Municipal Tennis Facility Proposal. March Keller Alliance Tennis Charter (KATCH)

Transcription

1 Municipal Tennis Facility Proposal March 2013 Keller Alliance Tennis Charter (KATCH)

2 Organized Tennis in Keller Seeing the growing popularity of tennis in Northeast Tarrant County and in the Keller community, in the summer of 2000, a small group of men and women began discussing the needs of tennis enthusiasts in the community. Their mission was to grow and promote tennis locally and institute a local offering of recreational city courts. Courts became a huge hurdle for the group. Meetings with the KISD Facilities Director and area coaches secured the use of KISD tennis courts. Meetings with Keller Park and Recreation (KP&R) were held to develop plans for various organized adult leagues. The inter-local agreement with KISD and KP&R continues to allow area players to play on KISD courts while our contract with KP&R helps advertise, accept registrations and assist with events. February 2002, KATCH, along with KISD, KP&R, Shelingham Tennis, and Tough Tennis hosted a community play day in order to introduce the community to tennis. A large turnout indicated a significant interest in tennis. A similar proposal was presented in 2007 with several players attending a number of City Council and Parks & Recreation meetings.

3 KATCH IS CHARTERED As the grassroots effort continues to grow and expand, it became necessary to formalize the organization. The group is chartered in the State of Texas. KATCH, Keller Alliance Tennis Charter, was established January 30, KATCH established a governing body, formulated by-laws and holds monthly meetings to plan leagues and events. KATCH registered with USTA to become a formal Community Tennis Association. KATCH is also a member of the Greater Fort Worth Tennis Coalition (GFWTC) with voting privileges. GFWTC is a qualified CTA, operating leagues, junior programs and tournaments in the area. Initially, the group began meeting in individuals home in an attempt to establish a Keller based tennis association. The group now meets in one of the public rooms at the Keller Public Library. In 2009, KATCH applied for and became a 503(c)3 non-profit organization. As a USTA Community Tennis Association, KATCH has received, and continues to apply for funding in the form of grants and incentives to grow the game of tennis in the Keller area.

4 TENNIS PROGRAMMING IN KELLER Organized league play began in Keller in the summer of 2000 and the first offering of recreational leagues was advertised in Keller Adventure Guide and KISD Community Education. Courts are reserved at KISD locations for leagues, tournaments and tennis events. Leagues are offered (day, night, weekend) for men, women, (singles, doubles, and mixed doubles). Drills for adults and juniors are offered during the day and several nights per week. Several types of tournaments are offered each year: Ladies' 1/2-Day Doubles, Junior (ages 10 and older), 10 and Under, Junior High only, Mid-Cities, and non-sanctioned junior tournaments have been offered the past 2 years. After school tennis programs have been implemented in 9 schools in KISD, with schools being added yearly. After school tennis is also offered at 4 schools in Northwest ISD. KATCH has offered both sanctioned JTT (Junior Team Tennis), and non-sanctioned JTT. The goal is to recruit enough local players and eliminate the need to partner with another CTA in order to form enough teams to make a league. Other activities include events such as Tennis Night in America, a USTA sponsored activity, Play- Day, Kid's Clubs (on school campuses), Rock the Park (KP&R event) and adult social activities.

5 CONSTRAINED GROWTH In spite of the lack of facilities, KATCH continues to expand program offerings and bring new players to the sport. Leagues continue to grow and are now advertised through The Keller Pointe's Points of Interest, Ladies' leagues are offered on Tuesday and Thursday year around, with four 8-week sessions being offered. Except for the winter league, there is generally 5 courts playing on Tuesday and 8 courts on Thursday. Further expansion on Thursday would require an additional site. When the Ladies' 1/2-Day Doubles tournament is offered, entries have to be limited to 32 pairs of doubles due to lack of courts. Some tournaments are already requiring more than one site in order to complete the tournament in one day.

