiplier.

The indirect impact includes the impact of local industries buying goods and services from other local industries.

The cycle of spending works its way backward through the supply chain until all money is spent outside of the local economy, either through imports or by payments to value added (multiplier effect).

Additional jobs created as a result of household spending by employees of an organization and the employees of vendors. This is another wave of the employment multiplier.

Induced Impact

The response by an economy to an initial change (direct effect) that occurs through re-spending of income received by a component of value added. IMPLAN’s default multiplier recognizes that labor income (employee compensation and proprietor income components of value added) is not lost to the regional economy. This money is recirculated through household spending patterns causing further local economic activity (multiplier effect).

Multiplier Effect

The multiplier effect is the additional economic impact created as a result of the organization’s direct economic impact. Local companies that provide goods and services to an organization increase their purchasing by creating a multiplier (indirect/supply chain impacts). Household spending generated by employees of the organization and the organization’s suppliers create a third wave of multiplier impact (induced/household spending impacts).

Study Year Total Value Added

Visitor Type

Fiscal year 2019 Includes organizational spending on operations, labor income expenditures and direct contributions to Maryland gross domestic product (GDP) as a result of expenditures made by an organization. It is the combined impact of direct, indirect and induced impacts.

Three types of visitors are defined in the study. Local day visitors (travel from less than 50 miles), day visitors (travel more than 50 miles) and overnight visitors.

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Appendix B: Data & Methods Data used to complete the Maryland Heritage Areas Program contribution analysis was provided by: MHAA, individual Heritage Areas and survey data collected from 2,612 heritage tourists attending events sponsored or hosted by the heritage areas and tourists visiting heritage sites throughout Maryland. Primary data was used to complete the input–output models in IMPLAN. The study approach and economic impact findings are a conservative estimate of impact and are based on actual financial information. The study is a snapshot of the economic impact of the Maryland Heritage Areas.

OVERVIEW AND THE IMPLAN MODEL The most common and widely accepted methodology for measuring the economic impacts of economic sectors is input–output (I-O) analysis. At its core, an I-O analysis is a table that records the flow of resources to and from companies/organizations and individuals within a region at a given time. For a specified region like a state of the nation, the input-output table accounts for all dollar flows between different sectors of the economy in a given time period. With this information, a model can then follow how a dollar added into one sector is spent and re-spent in other sectors of the economy, generating outgoing ripples of subsequent economic activity. This chain of economic activity generated by one event is call the “economic multiplier” effect.

The primary tool used in the performance of this study is the I-O model and dataset developed and maintained by IMPLAN Group LLC (formerly Minnesota IMPLAN Group Inc.). IMPLAN is a widely accepted and used software model first developed by the U.S. Forest Service in 1972. That data used in the baseline IMPLAN model and dataset come largely from federal government databases. The input–output tables themselves come from the Bureau of Economic Analysis. Much of the annual data on labor, wages, final demand and other market data comes from the Bureau of Labor Statistics, the U.S. Census Bureau and other government sources.

Government agencies, companies and researchers use IMPLAN to estimate the economic activities associated with spending in a particular industry or on a particular project. The IMPLAN model extends conventional I-O modeling to include the economic relationships between government, industry and household sectors, allowing IMPLAN to model transfer payments such as taxes. Producers of goods and services must secure labor, raw materials and other services to produce their product.

The Old Greenbelt Theatre at dusk.

Photo by Matt Johnson and courtesy of Maryland Milestones.

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Appendix B: Data & Methods The resources transferred to the owners of that labor or those raw materials and services are then spent to secure additional goods and services or inputs to the products they sell. For example, an organization in a region may develop a company that produces trains with a value of $1 million. However, to produce that product, they may be required to spend $500,000 in wages and benefits, $200,000 to supplier of parts, $100,000 for electricity, $50,000 for transportation of goods and raw materials to and from the plant and $50,000 in various professional services associated with operating a business (e.g., attorneys and accountants). The suppliers will, in turn, spend those resources on labor and raw materials necessary to produce trains. Workers and the owners of the company will buy goods and services from other firms in the area (e.g., restaurants and gas stations) and pay taxes. The suppliers, employees and owners of this second tier will, in turn, spend those resources on other goods and services within the study region or elsewhere. The cycle continues until all of the money leaves the region.

IMPLAN METHODOLOGY The model uses national production functions for over 536 industries to determine how an industry spends its operating receipts to produce its commodities. These production functions are derived from U.S. Census Bureau data. IMPLAN couples the national production functions with a variety of county-level economic data to determine the impacts at a state and congressional district level.

IMPLAN collects data from a variety of economic data sources to generate average output, employment and productivity for each industry in a given county. IMPLAN combines this data to generate a series of economic multipliers for the study area. The multiplier measures the amount of total economic activity generated by a specific industry’s spending an additional dollar in the study area.

Based on these multipliers, IMPLAN generates a series of tables to show the economic event’s direct, indirect and induced impacts to gross receipts or output, within each of the model’s more than 536 industries.

The model calculates three types of effects: direct, indirect and induced. The economic impact of the Maryland Heritage Areas Program is the sum of these three effects.

CONSIDERATIONS CONCERNING IMPLAN There are two important points about the use of IMPLAN (or any other input–output model): It is a fixed-price model. The model assumes that changes in consumption are not limited by capacity and do not affect prices. This simplifying assumption does not cause a problem for the analysis presented here because we are taking a snapshot of the Maryland Heritage Areas in a specific year.

As in many studies using this type of model, the direct impacts are not calculated by the model; they are a reflection of actual spending levels and patterns created by the Heritage Areas and Heritage Area visitors. Changing the level of direct spending allows us to calculate the magnitude of the indirect and induced effects associated with the initial level of spending.

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Appendix B: Data & Methods Because the model continues to calculate additional spending until all of the money leaves the region (i.e., “leakage”), the larger and more economically diverse the region, the longer it will take for spending to leave the regions, and the larger the impact is likely to be. For example, employees of a Maryland Heritage Area may spend some amount of their income on buying a car. If there are no car manufacturers in their state or county, this spending will leave the region and the multiplier effect will stop. At the national level, some portion of that same spending by that same individual may go to a national auto producer. That spending would lead to more spending at the national level than would be captured by a more regional model. The national impact will be larger than the sum in the individual states, and the individual state impact will be larger than the sum of the impacts in its congressional districts.

Maryland Heritage Area Programs Economic Analysis Process and Underlying Assumptions Definitions •

Direct contributions of Heritage Area and tourism expenditures become business receipts which in turn are used to pay wages and salaries and taxes.

•

Indirect contributions are attributed to local businesses spending part of their receipts on goods and services needed to serve customers. As a result, their suppliers must purchase goods and services from other vendors. This is the ripple effect of economic activity attributed to visitor spending to Maryland’s Heritage Areas.

•

Induced contributions include the household sector. It is the spending of wages and salaries directly and indirectly generated by the visitors and suppliers to the Maryland Heritage Areas and key partners. Induced effects refer to dollars that are circulated through the spending patterns of households causing a third ripple of economic impact.

Data Collection and Verification Maryland Heritage Areas were asked to verify prepopulated data collection forms and provide missing data to Parker Philips. All data points were described within the data collection form. These include operating expenditures, the number of Heritage Area employees, funding from grants and mini grants plus any additional public or private matching dollars. Parker Philips collected 2,612 surveys from heritage tourists at heritage area sponsored or hosted events and key tourism sites to calculate the spending impacts. This survey data drives the heritage tourism impact portion of the study.

Heritage Tourism Impacts Heritage tourist expenditures are best described as the initial monetary activity that stimulates the production process and initiates realistic measurement of economic benefit or impact. Visitor economic impact typically requires three basic inputs: (1) the number and types of visitors, (2) visitor spending patterns and (3) local economic ratios and multipliers. Multipliers for this analysis were obtained from IMPLAN databases, geographically focused for regions around Heritage Areas and the state economies. This data was collected from visitors across Heritage Area sites throughout Maryland.

25

Appendix B: Data & Methods Annual visitation averages are applied to three specific visitor segments from field research and survey collection information about visitor information data. The type of visitors included in the study are local day (less than 50 miles), non-local day (more than 50 miles) and overnight visitors. The percentage of the overall visitors and their respective segments are represented in the table below, Spending by Visitor Type.

