2012 Blue Ridge Marathon Economic Impact by Pete Eshelman

2012 Economic

Impact Analysis National College Blue Ridge Marathon - Roanoke, VA

This report was prepared by the Roanoke Valley – Alleghany Regional Commission and Roanoke Regional Partnership. The economic impact analysis provided in this report was generated using an economic impact model calibrated for a specific study area using standard regional data sets. The results are to be interpreted as a best estimate of economic impact based on the assumptions and/or data provided. The Roanoke Valley – Alleghany Regional Commission does not guarantee the accuracy of data or assumptions supplied by the client or of any other source, nor does it advocate or guarantee the success of any particular policy change, course of action, or any decision that may be ultimately based on the information in this report. The Roanoke Valley – Alleghany Regional Commission is not responsible for any errors, omissions, the accuracy of data/inputs supplied by its client(s), or for the ultimate use of this data including any decisions made or the effects of any decisions made based on the information in this report.

Introduction On April 21, 2012, the Roanoke Region welcomed 1,092 runners who participated in the third annual National College Blue Ridge Marathon and Half Marathon. Organized by a consortium of public and private entities, including the Roanoke Regional Partnership, the City of Roanoke, Congressman Bob Goodlatte and Odyssey Adventure Racing, the 2012 marathon is an excellent example of regional collaboration. The event was supported by donations of cash and/or in-kind services from the following: National College, Carilion Clinic, Fink’s Jewelers, RoanokeOutside.com, Roanoke Regional Partnership, Foot Levelers, Taubman Museum of Art, Rotary Club of Downtown Roanoke, Dominion Electric Vehicles, John Carlin Agency, City of Roanoke Parks and Recreation, FloydFest, WSLS Channel 10, Downtown Roanoke Incorporated, RIDE Solutions, Fleet Feet Sports, GU Energy Labs, Roanoke Valley Convention and Visitors Bureau, Organization for Autism Research, Just Finish, Woodrow Wilson Bridge Half Marathon, Friends of the Blue Ridge, and United Dairy. The race benefitted the Friends of the Blue Ridge Parkway, a nonprofit and volunteer organization dedicated to preserving and protecting the Blue Ridge Parkway. Billed as America’s toughest road marathon, the race course started in downtown on Jefferson Street and ended at the Taubman Museum of Art and went from the low elevations of downtown Roanoke and the Roanoke River to the higher elevations at the top of Mill Mountain and Roanoke Mountain along sections of the Blue Ridge Parkway for a total elevation change of 7,234 feet. Race organizers knew it would be of vital importance to gauge the economic impact of the race event. Such information would be instrumental in helping the community to understand the impacts such events bring to the community and to build support for future marathons in the Roanoke Region of Virginia. The Roanoke Regional Partnership and Roanoke Valley – Alleghany Regional Commission worked to prepare a participant survey and to prepare this assessment of the economic impact of the event.

Methodology A survey was produced jointly by Roanoke Regional Partnership and the Roanoke Valley – Alleghany Regional Commission by improving on the survey instrument from the previous year. The survey was distributed to event participants in the weeks following the event. Participation was incentivized with entries into a drawing for an iPad. In total, there were 316 respondents to the survey, representing a response rate of approximately 29 percent of actual participants. The study area for this analysis was defined as the Roanoke Metropolitan Statistical Area, which is composed of the Counties of Botetourt, Craig, Franklin, and Roanoke; and the Cities of Roanoke and Salem. Survey responses were used to compute average expenditures for food, lodging, and retail purchases made in the region per person per day. The IMPLAN (IMpact Analysis for PLANning) economic impact

Figure 1: Study Area Location

model for the Roanoke Metropolitan Statistical Area (using IMPLAN data for the study region and utilizing social accounting multipliers) was employed to estimate the amount of regional activity originating from the Marathon event. IMPLAN is an economic impact modeling software first developed jointly by the University of Minnesota and the U.S. Forest Service in the 1970’s and later expanded upon by the Minnesota IMPLAN Group. The modeling software and IMPLAN proprietary data set is currently maintained by the Minnesota IMPLAN Group, a private company based in Stillwater, Minnesota. IMPLAN is widely used by a number of universities, economic consultants, economic development professionals, and others involved in estimating economic impact of programs and events. IMPLAN models the flow of expenditures through industries and institutions of a regional economy that result after an initial economic stimulus is made in a given economy. More information on the IMPLAN model and data set can be obtained at http://www.implan.com.