6 LIMITATIONS EXIST Growing tennis in Keller has been hindered for several reasons: 1. Lack of court availability for expansion. 2. Parking at Keller High School remains unavailable during the school day. 3. Restroom facilities are not accessible to the public. 4. Inadequate lighting prevents night league 5. Courts need resurfacing and other repairs, wind screens, a canopy over one of the viewing areas, on-court trash cans and latches on several gates.

7 TENNIS VIABILITY IN THE KELLER AREA KATCH offers four 8-week sessions of tennis leagues per year. For three of those sessions, this involves 52 players. The winter league is smaller, but still has at least 32 players. Looking at USTA (United States Tennis Association), NETT (Northeast Tarrant Tennis), and TCD(Tennis Competitors of Dallas), there are close to 350 adults in the Keller Alliance area playing in adult leagues. There will be some duplication of names as some ladies play in more than one league per season The evening group drills for junior level players have about 60 players which increases to about 90 players in the summer. Ladies drills add another 30 people participating in tennis. The tournaments offered in the area bring in anywhere from 30 to 125 players. The number of entrants sometimes has to be limited due to the lack of courts available. Players come from Keller and the surrounding area. Many players come from the Alliance area, which does not have a tennis center either. The after school programs provide tennis for approximately 90 players in the fall and 75 players in the spring.

8 TENNIS - PLAY IT FOR LIFE Tennis is a game for all ages. Nationally, approximately 12% of school age children play tennis. That number is rapidly increasing with the new age/size appropriate equipment and programs. Young adults; 11% play tennis. Mid-age players are about 18% and ages 50 and over have 13% of the population playing. Tennis is no longer a sport that caters to the affluent. With a racquet and a can of balls (and courts to play on), you are set for several hours of fun and exercise. 74% of the nations tennis players have a household income under $100,000 and 57% have incomes under $75,000. Tennis is one of the few sports where the family can play together. Tennis can be recreational, social, or competitive. Today, tennis is one of the fastest growing sports in the nation. Many industry indicators show a steady increase in participation in this sport, which demonstrates the popularity of tennis. Player retention has improved over the years, with 80% of the players continuing with the sport once they have started playing.

9 TEXANS LOVE THEIR TENNIS With record breaking participation in Texas, Ken McAllister, Executive Director of the USTA Texas Section boasts that Texas tennis numbers are "statistically rocking". Participation reports indicate that Texas had 1,169,780 people play tennis in Texas tennis participation has remained steady from 2010 to 2012, with about 5.3% of the population participating in tennis activities. Frequent players - a player that plays more than 21 times a year - is now up to 440, 025 players in Texas.

10 KELLER/ALLIANCE AREA A HOTBED FOR TENNIS While the growth of tennis in the U.S. and Texas is remarkable, Northeast Tarrant County has been one of the fastest growing tennis populations in the state of Texas. Adult programs have experienced tremendous growth over the past several years. With NETT (Northeast Tarrant Tennis), USTA, TCD (Tennis Competitors of Dallas) and other leagues exhausting the court availability throughout the week. Participation in NETT adult programs has increased over 44% since the opening of the Southlake Tennis Center in Northeast Tarrant County's participation in USTA leagues has increased by 130% since TCD participation is up also. Area junior programs attract nearly 244,000 players a season. Junior tournament participation has steadily increased.

11 KELLER AREA PLAYER BASE Along with growth of tennis in Northeast Tarrant County, Keller has also been consistently adding new players to its community. Keller ISD has had one of the largest number of tennis players in the metroplex until recent financial cutbacks required them to terminate some previously available programs, primarily Junior Varsity and Middle School programs. With approximately 8-9% of the state and national population involved in tennis and a population in the Keller/Alliance area of well over 200,000, nearly 18,000 individuals can be expected to be involved in tennis each year

