1. business and industrial
2. company
3. earnings

STEAM 201
Tony Fisher
Director of Research
Canadian Sport Tourism Alliance
Outline
• STEAM Background
• How to use STEAM (Demonstration)
• Interpreting and understanding the results
QUESTIONS ARE ENCOURAGED!
Background
• One of the objectives of the CSTA is to raise the profile
of the economic benefits associated with hosting sport
events
• Our initial research found there was no nationally
consistent, accessible and affordable method of
quantifying the impact of events
Background
• Research began on developing a model in 2001
• Engaged a number of partners including:
–
–
–
–
Sport Canada
Destination Marketing Association of Canada (DMAC)
Canadian Tourism Commission
Skate Canada
How EI Models Work
How EI Models Work
Economic
Multiplier
s
STEAM – The Solution
• STEAM addresses the major sources of error
associated with making EI projections:
– The model uses a consistent set of visitor profiles
• Specific to sport
• Expenditure profile varies based on location of event, age of
participants, distance traveled, etc.
– STEAM has a nationally consistent set of multipliers
• Developed for CSTA by the Canadian Tourism Research
Institute (CTRI) at the Conference Board of Canada
• Regularly updated based on changes in Tax / I-O structures
STEAM - Structure
STEAM
• Initial calibration of the model done using CTS / ITS
• Started conducting on-site research in 2003 to support
profile development
– To date 150+ events of all types surveyed & 10,000+ out of
town responses used in developing visitor profiles
• STEAM is scalable to communities of ALL sizes
• STEAM is scalable to events of ALL sizes
Signing In
• Access is through the website:
www.canadiansporttourism.com
• Sign in to the members section
using your member username
and password
• Select Access STEAM under the
Members Home tab on left
• Choose the appropriate province
• Note the User’s Guide is
available to download from this
page as well
STEAM – Main Menu
STEAM – Adding Projects
1) Type Name
2) Clic
k
Insert
3) Click Close
STEAM – Main Menu
IMPORTANT:
When naming your
event, DO NOT use
an apostrophe, i.e.
don’t use Women’s
World Cup
Tourism
Expenditures
What is an out of town visitor?
• Don’t want to include spending of local residents as
their money is a transfer, they would likely be
spending money within host city
• Old definition:
– 80km one-way, or overnight away from home, except 40km
in Ontario
• New definition:
– Outside of your usual spending environment
• Important to establish a definition and stick with it!
STEAM – Visitor Attendance
• In using STEAM, all figures should refer to
out of town visitors
• Information regarding expected attendance can be
derived from a number of sources:
– Historical attendance at annual events
– Attendance of similar events in host community
– Marketing plan (e.g. are you marketing locally or
nationally)
– Capacity of venue (and accommodation capacity
of host region)
STEAM – Visitor Attendance
STEAM has 3 categories of visitors
•Participants – anyone actively taking part in the
event including athletes, coaches, managers,
technical officials, etc.
•Spectators – visitors accompanying and / or
watching participants
•Media / VIP – Visiting members of the media,
National & International Sports Federations, etc.
How to determine attendance Easy
•
•
•
•
St. Catharines Jr. Badgers Annual Rep Hockey
68 teams in total
Regional event, draws largely from GTA
Calculate participant attendance from team
registration information
• BUT – need to add in spectators (parents)
How to determine attendance Easy
•
•
•
•
•
Ratio ranges from a low of 0.75 to a high of 3
Start with an average of 1 to 1.5
We travel more with our daughters than our sons
As kids get older party size gets smaller
Party size increases if:
– Event is of significance (i.e. provincial
championships)
– Event is hosted during a holiday weekend
How to determine attendance Medium
• For some events you only get a total
attendance figure (i.e. 17,000 seats sold)
– For these events, you need secondary research
• Step 1: Determine the local / out of town share (from
ticket sales data or survey)
• Step 2: Divide by average number of events attended
per person (usually varies for locals vs. visitors)
How to determine attendance Difficult
Ungated or open air events are the most difficult to
determine attendance at. Need to use a variety of
methods to determine attendance
– Use aerial photos / videos
– Determine available square footage
– Use flow measures and counting stations
How to determine attendance Difficult
• For ungated festivals, parades, etc. keep the following
rules of thumb in mind
• Determine the physical area of the event
– 4 square feet per person – very uncomfortable (mosh pit at
rock concert)
– 9 square feet – still feel very crowded
– 12-16 sq feet – comfortable standing or sitting (no
furniture)
– 25 sq feet – sitting with furniture
• Parade density – allow 0.5m per person standing shoulder
to shoulder (5 people per 8 feet)
Attendance:
Key Point to Remember
IN
OUT
Capital
Expenditures
STEAM – Capital Expenditures
• Need to ensure that all capital expenditures are
directly associated with the event under
consideration
• Always ask the better question – was this
expenditure made as a result of hosting the
event or would it have happened anyway?
British Columbia STEAM - Capital Input
Enter Capital Spending on:
Buildings and Renovations
Machinery and Equipment
Furniture and Fixtures
Transportation Equipment
Other Supplies
Other Services
$0
$0
$0
$0
$0
$0
Total (calculated)
$0
Enter the % of construction costs that are
attributed to local firms
100
Operational
Expenditures
STEAM –
Operational
Input
A full description of
the categories can
be found in the
user’s guide
IMPORTANT
You must enter
revenues that are
equal or greater
than your expenses
Budget Demo
Budget Demo - Notes
• If you don’t know where the expense goes:
– Tangible = other goods
– Intangible = other services
• Legacy and /or profits remaining in the host
community should be reflected as surplus revenue
(profit)
Understanding your output
A
1
2
3
4
5
6
B
C
Presenting your results
• The combined expenditures of visitors, event operations, and capital
expenditures as a result of hosting the Snowflake Challenge were
estimated to reach (1a) $361,000 in the Province of Ontario.
