2012 EconomicImpact Analysis National College Blue Ridge Marathon - Roanoke, VA TM
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.
IntroductionOn April 21, 2012, the Roanoke Region welcomed 1,092 runners who participated in the third annualNational College Blue Ridge Marathon and Half Marathon. Organized by a consortium of public andprivate entities, including the Roanoke Regional Partnership, the City of Roanoke, Congressman BobGoodlatte and Odyssey Adventure Racing, the 2012 marathon is an excellent example of regionalcollaboration. 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, DowntownRoanoke Incorporated, RIDE Solutions, Fleet Feet Sports, GU Energy Labs, Roanoke Valley Conventionand Visitors Bureau, Organization for Autism Research, Just Finish, Woodrow Wilson Bridge HalfMarathon, Friends of the Blue Ridge, and United Dairy. The race benefitted the Friends of the BlueRidge Parkway, a nonprofit and volunteer organization dedicated to preserving and protecting the BlueRidge Parkway.Billed as America’s toughest road marathon, the race course started in downtown on Jefferson Streetand ended at the Taubman Museum of Art and went from the low elevations of downtown Roanoke andthe Roanoke River to the higher elevations at the top of Mill Mountain and Roanoke Mountain alongsections 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 eventsbring to the community and to build support for future marathons in the Roanoke Region of Virginia. TheRoanoke Regional Partnership and Roanoke Valley – Alleghany Regional Commission worked toprepare a participant survey and to prepare this assessment of the economic impact of the event.Methodology Figure 1: Study Area Location A survey was produced jointly by Roanoke RegionalPartnership and the Roanoke Valley – AlleghanyRegional Commission by improving on the surveyinstrument from the previous year. The survey wasdistributed to event participants in the weeks followingthe event. Participation was incentivized with entriesinto a drawing for an iPad. In total, there were 316respondents to the survey, representing a responserate of approximately 29 percent of actual participants.The study area for this analysis was defined as theRoanoke Metropolitan Statistical Area, which iscomposed of the Counties of Botetourt, Craig,Franklin, and Roanoke; and the Cities of Roanoke andSalem.Survey responses were used to compute averageexpenditures for food, lodging, and retail purchasesmade in the region per person per day. The IMPLAN(IMpact Analysis for PLANning) economic impact
model for the Roanoke Metropolitan Statistical Area (using IMPLAN data for the study region and utilizingsocial accounting multipliers) was employed to estimate the amount of regional activity originating fromthe Marathon event.IMPLAN is an economic impact modeling software first developed jointly by the University of Minnesotaand the U.S. Forest Service in the 1970’s and later expanded upon by the Minnesota IMPLANGroup. The modeling software and IMPLAN proprietary data set is currently maintained by theMinnesota IMPLAN Group, a private company based in Stillwater, Minnesota. IMPLAN is widely used bya number of universities, economic consultants, economic development professionals, and othersinvolved in estimating economic impact of programs and events. IMPLAN models the flow ofexpenditures through industries and institutions of a regional economy that result after an initial economicstimulus is made in a given economy. More information on the IMPLAN model and data set can beobtained at http://www.implan.com.Survey ResultsThe survey was conducted by Roanoke Regional Partnership. The survey yielded 316 responses for aresponse rate of 29 percent.Geographic DispersionApproximately 61 percent of runners were from the state of Virginia and 83 percent were from thesoutheastern United States. In all, there were 29 states represented in addition to the District ofColumbia. One runner traveled from Quebec. Figure 2: Participation by Year Utilizing the runner registration list, it was determined that 59 percent of participants originated fromoutside the study area and were therefore counted as visitors in the analysis. Those originating fromoutside of the MSA were divided into those who were likely to have made a day-trip out of running in themarathon 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, surveyresults 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 lessthan two hours away were classified as day-trip visitors. There were 491 participants classified asovernight 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, sincesuch 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 heldadvanced degrees. Approximately 37 percent made over $100,000 last year.Length of StayOver half (56 percent) of all survey respondents reported staying in town for the 2012 National CollegeBlue Ridge Marathon for at least one night. Approximately 45 percent stayed between one and twonights in the region. The average length of stay among overnight visitors was 1.85 nights.Size of Travel PartyJust over 44 percent of all respondents reported traveling with family or friends. Respondents wereasked to report the number of non-participants that traveled with them. The average size of the travelparty among overnight visitors was 1.7. Day-trip visitors traveled with an average of 0.3 others perparticipant.Visitation to Local AttractionsParticipants were asked if they visited any local attractions such as Taubman Museum of Art, VirginiaTransportation Museum, Mill Mountain Star, etc. Approximately 55 percent of respondents more thantwo hours from the race reported visiting a local attraction. Approximately 37 percent of otherrespondents living outside the study area reported visiting a local attraction.
