Economic Impact of Silent
Sports-A Regional Case Study
Scott Chapin, RJF Agencies
Background
Economics Major-University Wisconsin Eau Claire
President-Sawyer County Development Corporation
Past President-...
Background
• Avid Cyclist, Runner, Skier
• Active with local IMBA Club-CAMBA
• Insurance Broker-Specializing in Bicycle an...
What Are “Silent Sports?”
• Aerobic Based, Non-Motorized Activities
• Running-Trail and Road
• Off-Road Mountain Biking
• ...
Silent Sports-Trail Development
• Attracts Tourists
• Tourists Could become Seasonal or Permanent
Residents
• Attracts Com...
Silent Sports Trail Development
– Land Managers, Municipalities, Chambers of
Commerce Question Economic Impact Data
– Havi...
Economic Data
• Analysis is for Sawyer County
• Sawyer County Located in NW Wisconsin
• Sawyer County Population 16,196 (2...
Economic Data
• Tourist Area, Historically Fishing/Hunting
• Service Sector Economy
• Known for Events: American Birkebein...
Economic Data
• Many Second Homeowners in Area
• Chequamegon Area Mountain Bike Association
Developed around 1990
• Starte...
Types of Economic Impact
• Direct-Initial Purchase
• Indirect-Cross Industry
• Induced-Cycled Again in Community
Economic Statistics (Bicycling)
National
• $133 Billion Annual Contribution to the U.S.
Economy
• Supports 1.1 million job...
Economic Statistics Bicycling)-
National
• Produces $53.1 billion annually in retail sales
and services
• ($6.2 billion in...
Economic Impact (Bicycling)-
Regionally
• (IN, IL, MI, OH, WI)
• Contributes $17 billion to regional economy
• Supports 19...
Economic Impact (Bicycling)-
Regionally
• $12.1 billion in retail sales
• ($873 million in bicycling gear sales)
• ($11.2 ...
Wisconsin Economic Impact
(Bicycling)
• 49% of Wisconsin Residents bicycle
• Economic Impact of bicycle recreation/tourism...
Defined Location Economic
Impact
• Trails in Miami Valley of Ohio attract
1,000,000 visitors who spend $16 million on
rela...
Defined Location Economic
Impact
• Chequamegon Area (Cable/Hayward)-$1.17 M
in 1997 (likely 3x this now)
• 161 U.S. Ski Ar...
Defined Location Economic
Impact
• Colorado-Other Revenue Generators
• Bicycle Tours $640,000
• Racing $2,000,000
• Charit...
General Public Assumptions
• Silent Sports ParticipantsAre Cheap
• Participants do not spend as much as other user
groups ...
Facts about Cyclists/Nordic
Skiers
• 53% of participants in Chequamegon Fat Tire
Festival (2,500) are between 35-49 years
...
General Facts About Tourists
• Motel/Hotel Tourists spend $126 per day
• Campground Tourists spend $75 per day
• Daytrippe...
General Facts about Second
Homeowners
• Second Homeowners Spend $17,571 Per Year
In Sawyer County (Sawyer County
Developme...
General Facts about Second
Homeowners
• Basic Consumption Items-$5,700 per household
(Average)
• Recreation Equipment-$2,8...
Land Values Adjacent to Trails
– Dependent upon Market
– Developers in NW Specializing in Recreational Use
– Land Values 3...
Data Analysis-Impact
– Seeley Hills Recreational Development
• Adjacent to CAMBA and Birkie Trails
• Sample 5.5 Miles of R...
Data Analysis-Impact
• Seeley Hills Recreational Development
• 2010- 51 Homes
• 33 of the 51 are Second Homeowners
• 2 Ret...
Data Analysis-Impact
– 50/51 Participate in Silent Sports
• Average Home Value $300,000
• Economic Impact of New Homes ($1...
Data Analysis-Impact
• Seeley Highlands Development-1997
• 67 Acres
• 18 Lots
• Land Values in 1997-5 Acres: $5,000-$8,500...
Uses for this Data
– Community Support
– Public Support
– Grant Opportunities
Uses for this Data
• Community Support
– Business Sponsorship
– Volunteer Support
– Land Value Increases-Private Land
Uses for this Data
• Grant Opportunities
– Many Grants Available
– Economic Improvement Grants
– Contact Economic Developm...
