Hilton Head Economic Impact Analysis

HH Economic Impact Analysis Houghton Consulting Group Page 1

The Hilton
Head Golfweek
Amateur Golf
Tour 2015
Championship
Report
An Assessment of the
Economic Impacts and
Market Research of the
Hilton Head Golfweek
Amateur Golf Tour
Championship in 2015
Houghton College Consulting Group
Advising Professor: Kenneth Bates
Team Leader: Anna Coryell ‘18
Team Members: Chris Bucciarelli ‘19, Steve Cantanzaro
‘16, Jacob Dunnett ‘17, Ethan Duryea ‘18, Aaron
Eisenhardt ‘17, Veronica Gerace ‘15, Jordan Mullen ‘18,
John Stranahan ‘16, Bjørn Webb ‘18

Contents

Section I Executive Summary 4

Section II Background and Methodologies 5
Organizational Structures 5
Hilton Head Golfweek Amateur Golf Tour Championship 5
History 5
Overview of Operations 6
Handicap Parameters 6
Competitive Advantage 6
Methodology 7
First Day Survey 7
Clipboard Survey 7
E-mail Survey 8

Section III Survey Results 9
Survey Goals 9
Survey Response 9
Alternative 9
Hilton Head Amateur Golf Tour Championship Player Profile 10
Player Profile Continued 11
Golfers By State 11
Edwin Watts 12
TaylorMade 15
OnCore Golf 19
Dot PLX 21

Section IV Economic Impacts 24
Gross Versus Net Impacts 24
Economic Impacts by Type 25
Direct 25
Indirect 25
Induced 25
Economic Multipliers 25
Other Considerations 26

Industries Affected by Golfweek Amateur Tour Championship 27
Direct Impact of Sample Attendee Spending 27
Estimated Total Direct Economic Impact of the Championship 28
Direct Impact by State 29
Hilton Head Golfweek Amateur Golf Tour Championship’s
contribution to the Hilton Head Island area economy in 2015 30

Appendix A Economic Impact Analysis 31
Economic Impacts 31
Purpose of Measuring Economic Impact 31
Key Issues Affecting Economic Impact Analysis 32
Gross versus Net Impacts 32
Definition of Relevant Study Area 32
Data Relied Upon 33
Statistical Analysis 33

Appendix B Outline of Surveys 34
First Day Survey 34
Clipboard Survey 35
E-mail Survey 37

Section I Executive Summary

The Hilton Head Golfweek Amateur Golf Tour Championship is the final tournament
of the Golfweek Amateur Golf Tour. This tour concludes with a National Tour
Championship in which top players in each flight compete against other amateurs
from all around the country. The tour championship takes place in Hilton Head,
South Carolina and provides the amateur golfers with the opportunity to compete
on world-class golf courses. An atmosphere is provided “Where amateurs play like
Pros,” as the tour’s slogan states.

The Tour Championship attracts about 850 amateur golfers to play in the
Championship, A, B, C, and D flights. These golfers are everyday established white-
collar and blue-collar workers averaging over $100,000 in yearly salary. Golfers are
predominately male and span from over 20 different states across the United States
of America. On average these golfers are particularly knowledgeable about golf,
averaging 20 years of experience for participating surveyed golfers.

It’s clear that the Golfweek Amateur Golf Tour Championship provides a unique
opportunity for amateur golfers around the United States. The Championship
provides not only a positive atmosphere but a positive impact to its local economy
as well.

• The net direct economic impact of the 2015 championship to the local area is
estimated to be $1,488,944.26.

• Of the responding golfers, the average amount spent per golfer during their
time in the Hilton Head Island area as a result of their participation in the
tournament was $1,745.54.

• Of the responding golfers, the average amount spent per golfer per day
during their time in the Hilton Head Island area as a result of their
participation in the tournament was $277.51.

This report is a comprehensive outline of the market research and economic impact
represented at the Hilton Head Golfweek Amateur Golf Tour Championship. Each
detail briefly observed in this summary is outlined in further detail with greater
explanation throughout the report.

Section II Background and Methodologies

To provide context for the analysis in this report, this section begins with a history
of the Hilton Head Golfweek Amateur Golf Tour Championship followed by a
description of its current operations. It concludes with discussions on the
methodologies used in this research.

Organizational Structure

Every fall, Hilton Head Island holds the Golfweek Amateur Golf Tour Championship.
The tour championship is the last event of the 44 tournaments held across the
country. A wide range of flights are available to accommodate various player
abilities; casual golfers and semi-professionals alike can participate.

