The document summarizes an economic impact study of the equine industry in Douglas and Elbert Counties, Colorado. It finds that the horse industry has a substantial economic impact in the region, generating over $669 million in direct value and supporting over 71,000 jobs. It also compares the impact of the horse industry to other industries like golf and discusses how quantifying the industry's value can help justify policy decisions and incentives that support the industry. The study utilized surveys of horse park visitors and county horse owners to estimate industry expenditures and economic activity.

1. COLORADO HORSE PARK FOUNDATION

2. Economic Development
Business Development
Land Planning
Non-Profit Management
Marketing
Kyle Fenner
Business Development Manager
CEO CHP Foundation
Colorado Horse Park

3.  The Colorado Horse Park 501c3
together with the Town of Parker, Douglas
County, The Parker Chamber, Murdoch’s, The
Dumb Friends League, the Douglas-Elbert County
Horse Council and interested individuals have
conducted an Equine Industry Economic Impact
Study for Douglas and Elbert Counties of
Colorado in 2012.

4. “To establish the economic
impact of the equine industry on
Douglas and Elbert Counties in
terms of jobs, earnings, tax or
fiscal impacts, advertising and
draw of new residents to the
Counties.”

5.  Promote the Industry
 Educate citizens, business leaders and
elected officials on the size, scope and
economic impacts of our specific industry.
 Identify business opportunities, voids in
the market offerings and barriers to
doing business.

6.  What IS the idea?
That the Horse Industry and all of its
facets, is strong, valuable and worth
paying attention to.
 First you have to believe in the idea. I
guess that is one of the reasons I am
here talking with you.
 Second you have to sell the idea.

7.  It matters because the Horse
Industry is worth paying attention to
– IT HAS REAL VALUE!.

8.  Frequently laws and regulations are
considered that affect (directly or
indirectly) horse ownership: land use, animal
classification, taxes and water use to name a few.
 Often not meant to affect horse ownership but do
as an unintended consequence.
 Without a clear idea of the value of the horse
industry as a whole, the argument that it is worth
protecting has little impact.

9. Incentives are often offered to
new businesses through sales tax
rebates, reduced development
costs/barriers or streamlined
permitting.

10.  If a clear understanding of
the horse industry is established &
quantified, it justifies incentives
and barrier/ burden reductions
can be developed and offered to
them.

11. FOR EXAMPLE:
 Douglas County is home to the Colorado
Horse Park, one of the largest horse show facilities
in the nation and some of the state’s most valuable
horses.
 Both Douglas & Elbert Counties are home to many
large, competitive show facilities and 1000’s of
pleasure horses.
 The horse economy in Douglas and Elbert Counties
alone is substantial with some of its costliest real
estate in the form of high end horse facilities.

12. Interviews with realtors NOT
specializing in horse properties confirmed:
(it pays to know horse property)
 An average of 19% of all prospective buyers
of residential property in our area specifically
mentioned the proximity to horses and horse
activities as one of their selection criteria.
 Among buyers the general affinity for horses
was between 3 and 3.5 on a 5 point scale, 5
being high

13. TOWN OF PARKER:
Average Retail Data
(10 months 2012 – Minus One Large Retailer)
$1,289,786.87 Total Retail Sales
$28,060.41 Total Tax Dollars Collected
$128,978.69 (Average Monthly Sales)
* This includes ONLY retail sales, not boarding, horse
sales, farrier services, veterinarian services, or local
business outside town limits, etc.

14.  The average visitor to CHP stayed slightly over
three weeks (out of area visitor).
 Total expenditures of the 533 unique visitors
were approximately $5.5 million - or about
$10,250 per visitor - spread out over an
average of 22 days.
 Expenditures by both local and non-local visitors
sum to approximately $6.3 million.
 Non-local spending DIRECT impact $7.2 million.

15.  Expenditures by both non local and local competitors
totaled to approximately $4.3 million.
 A total of 141 jobs and $2.4 million in earnings is due to
non local visitors and competitors at CHP.
 The two counties received about $46,000 in additional
sales tax revenue, and the town of Parker received
about $40,000 in municipal tax revenues (minus top
retailer – this figure will likely double).

16. Enthusiasts: people who own or lease horses.
74% of survey respondents indicated an equestrian lifestyle was very
important (5 out of 5) to their choice for their current residence. Another
10% rated the equestrian lifestyle as important in their choice
(4 out of 5).

