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Economic impact of the 2014 Special Olympics summer games on the BC economy Somerville, Tsur; Taylor, Blake Oct 1, 2014

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	  	                                                                                                                               Centre for Urban Economics and Real Estate        Economic Impact of the 2014 Special Olympics Summer Games on the BC Economy    Tsur Somerville* & Blake Taylor**  October 1, 2014    *   Real Estate Foundation Professorship of Real Estate Finance, Sauder School of Business,  University of British Columbia, 2053 Main Mall, Vancouver, BC, V6T 1Z2, Canada.  Tel: (604) 822-8343, Fax: (604) 822-8477. Email:  tsur.somerville@sauder.ubc.ca  **   BComm Student, Sauder School of Business, University of British Columbia, 2053 Main Mall, Vancouver, BC, V6T 1Z2, Canada      	  	  	   1	  Executive	  Summary	  	  The	  Special	  Olympics	  offers	  an	  exceptional	  opportunity	  for	  persons	  with	  intellectual	  disabilities	  to	  come	  together	  through	  sport.	  	  The	  program	  transforms	  the	  lives	  of	  all	  those	  who	  participate,	  assist,	  or	  watch	  the	  events,	  changing	  attitudes	  about	  disabilities,	  and	  in	  the	  process	  to	  make	  all	  of	  us	  and	  our	  communities	  stronger.	  	  By	  bringing	  people	  together,	  Special	  Olympics	  teaches	  us	  to	  recognize	  our	  similarities	  rather	  than	  focus	  on	  our	  differences.	  	  This	  past	  July,	  UBC	  and	  Vancouver	  hosted	  the	  2014	  Special	  Olympics	  Canada	  Summer	  Games	  at	  UBC’s	  Point	  Grey	  campus.	  Over	  2000	  participants	  and	  coaches	  were	  joined	  by	  an	  estimated	  2000	  family	  members,	  friends,	  and	  other	  spectators	  in	  competition	  as	  well	  as	  marvel	  in	  and	  celebrate	  the	  achievements	  of	  the	  participants.	  	  Hosting	  a	  national	  event	  may	  also	  bring	  an	  economic	  benefit	  to	  the	  host	  community	  and	  province.	  	  This	  report	  summarizes	  the	  analysis	  of	  the	  net	  economic	  impact	  of	  the	  July	  2014	  Games	  on	  the	  Province	  of	  British	  Columbia.	  	  Using	  provincial	  input-­‐output	  tables,	  survey	  and	  registration	  information	  for	  participants	  and	  attendees,	  and	  Tourism	  Vancouver	  surveys,	  the	  Games	  is	  estimated	  to	  have	  provided	  a	  boost	  of	  $1,027,000	  to	  the	  provincial	  GDP,	  $139,000	  for	  the	  provincial	  treasury,	  and	  led	  to	  an	  increase	  in	  employment	  for	  2014	  of	  the	  equivalent	  of	  26.5	  full-­‐time	  jobs.	  	  While	  not	  fully	  disaggregated,	  the	  vast	  share	  of	  the	  benefit	  occurs	  in	  Vancouver	  and	  the	  Lower	  Mainland	  rather	  than	  being	  spread	  out	  through	  the	  province.	  	   	  	   2	  Methodology	  	  This	  study	  estimates	  the	  net	  effect	  of	  hosting	  the	  Special	  Olympics	  Canada	  Summer	  Games	  on	  the	  BC	  economy	  using	  the	  standard	  input-­‐output	  multiplier	  approach.	  1	  Net	  non-­‐BC	  based	  spending	  on	  the	  Games	  is	  allocated	  to	  different	  industry	  and	  final	  demand	  categories,	  where	  each	  of	  these	  sectors	  has	  a	  different	  aggregate	  impact	  on	  the	  BC	  economy.	  	  These	  impacts	  reflect	  the	  demands	  of	  these	  industries	  for	  BC	  sourced	  inputs	  and	  the	  incomes	  of	  their	  employees	  and	  proprietors	  spent	  locally.	  