SECURING THE INDUSTRY’S FUTURE BY LEVERAGING SPORT TOURISM FROM WITHIN Photo courtesy of Rockford Area CVB Area of Rockford courtesy Photo

West Rock Wake Park, Rockford, IL SportsPlanningGuide.com TABLE OF CONTENTS

Page 3-4 SPORT TOURISM COSMOS • Dynamic Growth • Beyond Economics • Place-making, Experiential Marketing and Local Product Development Photo courtesy of Rockford Area CVB Area of Rockford courtesy Photo

Page 5-7 UNIVERSAL FINDINGS • Education & Research • “Youth Sports Inc.” • Participation in Decline • Holistic Leveraging

Page 7-9 CREATE YOUR FUTURE, LOCALLY • Regionalization of Sport Tourism • The Triple Bottom Line • An Anomaly and Model

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By Nicholas C. Povalitis, CDME n recent years, sport tourism has enjoyed for industry sustainability among sports business record-breaking growth driven largely out experts. Given their inherent intermediary of the multi-billion dollar youth segment. role between communities and event owners, Destinations must also strategically plan destination sport tourism entities are uniquely Ifor the eventual contraction of the space. positioned to leverage events and the influx Tourism is trending toward a $1 trillion industry of multi-purpose sports complexes locally and within five years and the Sports Events and regionally to enhance access for locals. As a Tourism Association (Sports ETA) is reporting complementary effort to traditional tourism 37 percent growth since 2013 in sports event marketing, this inside out sport tourism approach visitor spending. However, overall youth sports can help reverse the downward trend in youth participation rates have dropped consistently participation, ultimately helping to secure the over the last decade, data that causes concern industry’s future.

2 SPORT TOURISM COSMOS In the sport tourism cosmos, an industry that experienced a visitor spending increase of nine percent to a record $11.4 billion last year (National Association of Sports Commissions [NASC], 2017), today’s expansion persists alongside the expedient construction of multi-purpose sports complexes nationally. Since 2003, more than $6 billion in planned and operational sport, entertainment and recreational facilities have been served globally by industry specialist The Sports Facilities Advisory (SFA) (SFA, 2019), and the SPORTS ETA continues to grow its membership base of destinations and sports commissions from 356 to 530 the last 10 years, and of event owners and national governing bodies from 94 to 193 during the same period of time (Kidd, 2019). Despite the dynamic growth, destination “By the very nature of their ultimate organizations must prepare for an eventual contraction and long-term sustainability of sport intermediary role, destination sport tourism. Specifically, youth sports participation tourism organizations are in the midst of is on the decline nationally, as rates have dropped four points since 2011 (The Aspen a present-day juxtaposition of feast and Institute Project Play, 2019). By the very nature famine within youth and travel sports.” of their ultimate intermediary role, destination sport tourism organizations are in the midst Mercyhealth Sportscore One, Rockford, IL

of a present-day juxtaposition of feast and District Park of Rockford courtesy Photo famine within youth and travel sports—allowing destinations to help dictate a positive long- suggests this blended approach is the way of the term outcome for sport tourism. As outlined future for sustainable sport tourism. The industry’s in the most recent DestinationNEXT Futures most recent research pioneered by Stoll (2018) Study, four of the top five industry strategies studies the content of mission statements from are steeped in resident-centric programming, sport tourism entities, results that certainly reflect including trends where destinations will: place the importance of economic development (69.92% greater emphasis on engaging with customers of respondents listed impact in their mission in two-way conversations; play a more central statements). Beyond economics, missions also role of in-market advocacy; be more involved in focus on destination branding (52.63%), socio- broader economic-development projects and cultural leverage (46.62%), business development initiatives; and connect the visitor experience with (27.07%) and venue engagement (15.04%) (Stoll, the quality of life of residents in their respective 2018). In short, measuring successful sport communities (Destinations International, 2017). tourism involves visitor spending, as well as The most successful destinations understand the local engagement—contrary yet necessary to mutual significance of the resident and visitor, and complement the traditional outside-of-50 miles the data pertaining to youth sports participation tourism marketing efforts.

