Sport Management Research Institute (SMRI) April 2007 1 2007 SBXLI Market & Economic Impact Analysis Executive Summary .................................. pp.3-12 Secondary Research Findings........................pp. 13-21 Discussion of Key Findings............................pp. 22-39 Recommended Data Activation Strategies....... pp. 40-45 Appendix "A" Visitor Geographic Markets........pp. 46-48 Methodological Limiting Conditions For the purposes of this report, the following standard SMRI research limitations are assumed during the data collection, data analysis and report generation phases of the research for Super Bow XLI Game and Auxiliary Events: o the reliability and validity of information provided to the Sport Management Research Institute (SMRI) by individuals, groups and organizations contacted throughout the preparation of the report; o the reliability and validity of secondary research information and reporting systems made available to SMRI during the preparation of this report; o county-by-county variations in tax structure and rates; o input-output economic modeling theory of which economic impact models (IMPLAN for the purposes of this report) are derived, does not attempt to monitor the cost analysis of an event, instead the economic benefits from staging Super Bowl XLI were assessed in this research investigation. Sport Management Research Institute (SMRI) April 2007 2 2007 SBXLI Market & Economic Impact Analysis Super Bowl XLI, played on February 4th, 2007, was the fourth Super Bowl staged at Dolphin Stadium and the ninth Super Bowl Game held in South Florida. The official kick-off of the Game was 6:27 p.m. Eastern Standard Time. 74,512 people were in attendance as the AFC Champion Indianapolis Colts defeated the NFC Champion Chicago Bears, 29-17. In addition to the SBXLI Game attendees, this year's Super Bowl was host to the following sub-groups (categorically described): ? 41,501 Out-of-Town Visitors Attending Non-Game Events; ? 436,850 Total Non-Game Event Attendees; ? 1,618 Out-of-Town Visiting Auxiliary Event Staff/Participants; ? 2,394 Out-of-Town Visiting Participating Team Personnel (Colts and Bears immediate family, friends, franchise management, business associates); ? 2,480 Out-of-Town Visiting National/International Media. The current investigation focused on the following economic impact research directives: Chart 1 1. 2. 3. 4. 5. 6. 7. 8. direct dollars spent due to the event and events leading up to the Super Bowl XLI Game Weekend, by non-local (from outside the Tri-County area) consumers in the market (hotel, concessions/restaurants, local transportation, entertainment, merchandise, other miscellaneous retail) o Event(s) spectators/visitor profiles o Sub-Contractors/NFL Teams/Owners/NFL officials, media, and ALL others associated with the event itself o Corporate sponsors and invited guests re-spending as a result of the direct expenditures (multiplier effect: business stimulation from introduction of new economic injection into the designated community...i.e. MiamiDade, Broward and Palm Beach Counties (separate AND combined economic impacts investigated, along with Monroe County subsidiary impacts examined) Demographic and economic profiles of non-local event attendees/consumers o how many attend o how much they spend o where are they spending their money o on what do they spend while in attendance o where do they come from o basic demographics (with a segmented approach to the Hispanic Market) Economic impact spreadsheet showing how much event driven money is injected into the local economy (revenue of sport related entities: hotels, restaurants, transportation, and entertainment) Local corporate spending patterns as a direct result of event-related activities Precise types of local businesses affected by event driven spending Precise number of jobs in all local businesses affected by event driven spending added value of local, regional, national, and international media exposure to the Tri-County region. Sport Management Research Institute (SMRI) April 2007 3 2007 SBXLI Market & Economic Impact Analysis To accomplish these objectives the research investigation was comprised of two (2) specific research phases: primary (onsite) data collection and secondary research efforts. Primary research investigated consumer profiles of SBXLI Game and auxiliary event attendees, and media in attendance. The data collection protocol called for the SMRI field researcher team to randomly conduct survey execution of visitors and non-visiting event attendees and media. Those spectators and media visiting from outside the South Florida Metropolitan vicinity specifically for Super Bowl XLI and related events were asked to complete the economic impact expenditure, consumer profile and community impact survey instrument. Non-visiting or local residents were surveyed for event attendance, consumer profile and market analysis data. A separate Hispanic market survey was made available to local residents who expressed a preference for a translated version of the survey instrument. Finally, a local business survey was distributed online two weeks following the staging of SBXLI to all local business owners/operators who were listed with the Greater Miami Convention and Visitors Bureau, Greater Ft. Lauderdale Convention and Visitors Bureau and/or currently registered with a Tri-County economic development agency. Of the sample size of visitors, local residents and media originally tapped for inclusion in the study (N=3000), a total sample size of qualified (usable) instruments (N=433 Visiting Media; N=743 local residents; N=1721 out-of-town visitors surveyed) was extrapolated yielding a final sample size of (N=2897). The SMRI research team was comprised of twenty two research assistant personnel that were specifically trained and experienced in economic impact data collection protocols. The SMRI research team executed data collection at the following SBXLI Game Day/SBXLI auxiliary events and South Florida tourism industry sites: SBXLI Game Day, Motorola Mile, Super Saturday in the Sand, A Taste of the NFL, Nations in Rhythm, Super Saturday Blast on Biscayne, VolleyPalooza, West Palm Beach International Airport, Hollywood-Ft. Lauderdale International Airport, Miami International Airport, Boca Raton Executive Airport, Ft. Lauderdale Executive Airport, Trump Sonesta Hotel, Miami Airport Hilton, Seminole Sport Management Research Institute (SMRI) April 2007 4 2007 SBXLI Market & Economic Impact Analysis Hard Rock Hotel, Breakers Hotel, Boca Raton Resort and Intercontinental Hotel in Miami. Secondary research was collected from several source points, including but not limited to the following: ? Economic Impact Studies conducted at prior Super Bowls (Detroit, Jacksonville, Miami, San Diego, New Orleans); ? Expenditures from NFC/AFC Teams derived from economic impact worksheets completed post-SBXLI; ? Expenditures from Corporate Sponsors extrapolated from economic impact worksheets completed post-Event; ? Hotel occupancy and average daily rates for Super Bowl week (January 30 through February 5th 2007), provided from Smith Travel Research and the respective Convention and Visitor Bureau's for Palm Beach County, Broward County, and Miami-Dade County; ? Florida Turnpike and the Florida Department of Transportation auditing toll booth operations and revenue collection centers, ? Tri-County Local Business survey targeting Tourism related businesses post SBXLI Game Events for expenditure patterns leading up to and during SBXLI Game Day Execution (N=521); ? Local Resident General South Florida population (voting age filter) online survey, monitoring local resident perceptual data regarding the staging and execution of SBXLI Game/Auxiliary Events and subsequent impact on quality of life issues (N=2241); ? Sub-contractors involved with SBXLI Game and auxiliary event execution, NFC and AFC Team Personnel, NFL Event Management Staff, Security Personnel involved in SBXLI Game Day and auxiliary event execution; ? Media Audit of broadcast, print, internet media product and the associated media added value associated with said reporting systems. Sport Management Research Institute (SMRI) April 2007 5 2007 SBXLI Market & Economic Impact Analysis All primary and secondary data pursuant to economic impact was downloaded into the most recent version of IMPLAN Professional Version 2.0 for Windows and IMPLAN data files (2004 IMPLAN County Files with industry aggregate information on the South Florida Metropolitan geographic vicinities). Key findings derived from top line data analysis of relevant primary and secondary research conducted for the purpose of the SBXLI Economic Impact investigation are provided in the research capsule statements. Data points will be introduced in the order that they appeared on the raw survey instruments provided to all study participants. SBXLI Visitor's surveyed during the SBXLI Game/Auxiliary events will lead the key findings section, followed by local residents attending SBXLI events and surveyed online, visiting media key findings and local business survey key data synopsis. ? 59.4% of visitors surveyed rated South Florida as an "excellent" choice as a site for the Super Bowl, followed by 27.6% who rated the site as "very good." When asked to compare South Florida as a site for Super Bowl to previous Super Bowl sites, South Florida was ranked "better" than Atlanta by 53.2% visitors surveyed, a "better" site choice than Houston by 54.2%, than Jacksonville by 57.1% and Detroit by 55.8%; ? 