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2008: Estimates of Potential Impact of 2009 Induction Ceremonies in Cleveland

• Working with CVB created estimates of visitors– Total: 3,800– Visitors: 1,900 (with Cuyahoga County as unit of

analysis)– Average nights stay: 2.5

• Production costs– Total: $4.1 million– Regional spending: $1.1 million

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Estimates of:Estimates of Impacts: 2008

Employment 71

Gross Regional Product $3,573,665

Personal Income $2,281,800

Local Wage Tax (@2%) $45,636

State Income Tax (2.88% ATR) $65,716

CAT Self Supply $5,952

CAT Imports $1,432

Sales B2B $48,740

Sales Consumer $24,952

Total State Revenue Estimates $146,792

Total Public Revenue Estimates $192,428

Output $5,658,014

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Class of 2009: Bobby Womack, Little Anthony & The Imperials, Jeff Beck, Metallica and Run DMC

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Class of 2009, continued: Wanda Jackson, Bill Black, DJ Fontana and Spooner Oldham

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Induction Week Schedule of EventsArtists that performed include: Jack Bruce, Jerry Butler, Pastor Shirley Caesar, Reggie Calloway,

Herman’s Hermits starring Peter Noone, Tommy James & the Shondells, Dave Mason of Traffic, J. Moss, Little Richard, the O’Jays, the Raspberries, Richard Smallwood, Musiq SoulChild, Three Dog Night and more.

Thursday, March 26 Induction Week Kick Off Party: Downtown Soulville presents There’s a Riot Going On,

a vinyl tribute to Bobby Womack (Beachland Ballroom)

Friday, March 27 B.B. King (House of Blues)

Saturday, March 28 Majic 105.7 Moondog Coronation Ball Quicken Loans Arena

Sunday, March 29 Rock My Soul: A Gospel Music Celebration Honoring Pastor Shirley Caesar Allen Theater

Monday, March 30 Students Rock!

Case Western Reserve SAGES Program University Seminar “Writing Rock and Roll,” “Elite Populism or a Populist Elite? The Rock and Roll Hall of Fame Inductions”

Tuesday, March 31

Teachers Rock! at the Rock and Roll Hall of Fame and Museum

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Wednesday, April 1 From Asbury Park to the Promised Land:

The Life and Music of Bruce Springsteen (Rock and Roll Hall of Fame and Museum, floors 5 and 6)

Thursday, April 2 Rock Hall Induction Week Concert for Cleveland

presented by the Cleveland Foundation (Cleveland State University’s Wolstein Center) An evening with Wanda Jackson (Agora)

. Friday, April 3

A special engagement with Little Anthony and the Imperials (Agora) Kim Simmonds live performance (Winchester Music Hall)

Saturday, April 4 Free Day at the Rock and Roll Hall of Fame and Museum

Bobby Womack CD signing

Rock and Roll Hall of Fame Induction Ceremony Simulcast presented by Jim Beam (Rock and Roll Hall of Fame and Museum) The 24th Annual Rock and Roll Hall of Fame Induction Ceremony (Cleveland’s Public Hall)

The Kings: A Tribute to Run-D.M.C. and Old School Hip Hop presented by Word of Mouth Promotions

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Three Types of Inputs

• Visitor Spending• Production Spending• Random Spending

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Visitor Spending Cypress Research Group

Visitors to the Rock & Roll Hall of Fame 2009 Induction Ceremony events were surveyed via self-administered paper-and-pencil questionnaires.

Participants were randomly selected by intercept interviewers positioned at the Rock & Roll Hall of Fame 2009 Induction Ceremony events. A total of 475 visitors were surveyed. Respondents completed interviews at three different locations associated with the event: The Rock and Roll Hall of Fame and Museum ( 91% of interviews, or 434

respondents) Public Hall (6%, or 29 respondents) Tower City lobby (3%, or 12 respondents)

Dates of the induction events were Thursday, April 2, 2009 through Saturday, April 4, 2009.

The sample size of 475 affords us a margin-of-error of +/-4.5 % at the 95% confidence level.

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What We Collected on Visitors

From these surveys of visitors, we determined the following, as these three pieces of information form the backbone of the economic impact model: Proportion of visitors who are from outside the region (zip codes

44001-44194) The average amount they spent on hotels, meals, travel,

entertainment, and retail purchases while inside the region The reason for being in the Cleveland area, and more

specifically, in Downtown Cleveland so that dollars which can be directly attributed to

the Induction Ceremony events

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Methods

Data Collection - Questionnaire Objectives & StructureData Collection - Questionnaire Objectives & Structure

• As mentioned previously, one main objective for this survey was to provide spending data for an economic impact model. This survey captured three primary pieces of information:

• Residential status of participants (local Greater Clevelanders vs. “out-of-town” visitors, the latter being of most interest to us);

• For out-of-town visitors, their primary reason for being in the area (so we can properly allocate the dollars they spend to the Rock and Roll Hall of Fame Induction events or to other activities at the time of the survey);

• Spending patterns of out-of-town visitors while in the Cleveland area.