3 Sport tourism dates back as far as 900 B.C. tourism organizations to plan tactically, at times when the Ancient Greek Games were produced devising community strategic plans 5-10 years by the Romans to shift the populace’s focus ahead to anticipate the trends and realities of the away from difficult living conditions (Gibson, future. Considering the overall downward trend of 1998). In 684 B.C., the Games extended to three youth sports participation, that future planning for days, and they were extended another two days destination sport tourism is best curated closer to in the fifth century B.C. (International Olympic home through appropriate research, education, Committee [IOC], 2019). The ancient Olympics hiring practices and the execution of intentional were leveraged for the benefit of the resident, local programming. while the focus of the modern industry is largely limited to economic impact analyses of such events (Gibson, 1998). However, researchers contend it remains difficult to accurately assess sport tourism’s economic impact (Gibson, 2019), and Destinations International (DI) is in the process of shifting from merely heads in beds metrics to allow for further industry expansion (Kidd, 2019), including continued efforts inplace- making, experiential marketing and local product development (DI, 2017). Developed by Tourism Economics, the latest DI economic impact calculator underscores locality by utilizing custom inputs specific to each destination to comprehensively measure impact of events on businesses, employment, income and local taxes (DI, 2019), helping to cultivate a clearer frame of reference related to tourism’s local impact. Tourism growth is trending extremely favorably—$1 trillion USD in visitor-related expenses is projected over the next five years (Visa Consulting & Analytics, 2019)—and the sports segment, which has increased by 37 percent since 2013 (SPORTS ETA, 2019), is undoubtedly “It is the responsibility of sport tourism a contributing factor of the increase. Growth organizations to plan tactically, at times is expected to continue for the foreseeable future, but Chalip (2004) suggests leverage devising community strategic plans as the ultimate reinforcer of sustainable sport 5-10 years ahead to anticipate the tourism. Before the sport tourism bubble bursts, leveraging is a proactive approach that allows for trends and realities of the future.” strategy and forecasting, event analyses related to community fit, and the agility for organizations UW Health Sports Factory, Rockford, IL

to learn and adapt. It is the responsibility of sport CVB Area of Rockford courtesy Photo

4 UNIVERSAL FINDINGS peace of mind about the organization’s capacity In successful tourism planning, data drives to understand event needs and execute better business decisions. Historically, academics and than a CVB. Kidd (2019) adds that the goal of industry experts have repeatedly suggested an SPORTS ETA is to improve the quality of its overall lack of research dedicated to sport tourism, education outreach and programs to a level and the absence of globalized information of the where CVB-led sport tourism and stand-alone segment is even a barrier to industry progress sports commissions are perceived the same. (Pigeassou, 1997). There also remains a lack of Though no specific human resources (HR) educational focus for sport tourism, though recent research exists, HR professionals rooted in efforts have been made for industry-specific tourism have taken notice to the competitive schooling as exemplified by St. Thomas University nature of the industry, coupling multi-faceted in Miami Gardens, Florida, where a masters skillsets in sales, marketing and event operations of business administration in sports tourism is with high emotional intelligence as indicators for offered. The STU MBA program, an anomaly for sport tourism success (Brich, 2019). With more sport tourism post-secondary education, has research and increased sophistication, the hiring received favorable reception due largely to its process gets more competitive—and destinations, south Florida location, where tourism has long event operators and the industry wins. thrived (Epling, 2019). Additionally, the inclusion In addition to limited sport tourism-specific of destination sport tourism as an approved education and research, modern studies suggest final exam topic for the Certified Destination the commercialization of travel sports, a reality Management Executive (CDME) program through that has driven increased competition in sport Destinations International (DI) signals a desire for tourism (Schwark, 2007), is a significant challenge concerted efforts of strategic planning specific for destinations. While the economic benefit has to sport tourism and accentuates SPORTS ETA’s driven sport tourism’s growth, there are arduous recent efforts to revamp educational resources examples for the industry to learn from—most for industry professionals. notably, unsuccessful Olympic Games that have DI’s educational programs exist to level the not lived up to their promised local benefits from playing field throughout the hospitality industry the buildout of new facilities, which are largely (McClain, 2019), a notion that is echoed by Kidd unsuitable for everyday use in Calgary (Whitson and Stoll (2019). There is a specific need within & Macintosh, 1993). There is a safeguard, though, sport tourism for increased sophistication (Kidd, for sport tourism organizations who desire to 2019), as demonstrated by the perception of host events of any scale—securing resident sports commissions compared to convention buy-in with appropriate communication and and visitors bureaus (CVB). Typically, sports advocacy is highly regarded. As demonstrated by commissions are looked at more favorably the social exchange theory, communicating the from the perspective of event owners, as anticipated positive impact of sports events with commission employees tend to have a blended your constituents enhances resident belief in the skillset (Stoll, 2019) of marketing, operations and program, and, thus, the perceptions of a tourism overall business savvy (Kidd, 2019). As part of 14 event is more positive (Weed, 2009). qualitative interviews, Stoll’s (2018) dissertation Because of the global spotlight on competitive interview subjects noted that merely the words bid processes for the Olympics, the International sports commission gives event owners a natural Olympic Committee (IOC) continues to lead the