How can I use this Data
• Grant Scorers Look At:
– 1st or 2nd Tier Jobs (Permanent)
– Money Spent in Community (6x7 Times)...
How can I use this Data
• Grant Scorers Look at
– Emotional Scoring
– Letters of Support from Legislators
– Important to I...
Uses for this Data
• Public Support
– Politicians Understand ROI
– Trailbuilding Projects=Tax Revenue
– Second Homeowners ...
Conclusions
• Trail Building Increases Land Values
• Trail Building Increases Property Tax Revenue
• Trail Building Produc...
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Economic Impact Of Silent Sports (3) (3) (3) (3)

  1. 1. Economic Impact of Silent Sports-A Regional Case Study Scott Chapin, RJF Agencies
  2. 2. Background Economics Major-University Wisconsin Eau Claire President-Sawyer County Development Corporation Past President-Northland Area Builders Association Director American Birkebeiner Ski Foundation
  3. 3. Background • Avid Cyclist, Runner, Skier • Active with local IMBA Club-CAMBA • Insurance Broker-Specializing in Bicycle and Ski Industry Risks • Work with 150+ Bike Clubs in U.S.
  4. 4. What Are “Silent Sports?” • Aerobic Based, Non-Motorized Activities • Running-Trail and Road • Off-Road Mountain Biking • Road Biking • Cross Country Skiing • Paddle Sports
  5. 5. Silent Sports-Trail Development • Attracts Tourists • Tourists Could become Seasonal or Permanent Residents • Attracts Commerce • Enhances Communities
  6. 6. Silent Sports Trail Development – Land Managers, Municipalities, Chambers of Commerce Question Economic Impact Data – Having Economic Data Helps with Financial and Political Support of Trail Projects – Helps With Volunteer Base
  7. 7. Economic Data • Analysis is for Sawyer County • Sawyer County Located in NW Wisconsin • Sawyer County Population 16,196 (2000) • 2 ½ Hours from Minneapolis, MN • Median Per Capita Income $24,288 (2002)
  8. 8. Economic Data • Tourist Area, Historically Fishing/Hunting • Service Sector Economy • Known for Events: American Birkebeiner, Chequamegon Fat Tire Festival, Lumberjack World Championships
  9. 9. Economic Data • Many Second Homeowners in Area • Chequamegon Area Mountain Bike Association Developed around 1990 • Started Signing Existing Double-Track/Roads • Focus on Singletrack for past 8 Years
  10. 10. Types of Economic Impact • Direct-Initial Purchase • Indirect-Cross Industry • Induced-Cycled Again in Community
  11. 11. Economic Statistics (Bicycling) National • $133 Billion Annual Contribution to the U.S. Economy • Supports 1.1 million jobs • Generates $17.7 billion in annual federal and state tax revenue
  12. 12. Economic Statistics Bicycling)- National • Produces $53.1 billion annually in retail sales and services • ($6.2 billion in gear sales) • ($46.9 billion in bicycling-trip expenditures)
  13. 13. Economic Impact (Bicycling)- Regionally • (IN, IL, MI, OH, WI) • Contributes $17 billion to regional economy • Supports 191,000 jobs • Generates $2.2 billion in state and federal tax revenues
  14. 14. Economic Impact (Bicycling)- Regionally • $12.1 billion in retail sales • ($873 million in bicycling gear sales) • ($11.2 billion in bicycling trip-related expenditures)
  15. 15. Wisconsin Economic Impact (Bicycling) • 49% of Wisconsin Residents bicycle • Economic Impact of bicycle recreation/tourism is $925 million • Average Daily Expenditure-$60 • Greater Impact than Hunting • 57% of Expenditures from Non-Residents
  16. 16. Defined Location Economic Impact • Trails in Miami Valley of Ohio attract 1,000,000 visitors who spend $16 million on related goods and services • 2009 USA Cycling National CX Championships brought $1 M to Bend, Oregon • RAGBRAI-$24 M in Economic Impact • Moab Utah-$8.8 M in Economic Impact (1996)
  17. 17. Defined Location Economic Impact • Chequamegon Area (Cable/Hayward)-$1.17 M in 1997 (likely 3x this now) • 161 U.S. Ski Areas open trails to bikers in summer-84 run lifts for cyclists • 50% of Colorado Tourists are engaged in cycling- $141M-$193 M • American Birkebeiner Brings in $4,000,000 to Hayward/Cable Area