Hilton Head Golfweek Amateur Golf Tour
Championship

Located at the southernmost tip of South Carolina, the scenic Hilton Head
Island area is only a 20-minute drive from I-95.

History

The tour was established in 1995 with the purpose of providing
amateur golfers of all ages, sexes, and handicaps the opportunity to
compete in stroke-play golf tournaments on a regular basis in their
local area. In 2015, the tour consisted of more than 40 different tours
located all around the United States. The tour concludes with a
National Tour Championship in which top players in each flight test
their skills against other amateurs from around the country. Through
this competition, the Golfweek tour promotes the sport of golf by
providing an atmosphere of friendly, fair, and well-managed
competition for amateur golfers in the pursuit of excellence.

Overview of Operations

The top players in each local flight, based on the points earned during
the season, are awarded the opportunity to compete in the National
Tour Championship. Players finishing the season in the top ten points
standings (and ties) in the Champ & D flights as well as the top 15
points standings in the A, B & C flights of their local tour qualify for
the National Tour Championship. To be eligible for the National Tour
Championship, players must have competed and returned valid scores
for at least 4 tournament rounds. The Tour Championship is held in
Hilton Head, South Carolina, and draws over 850 players from around
the country.

Handicap Parameters

Any rulings and terms of play, including pace of play, will be
determined by committee and will be governed by the 2015 USGA
rules and regulations of golf guidelines. The flight handicap
breakdown is as follows:

Championship Flight

0-3.9
A Flight 4-8.9
B Flight 9-13.9
C Flight 14-18.9
D Flight 19 and above

Competitive Advantage

The Hilton Head Golfweek Amateur Golf Tour Championship offers
many advantages over the 40+ annual amateur golf tournaments held
within the U.S.

● The largest in the entire United States for amateur golf
tournaments, with the championship tour being held in the scenic
Hilton Head, South Carolina.

● There are five flight classes allowing for a wide range of skill levels
to be accepted.

● The tour offers various different golf courses with varying
difficulties.

● Reputable sponsors: Taylormade, Golfweek, and Edwin Watts.

Methodology

Surveys were used as the primary means of gathering the requested information.
Multiple surveys were prepared in the weeks prior to the tournament. They were
given to the participants throughout the week of the tournament. The surveys were
used to gather demographic information about the golfers participating, as well as
the estimated local economic impact. In all, three different surveys were prepared
for the tournament participants. The “First-day Survey” and “Clipboard Survey”
were employed using paper and clipboards. The “E-mail Survey” was completed
online through the survey tool Survey Monkey.

See Appendix B for complete outlines of the following surveys.

First-day Survey

The “First-day Survey” was conducted Wednesday and Thursday during the
tournament. In all, this survey consisted of 10 questions on one page. Interns
worked throughout the two days passing the surveys out to golfers during
the tournament registration. The surveys asked questions such as where
they were from, how many people they were attending with, whether or not
they had attended the tournament before, and how much money they were
planning to spend while in attendance. The preliminary goal of the “First-day
Survey” questions was to find out how many different areas were
represented and how much money golfers planned to be spent within the
local economy.

In all, 181 of these surveys were completed over the two days.

Clipboard Survey

The “Clipboard Survey” was passed out to competitors while play was
happening on Friday, Saturday and Sunday. This survey consisted of 28
questions on two-pages. Questions in this survey included those about the
type of equipment the golfers use, and questions about loyalty to certain
products and brands. Tournament sponsors, Taylormade and Edwin Watts,
requested specific questions to be asked that were included in this survey.
The remaining questions were asked to gain a comprehensive understanding
of the participants’ demographic information.

In all, 140 of these surveys were completed over the three days.

E-mail Survey
The last survey conducted was a post-tournament survey, accessed via mass
e-mail as well as a link located on business cards passed out at the
tournament. The “E-mail Survey” was conducted to find the actual amount of
money each golfer spent as well as their reaction to the tournament.

With the information gathered in the “E-mail Survey”, we were able to
compare the results with the “First-day Survey” estimated figures to the
actual post-tournament figures. In the “E-mail Survey,” questions were asked
regarding the actual amount of money spent during the tournament by each
golfer as well as a few more detailed background questions.

In all, 373 survey responses were used for analysis.

Section III Survey Results

Survey Goals

The goal of the survey process was to obtain information from the participating
golfers of the tournament to provide demographic background and analysis of the
tournament’s local economic impact. The results of the various surveys are
examined in further detail in the following pages.