Survey Results The survey was conducted by Roanoke Regional Partnership. The survey yielded 316 responses for a response rate of 29 percent. Geographic Dispersion Approximately 61 percent of runners were from the state of Virginia and 83 percent were from the southeastern United States. In all, there were 29 states represented in addition to the District of Columbia. One runner traveled from Quebec. Figure 2: Participation by Year

Utilizing the runner registration list, it was determined that 59 percent of participants originated from outside the study area and were therefore counted as visitors in the analysis. Those originating from outside of the MSA were divided into those who were likely to have made a day-trip out of running in the marathon and those who were likely to have spent the night based upon the distance traveled to attend. Generally, those traveling two hours or more were classified as overnight visitors. Generally, survey results supported this classification with the majority of runners from two hours or more indicating some

hotel expenditure associated with the event. Runners living outside the MSA boundaries but living less than two hours away were classified as day-trip visitors. There were 491 participants classified as overnight visitors and 151 participants classified as day-trip visitors. It is important to note that expenditures of visitors to the area are of chief concern to this analysis, since such expenditures represent new money entering the region. Income and Education Figure 3: Household Income of Participants

Most runners, approximately 79 percent, held at least a four-year degree and 41.6 percent held advanced degrees. Approximately 37 percent made over $100,000 last year. Length of Stay Over half (56 percent) of all survey respondents reported staying in town for the 2012 National College Blue Ridge Marathon for at least one night. Approximately 45 percent stayed between one and two nights in the region. The average length of stay among overnight visitors was 1.85 nights. Size of Travel Party Just over 44 percent of all respondents reported traveling with family or friends. Respondents were asked to report the number of non-participants that traveled with them. The average size of the travel party among overnight visitors was 1.7. Day-trip visitors traveled with an average of 0.3 others per participant. Visitation to Local Attractions Participants were asked if they visited any local attractions such as Taubman Museum of Art, Virginia Transportation Museum, Mill Mountain Star, etc. Approximately 55 percent of respondents more than two hours from the race reported visiting a local attraction. Approximately 37 percent of other respondents living outside the study area reported visiting a local attraction.

Average Expenditures Respondents were asked to report the amount spent on fuel, meals, lodging, miscellaneous retail purchases, and admissions while in the study area. The following were the average values for those respondents who were from outside of the study area. Figure 4: Average Travel Party Expenditures Category Lodging Meals Gas Misc. Retail Admissions

Overnight Visitors $110.14 $68.35 $43.70 $59.13 $4.90

Day-trip Visitors -$35.00 $26.03 $16.67 $2.50

These average per travel party per day expenditures were used to identify an initial direct impact figure input into the IMPLAN model. The number of participants associated with the Blue Ridge Marathon was multiplied by each category to determine the direct impact in the restaurant, hotel/motel, general merchandise retail, gasoline, and museum/historical site industries. These direct impacts were entered into the IMPLAN model. The software was instructed to consider only the retail margin of the purchases made in the retail sectors (the wholesale cost of each product likely leaves the region as in most cases the product is manufactured elsewhere and the margin also does not include the costs of transporting the product to the store). Purchases made by the race organizers for goods and services in the study area were also added since the majority of funds used in organizing the marathon were race entry fees. Donations to local charitable organizations having their headquarters in the region were also considered since those organizations operate within the study area. The fees paid by the participants from outside the study region far surpassed these local expenditure and donation amounts. The IMPLAN model calculates a direct, indirect, and induced impact after adjusting the initial direct impact for leakage by using estimated retail margins.

Local Spending As a general rule, only those expenditures made by visitors are used in any estimate of economic impact since local spending represents recirculation of wealth within a local economy. While there were 450 local runners, 375 known local volunteers, and at least 1,000 local spectators that likely spent local funds on lunch and snacks during the day of the event and likely made other expenditures that they might not have spent otherwise, there is no method short of a volunteer/spectator survey to determine the proportion of local participants that would have travelled outside the region as opposed to participating in marathon activity. A case for import substitution simply cannot be made without this data.

Economic Impact It is estimated that the second annual National College Blue Ridge Marathon attracted $248,876 in direct new sales activity to the region, which lead to an additional $128,322 in indirect1 and induced2 spending for a total impact on output3 of $377,198. This corresponds to an increase of $206,184 in value added4 to the regional economy. Activity surrounding the event will support 4.9 jobs in the regional economy for the period of a year5. The summary impact table below is a useful illustration of the event’s impacts. Figure 5: Summary Economic Impact Table Direct Effect Indirect Effect Induced Effect Total Effect

Output $248,876 $74,345 $53,977 $377,198

Employment Labor Income 3.9 $90,746 0.6 $25,801 0.4 $16,571 4.9 $133,118

Value Added $133,806 $40,919 $31,460 $206,185

The impact of the National College Blue Ridge Marathon increased 11.2 percent from 2011. A considerable increase in the number of runners translated into a higher net economic impact. The chart below summarizes the impacts of the last three marathon events. In all, the event has supported over a million dollars in total regional economic impact in its first three years.