54% of visitors revealed they had a "more favorable" impression of South Florida as a result of their attendance at the SBXLI Game or SBXLI auxiliary events; ? The average group size for visitors profiled was 2.63; Sport Management Research Institute (SMRI) April 2007 6 2007 SBXLI Market & Economic Impact Analysis ? The average number of nights spent in a South Florida accommodation was 5.11; ? Per person expenditures of Visitors surveyed per diem was $668.60 on the following expenditure categories: accommodations, meals / beverages, transportation, entertainment / recreation, merchandise / shopping and other (miscellaneous retail); ? 86.9% of visitors profiled were visiting the South Florida Metropolitan vicinity specifically to attend the SBXLI Game and/or auxiliary events. An additional 4.3% revealed that SBXLI was an "influencer" but not the main reason for their visit and 8.8% surveyed reported that SBXLI had "no impact" on their reason to visit the metropolitan vicinity. This report's economic impact analysis tapped only those visiting South Florida specifically to attend the Game Day and/or related Super Bowl events. "Casual" visitors were not included in the analysis; ? The total gate for SBXLI Game Day attendees as Dolphin Stadium was 74,512...of which 70,902 revealed they were visiting the region specifically to attend the Game. An additional 436,850 visitors, residents and casuals attended SBXLI "auxiliary events" of which 41,501 were designated as visitors specifically in South Florida to attend only a SBXLI auxiliary event (e.g. Motorola Mile, NFL Experience) and DID NOT have a SBXLI Game Day ticket. (This analysis included those visitors who attended only one auxiliary SBLXI event, thus avoiding cross-over or replication in the total count). The total number of visitors specifically visiting South Florida to attend the SBLXI Game or to attend auxiliary events was 112,403; ? 75.6% of visitors traveled to South Florida by air. traveled via private car. An additional 11.3% 5.4% chose private/company air and 4.3% arrived by chartered air; ? If visitors traveled by air for Super Bowl week, 41.7% arrived in Miami International airport, 37.5% arrived into Hollywood-Ft. Lauderdale International airport, 11.8% flew into Palm Beach International airport and 7.9% arrived into an Executive Airport in South Florida; Sport Management Research Institute (SMRI) April 2007 7 2007 SBXLI Market & Economic Impact Analysis ? If visitors indicated they traveled by car, 62.9% indicated they commuted via the Florida Turnpike highway system. An additional 35.7% traveled to South Florida on Interstate 95; ? 55.1% stayed in a full service hotel accommodation during their trip to South Florida. 20% stayed in a private home, 11.2% chose motel accommodations, 7.5% stayed in a rental accommodation and 4.3% chose another type of accommodation not listed; ? Other regional destinations traveled to by SBXLI visitors included: 8.2% traveling to Key West, 6.5% Orlando, 5.9% Tampa, 5.4% Naples, 3.7% Bahamas and 2.4% Caribbean destinations; ? 31.6% visited the official South Florida SBXLI Host Committee website; ? 8.7 of visitors "blog" as part of their internet usage patterns...top blog sites tapped by visitors: "MySpace", "Facebook" and nfl.com; ? Demographically, 71.5% of visitors were male and the average age was 43.4. 42.9% were college educated and 31.9% completed graduate school. Occupationally, 20% classified their career choice as "professional", 15.9% were "executives", 10.9% "sales" and 7.8% in "upper management". The average household income reported by visitors was $222,318. ? 86.8% of local residents surveyed who attended SBXLI or SBXLI auxiliary events rated South Florida as an "excellent" site for Super Bowl (87.6% of the Hispanic market and 52% of general population/voting age surveyed online rated the site as "excellent" by comparison); ? If local residents attended a SBXLI auxiliary event, TV (42%) followed by Newspapers (31.9%) and Radio (26.8%) were the top media avenues tapped for information about the event. Outdoor advertising (21.5%) and the Internet (21.2%) reported very similar usage patterns by residents (NOTE: 59.2% General population surveyed online preferred TV as a medium for SBXLI news); Sport Management Research Institute (SMRI) April 2007 8 2007 SBXLI Market & Economic Impact Analysis ? 35.1% non-Hispanic SXBLI local residents, 36.6% Hispanic SXBLI residents and 10% General Population respondents visited the SBXLI Host Committee website; ? When asked to rate the "economic value" of hosting SBXLI on the local community, 69% non-Hispanic SBXLI residents, 67.8% Hispanic SXBLI residents and 35.4% general population respondents rated SBXLI economic value as "excellent" (an additional 37.6% of the general population rated the value as "very good"); ? When asked to rate the Tourism Value of hosting SBXLI, (74.6%) nonHispanic SBXLI residents rated the impact as "excellent", 76.6% Hispanic SBXLI rated the impact "excellent", general population sample, 43.1%; ? Ratings for "Community Growth and Development" revealed 55.1% SBXLI residents, 54.7% Hispanic SBXLI residents and 24% local population rating the SBXLI Impact as "excellent"; ? 59.4% of SBXLI residents surveyed and 58.9 SBXLI Hispanic residents surveyed revealed they would be interested in volunteering for future Super Bowls; ? 84.5% of SBXLI residents were full time South Florida residents and 81.8% of SBXLI Hispanic residents were full time SoFlo residents; ? 13.1% of South Florida SBXLI residents "blog" as part of their internet usage patterns...12.9% SBXLI Hispanic residents "blog". The most frequently reported "blog" sites for both segments included: "MySpace"; "Facebook", "YouTube" and nfl.com; ? Demographically, 62.6% SBXLI non-Hispanic residents were male, 63.3% Hispanic residents were male. The average age of non-Hispanic residents was 37.6; Hispanic, 39 years of age. 46.3% of non-Hispanic residents were college educated, 47.1% of Hispanic residents. 17.4% of residents classified their career path as "professional" contrasted with 14.2% Hispanic. Average HHI for residents, non-Hispanic reported as $127,010 for Hispanic residents $113,768 (e.g. average HHI for Broward Sport Management Research Institute (SMRI) April 2007 9 2007 SBXLI Market & Economic Impact Analysis County residents reported by the US Census Bureau in 2005 was $46,673, for Miami-Dade County at $46,242); ? Media surveyed spent, on an average per diem per person, $483.36 on accommodations, meals / beverages, entertainment / recreation, merchandise / shopping and other miscellaneous retail; ? Visiting media spent on the average 4.88 nights in the South Florida metropolitan area; ? Print media devoted on the average 459.07 column inches for Super Bowl Coverage, Broadcast media reported 291.22 minutes on air on average, Internet media indicated on average , 241.9 column inches/space for cyber coverage of SBXLI; ? 74.9% visiting media traveled to South Florida by commercial air, with 61.8% of that media segment choosing to arrive into MIA (31% arrived in FLL); ? 72.8% stayed in a full service hotel, followed by the next highest percentage -- 9.3% in a rental property; ? 46.4% of all media surveyed had a "more favorable impression" of South Florida as a result of their attendance of SBXLI...4% held a "less favorable impression"; ? 52% rated South Florida as an "excellent" Super Bowl site followed by an additional 40% who rated the site selection as "very good"; ? 27.8% of the Media tap "blog" sites; ? 63.7% visited the SBXLI Host Committee website; ? Media comparisons of scored high "better" marks for South Florida as a Super Bowl site to when compared to Jacksonville, Tampa and Atlanta. Contrasted with those sites receiving the highest percentage response for "same" and/or "worse" when compared to South Florida as a "host site" for Super Bowl were San Diego, Detroit, Houston and New Orleans; Sport Management Research Institute (SMRI) April 2007 10 2007 SBXLI Market & Economic Impact Analysis ? Demographically, SBXLI media was 27.8% female with an average age of 37.3. ? 22.6% of local businesses surveyed sold a product directly related to Super Bowl, 77.4% provide a service directly related to Super Bowl; ? 31.34% of those local establishments surveyed saw an increase in employment during Super Bowl week of 43.2% (when compared to this same business period in 2006) with 61.1% hiring part time staff, 27.8 extending staff hours and 11.1% hiring full time employees to meet demand for services and/or products rendered; ? 53.7% of business surveyed saw an increase in business activity, on the average of 36.8% during Super Bowl week when compared to this business period in 2006; ? Local businesses reported an increase in operating costs of 19.8% in preparation for Super Bowl week sales activity; ? After Super Bowl XLI, 73.8% reported that "sales returned to normal wintertime levels," 3.3% indicated "higher than normal business activity," 21.3% revealed that sales "declined" from normal wintertime levels and 1.6% received follow-up business as a direct result of participating in SBXLI business; ? 27.6% reported the experience in dealing with the SBXLI Host Committee was "excellent," 29.3% rated the experience "very good" and 20.7% responded the experience was "good"; ? 