Survey Response

Survey responses varied depending on the survey type. As previously noted
the First Day Survey saw 181 responses, the Clipboard Survey saw 140
responses, and the E-mail Survey saw responses of 373. This puts the E-mail
Survey at a response rate of 44%, which by conservative measures is
effective.

Alternative

Golf tournament participants were asked if the tournament did not occur
would they have come to the Hilton Head Island area regardless. Of the 181
respondents 156 of them responded with “no” leading to 86.2% of golfers not
coming to the Hilton Head Island area if the event were not held. Only 24
golfers responded with “yes” leading to 13.3% of golfers coming to the Hilton
Head Island area without the event being held. Only 1 golfer responded with
“maybe” leading to .5% of golfers being undecided.

Of those who responded with “yes” it was determined that 54.5% stayed
longer because of the event. Of the golfers that responded, the extension of
days on the island resulted in an average of 5 days. This is a result of the
Golfweek Amateur Golf Tour Championship being held in the Hilton Head
Island area.

Hilton Head Amateur Golf Tour Championship
Player Profile

According to 139
responses, the
Amateur Golf Tour
Championship
golfers’ on average
claimed brand loyalty
of 7.5 on a scale of 1
to 10 with 10 being
very loyal.
According to 140 responses,
the average length of time a
golfer at this tournament has
been golfing is 20 years. The
average length these golfers
have been attending the
tournament was 3 years and 6
months.
the average household income
of the Golfweek Amateur Golf
Tour Championship golfers
was $148,700.
96.7%of golfers were male
while 3.3% were female.
golfers, on averages stayed in
the Hilton Head Island area
for over 5 days. These
golfers completed the
tournament at a rate of over
98%.
According to 375
responses, 41% of
golfers would definitely
return to the Hilton Head
Golfweek Amateur Golf
Tour Championship event
after their experience this
year.
According to 194
responses, 48.97% of
golfers would
attributed thier
interest in investing in
real estate in the
Hilton Head Island
area to their
participation in the
championship.
Based on the 853 golfers
that attended the Hilton
Head Golfweek Amateur
Golf Tour Championship a
total of 3,804 nights were
spent in hotels/resorts. This
calculation is based upon
the average of nights spent
in hotels/resorts (4.46
nights) according to
responding golfers.

Player Profile Continued

Golfers by State

State AL AR CO FL IL IN KS KY LA MD MI MN MS NC NJ
Number
of Golfers
7 9 6 47 7 17 4 10 25 5 21 2 7 58 2

State NM NY OH PA SC TN TX UT VA WV
Number
of Golfers
2 7 10 4 30 20 8 4 27 1

Based on the golfers that responded to this question, 25 states across the United
States were represented at the Hilton Head Golfweek Amateur Golf Tour
Championship. The top five represented states include North Carolina with 58
participating golfers, Florida with 47 participating golfers, South Carolina with 30
participating golfers, Virginia with 27 participating golfers, and Louisiana with 25
participating golfers. The participating golfers, according to the respondents,
traveled from predominately central and eastern states.


Edwin Watts is a worldwide golf shop company that offers various different golf
related products. The following tables outline responses from Hilton Head Golfweek
Amateur Golf Tour Championship golfers regarding Edwin Watts based questions.

Where did you purchase your golf equipment on the Hilton Head
Island?

Location Percentage of Total
Responses
(128 Total Responses)
Percentage of Those
Who Bought Equipment
(49 Responses)
Did not purchase golf
equipment on the island
61%
Edwin Watts 20% 53%
Other 8% 22%
Country Clubs 6% 16%
Golf Headquarters 3% 8%

Of the 49 respondents who bought equipment on the island while participating in
the tournament, 53% of them bought equipment at Edwin Watts.

Are you likely to visit Edwin Watts Golf website when considering a
purchase?

Response Number of Responses
Percentage
Yes 98 70%
No 42 30%

Of the 140 golfer's who responded to this question, 70% of them are likely to visit
the Edwin Watts Golf website if they are considering purchasing equipment.

Does Edwin Watts carry a mix of products that appeal to you?

Percentage
Yes 119 87%
No 18 13%

In addition to seeing that golfers are likely to visit the Edwin Watts Golf website,
we can see that 87% of golfers who were surveyed are pleased with the mix of
products offered by the Edwin Watts Golf website.

Do you know about Edwin Watts Golf 90-Day, 100% Satisfaction
Guarantee?

