DATE: August 9, 2016 REPORT NO. CD2016-126 TO: ITEM … CD2016-126 STEAM PRO... · by Gino Vannelli...

GENERAL MANAGER’S OFFICE Phone: (519) 759-4150, EXT. 5488 Email: [email protected]

City Hall, 100 Wellington Square, Brantford, ON N3T 2M3 P.O. Box 818, Brantford, ON N3T 5R7

Fax: (519) 752-6977 www.brantford.ca

PAUL MOORE, MCIP, RPP General Manager

Community Development

DATE: August 9, 2016 REPORT NO. CD2016-126 TO: Chair and Members Committee of the Whole – Community Services FROM: Paul Moore, General Manager Community Development 1.0 TYPE OF REPORT CONSENT ITEM [ X ] ITEM FOR CONSIDERATION [ ] 2.0 TOPIC: Results of the STEAM PRO Economic Assessment Activity Report [Financial Impact – None] [CD2016-126] 3.0 RECOMMENDATION

THAT Report No. CD2016-142 regarding the results of the STEAM PRO Economic Impact Assessment of the 2015 Brantford International Jazz Festival and the 2015 Wayne Gretzky International Hockey Tournament BE RECEIVED.

4.0 PURPOSE

The purpose of this report is to provide Council with the results of the Economic Impact Assessment analysis on a large sporting event and large festival that took place in 2015: Brantford International Jazz Festival – September 18 to 20, and the Wayne Gretzky International Hockey Tournament – December 27 to 30.

5.0 BACKGROUND

In 2015, Economic Development and Tourism staff obtained approval from Council to retain the Canadian Sport Tourism Alliance (CSTA) to undertake an in-depth analysis of the economic impact of two large events (Report No. CD2015-112) using the Sport Tourism Economic Assessment Model (STEAM).

Report No. CD2016-126 August 9, 2016

The CSTA’s ‘STEAM PRO’ model is one of the most comprehensive programs in Canada for measuring the economic impact at sporting events and festivals. Since 2002, more than 150 on-site economic impact assessments including many in Ontario have been completed. The STEAM PRO model helps to determine the economic benefits attributable to a community as a result of hosting an event. The completed reports allow event organizers and local hosts to move beyond the statement of ‘it was good for the community’ to being able to put actual numbers as to the impact of the event. Economic impact comes from three primary sources: the spending of out of town visitors while they attend the event, the expenditures of the event organizers in hosting the event and any capital construction costs that are directly attributable to the hosting of the event. The reports outline visitor expenditures, along with the operational and capital spending made by the local host committee. The Canadian Sport Tourism Alliance’s STEAM PRO economic impact assessment model measures the economic impacts in terms of total output, Gross Domestic Product (GDP), jobs, employment and taxes.

6.0 CORPORATE POLICY CONTEXT This report supports the City of Brantford’s Community Strategic Plan “Shaping Our Future” 2014 - 2018 Goal #1: Economic Vitality and Innovation and the following strategic action; 1.7 Continue to develop, expand and promote tourism opportunities in all sectors and strengthen the relationship between arts, cultural, sports and heritage assets of the city.

7.0 INPUT FROM OTHER SOURCES

Preparation of this report included staff input from Economic Development & Tourism, Brantford Minor Hockey, the Brantford International Jazz Festival and the Canadian Sport Tourism Alliance.

8.0 ANALYSIS

8.1 Assessment of Events Two major events were selected for assessment: a sporting event and a cultural event. Staff and volunteers conducted on-site surveys at the Brantford International Jazz Festival in September 2015 and the Wayne Gretzky International Hockey Tournament in December 2015. The objectives of the study were to determine the increase in spending that took place in Brantford as a result of hosting these events and outline the impact of the events in terms of economic activity. Full reports are included as Appendix A for the 2015 Brantford International Jazz Festival Economic Impact Assessment Report and Appendix B for the 2015 Wayne Gretzky International Hockey Tournament Economic Impact Assessment Report.


Volunteers obtained a statistically significant sample by surveying 200 audience members at the Brantford International Jazz Festival and 136 participant families at the Wayne Gretzky International Hockey Tournament. Respondents were asked a number of questions regarding the number of days in attendance, their place of origin, and their spending patterns while in Brantford.

Table 1: Visitor Attendance at Assessed Events

Brantford International Jazz Festival

Wayne Gretzky International Hockey Tournament

Attendance (individuals) 8,052 9,233 Visitors 2,246 5,713 Visitors % 28% 62% % of visitors staying o/n in Brantford 27% 41%

% of visitors staying in hotels 13% 33%

Average visitor spending $161.14 per person $155.84 per person

A copy of each respective report completed by CSTA has been given to the organization contacts for the Brantford Jazz Festival and Brantford Minor Hockey. 8.2 Economic Impact of Events According to the final reports, a visitor on average spent $161.14 per person for the Brantford International Jazz Festival ($78.04 for a day traveler or $322.97 for overnight), and an average of $155.84 per visitor for the Wayne Gretzky International Hockey Tournament ($128.75 for a day traveler or up to $225.31 for an overnight). Visitor spending includes a number of spending categories, such as accommodation, restaurants, groceries, recreation, shopping and transportation. According to the completed surveys for each of the events, the Gross Domestic Product (GDP) or net economic activity of the Brantford International Jazz Festival was $298,000 and the Wayne Gretzky International Hockey Tournament was $668,000. The GDP measures the value of goods produced, less the cost of inputs to produce them. 8.3 Application of Findings These findings support the economic impact figures used by Tourism Brantford to calculate annual statistics. In 2015, staff assisted 56 different sport groups with their tournaments and sport events, resulting in a total of 24,283 visitors and an estimated economic impact of $3.4 million. This economic impact figure is based on an average “day” visitor


rate of $53.00 per day per person that has been provided by Statistics Canada. Staff use a “day” rate rather than an “overnight” rate to calculate economic impact of tournaments and events to ensure that the numbers reported are as accurate as possible and can be consistently compared year over year. The CSTA STEAM PRO findings demonstrate that the current industry averages used by Tourism Brantford to calculate economic impact are either conservative or accurate for our community. The Statistics Canada sport “day” rate of $53.00 is a conservative calculation, compared to the actual average of $128.75 for a day traveler at the Wayne Gretzky International Hockey Tournament. Although capturing the economic impact of festivals and events is more challenging (particularly for free, unticketed events), the average spending of same day travelers at the Brantford International Jazz Festival was $78.04 per day, which is identical to the industry average used for motor coach travelers.

