Estimating the Impact of
Tourism Events
Case Study:
Special Olympics Oklahoma
Impact on Stillwater, OK
Why do tourists visit a community?
Vacation/Sightseeing
Business Trips/Conventions
Special Events: Rodeos, Concerts, Festivals
Participation in Sporting Events
Just Passing Through
Why do tourists visit Stillwater, OK?
Prospective OSU Students
Visit Current Students
Eskimo Joe’s
OSU Sporting Events
Special Olympics Summer Games
• Established in 1969.
• Sports program for adults and children with
mental retardation.
• Competition offered in 14 sports.
• Over 8,100 Oklahoma athletes participate.
• Annual Summer Games held in Stillwater,
OK each May—Impacts the Economy!
3 Impacts of an Event:
• Direct Impacts
– SOOK spends money in Stillwater
– Athletes and Coaches spend money in Stillwater
• Indirect Impacts
– Motels bring in extra maid-staff
– Restaurants place larger orders with their
suppliers
• Induced Impacts
– Local business owners spend the additional
income they earned due to the event
Estimating Direct Impacts:
Expenditure Surveys
• Coaches Survey
– Coach spending
– Athlete Spending
– Spectator Spending
• Volunteer Survey
– Individual Volunteers
– Corporate Volunteers
Attendance Statistics
VOLUNTEERS
Total: 1,965
From Stillwater: 636
ATHLETES
Total: 3,473
From Stillwater: 92
COACHES
Total: 390
From Stillwater: 6
Source: SOOK
Estimating Indirect & Induced
Impacts: Multipliers
• Direct spending is “multiplied” throughout
the economy.
• Western Rural Development Center
suggests a conservative multiplier of 1.5.
• IMPLAN can estimate the value of the
multiplier for a county.
Example of Multiplier
Direct Expenditures: Grocery Stores = $24,868.51
IMPLAN Multiplier for Payne County = 1.46
Total Impacts for Grocery Stores
= $36,308.02
Indirect & Induced Impacts = $11,439.51
RESULTS
Economic Impact of SOOK on
Stillwater, OK
RESTAURANTS
$189,945.78
$389,388.85
GROCERIES
$24,868.51
$36,308.02
GASOLINE
$33,090.74
$48,974.30
RECREATION
$16,243.61
$35,086.20
RETAIL
$280,381.02
$476,647.73
PUBLIC
TRANSPORTATION
$94.93
$166.13
PERSONAL SERVICES
$2,711.99
$5,396.86
OFF-CAMPUS LODGING
$91,903.85
$181,050.58
TOTAL ECONOMIC
IMPACTS
(Payne County)
$643,274.43
$1,178,830.72
TOTAL ECONOMIC
IMPACTS
(Stillwater)
$643,274.43
$1,085,108.37
Estimated Economic Impact =
$1.08 million
Estimated Sales Tax
Collection
Sales Subject
to Tax
Rate
Estimated
Collection
Direct
Impacts
$495,195.31
3%
$14,855.86
Induced &
Indirect
$179,607.29
3%
$5,388.22
TOTAL
$674,802.60
3%
$20,244.08
Estimated City Sales Tax Collections =
$20,244.08
Steps for Assessing the Economic
Impacts of a Tourist Event
I.
Collect Direct Impacts
A.
B.
II.
Expenditures by Event Organizers
Expenditures by Event Participants
Apply Multipliers
A.
B.
C.
D.
Choose the Correct Multiplier
Calculate Total Impacts for the County
Calculate County Induced & Indirect Impacts
If Necessary, Adjust Impacts for the City
Steps for Assessing the Economic
Impacts of a Tourist Event
III. Estimate Impact on Sales Tax Collections
A.
B.
C.
D.
Determine City Sales Tax Rate
What Portion of Direct Impacts were Subject
to Sales Tax?
What Portion of Indirect & Induced Impacts
were Subject to Sales Tax?
Apply Tax Rate to Total Sales Subject to Sales
Tax.
QUESTIONS?
Contact:
Suzette Barta
Assistant Extension Economist
Mike Woods
405-744-6186
Extension Economist
sdb1113@okstate.edu
405-744-9837
mdwoods@okstate.edu
Derek Cain
SOOK Development Director
918-481-1234
derek@sook.org