Percentage
Yes 87 62.1%
No 53 37.9%

When asked about Edwin Watts Golf 90-Day 100% satisfaction guarantee only 62
of the golfers asked said they were aware of the guarantee.

Do you receive email communications from Edwin Watts Golf?

Percentage
Yes 65 45.7%
No 75 54.3%

Of the 138 golfers who responded to this question, only 46% of them receive email
communications from Edwin Watts Golf.

Do you receive Edwin Watts Golf mail catalog?

(140 responses)
Percentage
Yes 41 29.3%
No 99 70.7%

When asked the questions “Do you receive Edwin Watts Golf mail catalog?” only
29% of the 140 responding golfers receive Edwin Watts Golf mail catalog.


Taylormade is Golf Company with a mission to “Create the Best Performing
Products in the World”. The following tables outline responses from Hilton Head
Golfweek Amateur Golf Tour Championship golfers regarding Taylormade based
questions.

Which brand of golf ball do you prefer?

Brand Number of Responses
Percentage
No preference 7 5%
Titleist 60 43%
Bridgestone 17 12%
Callaway 15 11%
Taylormade 14 10%
Wilson Staff 5 4%
Srixon 5 4%
Nike 4 3%
TopFlight 3 2%
Other 7 5%

This table shows that 43% of the golfers surveyed prefer Titleist golf balls to any
other brand of golf ball. Only 10% of the golfers surveyed preferred Taylormade
golf balls

How often do you replace your golf clubs?

Time Period Number of Responses
Percentage
Never 5 3.6%
Semi-Annually 10 7.2%
Yearly 26 18.7%
2-3 Years 18 12.9%
3-4 Years 12 8.6%
4-5 Years 2 1.4%
5 Years 6 4.3%
10 Years 2 1.4%
Other 58 41.7%

Of the golfer's surveyed, 41.7% of them do not replace their golf clubs at a given
periods of time. The next largest percentages of golfers replace their golf clubs
yearly and after two to three years.

What is your preferred golf brand?

Brand Percentage of Total
Responses
Percentage of Those Who Have
a Preferred Brand
(94 Responses)
No preference 27%
Taylormade 17% 23%
Titleist 14% 19%
Callaway 13% 18%
PING 7% 10%
Nike 7% 10%
Mizuno 4% 5%
Wilson Staff 2% 2%
Adidas 2% 2%
Cobra 2% 2%
Other 6% 9%

Of the golfer's surveyed who had a preferred golf brand, the top three brands were
Taylormade (23%), Titleist (19%), and Callaway (18%). 27% of the golfer's
surveyed had no preferred golf brand.


What type of platform do you consume most of your golf media on?

Television (41.1%), Computer/Laptop (27.3), and Mobile device (15.8), are the
most common ways that the golfer's surveyed consumed golf media. Magazines held
the lowest percentage for non-combination responses. It is also important to take
into consideration the combination responses as they add to the totals of the single
platform responses.

What is your most trusted website for sports and news (outside of
golf)?

Website Number of Responses
(108 Total responses)
Percentage of Total
Responses
ESPN 60.0%
Golf Channel 5.6%
Yahoo 5.6%
Fox Sports 1.9%
Other 26.9%

ESPN was the most popular website for the golfer's surveyed as their go-to for
sports and news outside of golf. The "Other" category held 26.9% of responses,
which was the next highest percentage among surveyed golfers.

Platform Number of Responses
Percentage of Total Responses

Television (TV) 57 41.1%
Computer/Laptop 38 27.3%
Mobile device 22 15.8%
Magazine 8 5.8%
TV/Mobile device 1 0.7%
TV/Computer/Laptop 2 1.4%
TV/Magazine/Mobile 1 0.7%
TV/Magaine 3 2.2%
Magazine/Mobile device 2 1.4%
Other 5 3.6%

What is your favorite Golf Publication?

Publication Number of Responses
Percentage of total
Responses
Golfweek 56 55%
Golf Digest 25 25%
Golf Magazine 16 15%
Golf Channel 3 3%
None 2 2%

When asked, “What is your favorite golf Publication?” Golfweek was the popular
Golf Publication of the surveyed golfers at 55%.


OnCore Golf is a golf company innovating the way golf is played with their hollow
metal core golf ball. The company looks to “infuse fun and enjoyment into an
amazing sport, while continuing to introduce game changing technology and
products that remain within the Rules of golf”. The following tables and graphs
outline responses from Hilton Head Golfweek Amateur Golf Tour Championship
golfers regarding OnCore based questions.

