The Economic Impact of Sport Business Travelers to a Football (Gridiron) Event. Christopher Keshock, Brooke Forester, Shelley Holden, Steven Pugh University of South Alabama, USA European Sport Tourism Conference May 2015 Limerick, Ireland
Economic Impact Sporting Events True Economic Tourists Mobile, Alabama Senior Bowl-College FB All Stars Sport Business Travelers Methodology Results
Outline
Amount of new money entering region from hosting sporting event. True Economic Tourists- new local spending from those residing outside impact region. Results help convince the public whether event is good investment.
◦ PUBLIC SUBSIDIZATION- ROI ◦ VIK- USE OF PUBLIC VENUES/RESOURCES ◦ OPPORTUNITY COST for Mobile, Alabama?
Economic Impact Sporting Events
Spectators Teams Business Travelers?
◦ ◦ ◦ ◦ ◦ ◦
Media Vendors Sponsors SGM Governing Body Officials Coaches, Scouts, Agents
True Economic Tourists
Mobile, Alabama
Sport Business Travelers- Senior Bowl
Random Sampling-game, ancillary events, programs Hotel Headquarters, Convention Center, Cruise Terminal, Practices, Game Day- Press Box, Tailgate, Sponsors Registered 2,452 NFL 38% Media 27% NCAA 10% Sponsors 10% Agents 9% Financial Advisors/Other 6%
Methodology
Business Travelers
Spectators
N=278 Registered 2,452 Group Size 1.67 Number Days 4.53 Number Nights 3.67 Outside City 95.6% Stay 92.4% paid lodging Years Senior Bowl 6.28
Results
N= 436 Attendance 33,643 Group Size 3.03 Number Days 1.99 Number Nights 1.21 Outside City 69% Stay 31.1% paid lodging Years Senior Bowl 5.97
Business Travelers
True Economic Tourists
Spectators
◦ 88.1% Out-of-Towners ◦ 11.9% Locals
Stay ◦ ◦ ◦ ◦
Hotel Family/Friends Commute BB/Condo
◦ 69.3% Out-of-Towners ◦ 30.7% Locals
90.5% 2.3% 5.3% 1.9%
Senior Bowl Visitors
True Economic Tourists Stay ◦ ◦ ◦ ◦
Hotel Family/Friends Commute BB/Condo
22.5% 15.9% 53% 8.6%
Business Spending Per Day
F&B Entertainment Retail Rental Transport Private Auto Other Expenses Tickets
Lodging
$83.15 $42.07 $11.95 $47.58 $26.96 $14.19 $9.09 $234.99 $144.87
Spectator Spending Per Day
F&B Entertainment Retail Rental Transportation Private Auto Other Expenses Tickets
Lodging
$28.25 $7.82 $9.81 $5.89 $21.70 $8.92 $22.56 $104.95 $117.26
Results- Direct Spending Per Person
Business Travelers ◦ Lodging $1,312,522 ◦ Other Direct Spending $2,299,320 ◦ Total $ 3.6 Million City Fiscal Impact $180,592
Spectators ◦ Lodging $613,387 ◦ Other Direct Spending $4,869,128 ◦ Total $ 5.5 Million City Fiscal Impact $274,125
Results-True Economic Tourist Expenditures
Costs
$150,000 public subsidy Use Stadium Tues-Sat $5,000 per day ($25,000) Use Convention Center for week ($10,000 per day) 4 days $40,000 Police and EMT Crowding Out- Hotel Negative Externalities Opportunity Costs
Cost/Benefit Analysis
Benefits
Fiscal Impact $454,717 ROI 203% Free Use Public Venues ROI 111% Stadium Concessions, Parking, Vendors, SB 5 fulltime employees Parking, Local Caterers, Fan Frenzy, FCA, Fun Run $152,900 MASA given to local charities Social Impact- live to see another football game, NFL Players (Pigskin Cult) Nation-wide audience, Repeat Tourists 110 hours NFL Network NFL PERSONALITIES IN TOWN
Questions?