• The event is estimated to have generated (2a) 392,000 in GDP in
Ontario (net economic activity), of which (2b) $262,000 occurred in
Greater Sudbury
• A total of (3b) $179,000 in wages and salaries were supported in
Sudbury, with an additional (3c) $67,000 supported throughout the
rest of the Ontario; supporting an estimated (4b) 4.9 jobs in the city,
and an additional (4c) 1.0 jobs in other areas of the province.
Presenting your results
• In summary, the spending supported (6a) $807,000 in economic
activity, of which (6b) $545,000 occurred in Greater Sudbury.
• The event supported (5.4a) $182,000 in taxes; of which (5.1a)
$79,000 accrued to the federal government and (5.2a) $67,000 in
tax revenue was attributable to the province. Municipal taxes
supported by the Snowflake Challenge totalled (5.3a) $36,000, of
which (5.3b) $30,200 accrued in Greater Sudbury.
Economics 101
• The economic impact of an
event can be measured at
three levels as the money
flows through the
economy
– Direct
– Indirect
– Induced
• The bottom line… most
results report all 3 of these
• Some Stats Can I/O models
do not have induced EI
Direct Economic Activity
Direct
• Relates only to the impact on ‘Front Line’
businesses initially receiving the spending
(either tourism or operations)
– Tourism industries
– Provision of goods or services to an event
– Construction
Indirect Economic Activity
Indirect
• 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
– Supply and production of bed sheets for hotel
– Supply of architectural services to construction
Induced Economic Activity
Induced
• Spending of money earned from employment
(i.e. wages) or investment by a business (i.e.
profits)
– Spending on consumer items including food,
housing, vehicle, property tax, etc.
1
2
3
Initial Expenditure
• Represents the combined spending of:
– Event Visitors (Tourism)
– Event Operations
– Event Capital Construction
• Is the amount of money being spent in the
community BEFORE the application of any
economic multipliers
Initial
Expenditure
Gross Domestic Product (GDP)
• Represents the total value of production of goods
and services in the economy resulting from the
initial expenditure under analysis
• This is a NET measure, value of goods and services
produced less the cost of inputs used
• Concept is well understood by most government
stakeholders
Gross
Domestic
Product
Total Economic Activity
• industry output measure represents the SUM of all
economic activity that has taken place and
consequently involve double counting on the part
of the intermediate production phase.
• Is the biggest number on the sheet, well
understood by marketers!
Total
Economic
Activity
Who gets what number?
• With the variety of numbers available to describe
the economic activity associated with an event,
here is a rough guide of who gets what:
– Federal / Provincial / Municipal Gov’ts – GDP
– Business partners – Economic Activity
– Sceptics – Initial Expenditure
Warning
• While Total economic activity is the
number most people report, you need to
be careful in presenting it. Someone will
do math like:
– $800,000 / 40 out of town teams = $20,000
per team…
Taxes in STEAM
Taxes in STEAM
• Models such as STEAM use input-output
tables as the basis for evaluation with the
results including tax revenues from three
sources:
– New tax revenues created by the event
– Direct & Indirect taxes supported by event
– Induced taxes from the re-spending of wages &
salaries
Tax Revenues - New
• The STEAM results report new revenues that arise
from:
– User fees in support of the event (e.g. liquor license, building
permits, etc)
– Destination marketing fees (i.e. hotel room tax) arising from
the total room nights sold
– The profit sensitive component of property taxes and other
profit sensitive taxes
Tax Revenues: Direct & Indirect
• For example, a hotel has revenue of $1
M per year
• Our event generates $50 K in revenue
for the hotel (5% of annual total)
• The hotel employs 10 people and pays
$20K in taxes annually
• The event has supported 1/2 job and
$1K in taxes
Tax Revenues: Direct & Indirect
• Sources:
– Hotels
– Restaurants
– Other front line businesses
• Note, this method is not just for municipal
property taxes, but Provincial & Federal as well
(i.e. GST / HST, Payroll taxes, Income Tax, etc.)
Tax Revenues: Induced
• The induced effect measures the re-spending of wages and
salaries earned in the local economy
• Surveys conducted by Statistics Canada reveal the average
percentage of a workers wages and salaries that are spent
on taxes (including property tax, GST/ HST, etc.)
Tax Revenues – Indirect & Induced
• While some argue that ‘supported’ revenues
are not new revenue and are consequently
irrelevant, sports events are very important to
many business in host communities. Examples
are clearly evident
– Restaurants contacting recreation centers to
inquire about upcoming events in order to
manage staffing
Tax Revenues – Indirect & Induced
• Other hotels have
developed their
existing facilities to
support sport tourists
Troubleshooting
Troubleshooting
• Can’t Access STEAM….
– Turn off your pop-up blocker!
• Negative or Unusual Economic Impacts
– On Operations Input screen, ensure revenues are
greater than expenses
• STEAM won’t save / update values when
entering on operations input screen
– Ensure that you fully erase cells
Troubleshooting
• Message – Input Cell is Currently Disabled
– Remove Apostrophe from the name of your
event on General Page
• Other:
Ensure that you are using the correct STEAM Scenario (Workbook) as
well as the correct STEAM model
Refer to the STEAM user’s guide
Contact the CSTA
STEAM 201
research@canadiansporttourism.com