SPENDING BY VISITOR TYPE Visitor Segment Local Day Non-Local Day Overnight

% of Total Visitation 32.8% 27.1% 40.1%

Average Daily Spending $32.67 $78.80 $247.36

Each visitor type spends varying amounts of money while visiting the Heritage Areas. The spending estimates of these groups are then applied to spending averages from the spending patterns analyzed from the survey data. The ratio of Heritage Area visitors and spending averages are then calculated to provide total spending estimates for each type of spending associated with visitation and tourism.

SPENDING ESTIMATES BY VISITOR TYPE Spending Percentages

Lodging

Camping Fees

Restaurants & Bars

Amusements

Groceries

Gasoline

Local day-trip

0.0%

0.0%

47.7%

22.5%

2.63%

6.15%

0.92%

20.1%

Non-local day-trip

0.0%

0.0%

44.6%

6.8%

7.5%

14.8%

1.7%

24.5%

Overnight

50.9%

0.96%

23.1%

5.1%

3.7%

5.4%

1.3%

9.6%

Local Transportation Retail Purchases

Each spending category has an associated IMPLAN code for which it is related to within the IMPLAN Pro software. The spending category and IMPLAN codes are detailed in the table below, Spending Estimates by IMPLAN Sector.

SPENDING ESTIMATES BY IMPLAN SECTOR IMPLAN Sector

Sector Name

Spending Type

406

Retail - Food and beverage stores

Groceries

408

Retail - Gasoline stores

Gas & oil

410

Retail - Miscellaneous store retailers

Retail purchases

520

Transit and ground passenger transportation

Local transportation

501

Museums, historical sites, zoos, and parks

Amusements

507

Hotels and motels, including casino hotels

Motel, hotel, bed and breakfast

508

Other lodging accommodations

Camping fees

510

Limited-service restaurants

Restaurants & bars

26

Appendix B: Data & Methods Once the spending amounts are calculated for each visitor segment and spending type, using data from the surveys collected at heritage area partner sites and events, the next step is entering the spending amounts into the IMPLAN software. Local resident spending is included in the economic benefits measures, as this captures all economic activity associated with Heritage Area visits, including local and non-local visitors. Spending by local residents on visits to Heritage Areas does not represent new money to the region.

Operational Impacts The operational impacts of the Maryland Heritage Areas Program are calculated based on operational expenditures, number of jobs and a fully loaded payroll. The employment or spending is entered into the IMPLAN model within Sector 522, Grantmaking, Giving, and Social Advocacy Organization.

The economic analysis completed for the operational impact analysis uses actual expenditures and Maryland Heritage Areas Program employment numbers to drive the total economic contribution analysis of employment, income and tax revenue. Operational impacts refer to the day-to-day management, coordination and activities executed by state staff and each Maryland Heritage Area. It refers to the impact of “keeping the lights on” as a heritage tourism organization in the state.

Grant Funding (including match) and Mini Grants Data from the 2019 grant season including the cash and in-kind match was utilized to calculate the impact upon the Maryland economy.

IMPLAN sector Code 501 was utilized to calculate this impact. Data was supplied to Parker Philips from MHAA and the individual Heritage Areas.

Wild ponies on Assateague Island.

Photo by Laura Seigel Powell.

27

Appendix C: FAQS WHAT IS AN ECONOMIC CONTRIBUTION ANALYSIS? Technically, this study is a contribution analysis. The study quantifies the economic contribution of the Maryland Heritage Areas Program and heritage tourism in terms of economic impact, jobs and local and state tax revenue. The study calculates how spending

by Maryland’s Heritage Areas and heritage tourists contributes to the economy of Maryland. It examines how expenditures create additional impact in the economy both directly and through the multiplier.

An economic contribution analysis quantifies the broader and more general case of how the economic activity cycles through an existing economy. For the purposes of this study, an economic contribution is defined as the gross changes in Maryland’s existing economy that can be attributed to the Maryland Heritage Areas Program and heritage tourism. Contribution analysis is a descriptive analysis that tracks gross economic activity: how spending by Heritage Areas and their constituencies cycle dollars through the economy. The MHAA economic contribution analysis does not consider how spending by a heritage tourist could crowd out another type of tourist within the state. This type of analysis is one of the most common that is performed and is very often mislabeled as an economic impact study. Please note that while the terms used to express the contribution of heritage tourism to the statewide economy are referred to as economic impact, this is a contribution analysis.

WHAT SHOULD YOU REMEMBER ABOUT THE STUDY WHEN YOU READ IT? • • • •

It is a point-in-time calculation of impact for FY 19.

The study quantifies the amount of impact that the Maryland Heritage Areas Program and heritage tourism produces each year.

The economic numbers can fluctuate year to year based on operational spending, capital spending, pay and benefits, number of employees, number of visitors and state funding.

These are conservative numbers and adhere to industry respected protocols.

WHAT METHODOLOGY WAS USED TO COMPLETE THIS STUDY? IMPLAN data and software were used to conduct this economic contribution analysis. The IMPLAN database is built using county, state, ZIP code and federal economic statistics that are specialized by region, not estimated from national averages, to measure the contribution or impact of an organization’s economic activity.

WHAT WERE THE MULTIPLIERS FOR THIS STUDY? The multipliers used in this study range from 1.8 to 2.1. The multipliers are derived through the input–output models created using the IMPLAN software based upon industries selected during the modeling process.

28

Appendix C: FAQS WHAT DATA DOES THIS STUDY USE TO CALCULATE THE ECONOMIC IMPACT? Primary data used in this analysis is for FY 19 and was obtained from MHAA, individual Heritage Areas and primary survey data. Data addresses the following subjects: • Operating expenditures • Pay and benefits • Program management grants with in-kind and cash match • Number and types of visitors • Visitor spending habits (local day, non-local day and overnight visitors) WHY DID MHAA COMMISSION A STUDY? MHAA commissioned the analysis to quantify the impact of the Maryland Heritage Areas Program, its 13 Heritage Areas and related heritage tourism. MHAA and the individual Heritage Areas have a number of tools helpful in explaining the value proposition for supporting heritage tourism; this independent study is one way to help explain its worth. In trying to explain the value of heritage tourism to both internal and external constituents, it is important to quantify the financial and societal gains realized throughout the state. There are many ways to view the impact and value of heritage tourism — economic impact is one.

Kayaking on the Anacostia River.

Photo by Mr. T in DC and courtesy of Maryland Milestones.

Draft: Not for Public Distribution

21

29

https://mht.maryland.gov/heritageareas.shtml Permission: By APK - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=94122948

Stories of the Chesapeake Heritage Area Makes an Impact December 2020

Stories of the Chesapeake Heritage Area $

98.4 MILLION in economic impact

1,397 JOBS

supported and sustained

$13.1 MILLION in state and local tax revenue Life here is inseparable from the Chesapeake Bay, North America’s largest and most productive estuary.

One of the oldest and largest remaining working landscapes in North America is also one of its most protected landscapes.

The fertile lands and rich waters form the foundation of the region’s economy and culture.

Known as the Breadbasket of the American Revolution, Maryland’s Eastern Shore farmers are leaders in agricultural innovation. Local watermen balance traditional methods of fishing with new innovations for raising seafood.

Indian sites range from rare Archaic, such as the 13,000-year-old Paw Paw Cove on Tilghman Island, to “contact” sites, where Captain John Smith first visited the indigenous tribes.

Historically significant small towns, many of which are listed on the National Register of Historic Places, remain hubs of community activity.

The history of the heritage area is closely interwoven with the story of religious toleration and early denominational development spanning from the 17th to the 20th centuries. Several nationally significant churches and numerous 19th century country crossroads chapels mark the landscape as “the Garden of Methodism”.

Free black communities were scattered throughout the heritage area as early as the 17th century. The Hill Community in Easton is one of the oldest free African American neighborhoods in the United States. Founded in the 1780s as this crossroads grew into a town, this community continues today.

Significant African American sites include Rosenwald schools, large and small, Sumner Hall, one two remaining Grand Army Republic (G.A. R.) halls in the United States, and Buffalo Soldiers home.

Birthplace of nationally recognized abolitionists Frederick Douglass and Henry Highland Garnet and hotbed of Abolitionist activity along Underground Railroad routes traveled by Harriett Tubman and supported by Quakers, black mariners, and the remote landscape.