Moving forward, Tourism Brantford staff can use the information provided in each Economic Impact Assessment report to bid on future events for the City of Brantford, particularly sporting events. Over the past two years, Tourism Brantford staff has met with 47 different sport organizations and will continue to work with each group to bring new and larger events into the City. The information gathered in the two reports will assist other sport organizations when making a decision on whether to move forward with hosting their event in Brantford. Staff can also work to develop consistent tools to assist event organizers in capturing visitor demographics at tournaments and events, such as attendance and place of origin. These reports will also be made available to industry partners interested in obtaining information about visitor spending at tournaments and events.

9.0 FINANCIAL IMPLICATIONS There are no financial implications as the result of this report. 10.0 CONCLUSION

Completion of the Economic Impact Assessments for these two major community events has provided in depth information regarding the impact of major events on the community and has increased the capacity for the Economic Development and Tourism Department to efficiently calculate the economic impact using statistics specific to our community. The completed assessments will be used to provide staff with a competitive edge in preparing future bid opportunities for events.


_______ Donna Clements Paul Moore, MCIP, RPP Tourism Business Development Officer General Manager Economic Development & Tourism Community Development

____________________________ Nicole Drake Manager, Tourism & Marketing Economic Development & Tourism Appendices:

A) 2015 Brantford International Jazz Festival Economic Impact Assessment Report. B) 2015 Wayne Gretzky International Hockey Tournament Economic Impact

Assessment Report. In adopting this report, is a by-law or agreement required? If so, it should be referenced in the recommendation section. Bylaw required [ ] yes [ x ] no Agreement(s) or other documents to be signed by Mayor and/or City Clerk [ ] yes [ x ] no Is the necessary by-law or agreement being sent concurrently to Council? [ ] yes [ x ] no

2015 Brantford International Jazz Festival

Brantford, ON

Economic Impact Assessment

April 2016

The following analysis provides the economic impact of the 2015 Brantford International Jazz Festival

hosted at Harmony Square in Brantford Ontario from September 18-20 2015, as generated by the Sport

Tourism Economic Assessment Model, Professional version.

2015 Brantford International Jazz Festival – Economic Impact Assessment

2

Economic Impact Assessment Funding Partners

The Canadian Sport Tourism Alliance wishes to acknowledge Economic Development & Tourism – City of

Brantford for their funding support and the Brantford International Jazz Festival Inc for providing the

information required in the completion of this study.

For more information about this report, please contact:

Tony Fisher, Canadian Sport Tourism Alliance, [email protected]

Donna Clements, City of Brantford, [email protected]

mailto:[email protected]



3

Executive Summary

The Brantford International Jazz Festival took place in downtown Brantford in Harmony Square from

September 18-20 2015, with the event attracting 15,000 local and visiting jazz lovers over the course of

the festival. In addition to the free outdoor festival, the 2015 Brantford International Jazz Festival (BIJF)

featured a headline performance by Gino Vannelli at the Sanderson Centre for the Performing Arts. The

Brantford International Jazz Festival was attended by 8,052 people of which 2,246 came from outside of

Brantford. The spending of these visitors, along with the expenditures made by the organizers in hosting

the 2015 Brantford International Jazz Festival totaled $362,000. This spending supported $921,000 in

economic activity across Ontario, of which $628,000 occurred in Brantford.

Table E1. Economic Impact Summary

Total

Ontario Brantford

Initial Expenditure $406,767 $406,767

GDP $455,611 $297,656

Wages & Salaries $306,990 $223,728

Employment (Jobs) 7.3 6.0

Industry Output $920,830 $628,137

Total Taxes $203,618 $148,426

Federal $94,733 $67,127

Provincial $77,727 $56,963

Municipal $31,159 $24,336


4

1.0 Background

The Brantford International Jazz Festival takes place annually in Brantford Ontario, featuring many

different genres of jazz on four stages that are set up in Brantford’s Harmony Square. 2015 was the

eighth edition of the jazz festival and it featured an impressive lineup of acts that were free for the

public to attend. In addition, the 2015 Brantford International Jazz Festival featured a paid performance

by Gino Vannelli on Saturday September 19 at the Sanderson Centre. With the festival being an outdoor

event, overall attendance is highly weather dependent and the overall attendance of 15,000 was below

expectations due to a rainout on Saturday afternoon which forced the closure of the free outdoor

activities. Despite the rain, the Brantford International Jazz Festival generates a considerable increase in

tourism revenues for Brantford businesses.

The spending of visitors attending the festival, along with the expenditures made by the organizers in

presenting a world class event meant that the Brantford International Jazz Festival created a sizeable

economic impact for Brantford and for the province as a whole. The next section of the report provides

details of the results of an on-site event survey that was delivered to event attendees. The survey results

were used to ascertain both the number of visitors and the expenditures that visitors made while in

Brantford for the jazz festival, which is the subject of the next section of this report. Section 3 provides

details of operational expenditures and revenues that further contributed to the impact of the festival,

while Section 4 presents the STEAM PRO1 results from the combined expenditures of the visitors and the

event organizers operational expenditures. The appendices include additional information regarding the

economic impact model and a glossary of the terms used.

1The Canadian Sport Tourism Alliance’s (CSTA’s) Sport Tourism Economic Assessment Model, Professional version (STEAM

PRO) was used to generate the economic impact estimates detailed in this report. STEAM PRO, which was developed in 2006,

is a model that has been designed to incorporate the results of primary data collected from event visitors and the budget /

capital expenditures of event organizers and others to prepare economic impact assessments. The model is based on the

Canadian Tourism Research Institute’s (CTRI - a branch of The Conference Board of Canada) TEAM model, which is the most

widely used tourism economic impact model in Canada. The results of STEAM PRO are fully consistent with the CSTA’s STEAM

model. A more detailed description of STEAM PRO is contained within Appendix 1.


