The Bold North Delivers The Economic Impact of Super Bowl LII on Minneapolis & Minnesota Post-Event Full Report Prepared for: Minnesota Super Bowl Host Committee May 2018 Kenneth McGill Jon Gray Rockport Analytics info@rockportanalytics.com +1 (610) 213-2558 Contents • Super Bowl LII: The Bold North Delivers • SBLII Visitation and Incremental Local Spending • How Did SBLII Benefit the Minneapolis & Minnesota Economies? • Super Bowl LII Impact in Perspective • Methodology, Data Sources, Glossary • About Rockport Analytics 2 Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. Super Bowl LII: The Bold North Delivers • Super Bowl LII (February 4th, 2018) brought an estimated $450 million in new spending to Minneapolis and Minnesota. This originated from the local travel spending of 125,000 visitors (not including game tickets) and an estimated $179 million in local game, broadcast, and event hosting expenditures. • SBLII was a seminal event that absorbed much of MSP’s tourism infrastructure during the 10-day Super Bowl period, displacing much of regular visitor commerce typical for that time of year. Displaced tourism activity was estimated at $80.5 million. Even though some of these displaced trips will likely be rescheduled, all were subtracted to arrive at net incremental or new SBLII spending of $370 million. • This incremental spending provided a significant economic boost to MSP Gross Metro Product totaling $400 million. Businesses that directly served visitors or participated in hosting the game & events received $202 million of that benefit. And local supply chain firms saw $90 million more. The rest came from local SBLII workers spending wages earned during the SB. • In fact, SBLII generated more than $273 million in wages, enough to support over 5,490 annual jobs across the metro area. • Minnesota state & local governments also benefited. All the new spending and income generated by SBLII resulted in incremental state & local tax receipts of over $32 million. • SBLII brought many additional benefits that were not part of this calculus. Global media exposure, new interest in MSP and Minnesota for future travel or meetings and events, significant charitable contributions, and general civic pride are all difficult to monetize but bring important, lasting benefits. Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. Super Bowl LII Bottom Line* For the Minneapolis-St. Paul-Bloomington MSA: in millions of $ unless otherwise noted Gross SBLII Local Spending Less value of regular tourism displaced by SBLII SB LI Incremental Contribution $450M ($80M) Equals Net SBLII Local Spending $370M Less goods and services from outside the city ($78M) Plus Economic ripple effect $108M Total Economic Impact Incremental Contribution to MSP GDP $400M Translating into: Jobs Supported (annual basis) Wages Paid State Taxes Paid Local Taxes Paid 5,490 $273M $21M $12M Source: Rockport Analytics 3 Super Bowl LII –February 4, 2018 SBLII Visitation and Incremental Local Spending Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 4 SBLII Brought More than 125,000 Visitors to Minneapolis Composition of SBLII Visitors* to Minneapolis-St. Paul Ticketed Game Visitors 58,800 47% Non-ticketed Visitors 30,310 24% 6,150 5% 26,310 21% 3,350 3% 124,920 100% Team, NFL, Broadcast and Other Operations Staff Non-Local Credentialed Support Staff Non-Local Media Total Non-Local Visitors Source: NFL, SBLII Intercept Survey, Minnesota Super Bowl Host Committee, Rockport Analytics * A visitor is defined as someone who has either stayed overnight (regardless of origin) or traveled a distance of at least 50 miles one way during a day trip. ** Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. • Nearly 125,000 visitors came to the Minneapolis metro area** (MSP) for SBLII over the 10-day period Jan 26th-Feb 5th, of which roughly 58,800 had game tickets • This resulted in over 476,000 visitor-days comprised of 396,000 