Home to two National Scenic Byways: Harriet Tubman Underground Railroad and Chesapeake Country. The National Park Service Network to Freedom program includes sites associated with African Americans and whites who risked their lives to help self-liberators reach freedom, and Civil War sites where some enslaved people fled to join the ranks of the Union Army.

1

Stories of the Chesapeake Heritage Area The Stories of the Chesapeake works with community partners to tell the story of Maryland’s Eastern Shore through preservation and enriching experiences to promote the cultural and natural heritage of the region while enhancing its economic vitality.

The Stories of the Chesapeake Heritage Area includes four rural Maryland counties on Chesapeake Bay’s Eastern Shore. Scenic roads and waterways link 21 historic municipalities and many more agricultural and maritime villages. The area includes seven major rivers and more miles of shoreline than any comparable group of counties in the nation. Caroline, Kent, Queen Anne’s, and Talbot counties are a significant part of the nation’s last great Colonial landscape.

The heritage area tells stories of European and American history. The views, the farms, the communities, the buildings, and even much of the population – those whose roots extend to Colonial times still evoke the nation’s early American past. Beneath current roads and bridges lie original American Indian trails and river crossings. Historic homes and property lines still mark the countryside. Community churches offer the timeless rhythms of worship. Small towns and villages reflect transportation and settlement patterns laid down centuries ago. Many buildings built in the 18th and 19th centuries still survive – some date back to the 17th century.

This is a landscape that reflects centuries of a thriving regional economy, fueled by the riches of land and water, accessible by boat nearly everywhere and with level lands readily traversed and easily plowed. The Chesapeake Bay is the reason much of this landscape has survived. As demographic patterns shift and population moves toward these rural counties, Stories of the Chesapeake Heritage Area, at the direction of their board and in cooperation with local governments, will work to promote managed growth and development to preserve this historic landscape and culture.

The Stories of the Chesapeake Heritage Area was certified in 2005 and acts as a conduit through which large and small, public and private organizations connect. Acting as a catalyst for regional marketing, one of our initiatives “Maryland’s Tastiest Catch” showcases the Eastern Shore’s culinary traditions and connects our culture and heritage destinations. The heritage area continues to identify creative marketing opportunities.

In cooperation with local governments, land trusts, and other conservation organizations, the Stories of the Chesapeake supports efforts to maintain the region’s special sense of place. Encouraging expanded use of historic preservation incentives and regulations where necessary helps to maintain the historic character of our region’s communities, waterways, and landscapes. Extending our knowledge through careful surveys of below-ground historic and prehistoric deposits encourages archeological conservation and research.

As a trusted resource, we make projects happen. The Stories of the Chesapeake convenes workshops on grant writing, accessibility, social media, volunteer management, and virtual exhibits and tours, which have resulted in an increase in grant funding for our partners and other economic investments in our region. The heritage area acts as a clearing house for funding sources, training, and innovation techniques to help our partners tell their stories.

As communities and economies change, Stories of the Chesapeake Heritage Area works to celebrate past traditions, encourage events that build a sense of community, and offer new venues and markets to support artists, craft workers, and performers. The Stories of the Chesapeake celebrates our Cultural traditions enrich the quality of life and are part of what makes living and visiting the area a distinctive experience.

2

Stories of the Chesapeake Key Sites Span Across Kent, Queen Anne's, Caroline, and Talbot Counties Betterton Heritage Museum Bordley History Center - Historical Society of Kent County Chestertown Tea Party Festival

KEY Museum Point of Interest

John Smith Water Trail - Sassafras River Water Trail *

Scenic Byway/Historic Road/Railway Historic House Trail

Church Hill Theater

Park

*

Cross Island Trail/ American Discovery Trail

Pictured

Garfield Center for the Arts at Prince Theater Kent County Visitors Center

Bay Country Welcome Center

Main Street Chestertown *

Kennard Cultural Heritage Center

Raimond Arts Building

Tucker House and Wright's Chance Queen Anne's Historical Society

Sultana Education Foundation Sumner Hall - Grand Army Republic Post

Chesapeake Country National Scenic Byway

Turners Creek Park and Sassafras Natural Resources Management Area

Old Wye Mill *

Washington College

Pickering Creek Audubon Center Wye Island Natural Resources Mgt Area

Adkins Aboretum Fiber Arts Center of the Eastern Shore Frederick Douglass Park on the Tuckahoe

Chesapeake Environmental Center

Museum of Rural Life

Chesapeake Heritage & Visitors Center *

Tuckahoe State Park William Still Underground Railroad Family Interpretive Center *

Eastern Neck National Wildlife Refuge

Wharves of Choptank Visitor and Heritage Center

Kent Narrows Watermen's Heritage Trail

Underground Railroad/All-American Road

Historic Christ Church

Linchester Mill James Webb Cabin *

Chesapeake Bay Maritime Museum St. Michaels Museum at St. Mary's Square

Chambers Park Cabin Federalsburg Museum at the Covey Williams Garage

Phillips Wharf Environmental Center Tilghman Watermen's Museum

Avalon Theatre

Oxford Museum

Frederick Douglass Memorial *

Talbot County Visitors Center

Mary Jenkins House Talbot Historical Society

The Hill Community - Historic Easton

This map represents a graphic interpretation of the heritage area boundaries, and should not be used to determine whether sites are inside or outside the boundaries.

3

Waterfowl Festival

Economic Impact of Stories of the Chesapeake Economic Contribution The economic impact of the Stories of the Chesapeake Heritage Area is $98.4 million annually. This economic impact consists of tourism driven by the presence of the Stories of the Chesapeake Heritage Area ($96.9 million), and the operations and grantmaking activities of the heritage area in collaboration with MHAA ($1.5 million).

Operations and Grantmaking

Heritage Tourism

TOTAL Impact

Direct

$742,092

$56,253,394

$56,995,486

Indirect

$373,682

$19,637,751

$20,011,433

Induced

$362,833

$21,051,932

$21,414,765

Total

$1,478,607

$96,943,077

$98,421,684 Source: Parker Philips using IMPLAN

Employment Contribution The employment impact of the Stories of the Chesapeake Heritage Area 1,397 jobs supported and sustained. This economic impact is driven by the presence of the Stories of the Chesapeake’s operations and grant making activities which support 24 jobs and tourism in the heritage area supporting 1,373 jobs.

Operations and Grantmaking

Heritage Tourism

TOTAL Employment

Direct

16

976

992

Indirect

4

189

193

Induced

4

208

212

Total

24

1,373

1,397 Source: Parker Philips using IMPLAN

4

Valley Heritage Area EconomicPatapsco Impact of Stories of the Chesapeake State and Local Tax Contribution The total state and local taxes generated as a result of the Stories of the Chesapeake Heritage Area based upon operations, grantmaking, and tourism totals $13.1 million.

$86,483 $10,816,120 $203,091 $2,019,683

$13,125,377

Social Insurance Tax:

Employee and Employer Contribution

Taxes on Production and Imports:

Sales Tax, Property Tax, Motor Vehicle License, Other Taxes, and Special Assessments

Corporate Profits Tax Personal Tax:

Income Tax, Motor Vehicle Licenses, Property Taxes, Other Taxes

Total State and Local Taxes Source: Parker Philips using IMPLAN

ABOUT THE STUDY In June 2019, Maryland Heritage Areas Authority (MHAA) engaged Parker Philips Inc. to measure the economic contribution of its 13 heritage areas.

The goal of this analysis is to provide a complete assessment of the total economic, employment, and state and local tax impact of heritage tourism.

The impact presented in this analysis is broken down into three categories: direct impact, indirect impact and induced impact. The indirect and induced impacts are commonly referred to as the “multiplier effect.”

The primary tool used in the performance of this study is the I-O model and dataset developed by IMPLAN Group LLC. Financial data used in this study was obtained from MHAA, individual heritage areas, visitor surveys, and Maryland tourism data. It included the following data points: operational expenditures, capital expenditures, grants awarded, and payroll and benefits for employees for FY 19. Primary surveys were conducted with heritage area visitors across the state in the heritage area (day and overnight and local and non-local visitors).