5

2.0 Methodology / Survey Results

Information regarding the origin and spending of visitors attending the 2015 Brantford International Jazz

Festival was collected through the administration of an on-site intercept survey. The survey was hosted

on Samsung Galaxy tablet computers using Survey Analytics Survey Pocket survey software. The survey

asked questions about the respondents satisfaction with the event, their origin and if they were out of

town spectators, details about their visit to Brantford.

Survey Results

A total of 217 respondents parties were approached with 200 agreeing to participate (an acceptance

rate of 92%).2 Overall, the survey found that just over three-quarters (78%) of all respondents were from

the Brantford region (within 40km), with the remaining visitors coming primarily from Ontario. Overall

attendance was developed by first dividing the total attendance of 15,000 visitors across the various

visitor categories. The next step is to divide the attendance for each origin group by the average number

of days they attended the Jazz festival which gives the total number of unique individuals. In total, more

than 8,000 individuals went to the Brantford International Jazz Festival including nearly 2,250 out of

town visitors.

Table 2.1 Audience Members – Visitor Origin

Origin

(%) Attendance

Days

per

person Individuals

Local 78% 11,670 2.01 5,806

Hamilton/GTA 8% 1,155 1.38 838

Other Ontario 14% 2,025 1.61 1,258

Other Can & Intl 1% 150 1.00 150

Total 100% 15,000 1.86 8,052

Visitors 22% 3,330 1.48 2,246

Respondents were asked about the composition of their party and most people were attending the Jazz

festival with their spouse or friends. Only 9% of respondents indicated that they were at the festival with

children under 18.

2 The overall survey sample represented approximately 550 attendees from the overall population of 8,050 for a confidence

interval of +/- 4.0%. The sample of out of town visitors represented 70 attendees of the estimated population of 2,200 for a confidence interval of +/- 11%.


6

Table 2.2 Party Composition

Party composition %

Spouse or equivalent 36%

Friends 29%

Here alone 23%

Other family 19%

Dependents under 18 9%

Business colleagues 2%

The majority of those surveyed were repeat visitors to the Jazz festival, with the survey finding more

than half of respondents (60%) having been to three or more of the festivals in Brantford. The profile of

repeat visitation was relatively similar between local and out of town respondents.

Table 2.3 Previous Visitations

Local Visitor Overall

2015 was first time 23% 40% 26%

Twice 15% 17% 15%

Three or more times 62% 43% 59%

Survey respondents were asked about their preferences in Jazz music, with traditional jazz being the

most common response (31%) followed closely by big band jazz (27%; Figure 2.1).

Figure 2.1 Favourite Genre of Jazz Music

Respondents were also asked about their satisfaction with the Harmony Square venue with most people

rating it either excellent or good (94%).

Traditional

31%

Big Band 27%

Fusion 8%

Contemporary 19%

Latin 13%

Other 2%


7

Table 2.4 Overall Venue Satisfaction

Overall Venue

Satisfaction Percent

Excellent 73%

Good 21%

OK 6%

Probing more about the venue, respondents indicated they were most satisfied with Harmony Square’s

accessibility, atmosphere and the overall production of the event.

Table 2.5 Harmony Square Satisfaction

Harmony

Square Venue

Very

Unsatisfied Unsatisfied Neutral Satisfied

Very

Satisfied

Layout 13% 1% 9% 42% 36%

Sound Quality 16% 2% 18% 39% 26%

Production 8% 0% 8% 46% 38%

Accessibility 6% 0% 7% 41% 46%

Atmosphere 6% 1% 6% 46% 42%

Security 6% 0% 9% 50% 35%

Respondents were asked about their satisfaction with regards to the food services (food trucks) that

were available at the Harmony Square Venue (Table 2.6).

Table 2.6 Food Service Satisfaction

Food:

Very

Unsatisfied Unsatisfied Neutral Satisfied

Very

Satisfied

Selection 5% 6% 34% 39% 17%

Quality 7% 4% 48% 30% 12%

Price 5% 3% 36% 40% 16%

Accessibility 5% 2% 36% 41% 16%

The survey asked attendees how they heard about the Brantford International Jazz Festival, with

respondents being allowed to make multiple responses (Table 2.7)


8

Table 2.7 Advertising recall

Advertising recall Percent

Newspaper 41%

Word of Mouth 26%

Posters 17%

Social Media 16%

Radio 11%

FEO 9%

Don't Recall 5%

Visitor Expenditures

As noted, out of town respondents were asked about their visit to Brantford while they were attending

the 2015 Brantford International Jazz Festival. Visitors were asked about their accommodation use while

in Brantford and the survey found that nearly two-thirds (63%) of visitors were making day trips to

Brantford.

Table 2.8 Accommodation Use

Accommodation Type %

Sameday 63%

Overnight – Friends & Family 19%

Overnight - Hotel 6%

Overnight - Other 13%

Total 100%

With the sample collected, the visitor expenditure results were divided into two categories, those who

made day trips and those who stayed overnight in Brantford. Average spending per person is shown in

Table 2.9, and has been combined with the overall attendance figures in Table 2.10.

As a final step, visitors attending the Brantford international Jazz Festival were asked as to the

importance of the festival in their decision to travel tor Brantford. The survey found that the importance

of the event was relatively high with an overall score of 78%.3 This attribution factor is then applied to

the aggregate expenditure calculation to determine the amount of spending in Brantford that is directly

as a result of hosting the festival. The results show that the spending directly attributable to the 2015

Brantford International Jazz Festival was $282,000 (Table 2.11).

3 Using scale of 1-10 where responses of 10 – only reason for travelling; were assigned a weight of (100%), through to 1 – not

at all important being assigned a weight of 10%.