overnight stays and 80,000 daytrips* • SBLII visitors generated more than 266,000 hotel room nights across MSP with an average daily room rate of $249. SBLII utilized over 84% of all available room nights across the metro area during the 10-day period. Utilization increased to over 98% during the final four days of SBLII. • MSP set a new record with more than 60,000 passengers passing through airport security on their way out of town after SBLII. Meanwhile, local private airports logged more than 1,630 private jets. And Metro Transit recorded more than 210,000 additional rides during the 10-day Super Bowl period. • More than 63,000 room nights were generated by peer-to-peer (e.g. AirBnB) accommodations 5 An Intercept Survey Captured Vital SBLII Visitor Information • 967 completed questionnaires were collected at Super Bowl Live, Super Bowl Experience, the Mall of America, and on game day at U.S. Bank Stadium • Relevant visitor data was collected that included origin zip code, length of stay, travel party size, accommodation type, transportation choice, spending, demographics, and other metrics about their stay • Hotel data (covering revenue, daily rate, and room demand) and travel & entertainment spending among key SBLII hosting/broadcasting organizations supplemented survey results • Thanks to our intrepid interview staff! Key findings include: ✓ 95% of SBLII visitors came from outside of Minnesota, 6% of those from outside the U.S. The other 5% of SBLII visitors originated from inside of Minnesota but either stayed overnight in paid accommodations or traveled more than 50 miles one way on a day trip. ✓ The majority (71%) of SBLII visitors were male, the average age was 47 years old, and nearly half (44%) earned more than $150,000/year ✓ Average length of stay of visitors was 3.9 days ✓ Average spending per person per day reached $608 ✓ For every 2 ticket holders, there was one additional visitor that came to Minneapolis and did not attend the game Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 6 SBLII Visitor Statistics SBLII Visitors by Age Cohort Over Half of Visitors were Between 35 - 54 28% Percentage of Visitors 30% 23% 25% 18% 20% 15% 15% 10% 10% 6% 5% 0% Under 25 25 - 34 35 - 44 45 – 54 55 - 64 65+ SBLII Visitors by Income Cohort 70% of Visitors have HH Incomes > $100K Percentage of Visitors 35% 31% 30% Primary Mode of Transportation Among Visitors to MSP Nearly Three-Quarters Came by Air Bus, 2% Train, 2% Rental Vehicle, 2% 26% 25% 20% 15% 15% Taxi or car share, 2% 8% 10% 5% 13% 3% 1% 4% 0% Less than $25,000 $35,000 $50,000 $75,000 $100,000 $150,000 $200,000 $25,000 to to to to to to or more $34,999 $49,999 $74,999 $99,999 $149,999 $199,999 Source: Rockport Analytics, SBLII intercept surveys, February 2018 Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. Airplane, 73% Personal automobile, 18% Source: Rockport Analytics, SBLII intercept surveys, February 2018 7 Super Bowl LII Demand Drove Record Lodging Performance in the MSP Metro Super Bowl LII Hotel & Motel Performance SBLII (2/1-2/4) Average Daily Room Demand 5-Yr Avg % for Same Difference Difference Period 38,700 21,240 +17,460 82% Average Daily Rate $330 $100 +$230 +230% Average Occupancy Rate 88% 53% +35% +66% Primary Accommodations Among Overnight Super Bowl Visitors RV park or campground , 1% Hotel or Motel, 64% Source: Smith Travel Research (STR), Rockport Analytics Staying with friends or relatives, 16% Super Bowl LII Airbnb Performance SBLII Typical % MSP Difference Difference February Average Daily Room Demand 4,900 592 4,308 728% Average Daily Rate $364 $92 $272 296% Average Occupancy Rate 70% 55% 15% 27% Source: AirDNA, Rockport Analytics Other, 1% Peer-to-peer rental (e g , Airbnb, VRBO, etc ), 13% Day trip, 4% Source: Rockport Analytics, SBLII intercept surveys, February 2018 • Nearly two-thirds of overnight visitors stayed in hotels or motels for SBLII; Peer-to-peer rentals, like Airbnb, payed an