It	  also	  captures	  the	  chain	  of	  further	  expenditures	  as	  the	  Games	  related	  spending	  cascades	  through	  the	  economy.	  The	  calculation	  of	  these	  expenditures	  reflects	  the	  on	  actual	  expenditures	  by	  the	  games	  organizing	  committee	  for	  the	  participants	  and	  estimates	  of	  local	  expenditures	  by	  family	  and	  friends	  who	  came	  to	  Vancouver	  from	  outside	  of	  BC	  for	  the	  Games.	  	  The	  latter’s	  expenditures	  are	  estimated	  using	  the	  findings	  in	  Tourism	  Vancouver’s	  2011	  Overnight	  Visitor	  to	  Metro	  Vancouver-­‐Visitor	  Profile	  for.2	  	  A	  more	  detailed	  description	  of	  the	  methodology	  is	  presented	  in	  Appendix	  A.	  	  	  	  The	  first	  major	  contribution	  to	  the	  BC	  economy	  from	  hosting	  the	  Special	  Olympics	  comes	  from	  expenditures	  on	  athletes	  for	  the	  event.	  To	  estimate	  the	  net	  effect	  it	  is	  important	  to	  separate	  out	  spending	  by	  BC	  residents	  and	  committee	  expenditures	  financed	  by	  donations	  from	  BC	  individuals,	  companies,	  institutions,	  and	  governments.	  	  The	  operating	  assumptions	  are	  first	  that	  all	  expenditures	  for	  and	  by	  BC	  residents	  and	  contributors	  would	  have	  occurred	  here	  anyway	  in	  the	  absence	  of	  the	  Games;	  second,	  that	  none	  of	  the	  expenditures	  for	  and	  by	  non-­‐BC	  persons	  and	  institutions	  would	  have	  occurred	  in	  BC	  this	  year	  had	  the	  Games	  not	  been	  hosted	  in	  BC.	  	  This	  is	  a	  strong	  assumption,	  but	  we	  lack	  the	  information	  to	  determine	  what	  would	  have	  been	  the	  alternative	  spending	  patterns	  in	  the	  absence	  of	  the	  Games.	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  1	  BC	  Stats	  provides	  a	  brief	  description	  of	  their	  input-­‐output	  model	  as	  well	  as	  the	  detailed	  guide	  to	  the	  application	  of	  the	  model	  to	  solving	  economic	  impact	  questions	  with	  the	  appropriate	  multiplier	  factors:	  http://www.bcstats.gov.bc.ca/StatisticsBySubject/Economy/BCInputOutputModel.aspx	  	  	  2http://www.tourismvancouver.com/includes/content/images/media/docs/expenditure_by_industry_sector.pdf	  	  	   3	  Special	  Olympics	  Canada	  revenue	  for	  the	  Games	  is	  presented	  in	  Table	  1.	  	  Of	  this,	  only	  revenues	  from	  non-­‐BC	  sources	  make	  a	  net	  contribution	  to	  the	  BC	  economy,	  as	  we	  assume	  that	  locally	  sourced	  revenues	  would	  have	  been	  spent	  in	  BC	  in	  the	  absence	  of	  the	  Special	  Olympics.	  	  For	  a	  similar	  reason,	  we	  reduce	  the	  amount	  of	  non-­‐BC	  revenue	  by	  the	  share	  going	  to	  pay	  for	  BC	  athletes:	  in	  the	  absence	  of	  the	  Games,	  the	  families	  of	  these	  athletes	  would	  have	  supported	  them	  with	  local	  expenditures.	  	  	  We	  use	  the	  percentage	  of	  athletes	  from	  outside	  BC	  for	  this	  allocation.3	  	  Table	  1	  –	  Organizing	  Committee	  Revenue	  by	  Source	  BC	   	  	   Non-­‐BC	   	  	  Special	  Olympics	  Canada	   $100,000	   Special	  Olympics	  Canada	   $657,000	  Registration	   $30,000	   Registration	   $100,000	  Provincial	  Government	   $300,000	   Out	  of	  Province	  Donations	   $80,000	  City	  of	  Vancouver	  Grant	   $35,000	   	   	  Local	  Donations	   $623,000	   	   	  	  TOTAL	   $1,088,000	   TOTAL	   $837,000	  	  From	  Table	  1,	  43	  percent	  of	  Games	  Organizing	  Committee	  revenue	  comes	  from	  non-­‐BC	  sources.	  	  