38.1% indicated that they DID attend a SBXLI workshop or seminar conducted by the Host Committee. ? The direct economic impact from hosting Super Bowl XLI on the designated study area (South Florida Metropolitan Vicinity) was Sport Management Research Institute (SMRI) April 2007 11 2007 SBXLI Market & Economic Impact Analysis $297,800,836. Subsequently, it followed that the indirect spending (business preparation phase) associated with staging SBXLI was $86,588,711 and the induced (or re-introduction of new monies flowing through the local economy) was $96,949,851. Finally, the direct, induced, indirect economic injection in the host community from the staging and execution of SBXLI, otherwise referred to herein as the "total effects" was $ 463,339,398; ? The targeted "total effects" economic impact for Miami-Dade County was $219,622,875; ? "Total effects" economic impact for Broward County was $183,019,062; ? "Total effects" economic impact for Palm Beach County was $42,163,885; ? "Total effects" economic impact for Monroe County was $ 1,853,358. The following sections are devoted to a greater detailed discussion of economic impact and trends, discussion of key findings, conclusions and recommended action items; followed by appendices. Sport Management Research Institute (SMRI) April 2007 12 2007 SBXLI Market & Economic Impact Analysis This section of the report will be devoted to providing an overview of the current national, regional and local study area economic trends. This section will serve to pinpoint casual economic trends and factors that may influence the subsequent economic impact infusion experience by the South Florida host community during the staging and execution of SBXLI. Personal income increased $65.4 billion, or 0.6 percent, and disposable personal income (DPI) increased $53.8 billion, or 0.5 percent, in February, according to the Bureau of Economic Analysis. Personal consumption expenditures (PCE) increased $55.5 billion, or 0.6 percent. In January, personal income increased $110.5 billion, or 1.0 percent, DPI increased $74.2 billion, or 0.8 percent, PCE increased $50.2 billion, or 0.5 percent, based on revised estimates. . TABLE 2 Oct. Personal income, current dollars Disposable personal income: Current dollars Chained (2000) dollars Personal consumption expenditures: Current dollars Chained (2000) dollars Nov. 2006 Dec. 2007 Jan. Feb. (Percent change from preceding month) 0.3 0.3 0.5 1.0 0.6 0.2 0.5 0.3 0.3 0.5 0.1 0.8 0.6 0.5 0.1 0.3 0.5 0.4 0.4 0.7 0.4 0.5 0.3 0.6 0.2 Employers reported mixed employment opportunities, according to a report released by the Labor Department. Employers added 97,000 new jobs in February 2007, the fewest in two years. The unemployment rate decreased to 4.5%, while wages increased. Construction companies, feeling the strain from the housing market, cut 62,000 jobs in February while factories eliminated 14,000 jobs. Despite these losses, there were Sport Management Research Institute (SMRI) April 2007 13 2007 SBXLI Market & Economic Impact Analysis employment gains in health care facilities, financial companies, computer-design firms, bars and restaurants, retailers and the government. The Institute for Supply Management reported that their non-manufacturing businesses index decreased from 59 in January to 54.3 in February. An expanding index is indicated by a reading above 50. The U.S. service industry expanded at its slowest pace in four years, suggesting a slowdown in the economy that extends past housing and manufacturing. Bad weather across the country kept consumers away from malls in February, resulting in only a 0.1% increase in sales and causing numerous airport delays/cancellations, according to the Commerce Department. The increase was lower than the anticipated 0.3% increase. The Institute for Supply Management reported that U.S. consumer spending was higher than expected in February, and the manufacturing index rose from a 49.3 to 52.3 in February 2007. The rise was well above economists' median forecast of 50. Experts attribute this increase to growth in new orders, production and employment. According to the Federal Reserve, business growth across the country has decreased, suggesting a slowing economy in some regions and industries. A survey conducted by the Federal Reserve reported that the economy expanded modestly from January to February. However, this survey was released before the manufacturing sector showed signs of further weakening. According to the University of Michigan, consumer confidence hit a five-month low as it continued to decline in February to 91.3, down 5.6 points since January. The fall in consumer confidence after a two-year high came as fuel prices increased and employment weakened. According to the survey's expectations index, which some economists see as an indicator for future spending, consumer confidence fell from 87.6 in January to 81.5 in February 2007. Sport Management Research Institute (SMRI) April 2007 14 2007 SBXLI Market & Economic Impact Analysis Consumer credit debt increased at an annual rate of 3.2% in January, up from 2.5% in December, according to the Federal Reserve. Analysts believe that faster wage growth gives consumers confidence to take on more debt. The auto loans category of debt increased at an annual rate of 4.4%, up from 2.9% in December. Credit card debt slowed in January, only increasing 1.1%. This was down from 1.9% in December. The increase in consumer borrowing has pushed total consumer debt up by $6.4 billion, bringing it to a total of $2.41 trillion. February 2007 Industry Performance Indicators, IPI, revealed a slight decline of 0.7 percent in domestic air travel compared to February 2006. International air rose 6.9 percent during the same period. Hotel/motel room demand decreased 0.1 percent and room revenue increased 6.5 percent from twelve months earlier. Airline employment was down 0.8 percent and lodging employment increased 1.8 percent from February 2006. The February Travel Price Index, the TPI, rose 2.8 percent compared to February 2006. Gasoline prices decreased 1.4 percent from one year ago. Lodging prices were up 4.3 percent compared to February 2006 and 4.4 percent from last month. Airfares increased 1.4 percent against twelve months earlier and 2.4 percent from previous month. The Consumer Price Index, or CPI-U, was up 2.4 percent from February 2006. The pace of growth in southeast Florida in 2007 has been tempered by a sharp drop in housing starts and a real estate market weakened by oversupply. Declining real estate values could ripple though the economy if decreased home equity discourages consumer spending on goods and services - the so-called "wealth effect". Downward economic pressure can also be spotted with inflationary patterns in the region due to increases in gas, insurance, utilities and property tax increases. However, the region's economy appears diversified enough to absorb some of the downward pressure on economic growth. Sport Management Research Institute (SMRI) April 2007 15 2007 SBXLI Market & Economic Impact Analysis Experts predict solid job growth in professional services and healthcare through mid2007. Leisure and hospitality are predicted to show strong gains, especially as a weak dollar draws more foreign tourists. Job losses in housing construction have been moderately offset as the industry shifts to the commercial and industrial sectors. Transportation and related infrastructure spending is also predicted to add to economic development in the region. International trade continues to remain strong in the first quarter of 2007. West Palm Beach, Miami and Fort Lauderdale rank No. 1, 2 and 5 respectively, according to the National Association of Realtors, for the lowest industrial warehouse vacancies, which is typically a key barometer for the trade sector. The State of Florida recorded a visitation increase of one percent during 2006 as reported by Visit Florida, the State's Tourism marketing agency. Visit Florida reported that typically an increase of four to five percent each year is expected to help solidify Florida's tourism economy. Industry leaders point to the 2004 and 2005 Hurricane seasons which they say may have impacted tourists travel plans in 2006. Florida and the market segment of South Florida saw declines in International travel from Great Britain in 2006, which next to the Canadian segment is the second largest international source of foreign visitors to Florida. Miami Dade County, for example, saw a 6.6% decline in international visitors for 2006. Above normal temperatures in the Northeast United States, one of South Florida's largest domestic visitor segments in total bed tax revenue collection, reported a small decrease for January of 2007 (compared with January 2006) for Broward County from $4.39 in 2006 to $4.34 million. The Miami-Dade convention development tax reported a small increase from January '06 to January '07 of $4.72 from 4.56 million, respectively. Tables 4 and 5 on the following page depict this data in greater detail. Sport Management Research Institute (SMRI) April 2007 16 2007 SBXLI Market & Economic Impact Analysis Table 4~GFLCVB County Revenue Analysis Table 5~Miami Dade County Revenue Analysis 2007 2006 07 vs. 06 % CHANGE JANUARY $4,725,689 $4,569,210 3.4% FEBRUARY $5,817,559 $5,159,097 12.8% MARCH $5,690,929 APRIL $4,112,751 MAY $3,541,001 JUNE $2,492,546 JULY $2,864,730 AUGUST $2,347,616 SEPTEMBER $2,165,808 OCTOBER $2,508,693 NOVEMBER $3,422,843 DECEMBER $3,866,124 YTD Total Sport Management Research Institute (SMRI) April 2007 $10,543,248 17 $9,728,307 8.4% 2007 SBXLI Market & Economic Impact Analysis For the week of February 1st through February 4th, 2007, South Florida accommodations showed extremely healthy gains as evidenced through high ADR statistics (Average Daily Rate). Hotel occupancy rates showed slight decreases to previous years data...which may be due in part to the increase high end hotel property inventory introduced in the latter part of 2006 and into 2007 (6.7% to 14% increases in inventory in the Tri County area slated for 2007), higher ADR"S and a greater propensity on the part of SBXLI visitors to rent apartment/condo/home properties which had flooded the market by private owners hoping to capitalize on SBXLI visitor demand (7.5%-23.9% of those SBXLI Visitors surveyed). Additionally worth noting, the Tri-County occupancy reporting systems vary