Average ExpendituresRespondents were asked to report the amount spent on fuel, meals, lodging, miscellaneous retailpurchases, and admissions while in the study area. The following were the average values for thoserespondents who were from outside of the study area. Figure 4: Average Travel Party Expenditures Category Overnight Visitors Day-trip Visitors Lodging $110.14 -- Meals $68.35 $35.00 Gas $43.70 $26.03 Misc. Retail $59.13 $16.67 Admissions $4.90 $2.50These average per travel party per day expenditures were used to identify an initial direct impact figureinput into the IMPLAN model. The number of participants associated with the Blue Ridge Marathon wasmultiplied by each category to determine the direct impact in the restaurant, hotel/motel, generalmerchandise retail, gasoline, and museum/historical site industries. These direct impacts were enteredinto the IMPLAN model. The software was instructed to consider only the retail margin of the purchasesmade in the retail sectors (the wholesale cost of each product likely leaves the region as in most casesthe product is manufactured elsewhere and the margin also does not include the costs of transporting theproduct to the store).Purchases made by the race organizers for goods and services in the study area were also added sincethe majority of funds used in organizing the marathon were race entry fees. Donations to local charitableorganizations having their headquarters in the region were also considered since those organizationsoperate within the study area. The fees paid by the participants from outside the study region farsurpassed these local expenditure and donation amounts.The IMPLAN model calculates a direct, indirect, and induced impact after adjusting the initial directimpact for leakage by using estimated retail margins.Local SpendingAs a general rule, only those expenditures made by visitors are used in any estimate of economic impactsince local spending represents recirculation of wealth within a local economy. While there were 450local runners, 375 known local volunteers, and at least 1,000 local spectators that likely spent local fundson lunch and snacks during the day of the event and likely made other expenditures that they might nothave spent otherwise, there is no method short of a volunteer/spectator survey to determine theproportion of local participants that would have travelled outside the region as opposed to participating inmarathon activity. A case for import substitution simply cannot be made without this data.
Economic ImpactIt is estimated that the second annual National College Blue Ridge Marathon attracted $248,876 in directnew sales activity to the region, which lead to an additional $128,322 in indirect1 and induced2 spendingfor a total impact on output3 of $377,198. This corresponds to an increase of $206,184 in value added4to the regional economy. Activity surrounding the event will support 4.9 jobs in the regional economy forthe period of a year5.The summary impact table below is a useful illustration of the event’s impacts. Figure 5: Summary Economic Impact Table Output Employment Labor Income Value Added Direct Effect $248,876 3.9 $90,746 $133,806 Indirect Effect $74,345 0.6 $25,801 $40,919 Induced Effect $53,977 0.4 $16,571 $31,460 Total Effect $377,198 4.9 $133,118 $206,185 The impact of the National College Blue Ridge Marathon increased 11.2 percent from 2011. Aconsiderable increase in the number of runners translated into a higher net economic impact. The chartbelow summarizes the impacts of the last three marathon events. In all, the event has supported over amillion dollars in total regional economic impact in its first three years. Figure 6: Economic Impact by Year 1 Indirect impacts are those represented by local industries purchasing from other local industries as a result of a direct economic event. Indirectimpacts represent a cumulative total of several cycles of spending that work through the local economy until all remaining money from the initialstimulus leaks from the study area economy. For instance, a series of restaurants making purchases of goods from local suppliers as a result ofparticipant 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 economicimpact. 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 thecase 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 includesemployee 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 overtimeand/or retention of a job in the service industry that might otherwise have been lost without the economic stimulus of the event.