BC	  athletes	  make	  up	  22	  percent	  of	  the	  participants,	  so	  the	  net	  percentage	  of	  Organizing	  Committee	  expenditures	  spent	  in	  BC	  that	  can	  be	  said	  to	  be	  entirely	  unique	  to	  the	  Games	  and	  is	  not	  replacing	  monies	  that	  otherwise	  would	  have	  been	  spent	  here	  is	  34	  percent.	  We	  apply	  this	  factor	  to	  committee	  expenditures	  to	  derive	  their	  net	  contributions	  to	  the	  BC	  economy.	  The	  exception	  to	  this	  is	  payments	  for	  accommodation,	  for	  which	  we	  also	  include	  the	  expenditures	  for	  BC	  athletes.	  	  BC	  athletes	  would	  otherwise	  be	  at	  home;	  we	  assume	  that	  monthly	  rent	  or	  owner	  costs	  are	  not	  reduced	  by	  their	  time	  away,	  so	  that	  the	  accommodation	  expenditure	  is	  a	  net	  increase.4	  	  In	  Table	  2	  we	  show	  total	  committee	  expenditures	  by	  category	  that	  will	  be	  included	  in	  the	  calculation	  of	  the	  net	  economic	  impact.	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  3	  There	  is	  one	  exception	  and	  that	  is	  expenditures	  for	  accommodation	  at	  UBC	  for	  BC	  based	  participants	  and	  coaches.	  	  We	  assume	  that	  these	  are	  additional	  Games	  triggered	  expenditures	  because	  their	  own	  costs	  of	  home	  accommodation	  continues	  to	  be	  spent	  and	  is	  not	  replaced	  by	  Games	  expenditures.	  	  	  4	  In	  comparison,	  meal	  expenditures	  for	  BC	  athletes	  do	  substitute	  for	  spending	  by	  them	  or	  their	  families	  that	  would	  have	  made	  anyway	  in	  BC	  had	  they	  not	  been	  in	  residence	  at	  UBC	  for	  the	  event.	  	  	   4	  The	  second	  major	  contribution	  to	  the	  BC	  economy	  from	  hosting	  the	  Special	  Olympics	  are	  expenditures	  by	  visitors	  who	  come	  to	  BC	  for	  the	  Special	  Olympics.	  	  The	  assumption,	  which	  is	  consistent	  with	  survey	  work	  on	  attendees,	  is	  that	  only	  family	  and	  friends	  of	  participating	  athletes	  travel	  to	  BC	  because	  of	  the	  Games.	  As	  a	  result	  we	  need	  only	  estimate	  their	  expenditures.	  From	  the	  organizing	  committee	  as	  part	  of	  the	  registration	  process,	  we	  have	  a	  database	  of	  family	  and	  friends	  who	  attended	  the	  Games.	  	  As	  part	  of	  their	  registration	  process	  they	  indicate	  how	  many	  attendees,	  home	  province,	  mode	  of	  transportation,	  expected	  length	  of	  stay,	  and	  whether	  they	  intend	  to	  stay	  with	  family,	  friends,	  or	  in	  rented	  accommodations.	  	  Table	  3	  provides	  summary	  statistics	  on	  these	  attendees.	  We	  combine	  the	  data	  presented	  in	  Table	  3	  with	  Tourism	  Vancouver	  numbers	  on	  average	  visitor	  trip	  expenditures,	  persons	  per	  trip,	  and	  trip	  length,	  which	  can	  be	  found	  in	  the	  appendix,	  to	  estimate	  expenditure	  by	  type	  of	  activity	  by	  persons	  coming	  to	  BC	  for	  the	  Special	  Olympics.	  	  The	  aggregate	  expenditures	  by	  visiting	  friends	  and	  family	  (F&F)	  from	  outside	  British	  Columbia	  are	  shown	  in	  Table	  4.	  	  	  