county-by-county, with some omissions in small chain property data, boutique properties and one-time rentals of properties by private parties. As a result of the variances in reporting systems and omissions, hotel occupancy data for pre/during/post SBXLI will not be reported. RevPAR, or rooms revenue per available room, is calculated by dividing a hotel's net rooms revenue (after discount and sales taxes and net of breakfast or other meals) by the total number of available rooms or by multiplying a hotel's average daily room rate (ADR) by its occupancy. According to Greater Ft. Lauderdale CVB, February bed tax collections rose 11.55% over February 2006. Additionally, RevPAR for Greater Miami market segment in February was 13.7% higher in February 2007 than the same time period (February 2006, source: Smith Travel Research). The West Palm Beach Market posted a -2.5% for the same time period as reported by Smith Travel Research. Some Industry professionals have expressed reservations with reporting RevPAR as a true indicator of hotel room revenue generation. In some instances, rooms revenue accounts for no more than 50-55% of total revenue. These include hotels with substantial food and beverage (and meeting and conference) operations. In such cases, RevPAR would only reflect a portion of a hotel's revenue performance, disregarding all other sources of incremental revenues. This will result in an inaccurate analysis when comparing hotel performances. For example, Hotel X has an average rate of $70, 70% occupancy, and 100 rooms. Other departmental revenues (including food and beverage and other operated departmental revenues) for Hotel X are $500,000. On the other Sport Management Research Institute (SMRI) April 2007 18 2007 SBXLI Market & Economic Impact Analysis hand, let's assume that Hotel Y has the same size and average rate as Hotel X, but an occupancy level of approximately 60% and other departmental revenues of $1,000,000. While the RevPAR of Hotel X is approximately 15% higher than that of Hotel Y ($49 compared to $42), Hotel Y has higher total revenue than Hotel X; $2.28 million for Hotel X compared to $2.5 million for Hotel Y. If the two hotels have similar direct expenses (say 35% of revenues), and the quantum of overheads is the same for the two hotels, Hotel Y would end up making more money than Hotel X, despite having a poorer RevPAR; RevPAR also tends to penalize a larger hotel, when compared to a smaller property. (For example, approximately 50% of Broward County Hotels are made up of smaller chains). This suggests that it is often easier to have higher occupancy percentages in a 100-room hotel than in a 200-room hotel, especially when there are seasonal peaks and troughs (or even fluctuation between weekday and weekend occupancy levels). Consequently, the revenue per available room of a large hotel is likely to be lower than that of a smaller hotel, given similar market conditions. Therefore, one needs to consider the size of a hotel property when comparing the RevPAR performance of a specific hotel in relation to other hotel properties. It is not improbable that, due to economies of scale and incremental revenues, a large hotel has a healthier financial performance than a smaller hotel with a higher RevPAR. According to an independent study conducted of small, median and large chain hotels by SMRI trending pre/during/post hotel rates for SBXLI, the following graphic reports average daily rates before, during and after the execution of SBXLI. There were required minimum night stays in 86.4% of hotels surveyed in the Tri-County metropolitan vicinity during SBXLI concentration of festivities (February 1 through February 4, 2007). Please see the following page for a graphic representation of this data. Sport Management Research Institute (SMRI) April 2007 19 2007 SBXLI Market & Economic Impact Analysis Graph 1 Hotel Average Pricing: Pre, During*, Post Super Bowl XLI Super Bowl Hotels Non-Super Bowl Hotels Combined Hotels $600 500.53 498.88 $500 491.13 $400 391.64 355.02 355.32 $300 323.21 $200 195.52 173.68 $100 *The majority of hotels during the week of Jan 29 - Feb 4 required minimum stays of 3-4 nights $0 Jan 15-21 Jan 29-Feb 4 Feb 5-11 Per the above graphic, hotel rates doubled and on occasion tripled during SBXLI week with the added criteria of minimum night stays. Rates remained slightly higher through the week of post SBXLI events, February 5th through the 11th than listed pre-SBXLI. The SBXLI designated hotel properties increased rates 29.1% during SBXLI week (than the week BEFORE SBXLI) and 21.8% higher the week following SBXLI. Non-SBXLI designated hotels increase rates 64.6% higher during SBXLI week (than the week BEFORE SBXLI) and 60.2% higher the week following SBXLI. Comparisons to nonSBXLI visitor typically traveling to the South Florida vicinity per 2006 reports by the GFLCVB, Greater Miami CVB and the Tourism Development Council for Palm Beach County, depicted in Table 6 on the following page. Sport Management Research Institute (SMRI) April 2007 20 2007 SBXLI Market & Economic Impact Analysis Visitor Profiles Average daily expenditures (per person) Average group size Average length of stay Average household income (HHT) Travel by air Stay in hotel/motel ** comparative data not available MiamiDade Broward Palm Beach SBXLI $245.41 $146.00 $198.53 $668.60 2.2 2.2 2.0 2.6 5.74 4.90 3.50 5.11 ** $78,000 ** $222,318 92.8% 58.0% 74.1% 75.6% ** 48.0% ** 66.3% (Tri-County Data) (SMRI SBXLI Data) SBXLI visitor attendees reported average daily expenditures 4.58 times the typical Broward County visitor profiled in 2006 and 2.73 times the typical Miami Dade visitor profiled. A SBXLI visitor's average household income (HHI) was 2.85 times that of a typical Broward County visitor profiled. Finally, a SBXLI visitor was 1.38 times more likely to stay in a Broward County hotel than a typical Broward County visitor. The following section will be devoted to a more complete discussion of the SBXLI Economic Impact key findings and primary/secondary data collection efforts. Sport Management Research Institute (SMRI) April 2007 21 2007 SBXLI Market & Economic Impact Analysis Before any discussion of key findings for SBXLI Economic Impact Investigation can be cited, it is relevant to introduce a brief overview of the economic impact protocol and model used for application in the current investigation. Economic Impact Analysis Explained An economic impact analysis traces the flows of spending associated with tourism activity in a region to identify changes in sales, tax revenues, income, and jobs due to tourism activity. The principal methods tapped for analysis, include visitor spending surveys (of all shareholders involved in attending directing and operating the success of the Event), analysis of secondary data from prior studies and government economic statistics, economic base models, input-output models and multipliers. 2004 IMPLAN Professional Version 2.0 for windows, the economic impact software employed for economic analysis in the present investigation is also referred to as the Minnesota IMPLAN Group, Inc. or MIG, Inc, which was founded in 1993 by Scott Lyndall and Doug Olson as an outgrowth of their work at the University of Minnesota starting in 1984. This developmental work closely involved the U.S. Forest Service's Land Management Planning Unit in Fort Collins, and Dr. Wilbur Maki at the University of Minnesota. In 1993, the IMPLAN founders entered into a technology transfer agreement with the University of Minnesota that allowed them to form the company. At first, MIG, Inc. focused on database development and provided data that could be used in the Forest Service version of the software. In 1995 MIG, Inc. took on the task of writing a new version of the IMPLAN software from scratch. This new version extended the previous Forest Service version by creating an entirely new modeling system that included creating Social Accounting Matrices (SAMs) - an extension of input-output accounts, and resulting SAM multipliers. Version 2 became available in May of 1999. Sport Management Research Institute (SMRI) April 2007 22 2007 SBXLI Market & Economic Impact Analysis There are over 1,500 active users of MIG databases and software in the United States as well as internationally. Research applications can be found in federal and state government, universities, as well as private sector consultants. The following section reports the analysis of all primary and secondary research findings associated with the data collection protocol executed for the SBXLI Economic Impact investigation. SBXLI out-of-town visitor findings reflect primary data analysis from the onsite data collection conducted during SBXL week festivities. The discussion of the findings will parallel the introduction of cues on the raw survey instrument. Data points will be highlighted graphically if/when appropriate for discussion purposes. Rate the Choice of South Florida as a Site for the Super Bowl 60% 59.4% of visitors surveyed rated South Florida "excellent" as a choice as a site for 50% 40% 30% Super Bowl, followed by 27.6% who rated 20% the site as "very good". 10% 0% Excellent Very Good Good Fair Poor Compare South Florida to Other Super Bowl Sites. Is South Florida: Better Same Worse When asked to compare South Florida as a site Detroit XL for Super Bowl to previous Super Bowl sites, Jacksonville XXXIX South Florida was ranked "better" than Atlanta by Houston XXXVIII 53.2% visitors surveyed, a "better" site choice than San Diego XXXVII Houston by 54.2%, than Jacksonville by 57.1% New Orleans XXXVI and Detroit by 55.8%. Only New Orleans and San Tampa XXXV Diego were statistically comparable to South Atlanta XXXIV Florida in regards to what the visitors perceived as Phoenix XXX 0% 10% 20% 30% 40% 50% 60% Sport Management Research Institute (SMRI) April 2007 the "better" site for Super Bowls. 