important role in fulfilling room demand for SBLII with 13% of visitors staying at this type of property. This is up significantly from only 5% peer-to-peer lodging incidence at SBLI. • Average daily rates were up 230% on hotel rooms and nearly 300% on Airbnb properties from normal February levels while occupancy rates rose 35 points on hotel properties and 15 points on Airbnb properties Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 8 Eagles vs. Patriots: Pennsylvania, Massachusetts, NJ and NY Drove Visitation to Super Bowl LII Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 9 Super Bowl-Initiated Gross Spending Eclipsed the $450 Million Mark Super Bowl LII Brought Substantial Spending to MSP in millions of $ Category PreEvent Estimate (April 2016) Game Attendee/Visitor* Game, Broadcast, Event Operations and Promotion PostEvent Actual Difference $284.8 $271.0 ($13.8) $ 121.8 $179.4 $57.6 *Total Excludes the value SBLIISpending ticket purchases, assumed to immediately$450.4 leave MSP & MN Gross SBof LII $ 406.6 ** Meet Minneapolis, D.K. Shifflet 2014 adjusted for inflation Gross Non-Resident Visitor Spending Air (portion assigned to MSP) Retail & Shopping Accommodations Food & Beverage Rental Car Entertainment* Other Ground Transportation Other –e.g. travel arrangement, laundry, other personal services Total Visitor Spending Super Bowl LII Spending (in millions) $10.1 $28.5 $81.6 $61.3 $19.1 $34.5 $23.7 $43.8 % of Total • SBLII brought 125,000 non-resident visitors to MSP who spent over $271 million on hotels, food, transportation, shopping, and entertainment. • SBLII visitors spent an average of $608 per day in MSP. Typical tourism spending averages about $124/day** • Local hosting expenditures outpaced previous SBs as the NFL, broadcast networks, and other hosting partners spent significantly more at SBLII. More than $179 million was spent locally. • Accommodations includes hotels (@$66 million) and peer-to-peer rentals (@$15 million). • Resident spending, although significant, was not included in the spending or economic impact figures. 4% 11% 30% 23% 7% 13% 9% $12.3 5% $271.0 100% Source: Smith Travel Research, AIrDNA, NFL, NBC, ESPN, Rockport Analytics Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 10 Super Bowl LII –February 4, 2018 How Did SBLII Benefit the Minneapolis & Minnesota Economies? Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 11 From Gross Spending to the Incremental Economic Contribution of SBLII What was Spent Locally by All Participants Gross SBII Spending $450 million • All local game attendee/visitor, event operations, and game, broadcast, and promotions spending • Subtracts any MSP resident spending or hosting expenses that went to vendors outside of Minnesota Less Displaced MSP Tourism ($80 million) • Average 2012-2017 MSP tourism spending for same 7-day period, 82% of which was displaced by SBLII • Source: Meet Minneapolis, D.K. Shifflet, STR, Rockport Analytics based on 5-yr averages for Jan 26th-Feb 5th Equals Net Incremental SBLII Spending • Net new spending brought to MSP by SBLII $370 million Less Goods & Services from outside of GH ($78M) plus Economic Ripple Effect +$108M What Stayed Behind to Contribute to the MSP/MN Economy Net SBLIIInitiated Contribution to MSP/MN GDP $400 million For every $1 spent at SBLII, the MSP/MN economy retained $0.88 Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 12 Even After Netting Out Displaced Tourism SBLII’S Contribution Remains Impressive SBLII Bottom Line for MSP & MN For the Minneapolis-St. Paul MSA: in millions of $ unless otherwise noted Gross Contribution Displaced Tourism Offset Net* Incremental Contribution Total Spending $450.4 ($80.5) $369.9 Total Economic Impact: Contribution to GDP Direct Impact Indirect Impact Induced Impact Jobs Supported (annualized) Contribution to Area Payrolls $477.4 $243.1 $106.8 $127.5 6,760 $323.8 ($77.4) ($40.9) ($16.6) ($20.0) (1,270) ($50.8) $400.0 $202.2 $90.2 $107.6 5,490 $273.0 $116.3 $70.6 $27.4 $16.1 ($22.5) ($11.4) ($6.6) ($4.5) $93.8 $59.2 $20.8 $11.6 Total Tax Receipts Federal State Local Displaced tourism is projected using Meet Minneapolis/D.K. Shifflet/STR estimates of annual visitor spending adjusted for typical SB week tourism across MSP. 82% of regular tourism was assumed to have been displaced by SBLII, based upon daily hotel occupancy differences and SBLII ADT rate compression. Includes both full and part-time workers expressed in annual terms Total estimated gross state & local taxes include all tax types comprising transaction (e.g. sales, hotel, entertainment, etc.), income, and property. * After removing displaced tourism typical for 10-day period in Late Jan/early Feb Source: Rockport Analytics, MSBHC, Smith Travel Research, AirDNA, Meet Minneapolis, NFL, NBC, ESPN, IMPLAN Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 13 SBLII Brought Significant Net Fiscal Benefits to MSP & Minnesota Minneapolis-St Paul-Bloomington Super Bowl LII Tax Overview in thousands of dollars Gross Contribution Displaced Tourism Net Contribution Federal Taxes $70,609 ($11,373) $59,236 State Taxes $27,430 ($6,620) $20,810 $17,118 $2,217 $8,095 ($3,769) ($591) ($2,260) $13,349 $1,626 $5,836 $16,128 ($4,499) $11,629 $1,044 $338 $1,122 $168 $116 $413 ($259) ($229) ($202) ($48) ($68) ($160) $785 $109 $920 $120 $48 $253 All Other Local Taxes $12,927 ($3,533) $9,394 Total SBLII-Initiated Taxes $114,166 ($22,492) $91,675 $43,558 ($11,119) $32,439 Sales Rental Car All Other State Taxes Local Taxes Lodging Entertainment Restaurant + Liquor Hennepin County Sales Minneapolis Sales Hennepin Transit Sales & Use Addendum: SBLII-Initiated State & Local Taxes Transaction taxes are estimated using spending by category and appropriate tax rates less any exemptions (i.e. sales tax on grocery store food purchases). Note: sales tax on game tickets has been excluded. State & Local tax totals also include other tax types such as corporate income (state) and property (local). These are derived by the IMPLAN economic model of MSP A prorated portion of residential & commercial property taxes are included based upon SBLII wages (residential) and revenue (commercial). Property taxes are estimated within the IMPLAN model. Normal tourism-initiated taxes for a typical 10-day period in late January-early February. These receipts are assumed to have been displaced by Super Bowl LII. Source: Rockport Analytics, IMPLAN, City of Minneapolis, Minnesota Department of Revenue Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 14 SBLII-Initiated Gross State & Local Taxes by Source Super Bowl LII Gross Local* Tax Receipts by Source Super Bowl LII Minnesota State Gross Tax Receipts Total = $16.1 million Total = $27.4 million Corporate Income 4% Personal Income 18% Hennepin County Transit Sales & Use 3% Social Insurance Taxes 1% Other Business Taxes 3% Sales Taxes 62% Other Licenses, Hotel Tax 6% Food, Beverage Fines & Fees 1% & Liquor 7% Entertainment Taxes 2% Minneapolis Sales Tax 1% Hennepin County Sales Tax Excise & Fees 1% 4% Property Taxes 79% Rental Car Excise 8% * Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area Source: Rockport Analytics, IMPLAN, Minnesota Department of Revenue Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 15 How Did Local MSP/MN Industries & Businesses Benefit? Net SBLII-Initiated Value-Added (GDP) Direct Visitor by Sector & Game (in thousands of current $) Operations Indirect (Supply Chain) Induced (Income) Total $202,191.1 $90,208.4 $107,552.0 $399,951.5 $0.0 $95.1 $211.3 $306.3 21 Mining $0.0 $577.7 $374.0 $951.7 22 Utilities $686.4 $3,547.6 $1,888.1 $6,122.1 $8.3 $2,780.0 $1,010.8 $3,799.1 $2,845.3 $4,012.5 $2,843.2 $9,701.1 $603.4 $4,019.1 $6,150.2 $10,772.6 $2,805.4 $2,496.1 $9,334.2 $14,635.7 48-49 Transpo & Warehousing $12,675.2 $2,272.0 $2,255.3 $17,202.5 51 Information $15,437.8 $7,275.6 $4,391.5 $27,104.8 52 