5

Stories of the Chesapeake Heritage Area

WHAT IS A MARYLAND HERITAGE AREA? Heritage Areas are locally designated and state certified regions where public and private partners make commitments to preserving and enhancing historical, cultural and natural resources for sustainable economic development through heritage tourism. The program is intended as a partnership between state agencies and local communities to optimize the appeal of the state’s distinctive regions as heritage tourism experiences. At the same time, heritage areas focus community attention on under-appreciated aspects of history, culture, and natural areas to foster a stronger sense of regional pride.

STORIES OF THE HOPE, PERSEVERANCE, AND RESILIENCE The Stories of the Chesapeake occupies one of North America’s oldest working landscapes. The heritage area is a wellspring of stories of hope, perseverance, and resilience that continue to inspire us today.

Abolitionist, activist, and minister Henry Highland Garnet was born enslaved in 1815 in Kent County. As a child he escaped with his family to New York City. He later became a tireless activist and prominent member of the movement that encouraged more political action. His “Call to Rebellion" speech in 1843 encouraged slaves to take action and claim their own destiny. He inspired others to take action, including John Brown who led the 1859 attack on the arsenal in Harpers Ferry. On February 12, 1865, Garnet made history when President Abraham Lincoln chose him to give a sermon before the House of Representatives—making him the first African American to do so. In 1881, President James A. Garfield appointed Garnet to serve as United States Minister and Consul General in Liberia.

One of leading Americans of the 19th century, Frederick Douglass was born enslaved along the Tuckahoe River in Talbot County. After escaping the bonds of slavery in 1838, he became an internationally renowned abolitionist, writer, orator, and statesmen. He was a force in the anti-slavery movement and the first African American citizen to hold executive position in the U.S. government. When Douglass visited Easton in March 1893, he told the assembled children at Moton School the story of a boy who lost his parents, a slave forced to sleep on a cold floor, who taught himself to read, and grew to speak, hold high public offices, and accumulate some wealth. He concluded, “That boy was Frederick Douglass. What is possible for me is possible for you.”

6

“

"We like to think that we make projects happen and are utilizing the heritage area to build a strong and meaningful network. We do not want to be seen simply as a passthrough for grant funding, but a true partner in strengthening capacity. We develop our technical workshops to support these efforts. Our collaborations with other organizations such as Washington College and the USDA have provided support. We also work in concert with tourism professionals from other regions to encourage people to not only visit our heritage area, but others as well.”

— Rob Forloney President of the Stories of the Chesapeake Heritage Area Board

“

www.storiesofthechesapeake.org

@storiesofthechesapeake

What is Waterfowl Festival’s Annual ECONOMIC AND CULTURAL IMPACT on Talbot County?

TAXES GENERATED

$2,600,000 Total Economic Impact

$

6,833 visitors traveled more than 50 miles $3,000,000 spent in county 74¢ of every $1 spent stayed in the county

$ VISITOR SPENDING

Ç

32%

of spending was on shopping (12% above average)

$421

spent on their trip to WF

$787,000 $429,000 in in tax receipts state or local tax receipts

2019

50%+

of county lodging income in November comes from Festival guests

6 of 10 visitors stay overnight

plan to visit Talbot County again

48 $1,600,000 local jobs

in wages generated

57% stay in Easton

WHAT GUESTS THINK

99%

JOBS SUPPORTED

89% satisfied or very satisfied

83% of local residents say Festival is important to local economy

70% say food & beverage is important 63% say Fine Arts are important 50%+ love the dog related experiences 2019 Waterfowl Festival drew

SI N CE 197 1 W F H A S G IV EN :

Data source: Waterfowl Festival and 2019 Analysis by Rockport Analytics

ECONOMIC IMPACT

WF GRANTS $4,000,000 habitat conservation $1,200,000+ education $26,000 wildlife research initiatives

15,120 people to Easton

ate for d e h t e v a S tival s e F 's r a e next y

estival F t s r i f e Th ears! y 0 5 t x e n of the

WATERFOWL FESTIVAL NOVEMBER 12–14, 2021

Waterfowl Chesapeake connects financial resources to environmental needs and engages people and communities about the value of waterfowl and their habitats.

Waterfowl Festival Inc. is a non profit, 501 (c)(3) organization dedicated to wildlife conservation, the promotion of wildlife art and the celebration of life on Maryland’s Eastern Shore.

WaterfowlChesapeake.org

WaterfowlFestival.org

The Economic & Cultural Impact of the 2019 Waterfowl Festival® Key Metrics & Evaluation, April 2020

Table of Contents Study Results Highlights

3

Background & Methodology

4

Economic, Cultural & Community Impact

7

Attendee & Visitor Profile

11

Festival Activity Participation & Attendee Satisfaction

18

Economic Impact Results

23

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

2

Economic Impact of the 2019 Waterfowl Festival: Key Takeaways • In 2019, the Waterfowl Festival attracted more than 15,120 attendees with 45% of those attendees visiting from more than 50 miles away. The average length of stay among visitors was 2.1 nights with 41% visiting Easton for the day while the remaining 59% staying overnight in the region.

• Excluding the cost of Festival admissions, these visitors spent a total of nearly $3 million on various goods and services within the Talbot County economy. Based on results from an intercept survey of visitors, each visitor spent on average $145 on lodging (overnight only), $98 on food and beverage, $61 on recreation and entertainment and $138 on retail purchases.

• The Waterfowl Festival generated an additional $496,000 in event-related operating expenses by vendors, exhibitors and event organizers in the Talbot County economy. Adding this to visitor expenditures brought total local 2019 Waterfowl Expenditures to $3.5 million.

• This $3.5 million in expenditures resulted in nearly $2.6 million in total economic impact (value added) to the Talbot County economy.

Talbot retained about 74 cents of every dollar spent locally by Festival visitors and organizers. Approximately $905,000 of Waterfowl Festival spending left the region, “leaking” out through purchases of imported goods and services.

• Festival-initiated activity supported a total of 48 jobs (full-time and part-time), which resulted in $1.6 million in wages paid Talbot County. A large proportion of these wages will continue to ripple through the economy as workers spend their income on various goods and services throughout the local area.

• Waterfowl Festival-initiated spending generated an estimated $787,000 in tax receipts, including $357,000 in federal receipts and another $429,000 in state and local tax receipts. The event contributed roughly $29,000 in hotel taxes and nearly $6,000 in state and local taxes and fees associated with car rentals.

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

3

Background & Methodology About The Waterfowl Festival and Waterfowl Chesapeake Waterfowl Festival is a nonprofit, organization dedicated to wildlife conservation, the promotion of wildlife art and the celebration of life on Maryland’s Eastern Shore. For nearly five decades, the organization has staged an annual event that has raised millions for wildlife and habitat conservation, education, and research. Waterfowl Chesapeake, the conservation arm of Waterfowl Festival, connects, engages and educates communities about the benefits of healthy waterfowl populations and habitats. The organization also serves as a neutral convener for events, forums and discussions leading to the preservation of the Chesapeake’s ecosystems.

About Rockport Analytics Rockport is a research and analytical consulting firm providing high quality quantitative and qualitative research solutions to business, government, and non-profit organization clients across the globe. They provide fast, nimble service in a transparent environment.

Capabilities include: • Market Analysis and Forecasting • Visitor Research • Market Modeling and Decision Support Tools • Primary and Secondary Research Synthesis • Stakeholder Surveys – internal & external • Economic Impact Assessment

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

4

Background & Methodology Study Overview The economic impact of the 2019 Waterfowl Festival was commissioned by Waterfowl Chesapeake whose mission is to create, restore and conserve waterfowl habitat in the Chesapeake Bay region. The research was conducted by Rockport Analytics, an independent market research & consulting company, using a time-tested approach that has been applied to many events, attractions and travel destinations of varying scope and size. The goal of the study was to measure and analyze the full economic contribution that event organizers and visitors make to Talbot County’s GDP, jobs, wages, and tax receipts. The analysis also sought to understand the community and cultural impacts that the Waterfowl Festival has on local and regional stakeholders.