9

Table 2.9 Visitor Spending per Person

Per Person Sameday Overnight Average

Pty Size 2.37 2.18 2.3

Accommodation $0.00 $89.45 $30.35

Restaurants $21.20 $80.28 $41.24

Recreation & Entertainment $21.66 $79.00 $41.11

Shopping $23.43 $38.01 $28.38

Vehicle Expenses $8.79 $27.06 $14.99

Taxi / Transit $2.95 $9.17 $5.06

Total $78.04 $322.97 $161.14

Table 2.10 Aggregate Visitor Spending

Aggregate Sameday Overnight Total

Visitors 1,484 762 2,246

Accommodation $0 $68,161 $68,161

Restaurants $31,465 $61,170 $92,634

Recreation & Entertainment $32,141 $60,198 $92,339

Shopping $34,777 $28,963 $63,740

Vehicle Expenses $13,043 $20,623 $33,666

Taxi / Transit $4,383 $6,991 $11,374

Total $115,808 $246,105 $361,913

Table 2.11 Aggregate Visitor Spending scaled by Importance of BIJF

Aggregate Sameday Overnight Total

Importance 87.9% 73.3% 78.0%

Accommodation $0 $49,984 $49,984

Restaurants $27,656 $44,858 $72,513

Recreation & Entertainment $28,250 $44,145 $72,395

Shopping $30,567 $21,240 $51,807

Vehicle Expenses $11,464 $15,123 $26,588

Taxi / Transit $3,853 $5,127 $8,979

Total $101,789 $180,477 $282,266


10

Local Expenditures

Local residents were asked about their expenditures while attending the 2015 Brantford International

Jazz Festival. The typical respondent spent $18.55 per person per day as part of their excursion that

included the Jazz Festival, or a total of $107,700. Local residents were also asked how their spending

compared to what they would normally spend in downtown Brantford if the Jazz Festival wasn’t taking

place. Overall, the results were indeterminate, with some saying they spent more while others

indicating they spent less as a result of the Jazz Festival taking place.

Figure 2.2 Local Expenditures

A lot more (>+$50)

31%

Somewhat more ($10

to $50) 11%

Same (+/- $10)

20%

Somewhat less (-$10 to

-$50) 18%

A lot less (>-$50)

20%


11

3.0 Operations Expenditures

The organizers of the 2015 Brantford International Jazz Festival made a variety of expenditures in

support of the hosting the event such as payment of the musical acts, rental of the stages and purchase

of goods and services necessary to host the music festival.4

Even though they are not included directly in the budget, the Brantford International Jazz Festival was

supported with the time and energy of more than 100 volunteers. Without their support, the event

would not have been the success that it was.

4 The CSTA was provided with financial reports from the Brantford International Jazz Festival; however as the financial details

are confidential, details of the expenditures are not itemized in this study.


12

4.0 Economic Impact Results

The spending by out of town visitors who attended the Brantford International Jazz Festival, in in

combination with the expenditures made by the organizers in the event totaled $407,000. These

expenditures supported an estimated $921,000 in economic activity for the Province of Ontario, of

which $628,000 occurred in Brantford. The expenditures supported $307,000 in wages and salaries in

the Province through the support of 7.3 jobs, of which an estimated 6.0 jobs and $224,000 in wages and

salaries were supported in Brantford.5 The total net economic activity (GDP) generated by the event was

$456,000 throughout the Province, with $298,000 occurring in Brantford.

The 2015 Brantford International Jazz Festival also supported tax revenues of $204,000. The event

supported federal government tax revenues of $95,000 with an additional $78,000 in taxes accruing to

the Province of Ontario. Moreover, $31,000 in municipal taxes were supported in Ontario municipalities

with $24,000 of the Brantford municipal tax base being supported by the Brantford International Jazz

Festival.

Table 4.1 Brantford International Jazz Festival Economic Impact – Summary Table

Total

Ontario Brantford

Initial Expenditure $406,767 $406,767

GDP $455,611 $297,656

Wages & Salaries $306,990 $223,728

Employment (Jobs) 7.3 6.0

Total Economic Activity

$920,830 $628,137

Total Taxes $203,618 $148,426

Federal $94,733 $67,127

Provincial $77,727 $56,963

Municipal $31,159 $24,336

5 Jobs reported in this study refer to the number of jobs, vs. full time equivalent (i.e.: two people working half time in a job that

typically features half time employment would represent two jobs or one FTE). Additionally, the direct employment effects are generally extra shifts or overtime for existing workers rather than new employment.


13

Table 4.2 Total Economic Impact

Total

Ontario

Total

Brantford

Rest of

Ontario

Initial Expenditure $406,767 $406,767 $0

Gross Domestic Product

Direct Impact $174,228 $174,228 $0

Indirect Impact $153,836 $62,499 $91,337

Induced Impact $127,548 $60,930 $66,618

Total Impact $455,611 $297,656 $157,955

Industry Output

Direct & Indirect $643,002 $495,476 $147,527

Induced Impact $277,827 $132,662 $145,166

Total Impact $920,830 $628,137 $292,693

Wages & Salaries

Direct Impact $139,084 $139,084 $0

Indirect Impact $89,409 $47,536 $41,873

Induced Impact $78,497 $37,108 $41,389

Total Impact $306,990 $223,728 $83,261

Employment (Full-year jobs)

Direct Impact 6 3.9 3.9 -

Indirect Impact 1.7 1.0 0.7

Induced Impact 1.7 1.2 0.6

Total Impact 7.3 6.0 1.2

Taxes (Total)

Federal $94,733 $67,127 $27,605

Provincial $77,727 $56,963 $20,764

Municipal $31,159 $24,336 $6,823

Total $203,618 $148,426 $55,192

6 Direct employment impact is generally extra shifts or overtime for existing workers rather than new employment.


14

Appendix 1: Economic Impact Methodology – Sport Tourism

Economic Assessment Model

Background

Briefly, the purpose of STEAM is to calculate both the provincial and regional economic impacts of sport

and event based tourism. The economic impacts are calculated on the basis of capital and operating

expenditures on goods, services and employee salaries, and on the basis of tourist spending within a

designated tourism sector. The elements used to measure the economic impacts are Gross Domestic

Product (GDP), Employment, Taxes, Industry Output and Imports. STEAM measures the direct, indirect &

induced effects for each of these elements.

Technical Description of the Impact Methodology used by STEAM

STEAM PRO and many other impact studies are based on input-output techniques. Input-output models

involve the use of coefficients that are based on economic or business linkages. These linkages trace

how tourist expenditures or business operations filter through the economy. In turn, the coefficients

applied are then used to quantify how tourism related activity in a particular region generates

employment, taxes, income, etc. The input-output approach indicates not only the direct and indirect

impact of tourism, but can also indicate the induced effect resulting from the re-spending of wages and

salaries generated.

All impacts generated by the model are given at the direct impact stage (i.e. the "front line" businesses

impacted by tourism expenditures), indirect impact stage (i.e. those industries which supply

commodities and/or services to the "front line" businesses) and the induced impact stage (induced

consumption attributable to the wages and salaries generated from both the direct and indirect impact).