Finance & Insurance $0.0 $7,802.6 $10,598.3 $18,400.9 53 Real estate & Rental $10,169.0 $16,008.1 $25,757.9 $51,935.0 54 Professional- Services $13,200.3 $15,651.5 $5,590.0 $34,441.8 55 Management of Companies $20,170.4 $4,218.7 $1,581.1 $25,970.2 56 Administrative Services $23,890.1 $8,819.8 $3,131.7 $35,841.7 $0.0 $165.3 $2,147.6 $2,312.9 $32.4 $5.8 $16,951.2 $16,989.4 71 Arts, Entertainment & Recreation $20,310.8 $3,721.6 $1,846.5 $25,878.9 72 Accommodation & Food Services $65,087.8 $1,973.0 $5,698.9 $72,759.8 81 Personal Services $4,649.5 $3,560.0 $5,314.1 $13,523.5 92 Government $9,619.0 $1,206.4 $476.2 $11,301.6 Total Net GDP Contribution 11 Ag, Forestry, Fish & Hunting 23 Construction 31-33 Manufacturing 42 Wholesale Trade 44-45 Retail Trade 61 Educational Services 62 Health & Social Services Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. Value-Added essentially describes net SBLII-initiated revenue that was retained in MSP The Direct amount (2nd column) accrued to businesses that either served visitors or participated in hosting SBLII Indirect (3rd column) describes revenue that accrued to MSP supply chain businesses The Induced (4th column) measures revenue that accrued to businesses across MSP from the spending of wages paid to SBLII workers 16 SBLII Exposed Minneapolis to Visitors & Football Fans From Around the World While the focus of this study is on the short term economic impact hosting the game will have on the MSP metro, there is an obvious longer-term benefit to showcasing Minneapolis to the world… • SBLII was viewed by 103.4 million fans from around the world* • The trip to Minneapolis for the Super Bowl was the first visit to the city for two-thirds of Super Bowl visitors • 83% of first-time SBLII visitors plan to return to Minneapolis in the future. Meanwhile, 93% of all Super Bowl visitors plan to return. • No, 34% Yes, 66% Source: Rockport Analytics, SBLII intercept surveys, February 2018 Meet Minneapolis reports that meeting/convention leads are up 30% since SBLII was announced. Booked room nights are 11% higher. Leads were up 10% YoY in the first 4 months of 2018 alone. * The Nielsen Company Was this your first visit to the Minneapolis-St Paul area? Do you plan to return to the MSP area in the future? 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 43% 42% 8% Yes, for pleasure Yes, for business 6% Yes, for both No, I would not return Source: Rockport Analytics, SBLII intercept surveys, February 2018 Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 17 Super Bowl LII –February 4, 2018 Super Bowl LII Impact in Perspective Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 18 SBLII Economic Impact in Perspective How Did SBLII Benefit MSP & Minnesota? By Promoting Minnesota Jobs SBLII supported the equivalent of 5,490 new annual jobs in MSP paying an average wage equivalent of $50,000 per year By Building MSP Tourism SBLII’s $271 million in visitor spending will boost annual MSP tourism by an estimated 3.5% in 2018 -all during a 10-day period during the low season! Moreover, many visitors and meeting planners impressed with MSP & Minnesota will return to build future tourism -more than 83% of first-time SBLII visitors indicated that they planned to visit again. Meeting/Convention leads and booked room nights are also up more 30% since the SB was announced, by 10% in the first months of this year alone. New interest was also fueled by 8.8 million Twitter impressions, 5.4 million Facebook impressions, 3 million pageviews on MNsuperbowl.com, and 103 million broadcast viewers of Super Bowl LII. By Helping to Relieve the Tax Burden of Minnesota Households SBLII generated about $15 per MN household in state & local tax receipts. Since no resident spending was included in the economic impact analysis, these tax receipts are net new to state and municipal government budgets. By Capturing and Retaining Local Expenditures Made on Behalf of SBLII For every $1 spent at SBLII, the MSP economy retained about 88 cents; 68 cents of that retained benefit went towards paying MN workers a total of $273 million in wages and salaries. And 8 cents of each SBLII dollar went towards the payment of state & local taxes. By Fueling Charitable Giving Benefiting Kids Statewide, with Benefits Long After Gameday The Minnesota Super Bowl Host Committee’s Legacy Fund provided grants to organizations statewide promoting the health and wellness of Minnesota kids, with a total impact of more than $5.5 million across the state. Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 19 At $477M, SBLII Gross Impact Among Highest Since 1988 IN MILLIONS OF $ OF TOTAL ECONOMIC IMPACT (GDP) $750 Super Bowl Gross* Economic Impact Estimates 1989-2018 Why the Broad Range? • The Super Bowl has grown significantly as a megaevent. More/bigger ancillary events, longer durations, more out-of-town staff, more visitors… • Different authors, methodologies, data integrity -some more conservative than others • Estimates vs. Hard Data: Cooperation from NFL, NBC, ESPN, corporate sponsors, state and local government? • Time: inflation naturally lifts the value of all spending • Relative Cost of Living -MSP’s cost of living is higher than many other host cities (e.g. Detroit, Indianapolis, Houston) • MSP previously hosted Super Bowl XXVII in 1992–impact estimated @ $176 million ($364 million in today’s dollars) Phoenix $650 New York $550 Minnesota New Orleans SBLII Miami $450 Miami Miami New Orleans Tempe San Diego San Diego New Orleans Houston SBLI Phoenix $350 Miami Atlanta Miami Pasadena New Tampa Year Houston Indianapolis 2010 $250 2011 San Francisco Dallas Jacksonville 2012 Tampa 2013 Atlanta Minneapolis 2014 $150 1988 1993 1998 2003 2008 2013 2018 2015 2016 * before subtracting estimates of displaced tourism Source: University of New Orleans, Coates and Humphreys, UCLA/LA Sports Council, Price waterhouse Coopers, 2017 Depken and Wilson, Rishe, Greater Miami Convention and Visitors Bureau, San Diego Citizen’s Task Force, Rockport Analytics 2018 Detroit Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. Super Bowl Host City XLIV XLV XLVI XLVII XLVIII XLIX 50 LI LII Miami Dallas Indianapolis New Orleans New York Phoenix San Francisco Houston Minnesota* Gross Economic Impact (in millions $) $ $ $ $ $ $ $ $ $ 333 200 324 480 600 719 260 426 477 20 Methodology and Data Sources Task Methodology/Approach Data Sources Estimate SB-initiated Visitor Spending An intercept survey was fielded at a number of locations including (1) throughout the skyways around Super Bowl Live, (2) the NFL Experience at the Minneapolis Convention Center, and (3) US Bank Stadium. A total of 967 completed interviews were collected covering topics such as visitor origin, travel party size, length of stay, spending across an array of categories, and typical demographics. The survey was supplemented by actual hotel data during the 10-day period from STR. Finally, actual travel & entertainment data was collected from most of the major operational, broadcast, and event hosting organizations. • • • • • Intercept survey –Rockport Analytics Smith Travel Research (STR) NFL, ESPN, NBC Minnesota SB Host Committee Various Corporate Sponsors Estimate SB-initiated MSP Game, Broadcast & Event Operations Spending Actual and/or estimated operations, broadcast, and event spending was collected directly from SBLII’s major hosting organizations. Care was taken to eliminate any double counting, as well as material, service, and supply purchases made with vendors outside of Minnesota. In addition, an online survey of corporate event sponsors was used to estimate local ancillary event hosting expenditures. • • • • • Minnesota Super Bowl Host Committee NFL, NBC, ESPN, Mall of America Corporate event planners City of Minneapolis Metropolitan Airports Commission, MTA Translate spending into economic impact on Minneapolis & Minnesota