Table	  2	  –	  Organizing	  Committee	  Expenditures	  	   Finance	  &	  Administration	   $168,951	  	  Ceremonies	   $143,130	  	  Marketing	   $56,841	  	  Media	   $4,245	  	  Volunteer	  Committee	   $62,920	  	  Operations	   $971,317	  	  	  	  	  	  	  Accommodations	   $400,951	  	  	  	  	  	  	  Food	  &	  Beverage	   $363,075	  	  	  	  	  	  	  Security	   $3,393	  	  	  	  	  	  	  Transportation	   $66,650	  	  	  	  	  	  	  Logistics	   $1,975	  	  	  	  	  	  	  Overlay	   $46,028	  	  	  	  	  	  	  Miscellaneous	   $89,245	  	  Sport	  Operations	   $169,978	  	  Medical	  Services	   $46,681	  	  Technology	   $8,592	  	  Clothing	   $60,244	  	  	  	   	  	  Total	  Expenditures	   $1,632,655	  	  	   5	  Table	  3	  -­‐	  Summary	  Statistics:	  Games	  Attendees	  Approximate	  Attendee	  Makeup	   	  	  BC	   1010	  Non-­‐BC	   990	  Total	   2000	  	  Traveler	  Makeup	   	  	  People	  per	  Party	   3	  Number	  of	  Nights	  Stayed	  in	  BC	   4	  	  	   	  	  Modes	  of	  Transportation	  for	  Non-­‐BC	  Residents	  Own	  Car	   418	  Rental	  Car	   48	  Transit/Taxi	   316	  Unpaid	  Transportation	   208	  	  	   	  	  Accommodation	  Choice	  for	  Non-­‐BC	  Residents	   	  	  UBC	  Residents	   160	  Staying	  with	  Relatives	   113	  RV	   14	  Hotel	  or	  Other	  Paid	  Accommodation	   703	  	  Table	  4	  -­‐	  Estimated	  Expenditures	  by	  Non-­‐BC	  Games	  Attendees	  	   	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  Approximate	  Expenditure	  UBC	  Accommodation	   $19,000	  Other	  Paid	  Accommodation	   $179,000	  Food	  &	  Beverage,	  Places	   $78,000	  Clothing	   $23,000	  Recreation	  and	  Entertainment	   $31,000	  Food	  &	  Beverage,	  Stores	   $19,000	  Vehicle	  Operations	   $5,000	  Vehicle	  Rentals	   $2,000	  Local	  Transportation	   $8,000	  Other	   $13,000	  TOTAL	   $377,000	  	  	  	  	  	  	  	  	  	  	  	  	  Source:	  2011	  Overnight	  Visitor	  to	  Metro	  Vancouver-­‐	  Visitor	  Profile,	  Tourism	  Vancouver	  	   6	  	  Each	  of	  the	  expenditure	  categories	  has	  economic	  multiplier	  factors	  that	  are	  estimated	  by	  BC	  Stats	  and	  published	  in	  their	  report	  2004	  British	  Columbia	  Provincial	  Economic	  Multipliers.5	  These	  multipliers	  convert	  the	  directed	  expenditures	  into	  total	  spending,	  gross	  domestic	  product	  (GDP),	  and	  municipal	  and	  provincial	  tax	  revenues.	  As	  described	  in	  the	  appendix,	  a	  number	  of	  adjustments	  are	  made	  to	  the	  expenditures	  to	  ensure	  the	  net	  multiplier	  effects	  are	  calculated,	  for	  direct,	  indirect,	  and	  induced	  effects	  of	  the	  Games	  specific	  spending.	  	  Results	  	  The	  net	  economic	  impact	  on	  the	  BC	  economy	  from	  hosting	  the	  2014	  Special	  Olympics	  Canada	  Summer	  Games	  at	  UBC	  –	  Pt.	  Grey	  is	  calculated	  by	  multiplying	  total	  net	  expenditure	  made	  by	  the	  Games	  Organizing	  Committee	  and	  expenditures	  from	  visiting	  friends	  and	  family	  by	  the	  appropriate	  set	  of	  multiplier	  factors	  as	  laid	  out	  in	  the	  appendix.	  	  Aggregating	  across	  expenditure	  categories	  the	  total	  estimated	  net	  impact	  of	  the	  Games	  on	  the	  BC	  economy	  is	  a	  follows:	  an	  increase	  in	  aggregate	  economic	  expenditures	  of	  $2,047,000,	  in	  GDP	  of	  $1,027,000,	  and	  in	  provincial	  tax	  revenues	  of	  $139,000.	  	  	  The	  increase	  in	  GDP	  is	  equivalent	  to	  an	  increase	  in	  employment	  for	  the	  year	  of	  26.5	  full	  time	  jobs.	  	  	  These	  findings	  are	  summarized	  below	  in	  Table	  5.	  	  	   	