In this sense, the model is closed with respect to wages. Imports are also determined within the model,

so the model is closed with respect to imports. Exports are not endogenized (i.e. additional exports are

not assumed with the induced impact) which consequently generates more conservative impacts.

Another assumption of the model, which leads to more conservative impacts, is that not all commodities

and/or services purchased are assumed to have at least one stage of production within the province.

This assumption is crucial for souvenirs, gasoline and other commodities.


15

Taxes and employment are key economic considerations. However, as these concepts fall outside of the

System of National Account Provincial input/output tables, their impacts must be calculated separately.

Current tax and employment data for each region is used to econometrically estimate a series of

coefficients and rates. These coefficients and/or rates are then applied to measures determined within

the input-output framework of the model, yielding the final tax and employment figures.

Regional (Sub-Provincial) Impact Methodology

The method used to simulate intraprovincial commodity flows and ultimately regional impacts follows

directly from regional economic principles. The principle is referred to as the "gravity model". Basically

the "gravity model" states that the required commodity (& service) inputs will be "recruited" in a

manner that takes into consideration economies of scale (i.e. production costs), transportation costs

and the availability of specific industries. Economies of scale (i.e. lower production costs) are positively

correlated with input demand while greater transportation costs are negatively correlated with input

demand. Fulfilling that demand from other provincial regions is contingent on the fact that the specific

industry does actually exist. An advantage of using the "gravity model" to simulate intraprovincial

commodity flows is that as the industrial composition of the labour force changes, or as new industries

appear for the first time in specific regions, the share of production between the various sub-provincial

regions also changes.

By following this principle of the gravity model, all sub-provincial regions of a province are assigned a

coefficient for their relative economies of scale in each industry (using the latest industry labour force

measures) as well as a coefficient to represent the transportation cost involved to get each industry's

output to the designated market. One variation on the "gravity model" principle involves the estimation

of "relative trade distances" by incorporating different "weights" for different modes of transport. Once

these coefficients are generated for all regions and over all industries, a measure of sensitivity (mostly

relative to price, but in the case of service industries also to a "local preference criteria") is then applied

to all commodities. Another variation on the strict "gravity model" approach is that the measure of

sensitivity is adjusted by varying the distance exponent (which in the basic "gravity model" is 2) based

on the commodity or service required. The variation in distance exponents revolve, principally, around

two research hypotheses: (1) the greater the proportion of total shipments from the largest producer

(or shipper), the lower the exponent, and (2) the greater the proportion of total flow which is local

(intraregional), the higher the exponent.


16

Appendix 2: Glossary of Terms used by STEAM

Initial Expenditure - This figure indicates the amount of initial expenditures or revenue used in the

analysis. This heading indicates not only the total magnitude of the spending but also the region in

which it was spent (thus establishing the "impact" region).

Direct Impact - Relates ONLY to the impact on “front-line” businesses. These are businesses that initially

receive the operating revenue or tourist expenditures for the project under analysis. From a business

perspective, this impact is limited only to that particular business or group of businesses involved. From

a tourist spending perspective, this can include all businesses such as hotels, restaurants, retail stores,

transportation carriers, attraction facilities and so forth.

Indirect Impact - Refers to the impacts resulting from all intermediate rounds of production in the

supply of goods and services to industry sectors identified in the direct impact phase. An example of this

would be the supply and production of bed sheets to a hotel.

Induced Impact - These impacts are generated as a result of spending by employees (in the form of

consumer spending) and businesses (in the form of investment) that benefited either directly or

indirectly from the initial expenditures under analysis. An example of induced consumer spending would

be the impacts generated by hotel employees on typical consumer items such as groceries, shoes,

cameras, etc. An example of induced business investment would be the impacts generated by the

spending of retained earnings, attributable to the expenditures under analysis, on machinery and

equipment.

Gross Domestic Product (GDP) - This figure represents the total value of production of goods and

services in the economy resulting from the initial expenditure under analysis (valued at market prices).

NOTE: The multiplier (A), Total/Initial, represents the total (direct, indirect and induced) impact on GDP

for every dollar of direct GDP. This is a measure of the level of spin-off activity generated as a result of a

particular project. For instance if this multiplier is 1.5 then this implies that for every dollar of GDP

directly generated by “front-line” tourism businesses an additional $0.50 of GDP is generated in spin-off

activity (e.g. suppliers).

The multiplier (B), Total/$ Expenditure, represent the total (direct, indirect and induced) impact on GDP

for every dollar of expenditure (or revenue from a business perspective). This is a measure of how

effective project related expenditures translate into GDP for the province (or region). Depending upon

the level of expenditures, this multiplier ultimately determines the overall level of net economic activity

associated with the project. To take an example, if this multiplier is 1.0, this means that for every dollar

of expenditure, one dollar of total GDP is generated. The magnitude of this multiplier is influenced by

the level of withdrawals, or imports, necessary to sustain both production and final demand

requirements. The less capable a region or province is at fulfilling all necessary production and final

demand requirements, all things being equal, the lower the eventual economic impact will be.


17

GDP (at factor cost) - This figure represents the total value of production of goods and services

produced by industries resulting from the factors of production. The distinction to GDP (at market

prices) is that GDP (at factor cost) is less by the amount of indirect taxes plus subsidies.

Wages & Salaries - This figure represents the amount of wages and salaries generated by the initial

expenditure. This information is broken down by the direct, indirect and induced impacts.

Employment - Depending upon the selection of employment units (person-years or equivalent full-year

jobs) these figures represent the employment generated by the initial expenditure. These figures

distinguish between the direct, indirect and induced impact. “Equivalent Full-Year Jobs”, if selected,

include both part-time and full-time work in ratios consistent with the specific industries.

NOTE: The multiplier (B) is analogous to Multiplier (B) described earlier with the exception being that

employment values are represented per $1,000,000 of spending rather than per dollar of spending. This

is done to alleviate the problem of comparing very small numbers that would be generated using the

traditional notion of a multiplier (i.e. employment per dollar of initial expenditure).