23 2007 SBXLI Market & Economic Impact Analysis 54% of visitors revealed they had a "more favorable" impression of South Florida as a result of their attendance at the SBXLI Game or SBXLI auxiliary events. 43.4% indicated that their impression of South Florida remained "unchanged" and 2.6% held a "less favorable" impression. Top three SBXLI auxiliary events attended by respondents included the NFL Experience by 61.4% (note: all game day attendees had to enter the Dolphin Stadium venue via the NFL Experience and security checkpoints located directly adjacent to the NFL Experience location), the Volley Palooza event (12.8%) and Super Saturday Blast on Biscayne (10.8%). From a visitor profile standpoint, the average group size for visitors profiled was 2.63 and the average number of nights spent in a South Florida accommodation was 5.11. The per person expenditures of visitors surveyed per diem, was $668.60 on the following expenditure categories: accommodations, meals / beverages, transportation, entertainment / recreation, merchandise / shopping and other (miscellaneous retail). The per day expenditures by visitors surveyed equated to 4.58 times what the "typical" Broward County visitor spends per diem per person and 2.73 times the "typical" MiamiDade County visitor. Sport Management Research Institute (SMRI) April 2007 24 2007 SBXLI Market & Economic Impact Analysis 86.9% of visitors surveyed were visiting Is Super Bowl XLI the South Florida Metropolitan vicinity 90% specifically to attend the SBXLI Game and/or auxiliary events. 80% An additional 70% 60% 4.3% revealed that SBXLI was an 50% 40% "influencer" but not the main reason for 30% their visit and 8.8% surveyed reported 20% 10% that SBXLI had "no impact" on their 0% The main reason for your visit to South Florida reason to visit the metropolitan vicinity. An influence on your visit, but not the main reason Had no influence on your decision to visit South Florida This report's economic impact analysis tapped only those here specifically to attend the Game Day and/or related Super Bowl events. "Casual" visitors were not included in the economic impact analysis. The total gate for SBXLI Game Day attendees as Dolphin Stadium was 74,512...of which 70,902 revealed they were visiting the region specifically to attend the Game. An additional 436,850 visitors, residents and casuals attended SBXLI "auxiliary events" of which 41,501 were designated as visitors specifically in South Florida to attend only a SBXLI auxiliary event (e.g. Motorola Mile, NFL Experience) and DID NOT have a SBXLI Game Day ticket. (This analysis included those visitors who attended only one auxiliary SBLXI event, thus avoiding cross-over or replication in the total count). The total number of visitors specifically visiting South Florida to attend the SBLXI Game or to attend auxiliary events was 112,403. Mode of Transportation to South Florida 75.6% Commercial Air visitors Florida by air. Van/RV/Trailer Rental Car traveled to South An additional 11.3% traveled via private car. 5.4% chose Charter Air private/company air and 4.3% by Private Car chartered air. Train Private/Company Air Bus 0% 10% 20% 30% 40% 50% 60% Sport Management Research Institute (SMRI) April 2007 70% 80% 25 2007 SBXLI Market & Economic Impact Analysis If Traveling by Air, at Which Airport Did You Arrive 45% If visitors traveled by air for Super Bowl week, 40% 41.7% arrived in Miami International airport, 35% 37.5% arrived into Hollywood-Ft. Lauderdale 30% 25% International airport, 11.8% flew into Palm 20% Beach International airport and 7.9% arrived 15% 10% into an Executive Airport in South Florida. 5% 0% Miami International According to a press release on March 23, Palm Beach Executive Airport Fort Lauderdale Other 2007, FLL Aviation Department, "Super Bowl XLI had a significant impact on General Aviation operations during the month (February 2007) with events leading up to, during and after this year's Super Bowl." February 2007 had an increase of 3.8% over February of 2006. January of 2007 arriving/departing traffic was down by 1.7% over January of 2006. MIA saw an increase of 1.25% in the month of February 2007 over February 2006, with a decrease of .19 in January of 2007 over previous year's performance in January of 2006. PBI saw a slight improvement in airport activity from -2.53 in January 2007 to 2.50 for February of 2007. Several airports cited February as a challenging month for domestic traffic with extensive airline cancellations from the Northeast and Midwest sectors due to inclement weather issues experienced in the month of February 2007. If visitors indicated they traveled by car, 62.9% indicated they commuted via the Florida Turnpike highway system. The Florida Turnpike system reported increased toll plaza activity in South Florida from 7,193 to 27,738 passengers (per South Florida Toll Booth Plaza) during SBXLI week compared to the week prior to SBXLI January 24th through the 30th). Type of Accommodation An additional 35.7% traveled to South Florida on Interstate 95. Full Service Hotel 55.1% RV/Camping stayed in a full service hotel accommodation during their trip to South Rental Condo/Apt/Home Florida. 20% stayed in a private home, 11.2% Motel chose Private Home/Dwelling accommodations, 7.5% stayed in a rental accommodation and Other 0% motel 10% 20% 30% 40% 50% 60% 4.3% chose another type accommodation not listed. Sport Management Research Institute (SMRI) April 2007 26 2007 SBXLI Market & Economic Impact Analysis of Fluctuations in one time rental income charged to SBXLI visitors who opted for a vacation condo, home and apartment rental prevent effective revenue tracking by travel statistic companies and State of Florida Department of Revenue offices. SBXLI Visitor Trip Extensions Other regional destinations traveled to by SBXLI visitors include 8.2% No other locations Bahamas Tampa traveling to Key Orlando, 5.9% West, 6.5% Tampa, 5.4% Naples, 3.7% Bahamas and 2.4% Key West Orlando Other Caribbean Caribbean destinations. Naples 0% 10% 20% 30% 40% 50% 60% The reported SBXLI other destination travel statistics trends for both Tampa and Naples may be partially explained by the propensity of visitors from the Midwest region of the country to visit those Florida destinations during non-Super Bowl years - rather than South Florida. The 2006 Visitor Profile and Economic Impact Study, released by the Greater Miami Convention and Visitors Bureau in February of 2007, documents that overnight visitors from the Midwest region of the US was down -1.5% in 2006 when compared to 2005 overnight visitors profiled. Approximately one in three or 31.6% Visited the South Florida SB XLI Host Committee Website visited the official South Florida SBXLI Host Committee website. 70% 60% 50% When queried regarding visitor "blog" 40% 30% usage patterns 8.7 of visitors "blog", 20% with top blog sites tapped by visitors 10% "MySpace", "Facebook" and nfl.com. 0% Yes No Sport Management Research Institute (SMRI) April 2007 27 2007 SBXLI Market & Economic Impact Analysis Age Range 35% Demographically, 71.5% of visitors 30% 25% were male and the average age was 20% 43.4. 15% 10% 42.9% were college educated and 5% 31.9% completed graduate school. 0% Under 20 20-29 30-39 Occupationally, 20% classified their 40-49 50-59 60-69 Over 70 Occupation career choice as "professional", 15.9% Consultant were executives, 10.9% "sales" and Homemaker Professional 7.8% in "upper management". Student Upper-level manager The average household Education income Mid-level manager reported by visitors was $222,318. Retired Telecommunications Executive Compare the demographic General SBXLI profiles Population with visitor the Office worker Sales US Trade/Service demographic Other 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% statistics (2005 US Census Bureau update American Community Survey) Annual Household Income that report 49% male, 27.2% college 25% educated , and an HHT of $46,242 (in 2005 inflation adjusted dollars). 20% 15% 10% 5% 0% Sport Management Research Institute (SMRI) April 2007 28 Under $25$50$75$100$150$200$250$300$400Over $25,000 $49,999 $74,999 $99,999 $149,999 $199,999 $249,999 $299,999 $399,999 $499,999 $500,000 2007 SBXLI Market & Economic Impact Analysis The following discussion focuses on those who completed the local resident survey per their residency designation. The flow of the data introduced again parallels the order cues were listed on the raw survey instrument. A Hispanic version of the local resident survey was also made available to those local residents who preferred to respond in the Spanish. Finally, also introduced in the discussion are findings from the online South Florida survey administered following the SBXLI Game. Findings from the online survey wave will be reported in the discussion if/when appropriate for trend analysis and benchmarking reporting purposes. From a Super Bowl Host site selection perspective, 86.8% of local residents surveyed who attended SBXLI or SBXLI auxiliary events rated South Florida as a site for Super Bowl as "excellent" (87.6% of the Hispanic Rate the Choice of South Florida as a Site for the Super Bowl Non-Hispanic Hispanic Online 90% 80% 70% 60% 50% 40% 30% market and 52% of general population/voting age surveyed online 20% 10% 0% Excellent or just over one in two surveyed rated Very Good Good Fair Poor the site as "excellent" by comparison). Local residents who attended a SBXLI How Did You Learn About the SB XLI Event(s) That You Attended Non-Hispanic Hispanic auxiliary event heard about the event Online 60% from the following media avenues: TV 50% (42%) followed by Newspapers (31.9%) 40% and Radio (26.8%). Outdoor advertising 30% (21.5%) 20% the Internet (21.2%) reported very similar usage patterns by 10% 0% and residents (NOTE: 59.2% of the South Television Outdoor Advertising Other Radio Internet Newspaper Sport Management Research Institute (SMRI) April 2007 Florida Magazine 29 "general population" sample 2007 SBXLI Market & Economic Impact Analysis surveyed online preferred Television as a media choice for SBXLI event selection.) Finally, just over one-third or 35.1% non-Hispanic SXBLI local residents, 36.6% Hispanic SXBLI residents and 10% General Population respondents visited the SBXLI Host Committee website. Rate the Economic Value of Hosting SB XLI on the Local Community When asked to rate the "economic value" of hosting SBXLI on the local community, 69% nonHispanic SBXLI residents, 67.8% Hispanic SXBLI residents and 35.4% general population respondents rated SBXLI as "excellent" (note: an Non-Hispanic Hispanic Online 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% additional 37.6% of the online General population surveyed rated the value as "very good"). 