What do you think is the most important performance attribute in
a golf ball?

Attribute Number of Responses
Percentage of Total
Responses
Distance 124 34.6%
Spin 154 43.1%
Bounce 14 3.9%
Roll 37 10.3%
Feel 23 6.4%
Consistency 6 1.7%

Of the six different attributes that were available spin was the most important
performance attribute among from Hilton Head Golfweek Amateur Golf Tour
Championship golfers at 43.1%. Distance was the next most important attribute
with 34.6% of responding golfers selecting it. Consistency was the least important
attribute with only 1.7% of responding golfers selecting it.

Are you aware of OnCore golf’s hollow metal core golf ball?

Percentage
Yes 117 47%
No 132 53%

Of the golfers that responded to this question, only 47% of them were aware of
OnCore golf’s hollow metal core golf ball.

What would cause you to change a golf ball?

(144 Responses)
Percentage of Total
Responses (144
Responses)
Performance 103 72%
Cost 18 12%
Both 23 16%

When asked, “What would cause you to change a golf ball?” the majority of
responding golfers selected performance at 72% of golfers. Cost led to only 12%
of golfers changing their golf ball. While 16% of golfers responded with both
performance and cost being equal factors in the decision to change a golf ball.


Dot PLX is a company that specializes in parallax putters. The company offers “the
worlds best putter alignment system that guarantees your head is directly over the
ball and your stance is such that your putting stroke hits the ball on the upswing at
the equator to impart maximum roll every single time you putt. The following tables
and graphs outline responses from Hilton Head Golfweek Amateur Golf Tour
Championship golfers regarding Dot PLX based questions.

Have you ever visited www.dotputter.com?

Of the 243 responding golfers, only 9.5% had ever visited Dot PLX ‘s website
www.dotputter.com. Of the golfers, 90.5% had never visited the website.

Have you heard of Dot PLX parallax putter?

Of the 242 golfers that responded to this question, only 31.8% of the golfers had
heard of the Dot PLX parallax putter. 68.2% had never heard of this putter.

What do you think is the most important attribute of a putter?

Attribute Number of Responses
Percentage of
Total Responses
Weight 133 33.8%
Head Shape 103 26.2%
Shaft Length 61 15.5%
Shaft Position 52 13.2%
Feel 44 11.2%

Weight (33.8%) and Head Shape (26.2%) were the most important attribute of a
putter according to the 393 golfers who answered this question. The feel of the
putter was the least important attribute with only 11.2% of golfers selecting it.

Approximately how much do you spend on a single putter?

Of the golfers surveyed, the average price a golfer was willing to pay for a putter was
$201.41. The highest anyone would pay for a putter out of the golfers surveyed was
$500.00 and the lowest was $40.00

Are you aware that a Dot PLX putter guarantees the best putter
alignment system?

Of the 240 golfers that responded to this question, only 21.3% were aware that Dot
PLX putter guarantees the best putter alignment system. 78.7% were not aware of
this.

Section IV Economic Impacts

Gross Versus Net Impact

Houghton College Consulting Group was asked to measure the contribution of the
Hilton Head Golfweek Amateur Golf Tour Championship in 2015 on the local
economy. To only state the economic impact of spending by the Amateur Golf Tour
Championship, participants and visitors would produce a presentation of “gross”
economic impacts.

This analysis measures the “net” economic impact. This requires that only spending
attributed to the Amateur Golf Tour Championship is new (or would not have
occurred without the presence of the championship) to the Hilton Head Island area.
This means that spending concerns taken into consideration are as follows:

● Spending by non-local visitors or participants that occurred locally because
of the Amateur Golf Tour Championship is included.

● Spending by those who would have come to the Hilton Head Island area
regardless of the Amateur Golf Tour Championship at this time is excluded.

● Spending by local visitors or participants that would not have occurred in
the area without the presence of Amateur Golf Tour Championship is
included.

Net economic impact estimates are notably smaller than gross economic impact.
However, net economic impact produces a more realistic estimate of the economic
impacts of the Amateur Golf Tour Championship. This will allow a more accurate
answer to the question, “How is the Hilton Head Island Area economy affected by
the Hilton Head Golfweek Amateur Golf Tour Championship?”

