The DMAI Event Impact Calculator & Sports Module

The DMAI Event Impact Calculator & Sports Module
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
    erosquist@destinationmarketing.org.

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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