10.0% 0.0% Excellent Very good Good Fair Poor Over two thirds of each South Florida local resident segment surveyed rated the "economic value" of hosting SBXLI as "excellent and/or very good". When asked to rate the "Tourism Value" of hosting SBXLI, (74.6%) non-Hispanic SBXLI residents rated the impact as "excellent", 76.6% Rate the Tourism Value of Hosting SB XLI on the Local Community Non-Hispanic Hispanic Online 80.0% 70.0% 60.0% Hispanic SBXLI rated the impact "excellent", general population sample, 43.1%. With Tourism ranked as the number one industry in South 50.0% 40.0% 30.0% 20.0% 10.0% Florida...these findings are not surprising as they 0.0% Excellent Very good Good Fair Poor support the high ratings received in "economic value" of hosting a Super Bowl. Rate the Community Growth and Development Value of Hosting SB XLI on the Local Community Non-Hispanic Hispanic Online Ratings for "Community Growth and Development" 60.0% revealed 55.1% SBXLI residents, 54.7% Hispanic SBXLI residents and 24% local population rating the SBXLI Impact as "excellent". Again, this is 50.0% 40.0% 30.0% 20.0% more compelling data to support Super Bowls 10.0% 0.0% Excellent Sport Management Research Institute (SMRI) April 2007 30 Very good Good Fair 2007 SBXLI Market & Economic Impact Analysis Poor impact on community growth and development. 59.4% of SBXLI residents surveyed and 58.9 SBXLI Hispanic residents surveyed acknowledged they would be interested in volunteering for future Super Bowls. From a local consumption perspective, it is Are You A: Non-Hispanic worth noting the 84.5% of SBXLI residents who took part in the primary data collection 90% research wave were full time South Florida Hispanic 70% 80% 60% residents and 81.8% of SBXLI Hispanic 50% 40% residents were full time South Florida 30% 20% residents. 10% 0% Full-time South Florida resident Part-time South Florida resident A slightly higher number of South Florida residents surveyed when compared to the SBXLI visitor segment surveyed -- 13.1% of South Florida SBXLI residents "blog" as part of their internet usage patterns...12.9% SBXLI Hispanic residents "blog". The most frequently reported "blog" sites for both segments include "MySpace"; "Facebook", "YouTube" and nfl.com. Demographically, 62.6% SBXLI non-Hispanic local resident respondents were male and 63.3% Hispanic resident respondents were male. residents was 37.6, Hispanic 39 years of age. The average age of non-Hispanic 46.3% of non-Hispanic residents were college educated, 47.1% of Hispanic residents. 17.4% of residents classified their career path as "professional" contrasted to 14.2% Hispanic. Average HHI (household income) for residents, non-Hispanic reported as $127,010 for Hispanic residents $113,768 (e.g. average HHI for Broward County residents reported by the US Census Bureau in 2005 was $46,673, for Miami-Dade County at $46,242). The average HHI for SBXLI local respondents was over two times the average HHI reported by the Census Bureau in 2005 for Broward and Miami Dade residential population segment surveyed. Sport Management Research Institute (SMRI) April 2007 31 2007 SBXLI Market & Economic Impact Analysis Media surveyed spent, on an average per diem per person of $483.36 on accommodations, meals / beverages, entertainment / recreation, merchandise / shopping and other miscellaneous retail. Additionally, visiting media spent on the average 4.88 nights in the South Florida metropolitan area. Print media devoted on the average 459.07 column inches for Super Bowl Coverage, Broadcast media reported 291.22 minutes on air on average, Internet media indicated on average, 241.9 column inches/space for cyber/internet coverage of SBXLI. 74.9% visiting media traveled to South Florida by air, with 61.8% of that media segment choosing to arrive into MIA (31% arrived in FLL). 72.8% stayed in a full service hotel, followed by the next highest percentage reported 9.3% in a rental property. Mode of Travel to South Florida Type of Accommodations 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Commercial Air Van/RV/Trailer Rental Car Charter Air Full Service Hotel Private Car 46.4% of all media surveyed had a "better RV/Camping Rental Condo/Apt/Home Motel Private Home/Dwelling Other Impact of Attending SB XLI on Impression of South Florida impression" of South Florida from their Less favorable, 4.0% resulting attendance at SBXLI...4% held a "less favorable impression". More favorable, 46.6% 52% rated South Florida as a Super Bowl site as "excellent" followed by an additional 40% Same, 49.3% who rated the site selection as "very good". Sport Management Research Institute (SMRI) April 2007 32 2007 SBXLI Market & Economic Impact Analysis Visited the South Florida SB XLI Host Committee Website Not surprising that 27.8% of the Media surveyed who visit "blog" sites, reported 70% the largest percentage margin of all sub- 60% 50% groups surveyed in the 2007 SBXLI 40% research protocol. Additionally, nearly 30% double findings reported from other survey 20% 10% segments, 63.7% of the media surveyed 0% visited the SBXLI Host Yes Committee No website. Compare South Florida to Other Super Bowl Sites. Is South Florida: Better Same Worse Significant percentages of Media Detroit XL surveyed indicated that South Florida was "better" as a Super Bowl site Jacksonville XXXIX when compared to all recent Super Houston XXXVIII Bowl sites/geographic locations. San Diego XXXVII New Orleans XXXVI Demographically, SBXLI media was Tampa XXXV 27.8% female with an average age of 37.3. Atlanta XXXIV Phoenix XXX 0% 10% 20% 30% 40% 50% 60% Sport Management Research Institute (SMRI) April 2007 70% 80% 90% 33 2007 SBXLI Market & Economic Impact Analysis Of the South Florida local business responding to an online survey post SBXLI Events, 22.6% of local businesses surveyed sell a product directly related to Super Bowl, 77.4% provide a service directly related to Super Bowl. Worth mentioning, over 420 small and minority firms registered with the NFL to compete for SBXLI contracted work pre/during/post event. According to Gary Hartfield, director of community outreach programs for the SBXLI Host Committee, approximately half of those businesses that applied for contracts landed a SBXLI business opportunity. Employment Levels at Your Business During Super Bowl Week 31.34% of those local establishments surveyed saw an increase in employment Increase, 31.34% during Super Bowl week (when compared to this same business period in 2006) by Remain the same, 53.73% 43.2% with 61.1% hiring part time staff, 27.8 extending staff hours and 11.1% Decrease, 14.93% hiring full time employees to meet demand for services and/or products rendered. Weekly Sales During Super Bowl Week 53.7% of business surveyed saw an increase in business activity, on the Were approximately the same, 19.40% average of 36.8% during Super Bowl week when compared to this business period in 2006. Additionally, local businesses Were down, 23.88% reported an increase in operating costs of Were up, 53.73% 19.8% in preparation for Super Bowl week sales activity. After Super Bowl XLI, 73.8% reported that "sales returned to normal wintertime levels", 3.3% indicated "higher than normal business activity", 21.3% revealed that sales "declined" from normal wintertime levels and 1.6% received follow-up business as a direct result of participating in SBXLI business. Sport Management Research Institute (SMRI) April 2007 34 2007 SBXLI Market & Economic Impact Analysis Impact of Super Bowl on Weekly Profits 61.2% of business owners polled indicated 40% that their weekly profits "increased" to some degree during the week of the Super Bowl. In fact, more than one in four (25.4%) stated that profits "increased considerably" during that week. 19.4% saw a decline in weekly 35% 30% 25% 20% 15% 10% 5% profits during the same time period. 0% Increased considerably "excellent", 29.3% rated the experience "very Decreased considerably How Was Your Experience with the Super Bowl Host Committee Finally, 27.6% reported the experience in dealing with the SBXLI Host Committee was Increased modestly Remained the same Decreased modestly 30% 25% 20% good" and 20.7% responded the experience 15% was "good". 