Methodology Both behavioral and attitudinal data were collected from Waterfowl Festival attendees through an in-person intercept survey. The survey was fielded at three locations during the weekend of the event which included: Downtown Easton, the Sporting Heritage Pavilions at the Easton Elks Lodge, and the Chesapeake Marketplace at Easton Middle School. To supplement these responses, Rockport also fielded a post-event online survey to attendees that did not participate in the in-person survey. A total of 554 responses were collected resulting in a ±4.1% margin of error at a 95% confidence level. Both residents and visitors answered questions about their experiences during the event. Residents were also asked a series of questions that focused on the cultural and the community impacts of the event.

Additional visitor attributes were captured including origin, travel party size, length of stay, and spending across an array of categories.

The spending and associated impacts estimated included in this study represent both in-state and out-of-state visitation. A visitor is defined as any attendee who has either stayed overnight or traveled a distance of at least 50 miles one way 1 and whose primary reason for being in Talbot County was the Waterfowl Festival. In a separate survey, artists and vendors were also asked to provide their travel expenses in addition to any local operating expenses incurred during the event. Lastly, in order to obtain more in-depth qualitative data on the impact of the Waterfowl Festival, we conducted a series of one-on-one interviews with key Waterfowl Festival stakeholders, capturing measures of the impact on the community, the local culture of Talbot County and Maryland’s Eastern Shore and the Conservation of Waterfowl and the Chesapeake Bay.

1 UNTWTO

definition of a visitor includes anyone, regardless of origin, who stayed overnight or traveled more than 50 miles one way on a day trip.

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

5

Background & Methodology Methodology Cont.

An economic model of Talbot County is also critical to estimating how traveler spending resounds through the state and county-level economies. Rockport Analytics has chosen the IMPLAN model for Talbot County (www.implan.com), a non-proprietary economic model that has become the standard for most economic impact assessments in the United States. This model is critical to measuring the direct, indirect, and induced impacts of visitation to the state. IMPLAN also measures how much of each tourism dollar remains in the county economy. Total traveler spending generally exceeds the direct impact of tourism. This is because not all goods and services purchased by travelers are supplied by firms located in Talbot County. The IMPLAN model accounts for these import “leakages”2 to suppliers located outside of the county. Generally, the more diversified a local economy, the lower are import leakages and the higher the retention and multiplier of visitor spending.

The total economic impact of travelers is separated into three distinct effects: direct, indirect, and induced. The direct impacts represent the value added of those sectors that interact directly with, or touch, the visitor. The indirect impact represents the benefit to local suppliers to those direct sectors. This would include, for example, Talbot County-based food suppliers to restaurants. The induced impact adds the effect of tourism-generated wages as they are spent throughout Talbot County’s economy such as when an employee from a hotel spends on grocery items for their household.

2 Leakages refer to goods and services that must be

imported into to the county due to insufficient instate capacity.

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

6

The Waterfowl Festival’s Impact on the Local Economy & Tourism to the Region The Waterfowl Festival is an annual, three-day event that promotes wildlife conservation and celebrates life on Maryland's Eastern Shore. Located at several locations throughout historic downtown Easton, the Festival encourages visitors to experience the unique retail and dining opportunities available. In 2019 alone, more than 6,800 Festival participants traveled at least 50 miles or spent the night in Talbot County, contributing more than $2.9 million to Talbot County restaurants, transportation, retail, entertainment & recreation and lodging establishments.

For 50 years, the event has brought visitors to Easton. Since 1995, the Festival has sold more than 11,000 tickets annually. The economic contribution of visitors is especially valuable for the region during a time of year when tourism is not as strong as it is during the summer months. According to Ross Benincasa, Executive Director at Discover Easton, “The restaurants, retailers and hotels all rely on the business that the event brings, and local businesses rely on an uptick in sales from people outside the area even

if they are only in town for the day.”

The Festival also plays a key role in fostering economic activity in other Talbot County towns outside of Easton. In 2019, more than 41% of Festival attendees participated in activities held in St. Michaels and Oxford. Of the visitors who stayed in Talbot County overnight, roughly one quarter stayed in either St. Michaels, Oxford or Tilghman Island.

According to Pete Lesher, Talbot County Councilman, “the

83% of residents believe that the Waterfowl Festival is very important or essential to stimulating the local economy

1%

16%

47%

town works hard to make sure that they are putting their best Not Important at All foot forward.” Efforts to be welcoming to visitors seem to be

Absolutely Essential

paying off - 68% of visitors in 2019 were returning for at least the third time and 99% of Waterfowl Festival visitors reported that they plan to visit Talbot County again.

81% of residents believe that the Waterfowl Festival is very important or essential to promoting the local attractions and amenities 19%

Not Important at All

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

36%

50%

31%

Absolutely Essential

7

The Waterfowl Festival’s Impact on the Community Since its inception in 1971, the Waterfowl Festival has relied on the support of community residents, leaders and businesses. Every year an average of 1,500 volunteers work tirelessly before, during and after the Festival to execute an event that not only showcases the unique culture and history of the region where they live, but also brings in dollars to support the local economy and conservation of their local environment. The Festival’s ability to maintain an ongoing cadre of volunteers over time is a testament to the town’s willingness to work together in support of the event. Results from our research show that, most residents acknowledge the event’s ability to bring people together with 63% of resident attendees believing that the Festival is “very important or essential” to uniting the community toward a common goal.

Pete Lesher, Talbot County Councilman and longtime resident of Easton explains that, “because there

are so many residents involved in organizing the event, the town and the event are interconnected.

There is camaraderie about the event and a sense of mission, a sense that what volunteers are doing has a larger purpose.” This sentiment is also reflected by residents who attended the Festival, 77% of whom believe that the Waterfowl Festival is “very important or essential” to igniting a sense of community pride.

According to Tracy Ward from the Easton Economic Development Corporation, the event promotes a sense of pride and identity while also providing engagement opportunities for residents. The residents interviewed share this point of view and 71% believe that the event is “very important or essential” to providing opportunities for residents to become more engaged.

Many of the community stakeholders interviewed mentioned that residents of Easton think of the Festival as an annual ‘homecoming’, a time to reunite with friends and family. Jacqueline Wilson, a longtime resident and current Vice President of a local community bank explained that “the event and that weekend are a big ‘to do’ for the town.

Everyone is looking forward to hustle and bustle, the town transforms itself, and there is a feel-good vibe in Easton.”

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

8

The Waterfowl Festival Showcases the Culture & Heritage of Maryland's Eastern Shore In the 1970s, a group of ambitious enthusiasts envisioned an event that would celebrate the unique Eastern Shore heritage that they treasured in the hopes of preserving it before it was lost. Since then, the Waterfowl Festival has played a significant role in showcasing the history and culture of Maryland’s Eastern Shore to countless visitors. According to Cassandra Vanhooser, Director of Talbot of the County Department of Economic Development and Tourism, the event is “the ultimate Eastern Shore lifestyle extravaganza. It combines all the things that residents love about the region.” Results from our survey show that most residents recognize the crucial role the event plays in keeping traditions alive and that 82% believe the Waterfowl Festival is “very important or essential” to celebrating and showcasing the local culture and heritage.

Ross Benincasa at Discover Easton, says the Waterfowl Festival has helped define Easton’s identity and it has been instrumental in promoting the Eastern Shore lifestyle and art to the rest of the country and the world.

“When people hear of Easton, its often because of the Waterfowl Festival. They have put the town on the map.”

An important aspect of the Festival is its ability to keep these traditions alive by offering educational activities and programming for event attendees regardless of age. In fact, three quarters of residents surveyed believe the Waterfowl Festival is “very important or essential” for providing recreational and educational opportunities.” The decoy carving activities and decoy exhibits, the World Waterfowl Calling Contests, the raptor demonstrations and the conservation activities at the Bay Street Ponds are all examples of ways the event seeks to bring residents closer and to inspire future generations to become historians, preservationists, and the sportsmen and women of tomorrow.

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9

The Waterfowl Festival Promotes the Arts & the Conservation of the Chesapeake Bay Promoting the Conservation of the Chesapeake Bay

Promoting Wildlife Art and Artists

For 50 years, the Waterfowl Festival has promoted the value of the Chesapeake Bay and the need to preserve its treasures. The Festival has also highlighted the critical role that these ecosystems play in the lives and livelihood of the people in the Eastern Shore. Since 1971 when the first Festival raised $7,500, the Waterfowl Festival and Waterfowl Chesapeake have raised and granted more than $6.5 million in funding to organizations in the Delmarva Peninsula that are focused on protecting and preserving the region’s wildlife and landscapes. According to Waterfowl Chesapeake, the organizations have invested nearly $4 million in habitat conservation, more than $1.2 million in education, and more than $26,000 in wildlife research initiatives. In Easton, the organization has also played a key role in restoring and maintaining the Bay Street Ponds. Residents attending the Festival are aware of this impact with three-quarters of attendees reporting that the Waterfowl Festival is “very important or essential” to ensuring the conservation of Chesapeake Bay wildlife and ecosystems.

