Chapin%20 Slideshow[1]

Economic Impact of Silent Sports-A Regional Case Study

Scott Chapin, RJF Agencies

Background

Economics Major-University Wisconsin Eau ClairePresident-Sawyer County Development

CorporationPast President-Northland Area Builders AssociationDirector American Birkebeiner Ski Foundation

Background

• Avid Cyclist, Runner, Skier• Active with local IMBA Club-CAMBA• Insurance Broker-Specializing in

Bicycle and Ski Industry Risks• Work with 150+ Bike Clubs in U.S.

What Are “Silent Sports?”

• Aerobic Based, Non-Motorized Activities

• Running-Trail and Road• Off-Road Mountain Biking• Road Biking• Cross Country Skiing• Paddle Sports

Silent Sports-Trail Development

• Attracts Tourists• Tourists Could become Seasonal

or Permanent Residents• Attracts Commerce• Enhances Communities

Silent Sports Trail Development

– Land Managers, Municipalities, Chambers of Commerce Question Economic Impact Data

– Having Economic Data Helps with Financial and Political Support of Trail Projects

– Helps With Volunteer Base

Economic Data

• Analysis is for Sawyer County• Sawyer County Located in NW Wisconsin• Sawyer County Population 16,196 (2000)• 2 ½ Hours from Minneapolis• Median Per Capita Income

$24,288 (2002)

Economic Data• Tourist Area, Historically Fishing/Hunting• Service Sector Economy• Known for Events: American Birkebeiner,

Lumberjack World Championships,Chequamegon Fat Tire Festival

Economic Data• Many Second Homeowners in Area• Chequamegon Area Mountain Bike

Association Developed around 1990• Started Signing Existing Double-

Track/Roads• Focus on Singletrack for past 8 Years

Types of Economic Impact

• Direct-Initial Purchase• Indirect-Cross Industry• Induced-Cycled Again in Community

Economic Statistics (Bicycling) National

• $133 Billion Annual Contribution to the U.S. Economy

• Supports 1.1 million jobs• Generates $17.7 billion in annual federal and state tax revenue

Economic Statistics (Bicycling)-National

• Produces $53.1 billion annually in retail sales and services

• ($6.2 billion in gear sales)• ($46.9 billion in bicycling-trip

expenditures)

Economic Impact (Bicycling)-Regionally

• (IN, IL, MI, OH, WI)• Contributes $17 billion to regional

economy• Supports 191,000 jobs• Generates $2.2 billion in

state and federal tax revenues

Economic Impact (Bicycling)-Regionally

• $12.1 billion in retail sales• ($873 million in bicycling gear sales)• ($11.2 billion in bicycling

trip-related expenditures)

Wisconsin Economic Impact (Bicycling)

• 49% of Wisconsin Residents bicycle• Economic Impact of bicycle

recreation/tourism is $925 million• Average Daily Expenditure-$60• Greater Impact than Hunting• 57% of Expenditures from

Non-Residents

National Nordic Skiing Participation

• Participation Trending Up-8% (2007-2008)• National Demographics-40% between 35-54 • 33% Household Income over $100,000• 63% Traveled over 50 miles to participate in

activity• 70% Crossover-Bicycling• 97% Males-College Graduates• 88% Females-College Graduates

National Nordic Skiing Statistics

• Trends: Overall Continued Growth in Equipment Sales-4%

• Nordic Participation Increases in South

• 75% of Nordic Skiers are also Hikers• 23% of Nordic Skiers live in North

Central Region

Defined Location Economic Impact

• Trails in Miami Valley of Ohio attract 1,000,000 visitors who spend $16 million on related goods and services

• 2009 USA Cycling National CX Championships brought $1 M to Bend, Oregon

• RAGBRAI-$24 M in Economic Impact• Moab Utah-$8.8 M in Economic Impact

(1996)

Defined Location Economic Impact

• Chequamegon Area (Cable/Hayward)-$1.17 M in 1997 (likely 3x this now)

• 161 U.S. Ski Areas open trails to bikers in summer-84 run lifts for cyclists

• 50% of Colorado Tourists are engaged in cycling- $141M-$193 M

• American Birkebeiner Brings in $4,000,000 to Hayward/Cable Area

Defined Location Economic Impact

• Colorado-Other Revenue Generators• Bicycle Tours $640,000• Racing $2,000,000• Charity Rides $3,400,000

General Public Assumptions

• Silent Sports Participants Are Cheap• Participants do not spend as

much as other user groups (Tourists)• Participants have average

income levels• Participants (off-road)

are 20-somethings

Facts about Cyclists/Nordic Skiers

• 53% of participants in Chequamegon Fat Tire Festival (2,500) are between 35-49 years

