1 / 22

Measuring the Effects of Sports and Tourism on a Regional Economy

Measuring the Effects of Sports and Tourism on a Regional Economy. MARK D’AMATO Senior Economist. Model Features. Integration. Structural Model. New Economic Geography Model Structure. Dynamic. Model Studies. Fenway Park. Fenway Park. Existing annual economic impact of Fenway Park

beate
Download Presentation

Measuring the Effects of Sports and Tourism on a Regional Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Measuring the Effects of Sports and Tourism on a Regional Economy MARK D’AMATOSenior Economist

  2. Model Features

  3. Integration

  4. Structural Model

  5. New Economic Geography Model Structure

  6. Dynamic

  7. Model Studies

  8. Fenway Park

  9. Fenway Park • Existing annual economic impact of Fenway Park (in 2000 dollars) • $127 million in output to the greater Boston economy • $78 million of which contributed towards growth of GRP • Supports 1,608 jobs • Generates $15 million in state and local taxes, produced $93 million in personal income

  10. New Fenway Park Construction Efforts • Creation of 3,900 jobs over four years and generation of $209 million of new GRP • Would require a $240 million public subsidy for a construction cost of $422 million • Regardless of the impacts created from building a new stadium, would the project spin off enough benefits to justify the financing of this project?

  11. Evaluating the Alternative • Eight alternative scenarios discussing: • High attendance • Moderate attendance • Conservative attendance • Worst-case attendance • All with constant and high spending constraints

  12. Results • Large attendance increases may not materialize and is dependent on future team success • Fans tend to have a fixed entertainment dollar they are willing to spend and will not be able to take full advantage of services in and around the ballpark • Not all of the additional revenue would be “net new” to the economy • Building a new park would require the Red Sox to spend an additional $19 million annually in debt service, compared to their current minimal maintenance costs

  13. St. Louise Ballpark Stadium & Village • Ballpark stadium would replace existing Bush Stadium • Ballpark village would be a mixed-use development surrounding the ballpark, including office, retail, restaurant space, parking and entertainment attractions. • Financing assumed by State, County & City Government

  14. Results • By 2005, near-complete construction would result in a 0.02% gain is GSP ($35.64 mil). • By 2008, there is a drop in GSP due to phase-out of massive construction. • By 2011, construction and operation of Phase One would result in a 0.04% gain in GSP ($90.14 mil). • By 2014, full operation of the ballpark village would result in a 0.06% gain in GSP ($153.77 mil). • By 2034 the economic impact levels off, with the gain of 0.04% in GSP ($134.78 mil).

  15. GDP

  16. Employment • By 2005, near-complete construction would result in 765 new jobs and $38.84 mil in wages. • By 2008, there is a drop in employment due to phase-out of massive construction. • By 2011, construction and operation of Phase One would result in 2,195 new jobs and $116.49 mil in wages. • By 2014, full operation of the ballpark village would result in 3,549 new jobs and $204.28 mil in wages. • By 2034 the economic impact levels off, resulting in 3,092 new jobs and $201.73 mil in wages.

  17. Employment

  18. Tax Impacts • Between 2005-2010 the State of Missouri would experience a net tax cost due to bond payments. • By 2011 the State of Missouri would experience a net tax benefit due to partial ballpark operation. • At full operation between 2014-2034, the State of Missouri would experience a net tax benefit of $12.99 million per annum. • The ballpark project would generate a net tax benefit of $61.68 million NPV between 2002-2034.

  19. Tax Impacts

  20. Summary

  21. Contact Us

  22. Regional Impact of Super Bowl XLVI Michael Hicks Director, Bureau of Business Research Ball State University 765-285-3398 mhicks@bsu.edu

More Related