Economic Impacts by Type

Direct Impact

Direct impact is the measure of direct or actual revenue generated by the
Hilton Head Golfweek Amateur Golf Tour Championship most commonly
through the local spending by participants and visitors as outlined by the
spending concerns for consideration. The impact represented by our report
gives numerical values for only the estimated direct impact of the Hilton
Head Golfweek Amateur Golf Tour Championship.

Indirect Impact

Indirect impact showcases additional input purchases made by local
businesses that are not necessarily involved with the Hilton Head Golfweek
Amateur Golf Tour Championship as a result of the direct impact. This
requires a multiplier effect to be taken into consideration for a numerical
value.

Induced Impact

Induced impact is the final impact what occurs as a result of local business
owners, suppliers, and employees spending additional income that they
earned as a result of the direct and indirect impacts. This requires a
multiplier effect to be taken into consideration for a numerical value.

Economic Multipliers

Economic Multipliers are used to calculate the total impact of an
event. Multipliers are generally provided through expert judgment,
models and software such as IMPLAN. The total impact equals the
direct impact plus the indirect impact plus the induced impact. This
total impact can be calculated more simply with the total impact
equaling the direct impacts multiplied by the multiplier.

Other Considerations

The Hilton Head Island area sees peak tourism in the summer months.
The Hilton Head Golfweek Amateur Golf Tour Championship occurs in
October offering a smaller peak in economy in the down season of
local tourism. The direct take away from this would be that the Hilton
Head Golfweek Amateur Golf Tour Championship has a positive
economic impact on the local area.

Industries Affected by Golfweek Amateur Tour
Championship

It can be estimated that the above industries would see direct, indirect and induced
economic impacts based on the nature of this tournament. This is not a fully
comprehensive list of all industries that could potentially be affected by the Hilton
Head Golfweek Amateur Golf Tour Championship. However, it attempts to offer a
conservative scope of industries affected by the tournament.

Direct Impact of Sample Attendee Spending

Spending Type Amount Spent ($)
(Based on 284 Golfers)
Total Amount Spent $495,732
Average Amount Spent Per Golfer $1745.54
Average Amount Spent Per Day Per
Golfer
$277.51

Based on 284 responding golfers nearly $500, 000 was spent by those golfers during
the course of the Hilton Head Golfweek Amateur Golf Tour Championship in 2015.
With statistical analysis the direct economic impact can be estimated to represent
the total direct economic impact the tournament had on the Hilton Head Island area
in 2015.

Industry Affected Potential Economic Impact
Food and Beverage Direct, Indirect, Induced Impact
Bars and Restaurants Direct, Indirect, Induced Impact
Retail Direct, Indirect, Induced Impact
Lodging and Tourism Direct, Indirect, Induced Impact
Transportation Direct, Indirect, Induced Impact
Sport (Golf) Direct, Indirect, Induced Impact

Estimated Total Direct Economic Impact of the
Championship

Spending Type Amount Spent ($)
(Based on 853 Golfers)
Total Amount Spent (Direct Impact) $1,488,944.26
Average Amount Spent Per Golfer $1745.54
Average Amount Spent Per Day Per
Golfer
$277.51

Based on the 853 total golfers that attended the Hilton Head Golfweek Amateur Golf
Tour Championship the estimated total direct economic impact the tournament had
on the Hilton Head Island area is nearly 1.5 million. This impact only represents the
estimated total net direct impact the tournament had on the Hilton Head Island
area. With a multiplier taken into account this amount would be larger and would
include both indirect impact and induced impact associated with the Hilton Head
Golfweek Amateur Golf Tour Championship. The combination of the direct impact,
indirect impact and the induced impact would provide a comprehensive total net
economic impact the tournament had on the area. This only represents the net
direct impacts of the championship.

For more information regarding the statistical confidence of this analysis refer to
Appendix A “Statistical Analysis”.

Direct Impact by State

The above graph outlines the amount spent per golfer per state during the Hilton
Head Golfweek Amateur Golf Tour Championship according to the sample size of
golfers that was obtained.

State
Average Amount Spent Per
Golfer Per State ($)
AL $1340
AR $3137.5
CO $2933.33
FL $1627.92
IL $1483.33
IN $2060
KS $1962.5
KY $1888.89
LA $2265
MD $1890
MI $2068.75
MN $2700
MO $2360
State
Average Amount Spent Per Golfer Per
State ($)
MS $2840
NC $1178.52
NJ $800
NM $3000
NY $1666.67
OH $3610
PA $1525
SC $1112.5
TN $1750.56
TX $2080
UT $2362.5
VA $1768
WV $1600

Hilton Head Golfweek Amateur Golf Tour
Championship’s contribution to the Hilton Head
Island area economy in 2015

Net economic impact analysis allows for the examination of the Hilton Head
Golfweek Amateur Golf Tour Championship’s contribution to the Hilton Head Island
area economy in 2015. From an economic measure, the net contribution of the
Hilton Head Golfweek Amateur Golf Tour Championship was positive. This is with
the consideration of excluding spending that would have occurred in the absence of
the Hilton Head Golfweek Amateur Golf Tour Championship in the local area. The
net direct economic impact to the area is estimated to be $1,488,944.26.