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  5	  http://www.bcstats.gov.bc.ca/StatisticsBySubject/Economy/BCInputOutputModel.aspx	  	   7	  	  Table	  5	  –	  Net	  Economic	  Impact	  of	  2014	  Special	  Olympics	  Canada	  Summer	  Games	  on	  BC	  Games	  Expenditures	   Output	  Value	   GDP	  Value	   Provincial	  Tax	  Value	   Municipal	  Tax	  Value	  Financial	  &	  Legal	  Services	   $1,000	   $1,000	   $40	   $10	  Administrative	  Services	   $94,000	   $53,000	   $3,540	   $750	  Arts,	  Entertainment	  &	  Recreation	   $428,000	   $207,000	   $14,660	   $3,260	  Accommodations	   $592,000	   $322,000	   $28,870	   $10,230	  Food	  &	  Beverage	  Services	   $183,000	   $85,000	   $7,090	   $1,600	  Advertising,	  Promotion	  &	  Marketing	   $61,000	   $15,000	   $1,150	   $250	  Clothing	   $16,000	   $9,000	   $620	   $200	  Transportation	  	   $41,000	   $16,000	   $1,550	   $220	  Office	  Supplies	   $17,000	   $3,000	   $200	   $40	  Games	  Expenditures	  Total	   $1,433,000	   $711,000	   $57,720	   $16,560	  	  	   	   	   	   	  	  F&F	  Expected	  Expenditures	   	   	   	  UBC	  Accommodations	   $31,000	   $17,000 $1,520 $540Other	  Accommodations	   $290,000	   $158,000	   $14,140	   $5,010	  Food	  &	  Beverage	  from	  Places	   $125,000	   $58,000	   $4,840	   $1,090	  Clothing	   $25,000	   $22,000	   $1,530	   $490	  Recreation	  and	  Entertainment	   $65,000	   $28,000	   $1,960	   $440	  Food	  &	  Beverage	  from	  Stores	   $21,000	   $14,000	   $860	   $110	  Vehicle	  Operations	   $13,000	   $3,000	   $380	   $60	  Vehicle	  Rentals	   $5,000	   $1,000	   $160	   $20	  Local	  Transportation	  	   $16,000	   $6,000	   $650	   $90	  Other	   $25,000	   $12,000	   $840	   $190	  F&F	  Total	   $616,000	   $319,000	   $26,880	   $8,040	  	  	   	   	   	   	  	  Tax	  Add	  Back	   	   	   $54,800	   $6,040	  	  	   	   	   	   	  	  Total	   $2,049,000	   $1,030,000	   $139,400	   $30,640	  	  	   8	  These	  figures	  show	  a	  clear	  positive	  economic	  impact	  on	  BC	  from	  hosing	  the	  Games.	  	  And	  while	  the	  contribution	  to	  the	  treasury	  from	  the	  Games	  is	  less	  than	  the	  $300,000	  in	  provincial	  revenues	  contributed	  to	  the	  Games,	  this	  is	  surpassed	  by	  the	  nearly	  $1	  million	  increase	  in	  Provincial	  GDP	  resulting	  from	  the	  Games,	  over	  three	  times	  the	  government	  expenditures	  and	  hard	  top	  match	  as	  a	  return	  on	  government	  funding.	  	  One	  final	  caveat	  though,	  this	  analysis	  does	  not	  take	  into	  account	  the	  cost	  to	  the	  BC	  economy	  of	  the	  taxation	  needed	  to	  fund	  the	  $300,000	  contribution	  to	  the	  event	  from	  the	  provincial	  treasury.	  	  This	  cost	  through	  will	  be	  no	  more	  than	  a	  fraction	  of	  the	  $300,00	  raised.6	  	  	   	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  6	  The	  range	  of	  economic	  losses	  from	  income	  taxation	  range	  from	  2.5	  to	  30	  percent	  of	  the	  revenue	  raised	  through	  taxation.	  	  See	  Feldstein,	  M.	  1999.	  Tax	  Avoidance	  and	  the	  Deadweight	  Loss	  of	  the	  Income	  Tax.	  Review	  of	  Economics	  and	  Statistics	  .	  81	  (4).	  (1999).	  	  	   9	  	  Appendix	  A	  –	  Detailed	  Methodology	  	  Games	  Expenditures	  	  As	  described	  in	  the	  body	  of	  this	  report,	  the	  net	  economic	  impact	  of	  the	  Games	  is	  a	  function	  of	  expenditures	  by	  the	  Games	  Organizing	  Committee,	  primarily	  on	  athletes,	  and	  the	  expenditures	  by	  friends	  and	  family	  (F&F)	  of	  the	  athletes	  who	  visit	  BC	  for	  the	  games.	  	  