38.1% of local businesses 10% surveyed indicated that they DID attend a 5% SBXLI workshop or seminar conducted by the 0% Excellent Host Committee. Sport Management Research Institute (SMRI) April 2007 35 Very Good Good Fair 2007 SBXLI Market & Economic Impact Analysis Poor The direct economic impact from hosting Super Bowl XLI on the designated study area (South Florida Metropolitan Vicinity) was $297,800,836. Subsequently, it followed that the indirect spending (business preparation phase) associated with staging SBXLI was $86,588,711 and the induced (or re-introduction of new monies flowing through the local economy) was $96,949,851. Finally, the direct, induced, indirect economic injection in the host community from the staging and execution of SBXLI, otherwise referred to herein as the "total effects" was $ 463,339,398. The targeted "total effects" economic impact for Miami-Dade County alone was $219,622,875. "Total effects" economic impact for Broward County was $183,019,062, for Palm Beach County was $42,163,885 and for Monroe County was $ 1,853,358. Subsequently, it followed that the indirect spending (business preparation phase) associated with staging SBXLI and auxiliary events was $ 27,898,138. Visitors Media Corporate Teams Subcontractors TOTAL Direct $242,242,507 Indirect $74,965,704 Induced $83,936,043 TOTAL $401,144,253 $6,689,780 $1,516,588 $4,000,000 $2,070,256 $469,332 $1,237,862 $2,317,981 $525,492 $1,385,984 $11,078,017 $2,511,412 $6,623,846 $25,351,961 $7,845,558 $8,784,351 $41,981,869 $279,800,836 $86,588,711 $96,949,851 $463,339,398 It is worth noting that from staging SBXLI, the IMPLAN model estimated that 4,322.68 FTEs (Full-Time-Equivalent) positions were created to assist in the staging of the Event. The IMPLAN Model often estimates the employment ratio's based on full-time equivalents though most large scale sporting events hire temporary/part time staffing to activate operational needs. Sport Management Research Institute (SMRI) April 2007 36 2007 SBXLI Market & Economic Impact Analysis In addition to the economic exposure brought to the South Florida marketplace as a result of hosting the Super Bowl, there was an added-value provided by the media exposure of the local community into markets all over the world. This media "audit" included selected "mentions" of Miami, Miami Gardens, South Florida and/or the South Florida Host Committee as the host location for the game. Table 8 reports selected factors used in the SBXLI Media Audit program. The SBXLI Media Audit considered the following factors... 1: 2: 3: 4: 5: 6: 7: 8: 9: 10: Audience Reach/Circulation (## of Subscribers) Publicity Value (Ad Value per column square inch, 30 second spot, etc.) Tonality (Very Positive, Positive, Neutral, Negative, Very Negative) Non-opinion vs. opinion articles (Fact versus Opinion) Weather Bias tonality of article Article types (Sport, Sport Business, Business, Lifestyle, Headline News, Local News) Number of Times South Florida mentioned Number of Times Miami mentioned Geographic Distribution of Articles Audience Reach SBXLI Branding Campaign (number of times SBXLI mentioned) Search Engines: Google; Nexus; Yahoo; Factiva and SBXLI Host Committee Clipping Analysis Super Bowl XLI, televised by CBS in high definition, was watched by an estimated 93.2 million views nationally (Nielsen Media Group) - a share of 64; it was the second most watched Super Bowl in history after Super Bowl XXX, with 42.6% of American households tuned into the game. According to CBS 139.8 million viewers watched all or part of the game. Advertising during the broadcast of Super Bowl XLI cost 2.6 million dollars - up from 2.5 million for Super Bowl XL. Sport Management Research Institute (SMRI) April 2007 37 2007 SBXLI Market & Economic Impact Analysis The teams featured in the game represented the number 3 (Chicago) and number 25 (Indianapolis) top media markets in the country. In Chicago and Indianapolis the market share for Super Bowl XLI was 77 and 83 respectively. 232 countries received the broadcast in 34 languages. Among those countries was: Argentina, Australia, Austria, Brazil, Canada, China, Croatia, Denmark, Finland, France, Germany, Italy, Korea, Macedonia, Mexico, Montenegro, Netherlands, New Zealand, Peru, Portugal, Russia, Serbia, Sweden, Thailand and the United Kingdom. Miami, Miami Gardens, South Florida and the South Florida Host Committee were mentioned sixty-five (65) times during the course of the game broadcast. Using a formula that discounts the value of the mention when couched in a less-than-positive vein (i.e. the weather), the exposure received by South Florida during the Super Bowl game broadcast would have a value of approximately $48,533,334. There were 1.7 million Internet articles posted related to Super Bowl XLI; 14 radio stations covered the game live to national audiences and 70% of the 1,470 newspapers nationally ran articles about the game. According to the credentialed media at the game, an average of 459 column inches per newspaper was devoted to Super Bowl XLI coverage. Internet sites included an average of 242 column inches of Super Bowl related information and articles. In addition to the coverage of the game itself, articles were published relating to topics as diverse as the entertainment during the game, South Florida Super Bowl Parties, The Super Bowl Host Committee, related Super Bowl events, Super Bowl advertisements, tailgating, economic impact, Tri-Rail and other transportation issues, celebrity sightings, local hotels, Dolphin Stadium and the "Miami Scene." Using a formula that includes an average cost per advertising inch and the credentialed print media numbers related to the exposure received in their publications related to the Sport Management Research Institute (SMRI) April 2007 38 2007 SBXLI Market & Economic Impact Analysis Super Bowl, the estimated value of the print media exposure for South Florida is $18,400,807.(*) This concludes the discussion section for SBXLI data and IMPLAN analysis data findings. What will follow is recommended action items for future SBXLI event planning and strategic marketing. *Due to omissions in information provided to SMRI in the preparation of the SBXLI Media Audit which were related to the frequency and exposure of broadcast media (other than the SBXLI Game broadcast), the value of that additional exposure is not included in this analysis Sport Management Research Institute (SMRI) April 2007 39 2007 SBXLI Market & Economic Impact Analysis From the previously expounded SBXLI data analysis discussion points, the following are strategy activation "end points" which, in essence, further explain how best to apply and synthesize the findings presented thus far in this investigative report. The action items are recommendations which are only offered as suggested market strategy and event planning formation points for the reader (s) of this document. Action Item #1 SBXLI continues a positive trend for near record setting numbers of spectators at approximately 112,403 attending SBXLI Game Day Event and/or auxiliary events. Given this growth dynamic, with all economic, environmental, social, political factors stabilized, a larger economic impact would hypothetically be warranted, which indeed was the case in 2007 over prior investigations in 1999 and 1995 respectively. Key issues which set the Super Bowl apart from other large scale events are the average length of stay, the record high per diem expenses reported per out-of-town visitor in attendance ($668,60), record high average visitor household incomes ($222,318) reported and the capability to attract a large percentage of visitors to the host region. These factors set SBXLI apart from other South Florida Sporting Events (Miami Dolphins, Miami Heat, Florida Marlins, et. al.) who cannot match the same visitor profiles established by SBXLI attendees, which attract mostly day-tripper visitors to the region. City, County, State leaders need to be cognizant of the economic advantages the SBXLI has to offer tax rolls, employment generation and local business stimulation (hoteliers, restaurant-owners, entertainment/arts enterprises). Action Item #2 With 54% of visitors revealing they had a "more favorable" impression of South Florida as a result of their attendance at the SBXLI Game or SBXLI auxiliary events. 43.4% indicated that their impression of South Florida remained "unchanged" and 2.6% held a Sport Management Research Institute (SMRI) April 2007 40 2007 SBXLI Market & Economic Impact Analysis "less favorable" impression. The positive qualitative measure of repeat business and travel to the South Florida vicinity remains to be documented and measured by the respective Tri-County convention and visitor bureaus. The real added value to staging a large scale event of this nature is in the return business which is also an excellent barometer of how vested these visitors were in the South Florida "brand" as a future vacation, business meeting or relocation to the vicinity to live on a permanent basis. Action Item #3 A total of 59.4% of visitors surveyed rated South Florida as an "excellent" choice of a site for Super Bowl, followed by 27.6% who rated the site as "very good". When asked to compare South Florida as a site for Super Bowl to previous Super Bowl sites, South Florida was ranked "better" than Atlanta by 53.2% visitors surveyed, a "better" site choice than Houston by 54.2%, than Jacksonville by 57.1% and Detroit by 55.8%. This provides substantial support data for future South Florida Super Bowl bids as well as attracting other large scale events to the Tri-County region. The true economic benefit of these events are measure in the economic impact they bring to the host community in terms of new revenue realized from visitors, sub contractors, event participants, corporate sponsors who visit the region specifically to take part in these types of events. Action Item #4 Super Bowl XLI, televised by CBS, was watched by an estimated 93.2 million viewers nationally (Nielsen Media Group) - a share of 64; it was the second most watched Super Bowl in history after Super Bowl XXX, with 42.6% of American households tuned into the game. According to CBS 139.8 million viewers watched all or part of the game. Advertising during the broadcast of Super Bowl XLI cost 2.6 million dollars - up from 2.5 million for Super Bowl XL. The teams featured in the game represented the number 3 (Chicago) and number 25 (Indianapolis) top media markets in the country. In Chicago and Indianapolis the market share for Super Bowl XLI was 77 and 83 respectively. 