From: Michael White
Date: Thu, Oct 8, 2009 at 10:04 AM
Subject: economic impact study
I read your blog…pretty interesting information.
I’d be interested in looking at your figures on the economic impact of having the Babe Ruth World Series come to Winchester. We’ve seen different studies and different methods of calculating the impact on these tournaments and events. What we’ve found is the impact numbers are approximate figures and that it’s tough to determine the exact impact. I’d be interested in taking a look at your numbers and see what you used for a dollar turnover multiplier, etc. I’ve run the numbers myself using different formulas than what was initially provided. I used an average daily spending amount recommended by a national expert in parks & recreation from Texas A&M University. What I came up with was in between your figures [$337k-$472k] and the $1.2 million figure previously mentioned in the newspaper.
Also, if you’re interested in an update on Bridgeforth field and where the renovations stand, feel free to swing by or give me a call. Kevin Sine and John gave you accurate information on the current project but I can let you know where the committee currently stands and what our plans are moving forward.
Michael White, CPRP
Winchester Parks & Recreation Department
1001 East Cork Street
Winchester, VA 22601
(540) 667-1573 - phone
(540) 678-8791 - fax
From: Bradley Veach [mailto:firstname.lastname@example.org]
Sent: Saturday, February 28, 2009 10:53 AM
Subject: RE: local economic impact
It seems to be the standard formula that Babe Ruth shares with all communities in which a World Series is hosted. I understand what you are saying but I don’t think you realize that the $400K pumped into the community is unrealized beyond the event. For example, the hotel is paying its staff with this money; their staff goes out and buys something from a local business that pays taxes to the locality, etc. Most of the money collected will flow through the community beyond the 10 day event. The communities that host the Series range anywhere from 11,000 people to over 80,000 people according to the folks I personally spoke to in IN, CO, and LA. Indiana has hosted 4 tournaments over the years and they were pushing Babe Ruth to make them the host site as they realized the dramatic impact it had on their local economy. Of course, Babe Ruth only allows one area to host it year after year and that is in Aberdeen so their request was not approved.
Folks who use this formula locally did not question the numbers. I’ve shared this with some local businesses and tourism folks who use these types of formulas all the time and they did not question it. I think they probably have a better economic background that you or I and realize the potential of this 10 day event and they have the greatest potential to reap the benefits of such an event.
Thanks for your thoughts. Have a good weekend.
Sent: Tuesday, February 24, 2009 8:42 PM
To: 'Bradley Veach'
Subject: RE: local economic impact
Just wanted to share what I have learned about this compounding factor formula. Babe Ruth is using an economic impact spending study on a university town. The University of Georgia is an annual/reoccurring impact on that local economy. The WS event is just a 10-day event. That is like comparing apples to oranges.
I believe their figure of $414,600 is a high estimate and is in the ballpark. I am working on a more detailed analysis of potential revenue that could be drawn into the City of Winchester. Again, I am concerned about this $1.2 - $2 million dollar figure is being communicated with the community. Some people will be under the impression that $1.2-2million will be flowing into this town for this 10-day event and that is very misleading.
Again, I am not against the World Series coming to Winchester but I do like this revenue number being thrown out that is unrealistic.