12 WHERE IS THE MONEY GOING? The unfortunate reality...an increasingly large number of residents are taking their tennis and their money to communities other than Keller. The average tennis player spends money on: 1. Tennis lesson, weekly team drills, league fees, court fees, tournament play. 2. Tennis clothing, tennis shoes, tennis racquets, tennis balls, and other accessories. 3. Social gathers before and after tennis...coffee, lunch, shopping, etc. This, in turn, drives the shopping for non-tennis related items to other communities as well; daily essentials, fuel, groceries, clothing, meals taken to the family. When there is a tennis facility within a community, all of these monies remain in the community. When large tournaments are hosted, players from surrounding communities and across the state come to play. A study from USTA indicates that an average of $83 per day is brought to the local community for an adult event and $ per family for a junior event. Two examples: The Fort Worth Adult Tournament, a 2-day event with 290 players, supplemented the city's revenue base by $48,140. The Fort Worth Zonal Area Tournament, a 2-day event with 305 junior players accompanied by their families, supplemented the city's revenue with $177,205.

13 FULL SERVICE New facilities being built in North Texas are professionally manned and full service facilities. With proper accoutrements and professional staff, these facilities are quick to flourish. The facility should incorporate: 1. Full service pro shop - tennis attire, racquets, balls and accessories, refreshments and snacks. 2. Fully equipped facility - lighted courts, restrooms facilities with showers. 3. Profession instruction - private, semi-private and group lessons, team drills, classroom training. 4. Programming for all ages and skill - beginning to advanced level for young children, juniors, school based players, adults, seniors and families, beginning to advanced junior, adult and senior, tennis camps, drop-in drills and competitive training sessions. 5. Recreational and competitive leagues -singles, doubles, mixed doubles, set partner, ladders, socials, USTA, TCD, NETT and other organized leagues. 6. USTA tournaments and events -pro and semi-pro tournaments, ZATS, Champs and Super Champs, USTA sanctioned events, community play days, tennis carnivals, fundraising event to benefit local charities. 7. Special programs - adaptive programming for physically challenged athletes.

14 THE NEXT STEP Tennis is clearly a sport that caters to the general population. It offers fun and fitness to people of all ages. Its growth in popularity can be seen all the way to the local level. Keller boasts a truly active and growing tennis community that desperately needs a professionally manned, full service facility. There is no question that a tennis facility in this areas would be utilized to capacity. The evidence of established players within our community and the constrained growth throughout Northeast Tarrant County would bring an immediate influx of tennis enthusiasts to the facility. We urge you to enhance our city's already impressive park system and recreational programming with a premiere tennis facility. We respectfully ask the Park and Recreation Board to: Add a municipal tennis facility to the Parks and Open Space Master Plan Provide the Keller City Council with necessary recommendations to fund this facility.

15 Revenue and Investment

16 Economic Impact Formula for Sporting Events Greater Raleigh Convention & Visitors Bureau Economic Impact Formula for Sporting Events: Total Room Nights (TRN) x Average Daily Spending for overnight visitor (#) plus Total Out-Of-Town Visitors (including participants and fans) Peak Night Rooms x Average Daily Spending of day-tripper (#) x Number of Days of event. (#) For these 2 figures, use dollar amounts from the most appropriate of the scenarios listed below:

17 Economic Impact Formula for Sporting Events Scenario A: Participant-Driven Youth Event (Based on ADR of $89) Avg. daily spending for overnight visitor: $139 Avg. daily spending for day-tripper: $50 Scenario B: Participant-Driven Adult Event (Based on ADR of $89) Avg. daily spending for overnight visitor: $154 Avg. daily spending for day-tripper: $65

18 Economic Impact Formula for Sporting Events Scenario C: Spectator-Driven Event (Based on ADR of $99) Avg. daily spending for overnight visitor: $174 Avg. daily spending for day-tripper: $75 Notes: This formula does NOT include spending done by local attendees, only visitors from outside the market. This formula does not include multipliers. It takes into account direct visitor spending only.

