This is my most recent PowerPoint Material on the Economic Impact of Silent Sports

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