The Waterfowl Festival also celebrates the art of artists who take inspiration from nature. Throughout the years, the event has showcased the works of leading sculptors, painters, carvers and photographers from across the U.S. and the world, as well as those on the Eastern Shore. Art is integral to the Festival and the town.

According to Ross Benincasa, Executive Director at Discover Easton, “Easton is a

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

town with a thriving arts scene. The art featured at the Festival is a draw for individuals who are both art connoisseurs and those who are art novices.”

In 2019, the event selected painter Nancy Tankersley, a 15-year resident of, Easton as the Featured Artist. “I’m privileged to see the excitement build as our little town is transformed into the site of a major art and conservation Festival,” she said. “The enthusiasm of the crowds, the local businesses, and the volunteers make the months of preparation and labor well worth the effort. The fact that this Festival is in its 50th year is a testament to the vision of its founders, the support of the local community, and the wisdom and hard work of the people that keep it going year after year!”

10

The Economic & Cultural Impact of the 2019 Waterfowl Festival Attendee & Visitor Profile

Waterfowl Festival Attendance & Visitation 2019 Waterfowl Festival Attendees & Visitors Total Ticketed Attendance (Ticketed only) (Talbot County Resident & Visitor)

Non-Ticketed Primary Attendees (Non-ticketed only) (Talbot County Resident & Visitor)

Total Unique Attendance (Ticketed & Non-Ticketed) (Talbot County Resident & Visitor)

Total 12,048

3,072

15,120

Total Primary Visitors (Ticketed + Non-Ticketed) (Visitors only=Traveled at least 50 miles one way or stayed overnight & the primary reason for being in Talbot Co. was the event)

The number of Ticketed Attendees reflects the total number of tickets sold during the event, the tickets sold online in advance of the event, and any complementary tickets given to volunteers and businesses as part of their sponsorship package. The total unique ticketed attendance number includes both Talbot County Residents and people from outside the county.

The Waterfowl Festival is a ticketed event; however, visitors can walk the streets of Easton and enjoy many of the food, beverage and entertainment offerings without purchasing a ticket. The total number of tickets sold is therefore not fully representative of the total number of attendees who participated in the Event’s activities. To arrive at an estimate of the Total Unique Attendance, Rockport started with the total unique attendance of ticketed visitors as estimated by the Waterfowl Festival.

Additionally, we used survey responses to estimate that an additional 3,072 individuals traveled to Easton specifically for the Waterfowl Festival but had not purchased a ticket to the event. Adding these individuals to the 12,048 unique ticket holders attending the Festival, we estimated a total unique attendance of 15,120. This estimate includes both Talbot County Residents and people from outside the county.

6,833

Total Primary Visitor Spending (Primary visitor spending only=Traveled at least 50 miles one or stayed overnight & the primary reason for being in Talbot Co. was the event)

$2.97M

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

While both visitors and residents attended the 2019 Waterfowl Festival, the task of assessing the economic and fiscal impact requires a focus on visitors only. Only spending from visitors traveling more than 50 miles from Easton was considered net new, or incremental to the Talbot County economy. Any spending from attendees within 50 miles of Easton was not considered new expenditures and was therefore excluded from the economic impact assessment.

12

Waterfowl Festival Attracts Visitors From Throughout the Region

Estimated Attendees Who Traveled over 100 miles: 1,740

Estimated Attendees From Under 50 miles: 8,287 Estimated Attendees Who Traveled 50 to 100 miles: 5,893

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

13

Waterfowl Festival Attendee Demographics Attendee demographics profiled here represent both local residents & out-of-area visitors

WF Attendee Age

40% 30%

Male 46%

Female 53%

71% of attendees were 45 or older

50%

Average Age @ 55

30%

20% 10%

41%

24% 4%

0% 18-25 N=467. Base= All respondents excluding those specifying other

WF Attendee Household Income 40%

37% 30%

Nearly two-thirds of attendees have a household income of $100K or more

30% 28%

20% 16%

10% 0%

Three quarters of attendees have at least 38% an Associate or Bachelor's degree

65+

14%

37%

20%

16%

10%

9%

5% $49.9K or Less

45-65

WF Attendee Education

Average Income @ $119K

40%

25-45

N=467. Base= All respondents specifying age

0% $50K to $74.9K

$75K to $99.9K

$100 to $149.9K

N=465. Base= All respondents specifying income Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

$150K or more

Graduated high school

Some college, trade, or Associate or Bachelor’s technical school degree

Advanced degree (Masters, PhD, MD)

N=465. Base= All respondents specifying education

14

Waterfowl Festival Visitor Average Length of Stay and Party Size WF Visitor Length of Stay (Total Nights)

50%

 The 6,833 visitors to the 2019 Waterfowl Festival had an average length of stay in Talbot County of 2.2 nights.

Roughly 41% visited on a day trip.

Average: 2.2

41% 40%

 40% of visitors stayed one or two nights and roughly 20% stayed more than 3 nights.

30% 20%

20%

20% 13%

10%

4%

2%

0% Day Trip Only

1

2

3

4

5 or More

N=216 Base= All visitors

WF Visitor Party Size 49%

50%

 Overnight visitors staying with friends and relatives had party sizes that were larger than the average at 3.3 people and visitors staying at hotels had party sizes that were slightly smaller than the average at 2.6 people.

40% 30% 18%

20% 10%

 The average party size for visitors to the 2019 Waterfowl Festival was 2.9 people and close to half (49%) of respondents traveled with one other person.  Nearly one-third of visitors had party sizes of 4 people or more.

Average: 2.9

60%

 Overnight visitors staying with friends and relatives had a length of stay that was longer than the average at 3.1 days.

10%

9%

5%

9%

0% 1

2

3

4

5

6+

N=214 Base= All visitors Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

15

Primary Accommodations for Overnight Visitors During the Waterfowl Festival Primary Accommodations Among All WF Visitors

 Nearly 6 out of 10 respondents surveyed stayed overnight during the 2019 Waterfowl Festival. These visitors spent an average of $251 per trip on lodging.

47%

50% 40% 30%

 Of those overnight visitors, roughly 26% stayed with friends and relatives with the remainder (74%) staying in some type of paid accommodations.

26%

20% 9%

10%

9%

8% 1%

0% Hotel or Motel

Friends or Relatives

Peer-to-Peer Rental (Airbnb, VRBO)

Other

Bed & Breakfast

Tuckahoe or Martinak State Park

N=128 Base= All respondents selecting an accommodation type

60%

57%

Location of Primary Accommodations Among All WF Visitors

50% 40%

 More than half (55%) of overnight visitors stayed in a hotel or motel or in a bed & breakfast and 9% stayed in a short-term vacation rental. Of the 47% who stayed in a hotel, more than three quarters (76%) stayed in a hotel in Easton.  Nearly two thirds (57%) of overnight visitors stayed in Easton, however, many lodging establishments throughout Talbot County also benefitted. Roughly one quarter of overnight visitors (25%) stayed in other towns within Talbot County such as St. Michaels, Oxford and Tilghman Island. About 9% of visitors stayed in Cambridge.

30% 20%

12%

10%

9%

9%

7%

5%

Oxford

Tilghman Island

1%

0% Easton

St Michaels

Cambridge

Other

N=127 Base= All respondents selecting a location of stay

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

Kent Island/Kent Narrows

16

2019 Waterfowl Festival Visitor Spending Categories 2019 Waterfowl Festival Visitor Spending Ground Transportation 8%

Shopping 32% Other 3%

$2.98 Million Entertainment & Recreation 14%

Lodging 20%

Food & Beverage 23%

Food & Beverage Lodging Recreation & Entertainment Ground Transportation Shopping Other Spending Total

Spending in Talbot County

Share of Total Spending

$671,872 $590,565 $417,966 $245,963 $953,010 $96,834 $2,976,210

23% 20% 14% 8% 32% 3% 100%

Source: Rockport Analytics



The 6,833 visitors to the 2019 Waterfowl Festival spent nearly $3 million in travel-related goods and services. On average, visitors spent roughly $421 within Talbot County during their trip.