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20 POTENTIAL ECONOMIC IMPACT OF THE PROPOSED 74-COURT TENNIS CENTER ON THE ROME MSA (FLOYD COUNTY) Dr. Jeffrey M. Humphreys, Director Selig Center for Economic Growth University of Georgia December 2009

21 The fundamental finding of this study is that the proposed 74-court tennis center will contribute substantial economic impacts in terms of output, value-added, labor income, and employment to Rome s (Floyd County s) economy. The economic impacts will vary based on the number of tournaments. This report provides specific impact estimates for four possible activity levels that could be expected 3 to 5 years after opening, but does not consider the impacts that might arise from hosting large, premier tournaments such as a national championship, annual collegiate invitational, or a Davis Cup match. Also, the estimates should be considered conservative because they only encompass spending by the players and their guests and do not include any impacts arising from spending by exhibitors or sponsoring organizations. Specifically, the proposed 74-court tennis center will generate the following annual (recurring) impacts for the people who live, work, and do business in Floyd County. n If 20 tournaments are hosted, $13.1 million will be spent by players and their guests, generating $16.1 million in output (sales or gross receipts) and 240 new (net) full- and part-time jobs. n If 25 tournaments are hosted, $16.4 million will be spent by players and their guests, generating $20.1 million in output (sales or gross receipts) and 300 new (net) full- and part-time jobs. n If 30 tournaments are hosted, $19.7 million will be spent by players and their guests, generating $24.1 million in output (sales or gross receipts) and 360 new (net) full- and part-time jobs. n If 35 tournaments are hosted, $23.0 million will be spent by players and their guests, generating $28.1 million in output (sales or gross receipts) and 420 new (net) full- and part-time jobs. Measured in the simplest and broadest possible terms, the total annual (recurring) economic impact of the proposed 74-court tennis center will vary from $16.1 million to $28.1 million on output, depending on the number of tournaments. Output can be thought of as the equivalent of business revenue, sales, or gross receipts. Of the projected impacts, 69 percent is direct spending by the players and their guests (primarily family members); 31 percent is the induced or respending (multiplier) impact. Dividing the total output impacts by direct spending estimates yields an average multiplier value of On average, therefore, every dollar of direct spending generates an additional 45 cents for Floyd County s economy. The value-added impacts range from $8.4 million for 20 tournaments, to $14.7 million for 35 tournaments and comprise 52 percent of the output impact, with domestic and foreign trade comprising the remainder 48 percent) of the output impact. Labor income received by residents of Floyd County will range from $5.3 million for 20 tournaments to $9.3 million for 35 tournaments, and represents 63 percent of the value-added impact. The employment impact ranges from 240 full- and part-time jobs for 20 tournaments to 420 full- and part-time jobs for 35 tournaments. On average, $54,703 in initial spending by players and their guests will support one full- or part-time job. Thus, on average, each job created will owe its existence to spending by 109 players/guests. METHODOLOGY For the purposes of this analysis, the annual economic impact of the proposed tennis center is defined to consist of the net changes in regional output, value added, labor income, and employment that are due to initial spending by tournament players and their guests. The total economic impact includes the impact of the initial round of spending and the secondary, or indirect and induced, spending often referred to as the multiplier effect created as the initial expenditures are re-spent. Figure 1 provides a schematic representation of impact relationships. There are two types of secondary spending, indirect spending and induced spending. Indirect spending refers to the changes in inter-industry purchases as a region s industries respond to the additional demands triggered by spending by players and their guests. It consists of the ripples of activity that are created when the players and their guests purchase