Games	  Organizing	  Committee	  expenditures	  are	  as	  reported.	  	  The	  number	  of	  visitors	  is	  self-­‐reported	  as	  part	  of	  the	  registration	  process.	  	  To	  estimate	  the	  dollars	  spent	  by	  these	  F&F	  visitors	  we	  use	  the	  findings	  of	  Tourism	  Vancouver’s	  2011	  Overnight	  Visitor	  to	  Metro	  Vancouver-­‐Visitor	  Profile	  report	  and	  the	  findings	  from	  the	  2014	  Special	  Olympic	  Games	  Friends	  and	  Family	  Survey.	  The	  sections	  below	  are	  the	  key	  classifications	  for	  spending	  that	  were	  extrapolated	  using	  the	  findings	  of	  these	  two	  sources.	  	  The	  expenditures	  by	  category	  and	  trip	  details	  from	  the	  Tourism	  Vancouver	  survey	  are	  presented	  in	  Table	  A1	  	  Accommodations	  We	  calculate	  spending	  on	  accommodations	  using	  the	  total	  number	  of	  individuals	  who	  paid	  for	  housing	  in	  British	  Columbia	  in	  the	  form	  of	  either	  UBC	  units	  or	  hotel	  rooms.	  The	  number	  of	  non-­‐BC	  spectators	  who	  opted	  for	  either	  of	  these	  paid	  accommodation	  options	  is	  as	  reported	  in	  Games’	  F&F	  survey.	  	  UBC	  unit	  spending	  is	  the	  average	  nightly	  rate	  multiplied	  by	  the	  average	  number	  of	  nights	  individuals	  spent	  in	  British	  Columbia	  to	  attend	  the	  Games	  and	  the	  number	  of	  spectators	  who	  opted	  to	  use	  this	  accommodation	  option.	  	  	  	  	  	   10	  	  	  Table	  A1:	  Vancouver	  Tourist	  Expenditures	  	  Hotel	  room	  spending	  is	  calculated	  using	  2011	  Tourism	  Vancouver	  report	  total	  trip	  spending	  on	  accommodations	  and	  dividing	  this	  figure	  by	  average	  party	  size	  and	  then	  by	  average	  number	  of	  days	  per	  trip	  from	  that	  report.	  This	  estimated	  per	  trip	  per	  day	  expenditure	  on	  hotel	  accommodations	  is	  then	  reduced	  by	  the	  front-­‐end	  tax	  rate	  given	  by	  the	  2004	  British	  Columbia	  Provincial	  Economic	  Multipliers	  report	  and	  then	  inflated	  from	  2004	  to	  the	  present	  using	  the	  Bank	  of	  Canada	  inflation	  calculator.	  Once	  the	  daily	  spending	  value	  was	  found,	  the	  figure	  was	  multiplied	  by	  the	  average	  number	  of	  days	  F&F	  stayed	  in	  a	  hotel	  room	  and	  the	  number	  of	  F&F	  who	  opted	  for	  this	  accommodation	  method.	  	  Vehicle	  Operations	  Average	  spending	  on	  vehicle	  operations	  has	  been	  confined	  to	  fuel	  costs	  as	  we	  assume	  that	  all	  vehicle	  maintenance	  by	  owners	  occur	  in	  their	  home	  province.	  In	  calculating	  the	  vehicle	  operations	  expenditure	  for	  F&F,	  the	  2011	  Tourism	  Vancouver	  report	  was	  once	  again	  used	  	  Approximate	  Spending	  per	  Day	   Number	  of	  Persons	   Approximate	  Expenditure	  UBC	  Accommodation	   $30.10	   160	   $19,000	  Other	  Accommodations	   $63.64	   703	   $179,000	  Food	  &	  Beverage,	  Places	   $19.71	   990	   $78,000	  Clothing	   $5.84	   990	   $23,000	  Recreation	  &	  Entertainment	   $7.86	   990	   $31,000	  Food	  &	  Beverage,	  Stores	   $4.80	   990	   $19,000	  Vehicle	  Operations	   $8.15	   155	   $5,000	  Vehicle	  Rentals	   $30.23	   16	   $2,000	  Local	  Transportation	   $2.12	   990	   $8,000	  Other	   $3.38	   990	   $13,000	  TOTAL	   	   	   $377,000	  	   11	  to	  estimate	  average	  expenditure	  per	  day	  by	  a	  visitor.	  