The DMAI Event Impact Calculator & Sports Module
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The DMAI Event Impact Calculator & Sports Module How much are events worth to your destination? DMOs are acutely aware of the need to quantify the economic benefits generated by their marketing and sales efforts. Indeed, the case for destina- tion marketing can hinge on an appreciation of the economic value of meetings, conventions, trade shows, and sporting events. The DMAI Event Impact Calculator & Sports Module measure the economic value of an event and calculate its return on investment to local taxes. Armed with this information, DMOs are better prepared to make the case to policy- makers for the ongoing development and growth of the events sector. The models and platform have been developed by Tourism Economics, an Oxford Economics Company, with extensive experience providing this solution to individual DMOs. DMAI is making the online Event Impact Calculator and Sports Module broadly available at a significantly reduced fee through a grant from the Destination & Travel Foundation. “The Event Impact Caluclator and Sports Module are the solution to the perennial DMO challenge of measuring the The DMAI Event Impact Calculator & Sports Module, updated annually, importance of meetings and events. The fact that the results are provide an industry-wide standard with three important distinctions: localized to each city and the tool allows for dynamic online They’re Flexible annual analysis is invaluable.” Users can run scenarios depending on the type of event, year, attendance and financial agreements. Michael D. Gehrisch PRESIDENT & CEO of DMAI They’re Localized The analysis is based on city-specific data. They’re Comprehensive Direct and indirect impacts are measured for business.
Two Credible and Sustainable Tools ORDER FORM & LICENSE AGREEMENT Each event impact analysis is defined by basic parameters including the size, duration, and type of event as entered by the DMO. Through DMAI, the Event Impact Calculator and Sports Module are available to member DMOs at a fraction of the development cost. License However, in order for the analysis to be both credible and sustainable, the fees will go toward the ongoing support and annual maintenance of the calculator incorporates ten complementary data sources that are updated system, and use of the platform is limited to DMOs only. annually to provide destinations with the most current results. These sources include industry-wide studies, DMO-provided data, and government data DMO BUDGET ANNUAL LICENSE FEE into the calculator’s underlying model. Event Impact Sports Module Only Event Impact Calculator Only Calculator + Sports Module For a complete list of all data sources, please consult the Event Impact $3,000,000 and Less $2,500 $2,000 $3,250 Calculator FAQ. $3,000,001 to $6,000,000 $3,500 $2,500 $4,500 $6,000,001 to $10,000,000 $5,000 $3,000 $6,500 Greater than $10,000,000 $6,500 $3,500 $8,500 Electronically Integrated Solutions To promote ease of use, an application programming interface (API) is DMO NAME currently available for the Event Impact Calculator and Sports Module to enable CRM solutions, at their discretion, to electronically exchange the user MAIN CONTACT inputs into the calculator and download the calculator’s outputs into their CRM. PHONE On-going Support and Industry Feedback E-MAIL DMAI and Tourism Economics understand that the successful adoption of a new industry standard requires the buy in of DMOs, as well as their local CALCULATOR TYPE stakeholders and industry partners. I have an existing subscription to Event Impact Calculator Only the calculator. We stand behind the data and analysis of the Event Impact Calculator and Sports Module Only Yes Sports Module, and engage two task forces of DMOs that are dedicated not Event Impact Calculator + Sports Module No only to surfacing relevant concerns and concerns to address, but also to communicating industry best practices. BUDGET SIZE SIGNATURE FOR QUESTIONS FOR DEMONSTRATIONS Christine “Shimo” Shimasaki Visit DestinationMarketing.org To place your order, please submit this form with your destination Shimo@DestinationMarketing.org for a recorded demonstration. taxes and assessments to DMAI via fax +1.202.296.7889 or e-mail +1.202.835.4094 EventImpact@DestinationMarketing.org.
FREQUENTLY ASKED QUESTIONS DMAI’s Event Impact Calculator What are the key differences with DMAI’s Event Impact Calculator, versus the ExPact calculator? DMAI’s Event Impact Calculator ExPact Calculator Data Sources Ten different sources combining multiple surveys Single survey and government statistics Geographic Focus Individual destinations National and regional Quantified Output Direct and indirect spending, jobs, wages, tax Direct spending impacts Platform Dynamic system for testing different event parameters, report creation and saving of events Event Types Analyses of business meetings, conferences, and Analyses of conferences trade shows and trade shows What are the Event Impact Calculator’s main benefits to my DMO? The calculator provides a foundational set of information to make the case for DMO funding using metrics which matter most to city government—jobs and taxes. And it provides a comprehensive assessment of the broad economic benefits of events. It can also be used to evaluate concessions and other incentives for particular events in comparison to their benefits. Events can also be compared to one another in order to identify the highest yielding opportunities. Finally, as a resource which will be used industry-wide and will be supported by Tourism Economics, the results will garner added credibility. How does the calculator work? Each DMO is assigned a unique username and password which provides access to the model for their city. Creating an event impact is very simple. All the DMO needs is a limited number of event characteristics including event type, date of event, room rates and attendance. These are the only required fields needed to create an event impact. Users may also add in information on the total contracted room block, any hosting costs and organizer spending values if known. The calculator then creates a report which summarizes the economic impact of the event and its return on investment based on DMO inputs that drive a model built from eight different data sources. Events can be saved and recalled from within the system and reports can be exported to MS Excel or PDF. An application program interface (API) will be available to the CRM vendors, which will allow for the electronic exchange of inputs and outputs. Explain how the calculator is localized to my destination? The models are based on destination-level data which measure the differences in per diem costs by city. These city-specific data on costs by sector from the U.S. Bureau of Labor Statistics define the cost differences of a restaurant meal in say, Los Angeles versus Saratoga. In addition, hotel rates, tax rates, and impact multipliers are unique for each city. Further, Longwoods International delegate spending data provide differences across destination types.