Appendix A Economic Impact Analysis

This appendix section provides a detailed overview of the analysis methods used to
estimate the economic impact. It begins with an introduction into what economic
impact is and how it can be measured. This appendix then goes on to provide key
issues in economic impact analysis. It reiterates the importance of measuring net
impact rather than gross impact. It then outlines the importance of a relevant study
area and what this analysis’ relevant study area included. It concludes with an
overview of the data relied upon in further detail.

Economic Impact

Economic Impact is simply the changes in economic activity in a given area as
a result of an initial change in the local economy. This impact is most commonly
measured through changes in output (or sales), income (value added), and jobs.

Purpose of Measuring Economic Impact

An economic impact analysis examines the effect of an event on the economy in a
specified area. The event analyzed can include implementation of a new policy or
project, or may simply be the presence of a business or organization. An economic
impact analysis is often conducted when an interested party intends to calculate the
potential impacts of a proposed project or policy. An economic impact analysis
typically measures or estimates the change in economic activity between two
scenarios, one assuming the economic event occurs, and one assuming it does not
occur. This can be accomplished either before, during or after the event has
occurred.

Key Issues Affecting Economic Impact Analysis

Economic impact analysis is sometimes viewed negatively. Figures can be
claimed as being exaggerated and/or unreliable. There are two main areas of
concern when conducting this type of study. The first issue is the way in which the
analysis is being prepared. The second issue involves specifying the exact
geographic location under consideration. Conditions each year do not remain
constant. Differences in event implementation, attendees, weather, social trends and
so on, can skew numbers from year to year.

Gross versus Net Impacts

Gross analysis is useful for discovering the macroeconomic impact of an area,
taking into account the total economic impact of the region. A Net analysis is better
utilized to discover the specific impact of a new policy, business, or event held,
taking only the impact of that specific instance on the region and not the total
economic impact of the area. The first step in any economic analysis is taking the
Gross number. The key to discovering the exact net economic impact on an area is
separating certain data from the gross impact that the event had.

Definition of Relevant Study Area

Defining the area of study is of paramount importance. This is certainly the
most important factor dictating the legitimacy and effectiveness of the study.
Contingent upon how the relevant study area is defined; particular economic effects
will either be internal or external to the area. Thus people may be included or
excluded unintentionally, skewing the data and misrepresenting the population
area. By explicitly defining the area of study, the population’s gathered statistical
data is precisely collected, which improves the accuracy of the impact study.

Data Relied Upon

In order to complete an economic impact analysis, many forms of data can be
relied upon. One form of that data is surveys. Surveys can be both physical written-
out surveys or can be completed online. Surveys can be given to attendees at an
event, local businesses surrounding an event, people who live in the area regardless
of whether the event is happening and so many more. There is no limit to the data
that can be gathered via surveys.
Another example of data relied upon during an economic impact analysis are
monetary figures gained from the local town/city ordinances. These figures can
point to whether or not the local economy sees a spike during the event being
researched.

Statistical Analysis

The statistical analysis used to estimate the total direct economic impact of
the Hilton Head Golfweek Amateur Golf Tour Championship was based upon a total
population size of 853 golfers. The confidence level used for this analysis was 95%.
The confidence level refers to the amount of uncertainty that is tolerable in the
analysis. Higher confidence intervals require larger sample sizes due to less
tolerability to the amount of uncertainty. The margin of error was 5%. This accounts
for the amount of error that is allotted within the analysis. The response
distribution was 50%.

With these statistical restrictions a minimum sample size of 266 golfers
would be required to produce statistically sound analysis. The sample size used for
this report was well above this minimum at 284 golfers. This means that the
estimated results can be deemed statistically sound with these restrictions. Net and
gross impact considerations were taken into consideration during the preparation
of the total net direct economic impact.