Spending streams for visitors and operations by detailed category were entered into the latest (2016) IMPLAN economic model of the MSP metropolitan statistical area. Contributions to GDP, jobs, wages, and taxes are estimated by the model. • IMPLAN (www.implan.com) Calculate Minnesota & local Minneapolis-St. Paul-Bloomington taxes Taxes directly applicable to visitor & operational transactions are calculated using the categorical spending totals described above against appropriate current tax rates less any exemptions (e.g. sales tax on groceries, clothing) • • Minnesota Department of Revenue City of Minneapolis, Hennepin County Estimate displaced tourism & calculate net SB LII impact SBLII was assumed to have displaced most of regular tourism during Jan 26Feb 5th period. Displaced tourism’s impact was estimated and subtracted from the gross SBLII impact calculations to arrive at a net contribution. Displaced tourism was estimated by using the 2012-2017 average of tourism spending in MSP using seasonal tourism spending and daily hotel performance. • • • Meet Minneapolis, D.K. Shifflet STR daily hotel activity during Jan 26-Feb 5 IMPLAN model of MSP Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 21 Glossary • Visitor -someone who has either stayed overnight (regardless of origin) or traveled a distance of at least 50 miles one way during a day trip • Gross Impact –economic impact of all SBLII-initiated gross spending in MSP/ Minnesota • Net Impact –the gross economic impact less the value of regular MSP leisure and business tourism displaced by SBLII • Direct Impact –benefit that accrues to those MSP businesses that directly serve SBLII game attendees, visitors, and out-of-town staff; plus businesses directly involved with hosting operations, broadcast, and ancillary events. • Indirect Impact –benefit to the many local upstream firms that populate the supply chain of SBLII direct businesses • Induced Impact –both direct and supply chain businesses pay wages to their workers. Much of these local wages will be spent in MSP throughout the year at business that provide a broad range of consumer goods and services. Sometimes referred to as the “ripple effect”. • Leakages –that portion of gross spending that leaves the MSP/MN economy: (1) as profits to non-MSP headquartered businesses, (2) because of unavailable or insufficient local supply, (3) non-local vendor choice, and/or (4) from reduced downstream spending caused by savings, debt reduction, or excess inventories. • Displaced Tourism –the level of regular leisure and business travel & tourism that is displaced by a mega-event. This is subtracted from gross spending surrounding the event to arrive at net incremental expenditures. Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. 22 About Rockport Analytics Rockport Analytics is a research and analytical consulting firm providing high quality quantitative and qualitative research solutions to business, government, and nonprofit organization clients across the globe. We provide fast, nimble service in a completely transparent environment. Capabilities include: • Market Analysis and Forecasting • Economic Impact Assessment, Tourism Satellite Accounting, and Economic Development • Market Modeling and Decision Support Tools • Project Feasibility Assessment • Primary and Secondary Research Synthesis • Stakeholder Surveys – internal & external Recent client examples include: Greater Houston Super Bowl Host Committee, the Orange Bowl Committee, U.S. Travel Association, Global Business Travel Association, MPI, Indianapolis Super Bowl Host Committee, Delaware Tourism Office, Indiana Office of Tourism Development, Boeing, Visa, American Express, Carlson Wagonlit, IHG, Annapolis CVB… Copyright © 2018 Rockport Analytics, LLC. All Rights Reserved. Rockport Analytics LLC West Chester, PA Annapolis, MD web: rockportanalytics.com email: info@rockportanalytics.oom phone: (866) 481-9877 23