22 goods or services from other industries located in Floyd County. Induced spending is similar to indirect spending except that it refers to the additional demand triggered by spending by households as their income increases due to changes in production. Basically, the induced impact captures the ripples of activity that are created when households spend more due to the increases in their earnings that were generated by the direct and indirect spending. The sum of the direct, indirect, and induced economic impacts is the total economic impact, which is often expressed in terms of output (sales), value added (gross regional product), income, or employment. Total industry output is gross receipts or sales, plus or minus inventory. It is the value of production by industry (including households) for a given period of time (one year). Total output impacts are the most inclusive and largest, measure of economic impact. Because of their size, output impacts typically are emphasized in economic impact studies and receive much media attention. One problem with output as a measure of economic impact, however, is that it includes the value of inputs produced by other industries, which means that there inevitably is some double counting of economic activity. The other measures of economic impact (value added, labor income, and employment) are free from double counting and provide a much more realistic measure of the true economic impact of tournaments hosted at the proposed tennis center on Rome s regional economy. Value added (or gross regional product) consists of employee compensation, proprietor income, other property income, and indirect business taxes. Value added is equivalent to gross output (sales or receipts and other operating income, commodity taxes, and inventory change) minus intermediate inputs (consumption of goods and services purchased from industries or imported). It is often referred to as the state- or regional-level counterpart of the nation s gross domestic product (GDP). Income comprises all forms of employment income, including wages, salaries, and proprietors incomes. It does not include non-wage compensation (e.g., pensions and health insurance), transfer payments (e.g., welfare or Social Security benefits), or unearned income (e.g., dividends, interest, and rent). Employment includes total wage and salary employees as well as self-employed individuals. It includes both full- and part-time jobs and is measured in annual average jobs. Employment therefore is expressed as the full- and part-time jobs count and not as full-time equivalents. The definition of Rome s regional economy was based on the standard metropolitan and micropolitan statistical area definitions released by the Executive Office of the President, Office of Management and Budget, and consists of only Floyd County. The geographic area of the regional model takes into consideration population and commuting patterns from the U.S. Bureau of the Census. The effects of expenditures that go to persons, businesses, or governments located outside Floyd County are not included in the value added, labor income, and employment impact estimates. The multiplier concept is common to virtually all economic impact studies. Multipliers measure the response of the local economy to a change in demand or production. In essence, multipliers capture the impact of the initial round of spending (for final consumption) plus the impacts generated by successive rounds of re-spending of those initial dollars. The magnitude of a particular multiplier depends upon what proportion of each dollar spent leaves the region during each round of spending. Multipliers therefore are unique to the region and to the industry that receives the initial round of spending. Economic multipliers are model-based and dependent on the specific spending patterns of the industry and applicable regional economies. Figure 2 illustrates the successive rounds of spending that might take place if a person buys an item locally. Assume that the amount spent is $100 and that the appropriate regional output multiplier is 2.0. The initial injection of spending to the region is $100, which creates a direct economic impact of $100 to the regional economy. Of that $100, only $50 is re-spent locally; the rest flows out of the region through non-local taxes, non-local purchases, and income transfers. After the first round of re-spending, the total economic impact to the region is $150. During the second round of re-spending, $25 is re-spent locally and $25 leaks out of the region, a 50 percent leakage. Now, the total economic impact to the region is $175. After seven rounds of re-spending, less than one dollar remains in the local economy, but the total economic impact has reached almost $200. The induced (multiplier effect) impact to the region ($100) equals the total impact ($200) minus the direct impact ($100). The multiplier traces the flows of re-spending that take place throughout the region until the initial dollars have completely leaked from it to other regions. Obviously, multiplier effects within large, self-sufficient areas are likely to be larger than those in small, rural, or specialized areas that are less able to capture spending for necessary goods and services. Multiplier effects also vary greatly from industry to industry, but in general, the greater the interaction with the local economy, the larger the multiplier for that industry. For example, personal services, business services, and entertainment industries have intricate relationships with local supporting industries, and therefore have relatively high 2