Appendix B Outline of Surveys

First Day Survey
First Day 10 questions Survey
1. How long have you been planning to attend this tour? ______________
2. Would you have come to the Hilton Head area at this time even if this event had not been held?
Yes________ No______
3. If “Yes” (in 2), will you stay longer in the Hilton Head area than you would have done if this event
had not been held?
Yes_________ No______
4. If “Yes” (in 3) How much longer?
______________________Days
5. Would have come to the Hilton Head area in the next two months if you had not come at this time
for this event?
Yes_________ No_______
6. What is the zip code at your primary home address? ______________
7. How many people (including yourself) are in your immediate group? (This number should include
the people for whom you typically pay the bills. E.g. family and close friends) __________people
8. To better assess the economic impact of the Hilton Head Golfweek Amateur Golf Tour
Championship, we are interested in finding out the approximate amount of money you and other
visitors in your immediate group will spend. We understand the complexity of this question, but
please do your best to answer as accurately as possible. During the course of your visit, what is the
approximate amount your immediate group will spend in each of the following categories:
Type of Expenditure Amount Spent in the Hilton
Head Island Area
Amount Spent outside the
Hilton Head Island Area
Food and Beverages
(restaurants, concessions,
cafeterias, etc.)
Night Cubs, Lounges & Bars
(cover charges, drinks, etc.)
Retail Shopping (souvenirs,
gifts, clothing, etc.)
Lodging Expenses (hotel,
condos, villa, house, etc.
Transportation Expenses
(Personal car, rental car, taxi,
hired driver, etc.)
Any other Expenses
Please Identify
____________________
9. In the past ten years, how many times have you played at this tournament?
_______________________ times.
10. Would you consider this visit your biggest vacation of the year?
Yes____________ No_________

Clipboard Survey
Clipboard Survey
1. How many years have you been golfing?
_________________________years.
2. How many years have you been participating as a golfer in this tournament?
________________________years.
3. What flight are you playing in?
4. Did you bring all of your own golf equipment?
Yes________ No___________
5. Have you purchased any golf equipment on the island?
Yes________ No___________
6. If yes (in 5), where did you purchase your golf equipment?
7. If yes (in 6), how much did you spend on your golf equipment (in U.S. Dollars)?
8. Have you participated in any practice rounds of golf in Hilton Head?
Yes No
9. If yes (in 8), where did you play your practice rounds?
10. Do you know about Edwin Watts Golf 90-Day, 100% Satisfaction Guarantee?
Yes No
11. Do you receive email communications from Edwin Watts Golf?
Yes No
12. Do you receive Edwin Watts Golf mail catalog?
Yes No
13. Are you likely to visit Edwin Watts Golf website when considering a purchase?
Yes No
14. Does Edwin Watts carry a mix of product that appeals to you?
Yes No
15. Which brand of Golf Ball do you prefer?
16. What type of platform do you consume most of your golf media on?
17. What is your favorite Golf Publication?
18. How often do you replace your equipment?
19. What is your most trusted website for sports and news (outside of golf)?

20. On a scale of 1 to 10, 10 being very high 1 being very low, how would you
classify your brand loyalty?
21. On a scale of 1 to 10, 10 being very high 1 being very low, how would you
classify your brand loyalty with Golf brands?
22. Do you have a preferred golf brand?
Yes________ No___________
23. If “Yes” (in 22), What is your preferred brand?
24. Does anyone else in your immediate group (People in your immediate group are
classified by those for whom you would typically pay the bills e.g. family and
close friends) golf?
Yes________ No___________
25. If “Yes” (in 24), how many people in your immediate group (including yourself)
are participating as golfers in this event?
Yes________ No___________
26. Are you a member of a country club back home?
Yes________ No___________
27. Are you content with the time commitment of the tournament?
Yes________ No___________
28. Are you involved in any activities other than golf while on the Hilton Head Island?
Yes________ No___________
29. If “yes” (in 27), what other activities are you involved?
30. Would you consider returning to the Hilton Head area for vacation purposes as a
result of your tournament experience?
Yes________ No___________
31. Are you planning to attend the event for the full duration of the event?
Yes________ No___________
32. If “Yes (in 31), How many days do you plan to spend at the event this year?
___________________Days

E-mail Survey
Link Used for Email Survey

www.houghton.edu/golfweek-survey

Through Houghton College’s communication department we made
this link to redirect the surveyors to Survey Monkey to take the survey. We
delivered this link to them by two means. The first was through a business
card and the second was through an email that was sent out to all of the
golfers after the tournament.

Hilton Head Economic Impact Analysis

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