Resident of Cleveland area?

Is visit to the Rock & Roll Hall of Fame 2009 Induction Ceremony Events the main reason for coming to Cleveland area?

No

Yes

What was spent on:

· Lodging?· Meals?· Rental car?· Arts/Entertainment?· Retail purchases (visual arts

and otherwise)?· Local transportation (taxis,

gasoline, etc.)?· Transportation to/from

Cleveland area?· Parking?

Survey is completed and returned

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Visitors’ Resident Region(All Respondents, n=475)*

• Using home zip code, we categorized visitors into regions’ of residence:

• Almost half (41%) reside outside of the state of Ohio.

• Three in four (73%) reside outside of Cuyahoga County.

• Respondents also self-categorized themselves as either “Greater Clevelanders” or not. Sixty-five percent of respondents categorized themselves as being from “outside the Greater Cleveland area.” They are referred to as “out-of-towners” in this report, and they are those who presumably are unlikely to consider visiting Cleveland a regular event.

Q2: What is your home zip code?

Visitor Demographics

• *The category of ‘Ohio Nearby Counties’ includes Lorain, Medina, Lake, Summit, Portage, and Geauga .• All other Ohio counties are categorized within ‘Ohio Distant Counties’.

*23 respondents did not answer this question; they are not included in the base for calculations.

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Out-of-Town Visitors Only: Reason for Visiting Cleveland(Out-of-Town Visitors only, n=311)

• We saw that most respondents were in Downtown Cleveland specifically for the Rock Hall Induction Ceremony events. In addition to that, the majority (64%) of out-of-town respondents reported that they came to the Cleveland area to attend the Rock Hall Induction events, as opposed to some other reason (visiting family or friends, a different arts/cultural event, etc.).

Q9: What was the main reason that you came to the Cleveland area? (check only one)

% of Respondents

Dynamics of Out-of-Town Visits

*18 respondents did not answer this question; they are not included in the base for calculations.

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Mean Spending Per Visitor Party (All Respondents)

Dynamics of Out-of-Town Visits

*Respondent-defined as those who reside outside the zip codes of 44001 – 44194** In the economic impact model, these spending figures were substantially discounted for those who were in the Cleveland area for a primary

reason other than the Rock Hall Induction Events

Hotel/Motel

RentalCar

Transportationto the

Cleveland AreaMeals Artwork Other Retail Parking

LocalGas/Taxi/Bus Fare

EntertainmentActivities

‘Out-of-Towners’*,**

(n =227)$225.38 $25.50 $141.03 $130.50 $7.03 $51.75 $14.35 $16.44 $56.71

Local, non-Cleveland

proper, residents

(n=73)

- - - $36.70 $0.34 $18.06 $21.66 $5.26 $19.49

Cleveland residents

(n=32)- - - $70.99 $2.19 $18.94 $3.92 $4.12 $44.70

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Ceremony Other Star Gazers

Impact 4,692 8,352 4,964

ROR 2,552 4,542 2,700

Cleveland 988 1,758 1,045

Survey Populations: OutcomesN=31,593

Yielded a Regional Spend of Estimated $3.2million

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Rock Hall Events Spending

Induction 2,483,400 Lost Gala overhead 250,000

Moondog 60,000 Advertising 100,000

Gospel 20,000 Cleveland press room 45,000

Education events 10,000 Contingency 166,060

Wolstein 195,400 Promoter 703,650

Saturday inductions 418,250 VIP 232,050

Total Spend 5,244,870

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Private Party Data and Hotel Spends

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So what was the economic impact of 3 days of love and music?

City of Cuyahoga Northeast

Cleveland County Ohio

Employment 142 158 167

Gross Regional Product $5,619,372 $6,990,802 $7,459,183

Personal Income $4,217,710 $4,902,000 $5,106,000

Total State Revenue Estimates $230,242 $300,082 $330,502

State Income Tax (2.88% ATR) $121,470 $141,178 $147,053

CAT: Self Supply $7,449 $13,483 $16,196

CAT: Imports $1,845 $2,854 $3,851

Sales: B2B $81,920 $90,730 $93,821

Sales: Consumer $17,558 $51,837 $69,581

Total Public Revenue Estimates $314,596 $398,122 $432,622

Local Wage Tax (@2%) $84,354 $98,040 $102,120

Output $9,583,713 $11,709,681 $12,531,899

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So, all in, the RRHoF, Sponsors, City, County, PositivelyCleveland, Hotels

and Restaurants, were, well:

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So How Will This Be Used?

• Justify ROI to investors• Justify next round of Induction investments• Hopefully, Cleveland will get Inductions every three years• Weirdly, it seems to work in NYC and Cleveland, but not

LA and London. – Go figure.

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The Real Impacts?

• $7+ million spending by visitors?• $5+ million in operating spending?• No data on the private parties of Run DMC and

Metallica?• Getting your picture with

Dave Mason: PRICELESS

Questions or Comments?

Thanks!