The vibrant restaurant and shopping scenes in Easton and nearby Talbot County towns tends to attract more visitor dollars to the retail and food & beverage categories. In fact, these two categories comprised more than half (55%) of total visitor spending. Retail spending made up slightly more than one third (32%) of the visitors’ total budgets.



Despite higher hotel class offerings and higher ADRs in Talbot County the share of lodging spending is only 20% with only 40% of visitors staying overnight. Additionally, almost a quarter of the overnight visitors stayed with friends and relatives, lowering the number of visitors who stayed in paid accommodations to roughly 25% of the total.

Despite this, the amount spent on lodging by visitors on Waterfowl weekend represents more than half of the lodging spend in Easton for the entire month of November and over a quarter of total Talbot County spending in November1.

1Estimate based on 2018 lodging expenditures

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

17

The Economic & Cultural Impact of the 2019 Waterfowl Festival Festival Activity Participation & Attendee Satisfaction

Reasons for Attending & Other Events Enjoyed by Waterfowl Festival Attendees Primary Reason for Attending the Waterfowl Festival

30%

25% 20%

21% 18%

10%

12%

11% 3%

0%

To enjoy the arts & support the To enjoy the sporting & outdoor To enjoy the cultural heritage & work of artists aspects traditions

Family Tradition

To support the conservation of To enjoy educational wildlife & landscapes opportunities for my children

Activity Participation Among Waterfowl Festival Attendees 80%

77% 60%

61%

61%

40%

29%

20% 0%

Walking around town

Food and beverage vendors

Dining out at restaurants Activities in St. Michaels

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

12%

10%

Activities in Oxford

Brew and Oyster Brawl

7% Other

19

Waterfowl Festival Attendees Enjoy Food & Beverage, Art, and Dog-Related Activities Activities Offered at the Waterfowl Festival that are Important to Attendee’s Experience F&B and Fine Art are primary to attendees’ experience

Food and Beverage

70%

Fine Art Pavilions/Galleries

63%

Diving Dogs Competitions

56%

Retriever (Dog) Demos

49%

Sporting Vendors/Sportsman’s Pavilion

42%

Chesapeake Marketplace artists

38%

Music

35%

Antiques & Collecting (Buy Sell Swap & Artifacts Exhibit)

33%

Conservation Activities

27%

Raptor Demos

24%

Duck and Goose Calling Competitions

23%

Children’s and Family activities

17%

Yappy Hour

5% 0%

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

Dog competitions are a main attraction for many attendees

15%

30%

45%

60%

75%

20

Satisfaction with the Waterfowl Festival & the Food Offerings 89% of attendees were satisfied or extremely satisfied with the Festival

1% 7%

30%

1% 20%

59%

■Very Unsatisfied

■Unsatisfied

■Neutral

Interest in Various New Food & Beverage Activities at Future Festivals 50% 49%

30%

33%

44%

2%

3%

40%

77% of attendees were satisfied or extremely satisfied with the food offerings

Two-thirds of attendees are interested in more interactive food-related activities.

34%

■Satisfied 

Overall, Waterfowl Festival attendees were extremely satisfied with the event with 9 out of 10 reporting that they were ‘satisfied’ or ‘very satisfied’ with the Festival.



Overall satisfaction with the food offerings was relatively high with nearly 8 out of 10 attendees reporting that they were ‘satisfied’ or ‘very satisfied’ with the offerings. There is room for improvement, however, with only 44% responding that they were ‘very satisfied’ and 20% neutral in their satisfaction rating.



More than one-third (32%) of attendees would like to see a cooking demonstration area and 34% are interested in a cooking competition.



Nearly 50% are interested in farm-to-table activities. These can be used to showcase the offerings of the Chesapeake Bay and Maryland’s Eastern Shore.

32%

20%

10%

13%

12%

A dinner/social event in the evening

Other

0% Farm to table event A cook-off of some Cooking kind demonstration area

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

■Very Satisfied

21

Net Promoter Scores and Likelihood of Attending the Waterfowl Festival Again How likely are you to recommend the Waterfowl Festival to friends or relatives?

7.8%

Detractors Passives

A Few Key Findings from the NPS Analysis for Waterfowl Festival:

17.8%

NPS

Promoters

 The NPS for Talbot County Residents is 62 and the score for visitors is 74.

67

 Repeat Visitors to Talbot County have an NPS of 83. First-time visitors to Talbot County had slightly higher NPS scores than repeat visitors at 86 vs 83 respectively.

74.4%

Net Promoter Score (NPS) is frequently used as a headline measure of customer loyalty. Years of research have pointed to NPS as being the singlemost correlated satisfaction metric with profitability1. The Net Promoter system divides respondents into three categories: Promoters, Passives or Detractors.

The percentage of Detractors is subtracted from the percentage of Promoters to obtain the score.

10

9

8

7

6

5

As it applies to events or festivals, NPS is an important measure in determining who is likely to visit again and who is likely to promote your event to others. While it is certainly not the only visitor loyalty or satisfaction measure for event organizers to consider, it is one that should be tracked over time if organizers are looking to improve offerings to visitors, increase visitor activity and economic impact.

4

3

2

1

 Of visitors who stayed overnight, those staying in Easton had one of the highest NPS scores at 90.  Those who visited for the primary reasons of “enjoying the cultural heritage & traditions of the Chesapeake Bay & Maryland’s Eastern Shore” and “because attending is a family tradition” both had NPS scores of 86.

0 1Fred Reichheld, The

Promoters

Passives

Ultimate Question: Driving Good Profits and True Growth (Harvard Business Press, 2006)

Detractors

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22

The Economic & Cultural Impact of the 2019 Waterfowl Festival Economic & Fiscal Impact Assessment

Waterfowl Festival’s Bottom Line in Talbot County and Maryland Economic Impact Summary of the 2019 Waterfowl Festival 2019 Metric

Direct

Indirect

Induced

Total

Total Unique Attendance1

15,120

Total Ticketed Attendance2

12,048

Total Unique Visitors3

6,833

Total Visitor Spending4

$2,976,210

Vendor Local Expenditures

$407,917

Waterfowl Festival Local Operating Expenditures5

$88,182

Total Visitor, Vendor, and Operations Spending Economic Impact (GDP) Wages Jobs

$3,472,308 $1,660,338

$423,851

$482,755

$2,566,944

$1,013,243

$295,095

$268,687

$1,577,026

35

7

6

48

Tax Receipts Total

$786,846

Tax Receipts Federal

$357,478

Tax Receipts State and Local

$429,368

Source: Rockport Analytics, Waterfowl Chesapeake, IMPLAN, Maryland Comptroller, Talbot County Office of Finance.

1 Number calculated based on tickets sold or given to volunteers/ sponsors along with the share of attendees traveling at least 50 miles whose primary reason for being in Talbot

County was the event and who did not yet have a ticket but were planning on buying one.

2 Includes the number of tickets sold during the event, the tickets sold online in advance of the event, and any complementary tickets given to volunteers and businesses as part of their sponsorship package. This number includes both Talbot County Residents and attendees from outside the county.

3Includes non-Talbot County attendees whose primary reason for being in the County was the event and who either stayed overnight or traveled a distance of at least 50 miles one way.

4 The visitor spending figures includes only dollars spent by “primary visitors” and it excludes the cost of event admissions.

5 Excludes salaries paid to event staff.

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

24

The Economic Progression of the 2019 Waterfowl Festival in Talbot County Expenditures by Visitors and Organizers

Contribution to Talbot County’s Economy

Value to Talbot County Businesses Direct Industry GDP $1.6 million

2019 @ $3.5 million

Expenditures include: Hotel, food and beverage (F&B), transportation, shopping, recreation, etc., from out-of-area visitors to Talbot County Local operating expenses by event organizer

Retained Talbot Co. Economy $2.6 million

Indirect & Induced Industry GDP

Minus Import Leakages -$905,000

Total Event-Supported Jobs* 48

$906,000

Talbot County retains about 74 cents of every dollar spent in the local area by visitors and organizers

Direct Industry GDP refers to businesses that serve Waterfowl Festival visitors (e.g. hotels, restaurants, retail, entertainment)

Leakages refer to goods & services that are imported into the region from outside due to insufficient local supply

Indirect & Induced GDP includes construction, business services, security services, equipment rental, etc.