17.  Expenditures by the LOCAL enthusiasts is
estimated to have been approximately
$14.5 million over the past 12 months, of
which $12.5 million was for horse
care, including boarding, and horse
products and services.
 The amount spent on horse purchases was
just under $2 million.

18. 74% of the horse enthusiast
respondents said that the
equestrian lifestyle was extremely
important in their choice of their
current residence, with another
9% saying it was important.

19.  In 2005, the Colorado horse industry produces
goods and services valued at $956 million.
 The national industry had a $1.6 billion impact
on the Colorado economy when the multiplier
effect of spending by industry suppliers and
employees is taken into account.
 Accounting for off-site spending of spectators
would result in an even higher figure.

20.  102,400 Coloradans were involved in the
industry as horse owners, service providers,
employees, and volunteers. Even more participated
as spectators.
 The Colorado horse industry directly provided
5,800 full-time equivalent (FTE) jobs. Spending by
suppliers and employees (in Colorado and other
states) generated additional jobs in Colorado for a
total employment impact of 21,300.
 There were 256,000 horses in Colorado, over 70
percent of which were involved in showing and
recreation.

21.  Since the peak in the housing market, home values
have dropped 29.5%.
 Lets pretend the value of Colorado’s Horse Industry
fell by 30% (rounding up)
2005 PERCENTAGE LOSS 2012 IMPACTED DATA
$ 956,000,000 30% $ 669,200,000 Direct Value
$ 1,600,000,000, 30% $ 1,120,000,000 National Impact on
Colorado
$ 102,400 30% 71,680 Coloradans
Involved
5,800 30% 4,060 Full Time Jobs

22.  Using the same value assumptions over
time let’s make a comparison to the Golf Industry
GOLF INDUSTRY HORSE IMPACTED DATA
INDUSTRY
$910,000,000 $1,120,000,000 National Impact
on Colorado
$392,000,000 $669,200,000 Direct Value
SOLHEIM CUP WILL BRING 140,000 PEOPLE AND $19M IN LOCAL IMPACT DOLLARS OR $135
PER PERSON.
THE HORSE PARK HAD 18,500 VISITORS, WITH A LOCAL IMPACT OF $7.4M /$400 PER PERSON

23. Colorado Economic

Development often focuses on
industry clusters

24. “An economic cluster is a

geographic concentration of
firms and institutions whose
activities are interconnected
and interdependent within a
particular economic sector.”

25.  The idea of an economic cluster
encourages us to consider the ways in
which value‐added activities might
coalesce or gather around something
like an agricultural or natural
resource and then attracts other firms
which seek to capture spillover
economic opportunities.

26. Aerospace NO
Health & Wellness YES
Bioscience YES
Information & Technology NO
Creative Industries YES
Engineering & Construction YES
Defense & Homeland Security NO
Manufacturing YES
Electronics NO
Tourism & Recreation YES!!!
Energy & Natural Resources YES
Transportation & Logistics NO
Financial & Business Services YES?
Food & Agriculture YES

27.  For county officials, even state officials, to
make informed decisions on anything that
affects horse ownership, directly or indirectly, they
must first know how valuable that industry is to
them.
 When officials DO make decisions supporting horse-
related issues and they are armed with clear,
concise data supporting WHY they made their
decision, they can easily defend these decisions and
educate their constituents.

28.  Prepare, Test and Implement and Intercept
Survey of CHP competitors in 2012.
 Prepare, Test and Implement and Intercept Survey of
Douglas/Elbert County Equine Participants.
 Research Equine Industry Trends & Impacts in the U.S.
 Document Regional Equine Industry.
 Research the Availability of Advertising Value
Equivalency (AVE) Studies.
 Provide Economic Impact Analysis.

29. One Regional Study Is Not
Enough To Support the Industry
1. We hope our study spawns others.
2. Coalitions – the bigger the better.
3. We are more than happy to share our
process with you.
4. How much do YOU value the industry?
Isn’t it worth it?

30.  The “HORSE” is important – to each of
us personally, to our region and the state
economy.
 The best way to protect our passion or our
profession is to highlight that “THE HORSE” is an
economic driver in our state.
 If “The Horse” becomes fiscally important – it is not
just a “lifestyle”.
 The time is right for this positioning – economic
development is a “hot topic”.
 It makes sense…

31. COLORADO HORSE PARK FOUNDATION
Douglas/Elbert County Equine
Economic Impact Study

32. Thank You