  18. 18. Defined Location Economic Impact • Colorado-Other Revenue Generators • Bicycle Tours $640,000 • Racing $2,000,000 • Charity Rides $3,400,000
  19. 19. General Public Assumptions • Silent Sports ParticipantsAre Cheap • Participants do not spend as much as other user groups (Tourists) • Participants have average income levels • Participants (off-road) are 20-somethings
  20. 20. Facts about Cyclists/Nordic Skiers • 53% of participants in Chequamegon Fat Tire Festival (2,500) are between 35-49 years • 30% of Cyclists/Skiers have Household Incomes over $125,000 • 49% of Cyclists/Skiers have Household Incomes over $100,000 (ABSF Survey) • 87% of Cyclists/Skiers are college graduates
  21. 21. General Facts About Tourists • Motel/Hotel Tourists spend $126 per day • Campground Tourists spend $75 per day • Daytripper Tourist spend $40 per day • Often it is assumed that most cyclists visiting the area are “tourists”
  22. 22. General Facts about Second Homeowners • Second Homeowners Spend $17,571 Per Year In Sawyer County (Sawyer County Development Corporation Study-2008) • Survey sent to all non-resident homeowners with improvements over $80,000 • 100 User Days Per Year
  23. 23. General Facts about Second Homeowners • Basic Consumption Items-$5,700 per household (Average) • Recreation Equipment-$2,800 per household • Needs for Home (Construction, Remodeling- $14,400 per household • Note: Not all spent money in all categories
  24. 24. Land Values Adjacent to Trails – Dependent upon Market – Developers in NW Specializing in Recreational Use – Land Values 3 years ago were double – Land Values today are 50% higher than non- recreational developments
  25. 25. Data Analysis-Impact – Seeley Hills Recreational Development • Adjacent to CAMBA and Birkie Trails • Sample 5.5 Miles of Road • 1994-7 Homes –
  26. 26. Data Analysis-Impact • Seeley Hills Recreational Development • 2010- 51 Homes • 33 of the 51 are Second Homeowners • 2 Retirees • 14 (Newly) Permanent Transplant • 2 Originally from Area
  27. 27. Data Analysis-Impact – 50/51 Participate in Silent Sports • Average Home Value $300,000 • Economic Impact of New Homes ($13.2 M) • Average Property Taxes $2,000 • Property Tax Revenue $88,000 • Average Expenditure in Sawyer County $17,571 • Economic Impact $589,743 (Annually)
  28. 28. Data Analysis-Impact • Seeley Highlands Development-1997 • 67 Acres • 18 Lots • Land Values in 1997-5 Acres: $5,000-$8,500 • 14 Homes in 2010 • 3 Acre Parcels Sold for $13,000-$16,000 in 1997-2000 • 2010: $40,000-$50,000 for same lots
  29. 29. Uses for this Data – Community Support – Public Support – Grant Opportunities
  30. 30. Uses for this Data • Community Support – Business Sponsorship – Volunteer Support – Land Value Increases-Private Land
  31. 31. Uses for this Data • Grant Opportunities – Many Grants Available – Economic Improvement Grants – Contact Economic Development Corporation – Similar Focus on ROI
  32. 32. How can I use this Data • Grant Scorers Look At: – 1st or 2nd Tier Jobs (Permanent) – Money Spent in Community (6x7 Times) – Sales and Property Tax Revenue Generated – Social Impact on Community (Need to Sell your “story”…..effects on children) – “Emotional” Scoring
  33. 33. How can I use this Data • Grant Scorers Look at – Emotional Scoring – Letters of Support from Legislators – Important to Involve Those on Appropriation Committees (if for Federal or State Grants) – Letters of Individual Support
  34. 34. Uses for this Data • Public Support – Politicians Understand ROI – Trailbuilding Projects=Tax Revenue – Second Homeowners do not have children in schools, but still pay
  35. 35. Conclusions • Trail Building Increases Land Values • Trail Building Increases Property Tax Revenue • Trail Building Produces Local Economic Impact • Trail Building Brings External Revenue

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