All	  individuals	  who	  have	  reported	  either	  “own	  car”	  or	  “rental	  car”	  operations	  as	  a	  means	  of	  transportation	  are	  included	  in	  the	  spending	  calculation	  of	  this	  category.	  	  The	  average	  daily	  expenditure	  on	  fuel	  was	  divided	  by	  the	  average	  fuel	  price	  in	  2011	  in	  order	  to	  estimate	  the	  average	  amount	  of	  fuel	  individuals	  purchased.	  This	  average	  amount	  was	  then	  multiplied	  by	  2014’s	  average	  fuel	  price	  in	  order	  to	  find	  average	  daily	  spending	  on	  fuel	  by	  a	  visitor	  in	  2014.	  This	  figure	  was	  then	  reduced	  by	  the	  applicable	  BC	  taxes.	  	  Other	  Spending	  The	  remaining	  categories	  for	  spending	  by	  F&F	  are	  food	  and	  beverage	  in	  restaurants,	  food	  and	  beverage	  in	  stores,	  clothing,	  recreation,	  vehicle	  rentals,	  local	  transportation	  and	  miscellaneous	  spending.	  All	  of	  these	  categories	  were	  part	  of	  the	  2011	  Tourism	  Vancouver	  report	  and	  follow	  the	  same	  concept	  of	  dividing	  average	  total	  spending	  in	  that	  category	  per	  trip	  by	  average	  party	  size	  and	  then	  again	  by	  average	  number	  of	  days	  per	  trip.	  These	  daily	  estimates	  are	  reduced	  by	  the	  front-­‐end	  tax	  rate	  as	  per	  the	  recommendations	  in	  BC’s	  2004	  British	  Columbia	  Economic	  Multipliers	  report	  and	  then	  inflated	  from	  2004	  to	  the	  present	  using	  the	  Bank	  of	  Canada	  inflation	  calculator.	  	  The	  only	  category	  that	  was	  not	  multiplied	  by	  the	  total	  number	  of	  F&F	  who	  attended	  the	  games	  is	  the	  vehicle	  rental	  group.	  This	  group’s	  average	  rate	  is	  only	  applied	  to	  those	  who	  have	  designated	  their	  mode	  of	  transportation	  as	  “rental	  car”	  under	  the	  assumption	  that	  all	  members	  of	  the	  party	  share	  the	  vehicle.	  	  	  Multipliers	  	  We	  use	  the	  multiplier	  values	  provided	  from	  the	  BC	  Provincial	  input	  –	  output	  model	  as	  reported	  in	  the	  2004	  British	  Columbia	  Provincial	  Economic	  Multipliers	  report	  to	  estimate	  the	  economic	  impact	  of	  the	  Games	  on	  the	  British	  Columbia	  economy.	  	  We	  pool	  the	  expenditures	  for	  the	  Games	  themselves	  by	  the	  Organizing	  Committee	  with	  the	  estimated	  spending	  by	  F&F	  and	  allocate	  them	  into	  their	  appropriate	  multiplier	  categories	  and	  apply	  reported	  	   12	  multiplier	  values.	  Table	  A2	  designates	  the	  components	  of	  the	  multiplier	  calculation	  for	  each	  class	  of	  economic	  activity.	  	  	  Table	  A2:	  Multiplier	  Calculation	  Formulas	  Output	  Value	   Actual	  Expenditure	  x	  (1+Indirect+Safety	  Net)	  GDP	  Value	   Actual	  Expenditure	  x	  (Direct+Indirect+Safety	  Net)	  Provincial	  Tax	  Value	   Actual	  Expenditure	  x	  (Direct+Indirect+Induced)	  Municipal	  Tax	  Value	   Actual	  Expenditure	  x	  (Direct+Indirect+Induced)	  	  All	  Games	  expenditures	  and	  expected	  spectator	  spending	  is	  categorized	  such	  as	  to	  match	  the	  appropriate	  available	  multiplier	  category	  from	  the	  provincial	  input-­‐output	  tables.	  The	  expenditure	  categories	  and	  associated	  multipliers	  are	  presented	  below	  in	  Table	  A3.	  	   	  	   13	  Table	  A3:	  Expenditure	  and	  Multiplier	  Categories	  Games	  Expenditures	  Financial	  &	  Legal	  Services	   44.	  