Figure 6: Economic Impact by Year

Indirect impacts are those represented by local industries purchasing from other local industries as a result of a direct economic event. Indirect impacts represent a cumulative total of several cycles of spending that work through the local economy until all remaining money from the initial stimulus leaks from the study area economy. For instance, a series of restaurants making purchases of goods from local suppliers as a result of participant spending on meals would be an example of an indirect impact. 2 Induced impacts are those impacts that result from household spending by employees impacted in the direct and indirect phases of economic impact. The respending of wages earned by employees working for industries impacted into the local economy are induced impacts. 3 Output can generally be understood as regional sales activity. Output is more precisely defined as the value of industry production. In the case of service industries, which are primarily involved in the tourism and visitation industry, the value of production equals sales. 4 Value added is defined as the difference between an industry’s total output and the cost of any intermediate inputs. Value added includes employee compensation, taxes, and operating surplus. Value added is best understood as the contribution made to gross domestic product or, more simply, as new wealth in the region. 5 The IMPLAN model considers employment to represent annual average full-time/part-time jobs, which may manifest themselves as overtime and/or retention of a job in the service industry that might otherwise have been lost without the economic stimulus of the event.

APPENDIX

2012 National College Blue Ridge Marathon and Half Marathon

Please answer the following questions as completely and accurately as possible. All responses will remain confidential. Thank you for participating and for taking the time to help us improve our efforts for next year.

1. For purposes of determining local economic impact, please enter your zip/mail code below.

2. How did you hear about this event? Select all that apply. c Friend or Family Member d e f g c Facebook d e f g c Twitter d e f g

c LetsRun.com d e f g

c MarathonGuide.com d e f g

c Active.com d e f g

c Odyssey Adventure Racing d e f g c Blue Ridge Outdoors d e f g

c Endurance d e f g

c Baltimore Marathon Guide d e f g

c Competitor d e f g

c Other (please specify website or other source) d e f g

c Richmond Marathon Guide d e f g

c Washington Running Report d e f g

3. Did you participate in the 2011 Blue Ridge Marathon or Half Marathon? j Yes, I participated in the 2011 full marathon k l m n

j Yes, I participated in the 2011 half marathon k l m n

j No, I did not participate in last year's full or half marathon k l m n

4. What was your motivation for signing up for this event? Please select all that apply. c Challenge of the Course/Event d e f g c Event Date d e f g

c Registration Price d e f g c Event Location d e f g

c Chance to compete d e f g

c Something fun to do with friends d e f g

c Training opportunity for future events d e f g Other (please specify)

2012 National College Blue Ridge Marathon and Half Marathon 5. What level of competitor do you consider yourself? j Beginner k l m n

j Intermediate k l m n j Advanced k l m n

j Professional k l m n

6. Where did you stay during the event? j A family or friend's house k l m n j Cambria Suites k l m n

j Courtyard Marriott k l m n

j Mainstay Suites k l m n

j Other Hotel/Motel k l m n j Ramada Inn k l m n j Sheraton k l m n

j King George Inn k l m n

j Fairfield Inn & Suites k l m n

j Hyatt k l m n

j I didn't stay overnight k l m n j I live locally k l m n

j Comfort Inn Airport k l m n

j Hotel Roanoke k l m n

If other hotel/motel, please specify.

7. How many miles did you travel to the event? j 0 to 50 k l m n

j 51 to 100 k l m n

j 201 to 500 k l m n

j 101 to 200 k l m n

j 501 to 1,000 k l m n

j More than 1,000 k l m n

8. How many nights did you stay in the area for the Blue Ridge Marathon? j 0 k l m n j 1 k l m n j 2 k l m n j 3 k l m n

j 4 k l m n

j 5 k l m n

j 6 k l m n

j More than 6 k l m n

9. Did you travel with family or friends?

j Yes k l m n j No k l m n

If yes, how many nonparticipants traveled with you?

2012 National College Blue Ridge Marathon and Half Marathon 10. Did you visit any local attractions? Please select all that apply. c Taubman Museum of Art d e f g c Science Museum d e f g

c Transportation Museum d e f g

c Center in the Square d e f g

c O. Winston Link Museum d e f g

c Virginia Museum of Transportation d e f g

c Mill Mountain Zoo d e f g

c Mill Mountain Star d e f g

c Roanoke River Greenway d e f g

c Carvins Cove d e f g c Other d e f g

If other attraction(s), please specify.