*Full & part time jobs

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

25

Value Added of the 2019 Waterfowl Festival Activities Economic Impact of the 2019 Waterfowl Festival (Value Added/GDP) Industry (NAICS)*

Direct

Accommodation & food services Arts- entertainment & recreation Retail trade Real estate & rental Professional- scientific & tech services

Induced

Total

$922,825 $269,238 $247,562 $90,643 $48,583

$32,243 $11,362 $11,379 $74,027 $77,887

$30,228 $8,733 $46,973 $134,781 $27,979

$985,296 $289,333 $305,914 $299,451 $154,450

$32,133

$53,409

$15,677

$101,219

$30,226 $18,684 $235 $202 $8 $1,660,338

$25,721 $22,120 $36,444 $17,744 $1,590 $1,108 $30 $1,501 $7,622 $30,616 $17,431 $1,581 $36 $423,851

$8,874 $16,812 $31,408 $30,968 $587 $466 $18 $6,563 $3,498 $10,017 $2,224 $4,525 $102,422 $482,755

$64,821 $57,616 $68,088 $48,913 $2,185 $1,574 $48 $8,065 $11,120 $40,633 $19,655 $6,106 $102,458 $2,566,944

Administrative & waste services Transportation & Warehousing Wholesale Trade Finance & insurance Other services Manufacturing Ag, Forestry, Fish & Hunting Mining Utilities Construction Information Management of companies Educational services Health & social services Non NAICs & Government Total 2019

Indirect

Direct Businesses that serve Waterfowl Festival visitors

Indirect Supply Chain businesses that often do not fully appreciate the benefits that visitors bring to Talbot County

Induced Tourism-supported workers spend much of their wages locally creating benefits to virtually all local businesses

Source: Rockport Analytics, IMPLAN * North American Industrial Classification System (NAICS). For specific industry definitions, see www.census.gov Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

26

Jobs Supported by the 2019 Waterfowl Festival Activities Economic Impact of the 2019 Waterfowl Festival (Employment) Industry (NAICS)*

Direct

Accommodation & food services Arts- entertainment & recreation Retail trade Transportation & Warehousing Administrative & waste services Professional- scientific & tech services Real estate & rental Wholesale Trade Other services Finance & insurance Manufacturing Ag, Forestry, Fish & Hunting Mining Utilities Construction Information Management of companies Educational svcs Health & social services Non NAICs & Government Total 2019

Indirect 18 7 6 2 1 35

Induced 1 1 1 1 1 7

Total** 1 1 1 1 6

19 8 7 3 2 1 2 1 1 1 48



Spending initiated by Waterfowl Festival visitors and organizers supported 35 direct jobs in Talbot County. An additional 13 jobs were supported by the tourism supply chain and other downstream businesses.



More than half (51%) of the direct jobs supported were in the accommodations & food services sectors, both of which are sustained primarily by visitor spending.



Spending by event organizers supported jobs in industries that are less often associated with visitor activity such as administrative & waste services, and professional-scientific & tech services.

Source: Rockport Analytics, IMPLAN *North American Industrial Classification System (NAICS). For specific industry definitions, see www.census.gov ** Numbers might not add due to rounding Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

27

Wages Supported by the 2019 Waterfowl Festival Activities Economic Impact of the 2019 Waterfowl Festival (Wages) Industry (NAICS)*

Direct

Indirect

Induced

In 2019, spending by visitors and event organizers generated a total of nearly $1.6 million in wages for Talbot County employees.



Most of these local wages will continue to circulate through Talbot County as employees spend their dollars on goods and services in the local economy.



The average wage of a Talbot County employee (part + full time) supported by event spending was more than $33,000.



Wages paid to workers in sectors that directly support visitors such as Accommodation & Food Services made up roughly 53% of direct wages.

Total

Accommodation & food services

$535,769

$22,604

$19,044

$577,417

Arts- entertainment & recreation

$178,133

$7,925

$5,185

$191,243

Retail trade Real estate & rental Professional- scientific & tech services Administrative & waste services Transportation & Warehousing Wholesale Trade

$144,002 $54,194 $31,916 $31,593 $26,330 $11,041

$6,169 $34,246 $56,335 $44,362 $22,810 $11,960

$27,827 $11,970 $20,047 $12,935 $6,894 $7,463

$177,998 $100,410 $108,298 $88,890 $56,034 $30,464

$135 $124 $8 $1,013,243

$21,566 $16,826 $971 $1,000 $17 $238 $6,001 $25,778 $14,603 $1,650 $33 $295,095

$19,249 $29,864 $304 $456 $11 $3,037 $2,579 $5,282 $1,863 $4,932 $89,743 $268,687

$40,950 $46,814 $1,283 $1,456 $28 $3,275 $8,580 $31,060 $16,467 $6,583 $89,776 $1,577,026

Finance & insurance Other services Manufacturing Ag, Forestry, Fish & Hunting Mining Utilities Construction Information Management of companies Educational svcs Health & social services Non NAICs & Government Total 2019



Source: Rockport Analytics, IMPLAN * North American Industrial Classification System (NAICS). For specific industry definitions, see www.census.gov

Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

28

Fiscal Impact of the 2019 Waterfowl Festival 2019 Waterfowl Festival Tax Revenue Collections 2019

Federal – U.S. Corporate Income

$7,092 $122,020 $42,726 $185,640

2.0% 34.1% 12.0% 51.9%

 Event-supported tax collections totaled nearly $787,000 with more than $357,400 going to federal taxes. Federal taxes represent roughly 45% of the overall tax collections.

$357,478

100%

 Sales tax collections attributed to event attendees reached nearly $196,000.

The state sales taxes collected represent roughly 45% of the total eventsupported state and local tax collections.

$2,741 $49,251 $2,270 $15,223 $4,002 $624 $195,979

1.0% 18.2% 0.8% 5.6% 1.5% 0.2% 72.6%

$270,089

100%

$28,894 $122,723 $5,198 $2,464

18.1% 77.0% 3.3% 1.5%

$159,279

100%

Personal Income Excise & Fees Social Security & Other Taxes Federal Tax Total

Share of Total

State – Maryland Corporate Income Personal Income Social Insurance Taxes Other Business Taxes Other Household Taxes & Fees MD Rental Car Surcharge Sales Taxes Maryland Tax Total

Local – Talbot County Hotel Occupancy Tax Property Taxes Rental Car Charges & Fees Other Licenses, Fines & Fees Local Tax Total Total Tourism-Supported Taxes

State & Local Tax Receipts Initiated by 2019 Waterfowl Festival Visitor and Operations Spending Reach $429,000.

 The event contributed roughly $29,000 in hotel taxes and nearly $6,000 in state and local taxes & fees associated with car rentals. Hotel taxes represent more than 18% of event-initiated local tax collections.  Event-supported visitor and operations spending generated nearly $18,000 in corporate income and other business taxes, comprising roughly 4% of state & local taxes.  Event-initiated spending contributed 77% of local property tax collections.

Property taxes are calculated by the IMPLAN model. The model allocates a portion of total property tax receipts based upon visitor’s contribution to residential wages and commercial revenue.

$786,846

Source: Rockport Analytics, IMPLAN, Maryland Comptroller, Talbot County Office of Finance Copyright © 2020 Rockport Analytics, LLC. All Rights Reserved.

29

2019 Waterfowl Festival Supported Tax Revenue Distribution of State Taxes Generated by the 2019 Waterfowl Festival

Distribution of Local Taxes Generated by the 2019 Waterfowl Festival

$270K

$159K

Corporate Income 1.0%

Personal Income 18.2%

Other Business Taxes 5.6%

Other Household Taxes & Fees 1.5%

Sales Taxes 72.6%

Rental Car Charges and Fees 3.3%

Social Insurance Taxes 0.8%

Property Taxes 77.0%

Other Licenses, Fines & Fees 1.5% Hotel Tax 18.1%

MD Rental Car Charges 0.2%

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