Professional,	  Scientific	  and	  Technical	  Services	  Administrative	  Services	   45.	  Administrative	  and	  Support	  Services	  Arts,	  Entertainment	  &	  Recreation	   49.	  Arts,	  Entertainment	  and	  Recreation	  Accommodations	   50.	  Accommodation	  Services	  Food	  &	  Beverage	  Services	   51.	  Food	  Services	  Advertising,	  Promotion	  &	  Marketing	   56.	  Travel,	  Entertainment,	  Advertising	  and	  Promotion	  Clothing	   *2004	  Economic	  Multiplier	  report	  recommends	  breaking	  up	  retail	  purchases	  	  	  	  	  	  	  Retail	  	   	  	  	  	  	  32.	  Retail	  Trade	  	  	  	  	  	  	  Wholesale	  	   	  	  	  	  	  31.	  Wholesale	  Trade	  Transportation	   37.Air,	  Rail,	  Water,	  Sightseeing	  Transportation	  Office	  Supplies	   55.	  Operating,	  office,	  etc.	  Supplies	  	  F&F	  Spending	  UBC	  Accommodations	  	   50.	  Accommodation	  Services	  Other	  Paid	  Accommodations	   50.	  Accommodation	  Services	  Food	  &	  Beverage	  from	  Restaurants	   51.	  Food	  Services	  Clothing	   *2004	  Economic	  Multiplier	  report	  recommends	  breaking	  up	  retail	  purchases	  	  	  	  	  	  	  	  Retail	  	   	  	  	  	  	  32.	  Retail	  Trade	  	  	  	  	  	  	  	  Wholesale	  	   	  	  	  	  	  31.	  Wholesale	  Trade	  Recreation	  and	  Entertainment	   49.	  Arts,	  Entertainment	  and	  Recreation	  Food	  &	  Beverage	  from	  Stores	   *2004	  Economic	  Multiplier	  report	  recommends	  breaking	  up	  retail	  purchases	  	  	  	  	  	  	  	  Retail	  	   	  	  	  	  	  32.	  Retail	  Trade	  	  	  	  	  	  	  	  Wholesale	  	   	  	  	  	  	  31.	  Wholesale	  Trade	  	  	  	  	  	  	  	  Production	  	   	  	  	  	  	  11.	  Food	  Manufacturing	  Vehicle	  Operations	   57.	  Transportation	  Margins	  Vehicle	  Rentals	   57.	  Transportation	  Margins	  Local	  Transportation	  (Public	  Transit,	  etc.)	   37.Air,	  Rail,	  Water,	  Sightseeing	  Transportation	  Miscellaneous	   49.	  Arts,	  Entertainment	  and	  Recreation	  	  	   14	  Upon	  calculating	  each	  category’s	  multiplied	  value	  they	  are	  all	  summed	  into	  the	  4	  categories	  of	  Output	  Value,	  GDP	  Value,	  Provincial	  Tax	  Value	  and	  Municipal	  Tax	  Value.	  	  	  	  The	  final	  step	  is	  to	  add	  back	  the	  direct	  taxation	  that	  happens	  for	  both	  provincial	  tax	  and	  municipal	  tax	  values	  as	  these	  represent	  direct	  government	  revenue	  that	  stays	  within	  British	  Columbia.	  Only	  the	  categories	  of	  accommodation,	  food	  in	  places,	  food	  in	  restaurants,	  clothing,	  vehicle	  operation,	  vehicle	  rental	  and	  office	  supplies	  have	  direct	  tax	  revenues	  that	  stay	  in	  British	  Columbia.	  Direct	  municipal	  tax	  is	  only	  applicable	  in	  accommodation	  spending.	  The	  add-­‐in’s	  are	  shown	  in	  Table	  A4	  	  Table	  A4:	  Post	  Multiplier	  Tax	  Additions	  	  	  	   Provincial	   Municipal	  Games	  Expenditures	  Accommodations	   $13,300	   $1,800	  Food	  &	  Beverage	  Services	   $100	   	  Clothing	   $1,800	   	  Transportation	   $1,900	   	  Office	  Supplies	   $1,100	   	  	  	   	   	  	  F&F	  Expenditures	   	   	  UBC	  Accommodations	  	   $1,500	   $200Other	  Accommodations	   $13,500	   $1,800	  Food	  &	  Beverage	  from	  Places	   $100	   	  Clothing	   $3,600	   	  Food	  &	  Beverage	  from	  Stores	   $1,000	   	  Vehicle	  Operations	   $500	   	  Vehicle	  Rentals	   $100	   	  	  Total	   $38,500	   $3,800	  	  

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