Economic impact of silent sports (3) (3) (3) (3)

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  • 1. Economic Impact of Silent Sports-A Regional Case Study Scott Chapin, RJF Agencies
  • 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. 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. 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. Silent Sports-Trail Development
    • Attracts Tourists
    • Tourists Could become Seasonal or Permanent Residents
    • Attracts Commerce
    • Enhances Communities
  • 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. 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. Economic Data
    • Tourist Area, Historically Fishing/Hunting
    • Service Sector Economy
    • Known for Events: American Birkebeiner, Chequamegon Fat Tire Festival, Lumberjack World Championships
  • 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. Types of Economic Impact
    • Direct-Initial Purchase
    • Indirect-Cross Industry
    • Induced-Cycled Again in Community
  • 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. 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. 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. 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. 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. 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. 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. Defined Location Economic Impact
    • Colorado-Other Revenue Generators
    • Bicycle Tours $640,000
    • Racing $2,000,000
    • Charity Rides $3,400,000
  • 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. 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. 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. 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. 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. 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. Data Analysis-Impact
      • Seeley Hills Recreational Development
        • Adjacent to CAMBA and Birkie Trails
        • Sample 5.5 Miles of Road
        • 1994-7 Homes
  • 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. 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. 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. Uses for this Data
      • Community Support
      • Public Support
      • Grant Opportunities
  • 30. Uses for this Data
    • Community Support
      • Business Sponsorship
      • Volunteer Support
      • Land Value Increases-Private Land
  • 31. Uses for this Data
    • Grant Opportunities
      • Many Grants Available
      • Economic Improvement Grants
      • Contact Economic Development Corporation
      • Similar Focus on ROI
  • 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. 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. 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. Conclusions
    • Trail Building Increases Land Values
    • Trail Building Increases Property Tax Revenue
    • Trail Building Produces Local Economic Impact
    • Trail Building Brings External Revenue