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 d e f g Friend or Family Member c d e f g LetsRun.com c d e f g Endurance c d e f g Facebook c d e f g MarathonGuide.com c d e f g Baltimore Marathon Guide c d e f g Twitter c d e f g Active.com c d e f g Richmond Marathon Guide c d e f g Odyssey Adventure Racing c d e f g Washington Running Report c d e f g Blue Ridge Outdoors c d e f g Competitor c d e f g Other (please specify website or other source) 3. Did you participate in the 2011 Blue Ridge Marathon or Half Marathon? j k l m n Yes, I participated in the 2011 full marathon j k l m n Yes, I participated in the 2011 half marathon j k l m n No, I did not participate in last years full or half marathon 4. What was your motivation for signing up for this event? Please select all that apply. c d e f g Challenge of the Course/Event c d e f g Event Date c d e f g Registration Price c d e f g Event Location c d e f g Chance to compete c d e f g Something fun to do with friends c d e f g Training opportunity for future events Other (please specify)
2012 National College Blue Ridge Marathon and Half Marathon 5. What level of competitor do you consider yourself? j k l m n Beginner j k l m n Intermediate j k l m n Advanced j k l m n Professional 6. Where did you stay during the event? j k l m n A family or friends house j k l m n I didnt stay overnight j k l m n Cambria Suites j k l m n I live locally j k l m n Comfort Inn Airport j k l m n King George Inn j k l m n Courtyard Marriott j k l m n Mainstay Suites j k l m n Fairfield Inn & Suites j k l m n Other Hotel/Motel j k l m n Hotel Roanoke j k l m n Ramada Inn j k l m n Hyatt j k l m n Sheraton If other hotel/motel, please specify. 7. How many miles did you travel to the event? j k l m n 0 to 50 j k l m n 201 to 500 j k l m n 51 to 100 j k l m n 501 to 1,000 j k l m n 101 to 200 j k l m n More than 1,000 8. How many nights did you stay in the area for the Blue Ridge Marathon? j k l m n 0 j k l m n 4 j k l m n 1 j k l m n 5 j k l m n 2 j k l m n 6 j k l m n 3 j k l m n More than 6 9. Did you travel with family or friends? j k l m n Yes j k l m n No 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 d e f g Taubman Museum of Art c d e f g Transportation Museum c d e f g Roanoke River Greenway c d e f g Science Museum c d e f g O. Winston Link Museum c d e f g Carvins Cove c d e f g Center in the Square c d e f g Mill Mountain Zoo c d e f g Other c d e f g Virginia Museum of Transportation c d e f g Mill Mountain Star 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 k l m n Corner of Walnut/Sylvan (Mile 1.25 & 14.5 for full; Mile 1.25 & 5.5 for half) j k l m n Intersection of Fishburn Parkway and Spur Road (Mile 3 & 12.5 for full; Mile 3 for half) j k l m n Roanoke Mountain Campground Entrance (Mile 4.25 & 11 for full) j k l m n Gum Springs Overlook (Mile 5.25 & 9.75 for full) j k l m n Mill Mountain Overlook (Mile 6.5 for full) j k l m n Top Roanoke Mtn. "Noisemakers on Roanoke Mountain" (Mile 7.5 for full) j k l m n Bottom of Roanoke Mtn. (Mile 9.25 for full) j k l m n Mill Mountain Star "Mill Mountain Zoo" (Mile 13 for full; Mile 3.75 for half) j k l m n Rivers Edge Park "Fleet Feet Sports Basecamp" (Mile 15.75 for full; Mile 6.5 for half) j k l m n Intersection of Somerset & Peakwood (Mile 17.25 for full) j k l m n Top of Peakwood (Mile 18.25 for full) j k l m n Top of West Ridge (Mile 19 for full) j k l m n 27th & Crystal Spring (Mile 20 for full) j k l m n Crystal Spring & 26th (Mile 7.5 for half only) j k l m n Reserve Avenue "Hawaiian Theme with bubbles and water guns" (Mile 22 for full; Mile 9 for half) j k l m n Wasena Park (Mile 23.25 for full; Mile 10.25 for half) j k l m n Black Dog Salvage "Who Let the Dogs Out Rest Stop" (Mile 24.25 for full; Mile 11.25 for half) j k l m n YMCA (Mile 25.25 for full; Mile 12.25 for half)
2012 National College Blue Ridge Marathon and Half Marathon 13. Please rate the following from 10 (best) to 1 (worst). 10 9 8 7 6 5 4 3 2 1 Worst Excellent Registration j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Participant Shirt (70% j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n cotton/30% microfiber) Race Staff/Volunteers j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Communications with Event j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Staff Course j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Awards Ceremony j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Finish Line Food and j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Beverage Hydration/Fuel Stations j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Event Website j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Timing j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Expo j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Music and Festivities j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Following the Event Race Photographs j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n Overall Experience j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n j k l m n 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 j k l m n j k l m n j k l m n Timing j k l m n j k l m n j k l m n j k l m n Speaker j k l m n j k l m n j k l m n 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 d e f g NA c d e f g Duathlon c d e f g Golf c d e f g Half Marathon c d e f g Cycling Event c d e f g Tennis c d e f g Marathon c d e f g Adventure Racing c d e f g Triathlon c d e f g Open Water Swimming 16. Gender j k l m n Male j k l m n Female