23 multiplier values. Conversely, electric, gas, and sanitary services usually are less intertwined with local supporting industries, and their multipliers are lower. Type SAM (Social Accounting) multipliers from the IMPLAN modeling system were used to estimate the economic impacts associated with all categories of spending. Type SAM multipliers capture the original expenditures resulting from the impact, the indirect effects of industries buying from industries, and the induced effects of household expenditures based on information in the social account matrix. The multipliers account for Social Security and income tax leakage, institutional savings, commuting, and inter-institutional transfers, and people-to-people transfers. Wherever appropriate, the IMPLAN software applied margins to convert purchaser prices to producer prices. In input-output models, all expenditures are in terms of producer prices, which allow all spending to be allocated to the industries that actually produce the goods or services. The margins are derived from U.S. Bureau of Economic Analysis data. The margins used differ by the type of consumer. For example, households pay transportation, wholesale, and the full retail margin. In contrast, large organizations may pay little or no retail margin as they typically have more buying power than an individual. Also, some sectors of the model do not have margins. For example, because there are no wholesalers or retailers involved when someone rents a room, hotels and other lodging do not have margins. The model s default estimates of the local economy s regional purchase coefficients were used to derive the ratio of locally purchased to imported goods. The regional purchase coefficient represents the proportion of the total demands for a given commodity that is supplied by the region to itself. The regional purchase coefficients were estimated with an econometric equation that predicts local purchases based on each region s unique characteristics. In addition, the entire analysis was conducted using the full range of industrial sectors in order to avoid aggregation bias. Estimating the economic impact of the proposed 70-court tennis center on its regional economies involved several basic steps. First, estimated spending by players and their guests was calculated from data obtained from the United States Tennis Association (USTA). Second, these expenditures were allocated to industrial sectors recognized by the economic impact modeling system. Third, the IMPLAN Professional Social Accounting and Impact Analysis software was used to build a regional economic model specific to Floyd County. A more detailed discussion of the IMPLAN modeling system, including its structure, methods, and use, can be found in IMPLAN Professional Version 2.0: Users Guide, Analysis Guide, and Data Guide ( Once the economic model was generated, the total economic impacts of all categories of initial spending were estimated. Spending by players and their guests was estimated for four possible activity levels that could be expected 3 to 5 years after the opening of the tennis center: 20 tournaments, 25 tournaments, 30 tournaments, and 35 tournaments. The spending estimates were based primarily on data obtained from the USTA. The Selig Center assumed that each tournament consists of 620 players and 607 guests, which are the average numbers reported by the USTA for the fourteen Southern tournaments covered in the USTA s Economic Impact Study (2006). The total number of attendees per tournament therefore was 1,227. The USTA s Economic Impact Study provided high and low estimates (examples) of expenditures per person per stay of $500 ($ 2006) and $1,000 ($ 2006). The low estimate ($500) was assumed to be more applicable to the proposed Rome tennis center. The $500 estimate was converted from 2006 dollars into constant (inflation-adjusted) 2009 dollars based on travel price indices obtained form the Travel Industry Association of America (TIA). When expressed in constant 2009 dollars the low estimate is $535. This level of expenditures per stay was allocated to expenditure categories by the Selig Center based on data obtained from the IACVB s ExPact 2004 Convention Expenditures and Impact Study (revised in February 2005), the updated year-end-2005 spending figures for ExPact 2005, and other sources. The IACVB is currently known as the Destination Marketing Association International (DMA). As Table 3 shows, expenditures per person per stay of $535 amount to expenditures per person per day of $ (assuming the 3.5 night stay reported by the USTA). The estimate of $ per night is 23 percent higher than the $124 per person per night estimate provided by the Georgia Department of Economic Development for a typical sporting event, which reflects the upscale demographics of tennis players/guests relative to other sports. For example, a survey posted by tennis.com shows that the median household income of tennis players/consumers is $80,257 versus $73,997 for other sports. Total initial spending was estimated by multiplying expenditures per stay ($535) by the number of attendees per tournament (1,227) by the number of tournaments. 3