11. Please enter the amount (to the nearest whole dollar) spent per day on the following commodities/services by your entire travel party while in the area? Lodging Dining Gasoline Retail Purchase Admissions (Local Attractions)

2012 National College Blue Ridge Marathon and Half Marathon 12. We are donating $500 to the company with the best aid station. Please tell us which aid station was the best. j Corner of Walnut/Sylvan (Mile 1.25 & 14.5 for full; Mile 1.25 & 5.5 for half) k l m n

j Intersection of Fishburn Parkway and Spur Road (Mile 3 & 12.5 for full; Mile 3 for half) k l m n j Roanoke Mountain Campground Entrance (Mile 4.25 & 11 for full) k l m n j Gum Springs Overlook (Mile 5.25 & 9.75 for full) k l m n j Mill Mountain Overlook (Mile 6.5 for full) k l m n

j Top Roanoke Mtn. "Noisemakers on Roanoke Mountain" (Mile 7.5 for full) k l m n j Bottom of Roanoke Mtn. (Mile 9.25 for full) k l m n

j Mill Mountain Star "Mill Mountain Zoo" (Mile 13 for full; Mile 3.75 for half) k l m n

j Rivers Edge Park "Fleet Feet Sports Basecamp" (Mile 15.75 for full; Mile 6.5 for half) k l m n j Intersection of Somerset & Peakwood (Mile 17.25 for full) k l m n j Top of Peakwood (Mile 18.25 for full) k l m n j Top of West Ridge (Mile 19 for full) k l m n

j 27th & Crystal Spring (Mile 20 for full) k l m n

j Crystal Spring & 26th (Mile 7.5 for half only) k l m n

j Reserve Avenue "Hawaiian Theme with bubbles and water guns" (Mile 22 for full; Mile 9 for half) k l m n j Wasena Park (Mile 23.25 for full; Mile 10.25 for half) k l m n

j Black Dog Salvage "Who Let the Dogs Out Rest Stop" (Mile 24.25 for full; Mile 11.25 for half) k l m n j YMCA (Mile 25.25 for full; Mile 12.25 for half) k l m n

2012 National College Blue Ridge Marathon and Half Marathon 13. Please rate the following from 10 (best) to 1 (worst). 10 Excellent

1 Worst

Registration

j k l m n

Participant Shirt (70%

j k l m n

Race Staff/Volunteers

j k l m n

Communications with Event

j k l m n

Course

j k l m n

Awards Ceremony

j k l m n

Finish Line Food and

j k l m n

Hydration/Fuel Stations

j k l m n

Event Website

j k l m n

Timing

j k l m n

Expo

j k l m n

Music and Festivities

j k l m n

Race Photographs

j k l m n

Overall Experience

j k l m n

cotton/30% microfiber)

Staff

Beverage

Following the Event

14. How would you rate the Pasta Dinner with guest speaker Bill Rodgers? Skip question of you did not attend. Worst

Bad

Good

Excellent

Price

j k l m n

Timing

j k l m n

Speaker

j k l m n

Other Pasta Dinner comments?

15. Which of the following sports do you plan to participate in this year? Please select all that apply. c NA d e f g

c Duathlon d e f g

c Half Marathon d e f g c Marathon d e f g c Triathlon d e f g

16. Gender j Male k l m n

j Female k l m n

c Cycling Event d e f g

c Golf d e f g

c Adventure Racing d e f g

c Tennis d e f g

c Open Water Swimming d e f g

2012 National College Blue Ridge Marathon and Half Marathon 17. Age j Under 18 k l m n j 18 to 25 k l m n j 26 to 30 k l m n j 31 to 35 k l m n

j 36 to 40 k l m n

j 41 to 45 k l m n

j 46 to 50 k l m n

j 51 to 55 k l m n

j 56 to 60 k l m n

j 61 to 65 k l m n

j 66 to 70 k l m n

j Over 70 k l m n

18. What is your ethnic origin? c Caucasian d e f g

c Black or AfricanAmerican d e f g c Hispanic/Latino d e f g c Asian d e f g

c I prefer not to answer d e f g c Other d e f g

19. What is your household income range? j Less than $25,000 k l m n

j $25,000 to $50,000 k l m n j $50,001 to $75,000 k l m n

j $100,001 to $150,000 k l m n

j $150,001 to $200,000 k l m n

j $75,001 to $100,000 k l m n

j Over $200,000 k l m n

20. What is the highest level of education you have completed? j Less than High School Diploma k l m n j High School Diploma k l m n j Associate's Degree k l m n j Bachelor's Degree k l m n j Master's Degree k l m n

j Doctoral/Professional Degree k l m n

21. Would you recommend competing in the Blue Ridge Marathon to others?

j Yes k l m n j No k l m n

22. What did you like about this event? 5 6

2012 National College Blue Ridge Marathon and Half Marathon 23. What could we do better? 5 6 Â

24. Would you like to leave a testimonial for use in marketing future events? If so, please enter it below. 5 6 Â

25. To enter for a chance to win an iPad, please enter your name and email address below. Name Email