Economic Impact of Silent Sports-A Regional Case Study Scott Chapin, RJF Agencies
Background <ul><li>Economics Major-University Wisconsin Eau Claire </li></ul><ul><li>President-Sawyer County Development C...
Background <ul><li>Avid Cyclist, Runner, Skier </li></ul><ul><li>Active with local IMBA Club-CAMBA </li></ul><ul><li>Insur...
What Are “Silent Sports?” <ul><li>Aerobic Based, Non-Motorized Activities </li></ul><ul><li>Running-Trail and Road </li></...
Silent Sports-Trail Development <ul><li>Attracts Tourists </li></ul><ul><li>Tourists Could become Seasonal or Permanent Re...
Silent Sports Trail Development <ul><ul><li>Land Managers, Municipalities, Chambers of Commerce Question Economic Impact D...
Economic Data <ul><li>Analysis is for Sawyer County </li></ul><ul><li>Sawyer County Located in NW Wisconsin </li></ul><ul>...
Economic Data <ul><li>Tourist Area, Historically Fishing/Hunting </li></ul><ul><li>Service Sector Economy </li></ul><ul><l...
Economic Data <ul><li>Many Second Homeowners in Area </li></ul><ul><li>Chequamegon Area Mountain Bike Association Develope...
Types of Economic Impact <ul><li>Direct-Initial Purchase </li></ul><ul><li>Indirect-Cross Industry </li></ul><ul><li>Induc...
Economic Statistics (Bicycling) National <ul><li>$133 Billion Annual Contribution to the U.S. Economy </li></ul><ul><li>Su...
Economic Statistics Bicycling)-National <ul><li>Produces $53.1 billion annually in retail sales and services </li></ul><ul...
Economic Impact (Bicycling)-Regionally <ul><li>(IN, IL, MI, OH, WI) </li></ul><ul><li>Contributes $17 billion to regional ...
Economic Impact (Bicycling)-Regionally <ul><li>$12.1 billion in retail sales </li></ul><ul><li>($873 million in bicycling ...
Wisconsin Economic Impact (Bicycling) <ul><li>49% of Wisconsin Residents bicycle </li></ul><ul><li>Economic Impact of bicy...
Defined Location Economic Impact  <ul><li>Trails in Miami Valley of Ohio attract 1,000,000 visitors who spend $16 million ...
Defined Location Economic Impact <ul><li>Chequamegon Area (Cable/Hayward)-$1.17 M in 1997 (likely 3x this now) </li></ul><...
Defined Location Economic Impact <ul><li>Colorado-Other Revenue Generators </li></ul><ul><li>Bicycle Tours  $640,000 </li>...
General Public Assumptions <ul><li>Silent Sports ParticipantsAre Cheap </li></ul><ul><li>Participants do not spend as much...
Facts about Cyclists/Nordic Skiers <ul><li>53% of participants in Chequamegon Fat Tire Festival (2,500) are between 35-49 ...
General Facts About Tourists <ul><li>Motel/Hotel Tourists spend $126 per day </li></ul><ul><li>Campground Tourists spend $...
General Facts about Second Homeowners <ul><li>Second Homeowners Spend $17,571 Per Year In Sawyer County  (Sawyer County De...
General Facts about Second Homeowners <ul><li>Basic Consumption Items-$5,700 per household (Average) </li></ul><ul><li>Rec...
Land Values Adjacent to Trails <ul><ul><li>Dependent upon Market </li></ul></ul><ul><ul><li>Developers in NW Specializing ...
Data Analysis-Impact <ul><ul><li>Seeley Hills Recreational Development </li></ul></ul><ul><ul><ul><li>Adjacent to CAMBA an...
Data Analysis-Impact <ul><li>Seeley Hills Recreational Development </li></ul><ul><ul><ul><li>2010- 51 Homes </li></ul></ul...
Data Analysis-Impact <ul><ul><li>50/51 Participate in Silent Sports </li></ul></ul><ul><ul><ul><li>Average Home Value $300...
Data Analysis-Impact <ul><li>Seeley Highlands Development-1997 </li></ul><ul><li>67 Acres </li></ul><ul><li>18 Lots </li><...
Uses for this Data <ul><ul><li>Community Support </li></ul></ul><ul><ul><li>Public Support </li></ul></ul><ul><ul><li>Gran...
Uses for this Data <ul><li>Community Support </li></ul><ul><ul><li>Business Sponsorship </li></ul></ul><ul><ul><li>Volunte...
Uses for this Data <ul><li>Grant Opportunities </li></ul><ul><ul><li>Many Grants Available  </li></ul></ul><ul><ul><li>Eco...
How can I use this Data <ul><li>Grant Scorers Look At: </li></ul><ul><ul><li>1st or 2nd Tier Jobs (Permanent) </li></ul></...
How can I use this Data <ul><li>Grant Scorers Look at </li></ul><ul><ul><li>Emotional Scoring </li></ul></ul><ul><ul><li>L...
Uses for this Data <ul><li>Public Support </li></ul><ul><ul><li>Politicians Understand ROI </li></ul></ul><ul><ul><li>Trai...
Conclusions <ul><li>Trail Building Increases Land Values  </li></ul><ul><li>Trail Building Increases Property Tax Revenue ...
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Economic impact of silent sports (3) (3) (3) (3)

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

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