232 countries received the broadcast in 34 languages. Among those countries was: Argentina, Australia, Austria, Brazil, Canada, China, Croatia, Denmark, Finland, France, Sport Management Research Institute (SMRI) April 2007 41 2007 SBXLI Market & Economic Impact Analysis Germany, Italy, Korea, Macedonia, Mexico, Montenegro, Netherlands, New Zealand, Peru, Portugal, Russia, Serbia, Sweden, Thailand and the United Kingdom. Of the over 3100 Media in attendance, visiting media surveyed spent, on an average per diem per person of $483.36 on accommodations, meals / beverages, entertainment / recreation, merchandise / shopping and other miscellaneous retail. Additionally, visiting media spent on the average 4.88 nights in the South Florida metropolitan area. Not only is the value of not only their economic contributions to the South Florida Metropolitan vicinity is noteworthy, but the added value of the media coverage, broadcast, print and otherwise cannot be overstated. They provide the region with an unmatched opportunity to showcase South Florida and the many attributes this world class tourism region has to bestow to domestic and international visitors who view and learn of Event activities for a very concentrated period of time during Super Bowl week. Again, a huge selling point for community and regional leaders whose support of the Event is not guaranteed but factors clearly demonstrate financial/political support is warranted. Action Item # 5 The total effects economic impact of SBXLI, estimated at 463,339,398 dollars, supports previously reported local, regional and national economic growth indicators prevailing during the first quarter of 2007. With job growth continuing to improve and household incomes of higher end consumers also improving, the outlook for 2007 looks positive for continued economic growth to the region. Super Bowl XLI continued to out-perform previous economic impact totals from prior Super Bowl estimates (1999, 1995 respectively) which underscore the extremely positive economic impact a Super Bowl Event bodes for the South Florida Metropolitan region. Based on SMRI Economic Impact findings/research reported over the past ten years, this Event is one of, if not the largest, to date in terms of economic impact to the South Florida region. Tourism officials again should be informed of the enormous economic benefits this Event brings to the host communities in the South Florida metropolitan vicinity. Sport Management Research Institute (SMRI) April 2007 42 2007 SBXLI Market & Economic Impact Analysis Action Item #6 Interesting and noteworthy findings were found with the local resident segment surveyed during and shortly after the staging of SBXLI. When asked to rate the "economic value" of hosting SBXLI on the local community, 69% non-Hispanic SBXLI residents, 67.8% Hispanic SXBLI residents and 35.4% general population respondents rated SBXLI as "excellent" (note: an additional 37.6% of the online General population surveyed rated the value as "very good"). Over two thirds of each South Florida local resident segment surveyed rated the "economic value" of hosting SBXLI as "excellent and/or very good". Additionally, when asked to rate the "Tourism Value" of hosting SBXLI, (74.6%) non-Hispanic SBXLI residents rated the impact as "excellent", 76.6% Hispanic SBXLI rated the impact "excellent", general population sample, 43.1%. With Tourism ranked as the number one industry in South Florida...these findings are not surprising as they support the high ratings received in "economic value" of hosting a Super Bowl. Ratings for "Community Growth and Development" revealed 55.1% SBXLI residents, 54.7% Hispanic SBXLI residents and 24% local population rating the SBXLI Impact as "excellent". Again, this is more compelling data to support Super Bowls impact on community growth and development. Ultimately, the true success of staging any large scale event in the host community comes from the local residents who support, help build the brand, stage and staff the effort and have to contend with any negative factors that may be residual effects from the influx of hosting a large number of visitors to the region. What is compelling about the local resident data is that they do "see the forest through the trees" and that ultimately they understand the benefits to the local economy, tourism and community growth and development. Excellent support data for staging future Super Bowls with local, state and federal government officials who represent the needs and beliefs found in their respective constituent base. Sport Management Research Institute (SMRI) April 2007 43 2007 SBXLI Market & Economic Impact Analysis Action Item #7 From a local business impact perspective, 31.34% of those local establishments surveyed saw an increase in employment during Super Bowl week (when compared to this same business period in 2006) by 43.2% with 61.1% hiring part time staff, 27.8 extending staff hours and 11.1% hiring full time employees to meet demand for services and/or products rendered. 53.7% of business surveyed saw an increase in business activity, on the average of 36.8% during Super Bowl week when compared to this business period in 2006. Additionally, local businesses reported an increase in operating costs of 19.8% in preparation for Super Bowl week sales activity. Finally, 27.6% reported the experience in dealing with the SBXLI Host Committee was "excellent", 29.3% rated the experience "very good" and 20.7% responded the experience was "good". 38.1% of local businesses surveyed indicated that they DID attend a SBXLI workshop or seminar conducted by the Host Committee. What is noteworthy is the local business impact derived from staging and executing SBXLI. The mechanisms in place for training and participation as a designated SBXLI Host Committee business partner have been positively received by those taking advantage of seminar and workshops provided by the Host Committee and NFL. Action Item #8 South Florida hotel rates doubled and on occasion tripled during SBXLI week with the added criteria of three and four night minimum night stays. Rates remained slightly higher through the week of post SBXLI events, February 5th through the 11th than listed pre-SBXLI. The SBXLI designated hotel properties increased rates 29.1% during SBXLI week (than the week BEFORE SBXLI) and 21.8% higher the week following SBXLI. Non-SBXLI designated hotels increase rates 64.6% higher during SBXLI week (than the week BEFORE SBXLI) and 60.2% higher the week following SBXLI. The supply and demand theory was popularized by Alfred Marshal in 1890 predicted that in a competiitive free market, price will function to equalize the quantity demanded by consumers and the quantity supplied by producers resulting in economic equilibrium. Sport Management Research Institute (SMRI) April 2007 44 2007 SBXLI Market & Economic Impact Analysis There are limits to what SBXLI consumers will pay and what South Florida hotel properties have to offer for premium prices. Action Item #9 Fluctuations in hotel occupancy rates reported by a several differing reporting agencies in the Tri-County vicinity before/during and after the staging of SBXLI were in part due to the extremely high average daily rates reported by the lodging industry in South Florida during SBXLI week, the increased availability of hotel rooms/inventory available in 2007 over 2006 and private party property inventory (condo/apartment/home rentals) in which one-time rentals and smaller hotel/motel property data which are not measured in the reporting systems (e.g. smaller hotel/motel chains comprise approximately 50% of the hotel market in Broward County). SBXLI visitor attendees reported average daily expenditures 4.58 times the typical Broward County visitor profiled in 2006 and 2.73 times the typical Miami Dade visitor profiled. A SBXLI visitor's average household income (HHI) was 2.85 times that of a typical Broward County visitor which supports the notion that a Super Bowl visitor has a larger percentage of discretionary income to spend when compared to a typical South Florida segment visitor. Ultimately the true benefit of this information is in understanding and applying the supply and demand curve created by a tremendous visitor infusion in the host communities. Price point sensitivity is paramount when offering lodging accommodations, providing great value to future Super Bowl visitors and exceeding these consumers expectations with service excellence are the keys to successful lodging strategy with future Super Bowl visitors. The SMRI SBXLI Economic Impact Investigation Project Team wishes to thank the following individuals for their assistance in the preparation of this report: Ms. Stephanie Adams, Mr. Bill Anderson, Mr. Joe Bailey, Mr. Rodney Barreto, Dr. Dennis Bechtol, Dr. Jan Bell, Ms. Barbara DeMott, Mr. John Easterling, Mr. Eric Gordin, Ms. Kimberly Fields, Ms. Nicki Grossman, Mr. Rick Lassiter Ms. Ashley Lynn, Ms. Ellen Kelly, Mr. Michael Kelly; Mr. Jonathan Peters, Ms. Joan Ryan-Canu, Mr. Bruce Schultze, Mr. Jason Shone, Mr. Frank Supovitz; Mr. Bill Talbert, and Ms. Kelly Tortoriello and the Sport Management Program(s) and students at Northwood University and St. Thomas University. Sport Management Research Institute (SMRI) April 2007 45 2007 SBXLI Market & Economic Impact Analysis