The New Hampshire Primary: What it means to the state and the nation Library and Archives of NH’s Political Tradition Ross Gittell, Associate Professor, UNH Brian Gottlob, President, PolEcon Research The benefits of the NH Primary accrue to the state and to the nation • Political and social benefits for the state and nation as the primary engages a high percentage of citizens • NH citizens’ personal contact with the candidates and focused discussion of issues influences election outcome • Candidates get tested and learn... come away stronger candidates • Economic benefits for the state and its citizens via spending and jobs and media exposure Most important are the benefits to the nation of having an active and engaged electorate test the qualifications of candidates…. In 2000, national and international media truly acknowledged the value of NH’s role in the political process The national media messages about the New Hampshire primary ….1992, 1996 and 2000 • 1992: “The worst economy in the country” • 1996: “Home of retail politics”, “Politically atypical”, and “Traditional” • 2000: ”Retail Politics”, “Serious voting electorate”, “Informed”, and “Crucial” NH was still portrayed as “different”, but in 2000, it was portrayed as more of a virtue Top Media Impressions (000's) 1996 2000 Home of Retail Politics Politically Atypical Traditional Serious Electorate Crucial Informed Electorate Technology Leader Bitter cold 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Full slates for both Democrats and Republicans meant more exposure for NH Primary in 2000 than in 1996 Exposure by month, in impressions 140 Sum of impressions (in millions) 120 100 1996 Primary (held 2/21/96) 80 2000 Primary (held 2/1/00) 60 40 20 0 October November December Month January February March The First-in-the-Nation Primary Potential readers exposed to the message that NH deserves its status as "First in the Nation" 18,089,729 20,000,000 15,000,000 10,000,000 5,000,000 1,991,458 0 1996 2000 Media stories about NH voters engagement reflected reality, not just image % of Voting Age Citizens Voted in Primary 75% Paid "Some" or " A lot of" attention 74% Watched One or More Debate Attended Campaign Event Shook hands Made a Campaign Contribution 68% 13% 10% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% UNH Survey Center. July, 2000 Quotes of Note: From the June 15, 1999 New York Times describing New Hampshire as a state with: “a justifiable reputation for being a state with informed voters who ask informed questions” Wall Street Journal, August 23, 2000 • “In 2000 the word got out….New Hampshire has a strong economy for high-tech ventures and is an attractive place for start-up businesses” • “New Hampshire has an active and wellinformed electorate…the highest level of involvement among the 2000 presidential nominating contests” Economic Impacts The first-in-nation primary benefits some industries in NH but the overall impact is often exaggerated by outsiders…it is about .6 of 1% of the state’s gsp in the peak year of primary activity The economic impact of the 2000 primary was 50% greater than the impact of the 1996 primary $350 $306 $300 $250 $210 $200 $150 $100 $50 $0 1996 2000 Increased media coverage was a big reason for expenditure increases (campaign spending rose only modestly) Number of reporters covering the NH Primary 593 600 500 370 400 300 200 100 0 1996 2000 How we produced our economic estimates • Travel, tourism, and tax data • Federal Election Commission campaign expenditure reports • Media content analysis • Interviews with businesses and with campaign workers • Employed recognized econometric methods and models Most of the economic impacts occurred in the year preceding the primary Timing of Economic Impacts ($million) 100% 80% $5 $37 $33 Imputed Media Value ('96-'99) March '96-Feb.'99 60% 40% 20% 0% $231 Imputed Media Value ('99-'00) March '99-Feb. '00 Overview of Economic Impacts of the New Hampshire Primary (March 1, 1999 - Feb. 28, 2000) Direct Campaign Spending $12 million Media and Visitor Spending $71 million Total Spending $231 million (Direct,Indirect & Induced) Total Economic Benefits (March 1, 1999-Feb. 28, 2000) $264 Million Total Direct Spending $83 million Value of Tourism Promotion Exposure $6.6 million Value of Business Development Exposure $26.4 million - $231 million sales and 2,248 jobs - $6.6 million tourism promotion - $26.4 million business development The lodging, restaurant, media, communications, and trans. industries, along with households receive the greatest benefits Sales ($ millions) $1$3 Manuf. $3$6 Const. F.I.R.E $8 Retail $14 Services 2000 1996 $27 $12 $18 Comm/Trans $29 $25 Hotel/Rest. $33 $43 $26 Households* $57 $37 0 10 20 30 * Households refers to payments for labor (wages) 40 50 60 Total Primary spending of $231 million results in over 2,200 jobs $231 2,248 467 $116 255 $31 1,511 $83 Spending ($million) Jobs Induced Indirect Direct Half of the jobs created are in the lodging and restaurant industries Full-Time Equivalent Jobs Resulting from Primary 1,187 Lodging/Rest. Services 428 Gov. 175 Retail 187 113 Comm/Trans/Util. F.I.R.E. 59 Const. 59 Manuf. 12 0 200 400 600 800 1000 1200 1400 Media Coverage and Advertising Equivalency The First-in-the-Nation primary is the #1 media opportunity in NH… the word gets about about candidates, the issues and about NH Why media coverage is important • An audience of 222 million people worldwide were exposed to stories about NH via media coverage of the primary during primary Specific Media Data • Top media outlets covering the Primary: – – – – – – – – – – ABC World News This Morning Business Week CNBC-TV CNN - Crossfire Kansas City Star London Free Press Charleston Post & Courier Chicago Sun Times CNN Raleigh News and Observer Specific Media Data • Most positive media outlets: – – – – – – – – – – Boston Globe USA Today Atlanta Journal and Constitution LA Times ABC Dallas Morning News Washington Post NY Times ABC World News This Morning Business Week CNBC-TV Specific Media Data • Most negative media outlets: – – – – – – – – – – San Francisco Chronicle Boston Herald Orlando Sentinel Indianapolis Star Denver Post Tampa Tribune Times-Picayune Richmond Times-Dispatch San Francisco Examiner Rock Hill (SC) Herald The positive articles translate into positive impression of NH for 22 million people (up from 15 million in ‘96) • Positive impression of the state for 22 million • Research shows that 3% of those positively exposed will eventually visit • Thus, news coverage of the primary will contribute to 660,000 visits to NH (3% of 22 million) • Each $10 of advertising by NH attracts 1 visitor. Thus 660,000 visits = $6.6 million in advertising value The impact of media coverage on tourism 220 million media impressions 22 million positive impressions 660,000 nonprimary visits (3% of 22 million) $6.6 million in tourism advertising equivalency @ $10/visitor (about twice NH’s tourism advertising budget) International media coverage also impacts business development 660,000 visits to NH (3% of 22 million) 13,200 corporate decision- makers and entrep. (2% of 660,000 - actual US figure is 11%) 132 new businesses (1% of 13,200 or .0002 of all visits) 132 new business with avg. 20 emp. per business= 2,640 employees @ $10,000 subsidy/business development value per emp.= $26,400,000 Let’s keep NH First.... • There is strong interest & support for a collaborative effort to keep NH First-in-theNation ...with industry leaders, public officials and others.. Why NH should be First... – we in NH take our role very seriously…we know that every vote always counts – there are national benefits from an engaged & informed electorate in NH – our small scale and strong tradition of participation and engagement ensures that $ and media do not determine our primary election outcomes – ideas and voter contact are most important in NH – “underdogs” still have a chance in NH – we are not in it for the money…but it helps particular sectors of the economy