24 RESULTS The estimates of initial spending vary with the activity levels, ranging from $13.1 million for 20 tournaments, to $16.4 million for 25 tournaments, to $19.7 million for 30 tournaments, and to $23 million for 35 tournaments. Due to leakages associated with retail purchases and gasoline, the estimates of direct spending are slightly (16 percent) lower than initial spending, however. Estimates of both initial spending and direct spending are reported in Table 1. Total Output Impact An IMPLAN model of Rome s regional economy was used to calculate the total output impact. Output impacts for are reported in Table 1. The output impact includes the impact of the first round of spending and the impacts generated by the re-spending of these amounts the multiplier effect. The output impact of the proposed tennis center will vary depending on the number of tournaments: from $16.1 million for 20 tournaments, to $20.1 million for 25 tournaments, to $24.1 million for 30 tournaments, and to $28.1 million for 35 tournaments. Regardless of the activity level (number of tournaments) the output impact will be 1.45 times greater than direct spending, but only 1.22 times greater than initial spending. The Rome MSA is small, so there is a high level of leakage. That is why the multiplier values are relatively low. Leakages are any payments made to imports or value-added sectors, which do not in turn re-spend the dollars within Floyd County. The output impacts are reported in the second column of Table 1. Total Value-Added Impact Because value-added impacts exclude expenditures related to foreign and domestic trade, they provide a much more accurate measure of the actual economic benefits flowing to businesses and households in a region than the more inclusive output impacts. The proposed tennis center will generate a value added impact ranging from $8.4 million for 20 tournaments, to $10.5 million for 25 tournaments, to $12.6 million for 30 tournaments, and to $14.7 million for 35 tournaments. The value-added impact will equal 64 percent of initial spending. The value-added impacts are reported in Table 2. Labor Income Impacts The IMPLAN model also was used to calculate impacts in terms of labor income. The proposed tennis center will generate a labor income impact of $5.3 million for 20 tournaments, $6.7 million for 25 tournaments, $8 million for 30 tournaments, and $9.3 million for 35 tournaments. Labor income impacts will equal 63 percent of their respective value-added impacts. Labor income impacts are reported in Table 2. Employment Impacts The potential economic impact of the proposed tennis center is most easily understood in terms of its effects on employment. The proposed tennis center will generate an employment impact of 240 full- and part-time jobs for 20 tournaments, or 300 full- and part-time jobs for 25 tournaments, or 360 full- and part-time jobs for 30 tournaments, or 420 full- and part-time jobs for 35 tournaments. Employment impacts are reported in Table 2. LIMITATIONS Several types of short-term expenditures were not estimated, including spending by exhibitors and sponsors, but perhaps the greatest limitation is that there was no attempt to evaluate the potential to attract premier tournaments such as a national championship, annual collegiate invitational, or a Davis Cup match. In addition, programs, events, and facilities may be available to the general public and provide intangible benefits to Floyd County by improving residents quality of life. 4

25 CONCLUSIONS In the simplest terms, the collective or rolled-up annual (recurring) economic impact of the proposed 74-court tennis center on the Rome MSA will range from $16.1 million to $28.1 million, depending on the number of tournaments hosted. This amount represents the impact of spending by the players and their guests. Although this study estimates from $16.1 million to $28.1 million in annual economic impact on the Rome MSA, the actual annual impact is likely to be much higher. The study s limited scope did not include the impacts of spending by exhibitors or sponsors. Also, the impact estimates do not factor in the hosting of a premier national tournament, which is certainly a realistic goal for a 74-court facility. n 5

26 FIGURE 1 Schematic Representation of Impact Relationships Direct Expenditures Indirect & Induced Impacts (Multiplier Effects) Total Economic Impact 6

27 FIGURE 2 How Multipliers Capture the Impact of Re-spending Initial Impacts If the Output Multiplier Equals 2.0 $100 $50 -Leakage $50 $25 -Leakage -Leakage $25 $12.50 $12.50 Initial Impact 1st 2nd 3rd 4th 5th 6th 7th Initial Direct or Indirect Impact: $100 First Round of Re-spending: $50 respent locally, Second Round of Re-spending: $25 respent locally, Third Round of Re-spending: $12.50 respent locally; Fourth Round of Re-spending: $6.25 respent locally; Fifth Round of Re-spending: $3.12 respent locally; Sixth Round of Re-spending: $1.56 respent locally; Seventh Round of Re-spending: $.78 respent locally; $50 leakage* $25 leakage $12.50 leakage $6.25 leakage $3.12 leakage $1.56 leakage $.78 leakage Total Economic Impact: $200 Total Leakage: $100 *Leakage indicates amounts spent outside area and not recirculated locally. 7