Industry Output - These figures represent the direct & indirect and total impact (including induced

impacts) on industry output generated by the initial tourism expenditure. It should be noted that the

industry output measure represents the sum total of all economic activity that has taken place and

consequently involve double counting on the part of the intermediate production phase. Since the Gross

Domestic Product (GDP) figure includes only the net total of all economic activity (i.e. considers only the

value added), the industry output measure will always exceed or at least equal the value of GDP.

Taxes - These figures represent the amount of taxes contributed to municipal, provincial and federal

levels of government relating to the project under analysis. This information is broken down by the

direct, indirect and induced impacts.

Imports - These figures indicate the direct, indirect and induced final demand and intermediate

production requirements for imports both outside the province and internationally.

2015 Wayne Gretzky International Hockey

Tournament Brantford, Ontario

Economic Impact Assessment

March 2016

The following analysis provides the economic impact of the 2015 Wayne Gretzky International Hockey

Tournament which took place in Brantford, Ontario from December 27-30, 2015, as generated by the

Sport Tourism Economic Assessment Model, Professional version.

2015 Wayne Gretzky International Hockey Tournament – Economic Impact Assessment

2

Economic Impact Assessment Funding Partners

The Canadian Sport Tourism Alliance wishes to acknowledge the financial and logistics support of

Brantford Economic Development in the completion of this study.

For more information about this report, please contact:

Tony Fisher, Canadian Sport Tourism Alliance, [email protected]

Donna Clements, Economic Development & Tourism – City of Brantford, [email protected]




3

1.0 Background

The 2015 Wayne Gretzky International Hockey Tournament, hosted by the Brantford Minor Hockey

Association in Brantford, Ontario took place between December 27 and 30, 2015. The tournament is one

of Ontario’s oldest, with 2015 being the 46th edition and it attracted thousands of participants in

divisions ranging from Novice to Midget and teams coming from as far away as Norway and Finland.

With the tournament taking place over the Christmas / New-Year’s break, it also attracts a considerable

number of spectators to Brantford and the spending of these visitors, along with the expenditures made

by the organizers in hosting the Wayne Gretzky International Hockey Tournament resulted in a

considerable boost in economic activity for the local economy.

The next section of the report provides details of the results obtained from the on-site survey that was

asked of spectators at the tournament. The survey results were used to ascertain both the number and

origin of visitors and the expenditures that visitors made while in Brantford for the tournament. Section

3 provides details of operational expenditures and revenues that further contributed to the impact of

the championship, while Section 4 presents the STEAM PRO1 results from the combined expenditures of

the visitors and the host committee’s operational expenditures. The appendices include additional

information regarding the economic impact model and a glossary of the terms used.

1The Canadian Sport Tourism Alliance’s (CSTA’s) Sport Tourism Economic Assessment Model, Professional version (STEAM

PRO) was used to generate the economic impact estimates detailed in this report. STEAM PRO, which was developed in 2006,

is a model that has been designed to incorporate the results of primary data collected from event visitors and the budget /

capital expenditures of event organizers and others to prepare economic impact assessments. The model is based on the

Canadian Tourism Research Institute’s (CTRI - a branch of The Conference Board of Canada) TEAM model, which is the most

widely used tourism economic impact model in Canada. The results of STEAM PRO are fully consistent with the CSTA’s STEAM

model. A more detailed description of STEAM PRO is contained within Appendix 1.


4

2.0 Methodology / Survey Results

Information regarding the origin and spending of spectators attending the 2015 Wayne Gretzky

International Hockey Tournament was collected through the administration of an on-site intercept

survey. The survey captured information about the origin and number of family members that

accompanied each participant. Out of town visitors were also asked questions about their visit and the

expenditures while they were in Brantford. Surveys were conducted using tablet computers running

Survey Analytics’ Survey Pocket software.2

Survey Results

A total of 166 parties were approached over the four days, with 19 parties choosing not to participate

(11%) and 11 having been intercepted previously for a total sample size of 136 responses.

Among those surveyed, 38% were local residents (Brantford under 40km), 37% were same-day

travellers, 14% were regional overnight travellers and 12% were respondents from Ontario over 200km,

the U.S. or international.

The number of people (athletes and spectators) attending the 2015 Wayne Gretzky International Hockey

Tournament as spectators was calculated by first calculating the ratio between the number of players

and spectators in each visitor party. The survey found that every athlete on the ice was accompanied by

2.35 family members (i.e. 1 or 2 parents and /or 1 or 2 siblings).

With the tournament featuring 2,755 participants, the results indicate that they were accompanied by

6,478 spectators for a total of 9,233 people.

Table 2.1 Tournament Attendance

Origin Share Individuals Local (under 40km) 38% 3,520

Sameday 37% 3,388

Regional OV 14% 1,262

Other Ontario OV 12% 1,063

Total 100% 9,233

Among out of town visitors who were staying overnight, the majority stayed in commercial

accommodation in Brantford (82%) with 9% staying with friends and family and 9% staying in hotels

outside of Brantford. Those who stayed outside of Brantford did so as there were no hotel available or

there were no hotels with the desired amenities.

2 For information see www.surveypocket.com

http://www.surveypocket.com/


5

Spectator Expenditures

Out of town spectators were also asked what they spent in Brantford while they were attending the

2015 Wayne Gretzky International Hockey Tournament. Visitor expenditures were broken out into four

categories: spending by same-day visitors, overnight visitors from regional Ontario and long distance

overnight visitors (including long-haul Ontario, out of province, and the U.S.). The average out of town

same-day traveller spent $129 per person as they made at least two day trips to Brantford. The typical

overnight visitor from regional Ontario spent $202 per person with a trip length of 1.7 nights while long

distance travellers spent $225 per night (Table 2.2). Combining the spending per person with the overall

attendance shows that total visitor spending associated with the 2015 Wayne Gretzky International

Hockey Tournament reached $931,000 (Table 2.3).