What are the specific data inputs that can be entered by my DMO? Users must enter event parameters on the size, duration, date, and type of event. Optional entries include costs and contract values associated with the event. What if my DMO doesn’t have all the data to input into the calculator? If information is not available for optional entries, the calculator uses industry averages which are scaled to specific city costs of doing business for an event of the stipulated size and type. Explain how the calculator evaluates return on investment? Return on investment is calculated as the net present value of local tax receipts net of any costs. Costs may include discounts, incentives, and in-kind provision of services. What are the key sources of data used by the calculator to produce reliable results? There are eight data sources used in the calculator: 1. Oxford Economics’ 2010 survey of meeting planners responsible for 290 exhibitions representing 1 million attendees and 350,000 exhibitors. 2. Longwoods International’s ongoing survey of U.S. household travel behavior in 100 cities with an exclusive focus on meeting, convention, and trade show spending. 3. Convention Industry Council’s study on the Economic Significance of the Meetings Industry providing national statistics. 4. City-specific data on costs by sector, including the restaurant, retail, recreation, transportation, and lodging industries from the U.S. Bureau of Labor Statistics. 5. City-specific sales, wage, and employment impact models. 6. City-specific tax rates. 7. DMAI’s empowerMINT historical database provides metrics on the number of delegates and room nights. 8. Convention center data provided by SMG. 9. Compilation of event characteristics from over 150 local sporting event studies. 10. Input from the end user including any available information. How does the calculator get updated on an annual basis? Tourism Economics will refresh the database with the latest information from all data sources, which will be automatically available to users and is included in the annual subscription. Will I have to manually input the data into the calculator? Manual input is one option. However, the calculator will take advantage of the empowerMINT API, which interfaces with several CRM solutions. This interface will allow for the electronic exchange of the inputs and outputs of the calculations and the ability to recalculate the economic impact values in the CRM system as lead data changes. Though CRM vendors will have access to API upgrades in September, each CRM vendor’s deployment timeline to individual DMOs will vary.
How do we explain any variances from previous calculations of direct delegate expenditures or economic impact? The methodology of previous calculations most likely will differ from the new DMAI Event Impact Calculator. We must recognize and educate our stakeholders that previous work has been impacted greatly by the major shifts in the U.S. economy. With the opportunity to leverage the Convention Industry Council’s Meeting Significance Study findings completed in December 2010, the timing was right for DMAI to embrace a new industry standard for determining the value of an event. Developed by the Oxford Economics, DMAI's Event Impact Calculator represents a significant step forward in terms of the comprehensiveness and credibility of analysis. Will my DMO be able to use the Event Impact Calculator for festivals and sporting events? The initial version of the Event Impact Calculator will focus on business meetings, convention, and trade shows. The Sports Module is in beta testing with a task force of over 25 DMOs and will be released shortly after we incorporate their suggested changes. We plan on augmenting the calculator in the near future with analysis of festivals. How does the calculator consider the impact of international delegates? International delegate and exhibitor spending is included as part of the overall spending calculations. In this initial version of the calculator, per diem spending is considered to be the same as other overnight guests. Will the calculator apply to Canadian, Mexico and other international destinations? This initial version of the calculator has been designed for U.S. destinations. However, it can be adapted for international destinations based on interest. Can the calculator be used to report on the impact to the surrounding regions of my destination? The impacts are based on metropolitan statistical areas (MSA) as defined by the Bureau of Economic Analysis. This will capture the economic linkages within the region. Airport-related impacts can be included or excluded. Spending levels are based on data from the DMO-defined coverage area. This can be as small as a city or place (as defined by the Census Bureau) or as large as a group of counties or even at a state level. Impacts are based on RIMS multipliers from the Bureau of Economic Analysis. The smallest geographic area available for impacts is at a county level. How can I arrange for a demonstration of the Event Impact Calculator? A recorded demonstration is available on DMAI’s website: http://www.destinationmarketing.org. To set up a live demonstration with DMAI or Tourism Economics, please contact Elaine Rosquist at email@example.com. How much does the calculator cost my DMO? Through DMAI, this tool is now available to DMOs at a fraction of the development cost. License fees will go toward the ongoing support and maintenance of the system. DMAI members may subscribe on an annual basis for a fee of $2,500-$6,500 for the meetings and conventions calculator depending on DMO budget category. The Sports Module is available for a fee of $2,000-$3,500. A bundled package is available as well. For a full pricing schedule, please visit DMAI’s website: http://www.destinationmarketing.org. How can I place an order for the calculator? DMAI is now accepting orders for delivery of the Event Impact Calculator and Sports Module. An order form is available at the website: http://www.destinationmarketing.org.
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