• 30% of Cyclists/Skiers have Household Incomes over $125,000

• 49% of Cyclists/Skiers have Household Incomes over $100,000 (ABSF Survey)

• 87% of Cyclists/Skiers are college graduates

Silent Sports Trends• 1998-2004: Snowshoeing +50%, Trail Running

+20% for Participants and Enthusiasts• Single Track Bicycling +183%,

Dirt Road Bicycling +112.5%, Snowshoeing +300% for Enthusiast Category (Repetitive Potential Visits)

• 16-24 Year Olds:Single Track Bicycling +92.5%, Trail Running +50% (Future Market)

• Female Enthusiast: Single Track Bicycling +112.5%Snowshoeing +100%

• Data from Outdoor Industry Foundation

General Facts About Tourists

• Motel/Hotel Tourists spend $126 per day• Campground Tourists spend $75 per day• Daytripper Tourist spend $40 per day• Often it is assumed that

most cyclists visiting the area are “tourists”

General Facts about Second Homeowners

• Second Homeowners Spend $17,571 Per Year In Sawyer County (Sawyer Co. Dev. Cor. Study-2008)

• Survey sent to all non-resident homeowners with improvements over $80,000

• 100 User Days Per Year

General Facts about Second Homeowners

• Basic Consumption Items-$5,700 per household (Average)

• Recreation Equipment-$2,800 per household

• Needs for Home (Construction, Remodeling-$14,400 per household

• Note: Not all spent money in all categories

Land Values Adjacent to Trails

– Dependent upon Market– Developers in NW Specializing in

Recreational Use– Land Values 3 years ago were double– Land Values today are 50% higher than

non-recreational developments

Your home at the Brook will be located in the Namekagon River Valley. This beautiful and diverse property is a blend of pine and aspen woodlands and partially wooded meadows. Immediately adjacent to the Birkebeiner Ski Trail and Camba Mountain Bike Trails, The Brook is bordered on the north and east by thousands of acres of Sawyer County Forest. Homeowners enjoy 14 km of private trails, professionally groomed in winter for both classic and freestyle skiers, that link directly to the American Birkebeiner trail. The perfect “silent sports retreat”, The Brook beckons to active northwoods enthusiasts who love the feeling that “...one hour at the cabin feels like 5 days.”

Data Analysis-ImpactSeeley Hills Recreational

Development• Adjacent to CAMBA and Birkie

Trails• Sample 5.5 Miles of Road• 1994-7 Homes • 2010- 51 Homes• 33 of the 51 are Second

Homeowners• 2 Retirees• 14 (Newly) Permanent

Transplant• 2 Originally from Area

Data Analysis-Impact

– 50/51 Participate in Silent Sports• Average Home Value $300,000• Economic Impact of New Homes ($13.2 M)

• Average Property Taxes $2,000• Property Tax Revenue $88,000

• Average Expenditure in Sawyer County $17,571

• Economic Impact $589,743 (Annually)

Data Analysis-Impact• Seeley Highlands Development-1997• 67 Acres• 18 Lots• Land Values in 1997-5 Acres: $5,000-$8,500• 14 Homes in 2010• 3 Acre Parcels Sold for $13,000-$16,000 in

1997-2000• 2010: $40,000-$50,000 for same lots

Uses for this Data– Community Support– Public Support– Grant Opportunities– Volunteer Support – Land Value Increases-Private Land

Uses for this Data

• Grant Opportunities– Many Grants Available – Economic Improvement Grants– Contact Economic Development

Corporation– Similar Focus on ROI

How can I use this Data• Grant Scorers Look At:

– 1st or 2nd Tier Jobs (Permanent)– Money Spent in Community (6x7 Times)– Sales and Property Tax Revenue Generated– Social Impact on Community (Need to Sell your

“story”…..effects on children)– “Emotional” Scoring– Letters of Support from Legislators– Important to Involve Those on Appropriation

Committees (if for Federal or State Grants)– Letters of Individual Support

Uses for this Data

• Public Support– Politicians Understand ROI– Trailbuilding Projects=Tax Revenue– Second Homeowners do not have children in schools, but still pay taxes.

Conclusions

• Silent Sports/Trail Building Increases Land Values

• Silent Sports/Trail Building Increases Property Tax Revenue

• Silent Sports/Trail Building Produces Local Economic Impact

• Silent Sports Marketing Brings External Revenue

Conclusions

• Races/Events Promotes Repetitive Visits to Trails (Training for Events)

• Demographic Trends Show Younger Participation in Many Silent Sports-Singletrack Bicycling .