Table 2.2 Wayne Gretzky International Hockey Tournament Spectator Spending

Same-

day

Regional

Overnight

Long-haul

Overnight Average Visitor party size 3.8 3.47 3.94 3.76

Total Nights 1.72 2.27 1.97

Accommodation $0.00 $60.74 $69.24 $26.30

Restaurants $52.54 $68.23 $58.47 $57.11

Grocery / Other Food & Beverage $14.85 $13.64 $12.46 $14.14

Recreation & Entertainment $15.52 $16.21 $20.73 $16.64

Shopping $20.76 $14.41 $32.04 $21.46

Transportation in Brantford $19.09 $18.22 $26.03 $20.19

Transportation to Brantford $6.00 $10.81 $6.35 $7.13

Total $128.75 $202.26 $225.31 $162.96

Table 2.3 Wayne Gretzky International Hockey Tournament Spectator Spending

Same-

day

Regional

Overnight

Long-haul

Overnight Total

Visitors 3,388 1,262 1,063 5,713

Accommodation $0 $76,648 $73,597 $150,245

Restaurants $177,995 $86,107 $62,150 $326,252

Grocery / Other Food & Beverage

$50,312 $17,213 $13,242 $80,767

Recreation & Entertainment $52,576 $20,457 $22,034 $95,068

Shopping $70,328 $18,184 $34,062 $122,574

Transportation in Brantford $64,675 $23,000 $27,673 $115,348

Transportation to Brantford $20,328 $13,638 $6,745 $40,711

Total $436,214 $255,248 $239,503 $930,965


6

3.0 Operations Expenditures

The organizers of the 2015 Wayne Gretzky International Hockey Tournament invested significantly in

producing a high-caliber event in Brantford, with expenditures covering items such as rental of the

venue, advertising and the business operations of supporting the event.

Even though they are not included directly in the budget, the 2015 Wayne Gretzky International Hockey

Tournament was supported by many volunteers from Brantford who donated considerable amounts of

their time to make the event happen.


7

4.0 Economic Impact Results

The combined spending of out of town spectators, in combination with the expenditures made by the

organizers through hosting the 2015 Wayne Gretzky International Hockey Tournament totaled $1.0

million. These expenditures supported an estimated $2.4 million in economic activity for the Province of

Ontario, of which $1.6 million occurred in Brantford. These expenditures also supported $706,000 in

wages and salaries in the Province through the support of 19 jobs, of which an estimated 16 jobs and

$474,000 in wages and salaries were supported in Brantford.3 The total net economic activity (GDP)

generated by the event was $1.1 million through the Province, with $668,000 occurring in Brantford.

Considerable tax revenues were also produced by the event, totaling $499,000. The event supported

federal government tax revenues of $229,000 with an additional $190,000 in taxes accruing to the

Province of Ontario. Moreover, $80,000 in municipal taxes were supported in Ontario municipalities

with $61,000 of the municipal tax base in Brantford being supported by the 2015 Wayne Gretzky

International Hockey Tournament.

Table 4.1 Wayne Gretzky International Hockey Tournament Economic Impact – Summary Table

Total

Ontario Brantford

Initial Expenditure $1,038,272 $1,038,272

GDP $1,100,499 $668,404

Wages & Salaries $705,579 $473,610

Employment 19.4 15.8

Industry Output $2,379,919 $1,578,348

Total Taxes $498,938 $350,904

Federal $229,237 $154,151

Provincial $190,090 $136,002

Municipal $79,611 $60,751




8

Table 4.2 Total Economic Impact

Total

Ontario

Total

Brantford

Rest of

Ontario

Initial Expenditure $1,038,272 $1,038,272 $0

Gross Domestic Product

Direct Impact $376,906 $376,906 $0

Indirect Impact $435,002 $160,354 $274,648

Induced Impact $288,591 $131,144 $157,447

Total Impact $1,100,499 $668,404 $432,095

Industry Output

Direct & Indirect $1,749,337 $1,291,749 $457,588

Induced Impact $630,582 $286,599 $343,983

Total Impact $2,379,919 $1,578,348 $801,571

Wages & Salaries

Direct Impact $273,220 $273,220 $0

Indirect Impact $254,173 $120,498 $133,675

Induced Impact $178,186 $79,892 $98,294

Total Impact $705,579 $473,610 $231,969

Employment (Full-year jobs)

Direct Impact 4 10.8 10.8 -

Indirect Impact 4.7 2.4 2.2

Induced Impact 3.9 2.6 1.3

Total Impact 19.4 15.8 3.6

Taxes (Total)

Federal $229,237 $154,151 $75,086

Provincial $190,090 $136,002 $54,088

Municipal $79,611 $60,751 $18,860

Total $498,938 $350,904 $148,034




9

Appendix 1: Economic Impact Methodology – Sport Tourism

Economic Assessment Model

Background

Briefly, the purpose of STEAM is to calculate both the provincial and regional economic impacts of sport

and event based tourism. The economic impacts are calculated on the basis of capital and operating

expenditures on goods, services and employee salaries, and on the basis of tourist spending within a

designated tourism sector. The elements used to measure the economic impacts are Gross Domestic

Product (GDP), Employment, Taxes, Industry Output and Imports. STEAM measures the direct, indirect &

induced effects for each of these elements.

Technical Description of the Impact Methodology used by STEAM

STEAM and many other impact studies are based on input-output techniques. Input-output models

involve the use of coefficients that are based on economic or business linkages. These linkages trace

how tourist expenditures or business operations filter through the economy. In turn, the coefficients

applied are then used to quantify how tourism related activity in a particular region generates

employment, taxes, income, etc. The input-output approach indicates not only the direct and indirect

impact of tourism, but can also indicate the induced effect resulting from the re-spending of wages and

salaries generated.

All impacts generated by the model are given at the direct impact stage (i.e. the "front line" businesses

impacted by tourism expenditures), indirect impact stage (i.e. those industries which supply

commodities and/or services to the "front line" businesses) and the induced impact stage (induced

consumption attributable to the wages and salaries generated from both the direct and indirect impact).

In this sense, the model is closed with respect to wages. Imports are also determined within the model,

so the model is closed with respect to imports. Exports are not endogenized (i.e. additional exports are

not assumed with the induced impact) which consequently generates more conservative impacts.

Another assumption of the model, which leads to more conservative impacts, is that not all commodities

and/or services purchased are assumed to have at least one stage of production within the province.

This assumption is crucial for souvenirs, gasoline and other commodities.


10

Taxes and employment are key economic considerations. However, as these concepts fall outside of the

System of National Account Provincial input/output tables, their impacts must be calculated separately.

Current tax and employment data for each region is used to econometrically estimate a series of

coefficients and rates. These coefficients and/or rates are then applied to measures determined within

the input-output framework of the model, yielding the final tax and employment figures.