28 TABLE 1 Potential Economic Impacts of the Proposed 74-Court Rome Tennis Center on Output ($ 2009) Number Initial Spending Direct Spending of by by Output Output Tournaments Players & Guests Players & Guests Multiplier Impact 20 13,128,900 11,089, ,074, ,411,125 13,861, ,092, ,693,350 16,634, ,111, ,975,575 19,406, ,130,068 Notes: The impact estimates reflect four possible activity levels that could be expected 3 to 5 years after opening, but do not include the impacts that might arise from hosting large, premier tournaments such as a national championship, annual collegiate invitational, or a Davis Cup match. Also, the estimates do not include any impacts arising from spending by exhibitors or sponsoring organizations. Initial spending estimates were produced by the Selig Center based primarily on data obtained from the United States Tennis Association (USTA). The Selig Center assumes that each tournament consists of 620 players and 607 guests, which are the average reported figures for the fourteen tournaments covered by the USTA s Economic Impact Study (2006). Direct spending equals initial spending minus producer margins paid to manufacturers for retail and gasoline expenditures. Output refers to the value of total production, including domestic and foreign trade. The impact of spending on output was estimated using the IMPLAN system, Type SAM multipliers, provided by MIG, Inc. All dollar amounts are expressed in constant 2009 dollars. Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia ( December

29 TABLE 2 Potential Economic Impacts of the Proposed 74-Court Rome Tennis Center on Value Added, Labor Income, and Employment ($ 2009/full- and part-time jobs) Number of Value Added Labor Income Employment Impact Tournaments Impact Impact (full- and part-time jobs) 20 8,421,915 5,341, ,527,393 6,676, ,632,871 8,011, ,738,351 9,347, Notes: The impact estimates reflect four possible activity levels that could be expected 3 to 5 years after opening, but do not include the impacts that might arise from hosting large, premier tournaments such as a national championship, annual collegiate invitational, or a Davis Cup match. Also, the estimates do not include any impacts arising from spending by exhibitors or sponsoring organizations. Value added includes employee compensation, proprietary income, other property type income, and indirect business taxes. Labor income includes both the total payroll costs of workers who are paid by employers and payment received by self-employed individuals. Employment includes both full-time and part-time jobs. The impacts of spending on value added, labor income, and employment are estimated using the IMPLAN system, Type SAM multipliers, provided by MIG, Inc. All dollar amounts are expressed in constant 2009 dollars. Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia ( December

30 TABLE 3 Players and Guests: Expenditures per Person ($ 2009) Expenditure Expenditures Expenditures Class per Stay per Day Lodging Food and Beverage Retail Entertainment/Recreation Gas/Parking/Other Local Transportation/Car Rental Total Notes: Expenditures per stay ($500 for a 3.5 night stay) were obtained from USTA s 2006 Economic Impact Study, but for analytical purposes this amount was converted into constant (inflation-adjusted) 2009 dollars ($535 for a 3.5 night stay) based on travel price indices obtained from the Travel Industry Association of America (TIA). It should be noted that $500 (or $535 when expressed in $ 2009) represents the smallest amount (example) of per person spending provided by the USTA. The highest amount (example) of per person spending provided was $1,000. Expenditures were allocated to expenditure categories by the Selig Center based on data obtained from IACVB s ExPact2004 Convention Expenditure and Impact Study (revised in February 2005), the updated year-end 2005 spending figures for ExPact2005 as well as other sources. The IACVB is currently known as the Destination Marketing Association International (DMA). Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia ( December