Regional (Sub-Provincial) Impact Methodology

The method used to simulate intraprovincial commodity flows and ultimately regional impacts follows

directly from regional economic principles. The principle is referred to as the "gravity model". Basically

the "gravity model" states that the required commodity (& service) inputs will be "recruited" in a

manner that takes into consideration economies of scale (i.e. production costs), transportation costs

and the availability of specific industries. Economies of scale (i.e. lower production costs) are positively

correlated with input demand while greater transportation costs are negatively correlated with input

demand. Fulfilling that demand from other provincial regions is contingent on the fact that the specific

industry does actually exist. An advantage of using the "gravity model" to simulate intraprovincial

commodity flows is that as the industrial composition of the labour force changes, or as new industries

appear for the first time in specific regions, the share of production between the various sub-provincial

regions also changes.

By following this principle of the gravity model, all sub-provincial regions of a province are assigned a

coefficient for their relative economies of scale in each industry (using the latest industry labour force

measures) as well as a coefficient to represent the transportation cost involved to get each industry's

output to the designated market. One variation on the "gravity model" principle involves the estimation

of "relative trade distances" by incorporating different "weights" for different modes of transport. Once

these coefficients are generated for all regions and over all industries, a measure of sensitivity (mostly

relative to price, but in the case of service industries also to a "local preference criteria") is then applied

to all commodities. Another variation on the strict "gravity model" approach is that the measure of

sensitivity is adjusted by varying the distance exponent (which in the basic "gravity model" is 2) based

on the commodity or service required. The variation in distance exponents revolve, principally, around

two research hypotheses: (1) the greater the proportion of total shipments from the largest producer

(or shipper), the lower the exponent, and (2) the greater the proportion of total flow which is local

(intraregional), the higher the exponent.


11

Appendix 2: Glossary of Terms used by STEAM

Initial Expenditure - This figure indicates the amount of initial expenditures or revenue used in the

analysis. This heading indicates not only the total magnitude of the spending but also the region in

which it was spent (thus establishing the "impact" region).

Direct Impact - Relates ONLY to the impact on “front-line” businesses. These are businesses that initially

receive the operating revenue or tourist expenditures for the project under analysis. From a business

perspective, this impact is limited only to that particular business or group of businesses involved. From

a tourist spending perspective, this can include all businesses such as hotels, restaurants, retail stores,

transportation carriers, attraction facilities and so forth.

Indirect Impact - Refers to the impacts resulting from all intermediate rounds of production in the

supply of goods and services to industry sectors identified in the direct impact phase. An example of this

would be the supply and production of bed sheets to a hotel.

Induced Impact - These impacts are generated as a result of spending by employees (in the form of

consumer spending) and businesses (in the form of investment) that benefited either directly or

indirectly from the initial expenditures under analysis. An example of induced consumer spending would

be the impacts generated by hotel employees on typical consumer items such as groceries, shoes,

cameras, etc. An example of induced business investment would be the impacts generated by the

spending of retained earnings, attributable to the expenditures under analysis, on machinery and

equipment.

Gross Domestic Product (GDP) - This figure represents the total value of production of goods and

services in the economy resulting from the initial expenditure under analysis (valued at market prices).

NOTE: The multiplier (A), Total/Initial, represents the total (direct, indirect and induced) impact on GDP

for every dollar of direct GDP. This is a measure of the level of spin-off activity generated as a result of a

particular project. For instance if this multiplier is 1.5 then this implies that for every dollar of GDP

directly generated by “front-line” tourism businesses an additional $0.50 of GDP is generated in spin-off

activity (e.g. suppliers).

The multiplier (B), Total/$ Expenditure, represent the total (direct, indirect and induced) impact on GDP

for every dollar of expenditure (or revenue from a business perspective). This is a measure of how

effective project related expenditures translate into GDP for the province (or region). Depending upon

the level of expenditures, this multiplier ultimately determines the overall level of net economic activity

associated with the project. To take an example, if this multiplier is 1.0, this means that for every dollar

of expenditure, one dollar of total GDP is generated. The magnitude of this multiplier is influenced by

the level of withdrawals, or imports, necessary to sustain both production and final demand

requirements. The less capable a region or province is at fulfilling all necessary production and final

demand requirements, all things being equal, the lower the eventual economic impact will be.


12

GDP (at factor cost) - This figure represents the total value of production of goods and services

produced by industries resulting from the factors of production. The distinction to GDP (at market

prices) is that GDP (at factor cost) is less by the amount of indirect taxes plus subsidies.

Wages & Salaries - This figure represents the amount of wages and salaries generated by the initial

expenditure. This information is broken down by the direct, indirect and induced impacts.

Employment - Depending upon the selection of employment units (person-years or equivalent full-year

jobs) these figures represent the employment generated by the initial expenditure. These figures

distinguish between the direct, indirect and induced impact. “Equivalent Full-Year Jobs”, if selected,

include both part-time and full-time work in ratios consistent with the specific industries.

NOTE: The multiplier (B) is analogous to Multiplier (B) described earlier with the exception being that

employment values are represented per $1,000,000 of spending rather than per dollar of spending. This

is done to alleviate the problem of comparing very small numbers that would be generated using the

traditional notion of a multiplier (i.e. employment per dollar of initial expenditure).

Industry Output - These figures represent the direct & indirect and total impact (including induced

impacts) on industry output generated by the initial tourism expenditure. It should be noted that the

industry output measure represents the sum total of all economic activity that has taken place and

consequently involve double counting on the part of the intermediate production phase. Since the Gross

Domestic Product (GDP) figure includes only the net total of all economic activity (i.e. considers only the

value added), the industry output measure will always exceed or at least equal the value of GDP.

Taxes - These figures represent the amount of taxes contributed to municipal, provincial and federal

levels of government relating to the project under analysis. This information is broken down by the

direct, indirect and induced impacts.

Imports - These figures indicate the direct, indirect and induced final demand and intermediate

production requirements for imports both outside the province and internationally.

DATE: August 9, 2016 REPORT NO. CD2016-126 TO: ITEM … CD2016-126 STEAM PRO... · by Gino Vannelli...

Documents

Transcript of DATE: August 9, 2016 REPORT NO. CD2016-126 TO: ITEM … CD2016-126 STEAM PRO... · by Gino Vannelli...