5 Mercyhealth Sportscore Two, Loves Park, IL Photo courtesy of Rockford Area CVB Area of Rockford courtesy Photo

conversation of responsible sports, so much that parents needing to spend more to ensure their it lists sustainability, credibility and youth as its children are prepared for college competition three pillars of the Olympic Agenda 2020 (IOC, (Pathik, 2018). 2019). While the Olympics represent a mega- While negative public perception may be sports event—the LA28 Games marketing arm is mitigated by destination organizations through targeting $2.5 billion USD in sponsorship sales strategic messaging, The Aspen Institute (Fischer, 2018)—the collective youth travel sports Project Play suggests there are more significant market, which some estimated last year as a $17 threats to the future well-being of youth billion industry (Frankel, 2018), continues to be sports. Core sports participants, ages 6-17, are dominated by facilities investment, providing playing less—down from 71% in 2011 to 67% destinations of all sizes a seat at the sport in 2017—due to single sport specialization, tourism table. overuse and injury, player burnout, decreasing Real Sports with Bryant Gumbel has released sports budgets and the marginalization of two critically-acclaimed features on the current the recreational player (The Aspen Institute state of sport tourism. The 2017 “Youth Sports Project Play, 2019). Sports entrepreneurs Inc.” feature outlined a facilities arms race in have achieved record success in monetizing destinations like Westfield, IN, and Myrtle Beach, competitive travel sports, an arms race that has SC, among others across the country. Currently, also impacted industry suppliers that sell youth leverage rests with large-scale complexes and baseball bats for up to $400 or swim suits for event owners who are creating “tournacations,” as much as $500 (The Aspen Institute Project yielding annual family sports travel spends of up Play, 2019). With rising costs, though, there to $15,000 (Frankel, 2017). In the 2018 follow-up is direct correlation between low income and entitled “The Price of Youth Sports,” tournament lack of education and lower participation rates operators exploit and perpetuate the belief of (Pathik, 2018). Cove (2019) cites that these links

6 “The combination of inactivity and overall decline of sports participation has garnered interest at the federal level.”

Aldeen Golf Club, Rockford, IL Photo courtesy of Rockford Park District Park of Rockford courtesy Photo

are immoral and should serve as a wake-up call ownership, with members citing increased for all involved in sports business. revenue, community engagement and improved There have been incremental improvements of quality of life for the rationale behind the shift kids being more physically active each of the last (SPORTS ETA, 2017). Community wellness was three years and multi-sport sampling increased also measured by SPORTS ETA for the second- last year for the first time in four years (The Aspen straight year, which 42% of respondents cited Institute Project Play, 2019). But inactivity rates are involvement with community wellness initiatives. higher than they were five years ago, reporting And for the first time, SPORTS ETA observed at 27.3% in 2018 compared to 26.5% in 2013 return on mission (ROM) in the annual survey, (Physical Activity Council, 2019). The combination in which nine percent of respondents deemed of inactivity and overall decline of sports ROM as a measure of success. participation has garnered interest at the federal As the number of sports events hosted in level, most notably when President Donald J. 2017 increased on average by 30% from the Trump signed an executive order in 2018 that previous year (SPORTS ETA, 2017), facilities refocused the mission of the President’s Council expansion is poised to continue due to the on Sports, Fitness, and Nutrition to drive sports inherent local tax and visitor economic benefits participation of America’s youth. The executive that come with it (Kidd, 2019). Yet Rocky Mount, order was in response to some alarming statistics, NC, a recent example of a community that including research that shows kids spend 7.5 decided to build a downtown sports campus to hours per day in front of electronic screens inject life into its city center, reaped the benefit and only six states require physical education of a $6 million tax break by incorporating in grades K-12 (U.S. Department of Health and access and health and wellness into the Rocky Human Services, 2018). Mount Sports Complex business plan (Pathik, Data suggests sport tourism is giving 2019)—a holistic approach that signals the consideration to socio-cultural leverage of future of destination sport tourism. programs for local access, as 42.55% of As part of The Aspen Institute Project Play stand-alone sports commissions cite quality 2020, a multiyear effort by leading organizations of life in their mission statements (Stoll, 2018). to grow national sport participation rates and Additionally, last year’s SPORTS ETA member related metrics among youth, one industry leader surveys showed a 10 percent increase in event weighs in on the state of amateur athletics:

7 The current state of youth sports cannot importance and gain buy-in from customers. stand. It can’t survive itself. It’s eliminating The end results include product development, its own future and burning people out. increased access to programs and ultimately a Parents need to have the ability to more welcoming destination for visitors when they not participate in travel teams. That’s arrive. Moreover, there is significant local crossover disruptive and may piss some people off, of tourism-related hotel taxes—on average, 50% but it has to happen. (Pathik, 2019) are allocated to the local general fund compared to just 20% to tourism marketing programs (Gast, Whether it’s termed disintermediation, 2019)—giving destination organizations plenty disruption or a force of change, the decline of reason to invest time and resources inside of in youth sports participation is perhaps the 50 miles. With that next recession, Kidd (2019) most significant challenge for sport tourism predicts less economic return from sport tourism, organizations, and destinations must prepare propagating the need to continually diversify accordingly because the industry’s future consistent revenue sources. Some of those depends on it. expanded revenue-generating methods include assessments, tourism improvement districts, event CREATE YOUR FUTURE, LOCALLY ownership, sponsorship sales, and rental revenues To do its part to help reverse participation from equipment and facility ownership—each of numbers, it is time sport tourism puts the resident which lean heavily on local support. on equal footing with the visitor. The number of Indeed, the importance of economic impact facilities and event operators is still trending up, from hotel overnights is here to stay because but the industry will eventually reach a point of of how the industry is funded (Stoll, 2018), but saturation that yields the next phase of business there is a finite number of travel tournaments coined as consolidation (Kidd, 2019). Today’s that destinations compete for to host. Chalip increasing cost of travel sports has contributed (2006) declares economic impact is focused to elitism in the industry, and a groundswell of on outcomes, actual results and is treated support for getting kids to play is imminent (Stoll, in isolation. Leverage, though, involves 2019). With the influx of available facilities in strategies and tactics, analyses with reference recent years, destinations can reinvent the sport to the destination, organizational learning and tourism narrative so that—in addition to visitor forecasting. Thus, in combatting declining economic impact—it includes the regionalization participation rates, event economic impact as of sport, leveraging the additional playing fields a lone measure of future progress for sport to help restore local growth of youth participation. tourism is incomplete. Social and environmental If the greater sport tourism industry embraces this strategies must also be utilized to create responsibility, the impact can be significant. sustainable tourism’s most widely accepted To maximize sustainability, the value proposition approach—the triple bottom line (Gibson, of a sport tourism destination should reflect Kaplanidou, Kang, 2011). its authentic setting—it is largely an inside out LA84 Foundation wrote the playbook for approach consistent with widely supported tourism sustainable and responsible sports programs best practices in advocacy, community relations, (Povalitis, 2016). Since the vastly profitable strategic regional planning and engaging citizens. 1984 Los Angeles Summer Olympic Games— Destinations conduct such activities to strengthen which netted a $232 million surplus, including relationships, proactively tell the story of tourism’s 40 percent to seed LA84, 40 percent to seed

8 UW Health Sports Factory, Rockford, IL Photo courtesy of Rockford Area CVB Area of Rockford courtesy Photo

the United States Olympic Committee (USOC) youth sports legacy playing out across the city Foundation, and 20 percent divided evenly almost daily. To date, LA84 has impacted more between USOC national governing bodies— than three million youth and their families, LA84 has been operating as a national leader supported more than 2,200 local nonprofits in supporting programs and public education through grant programs, and trained more than dedicated to the positive impact of youth 75,000 coaches in the Los Angeles area (LA84, sports (LA84 Foundation, 2019). LA84 is a living 2019). It also helped the City of Angels deliver a Olympic legacy that is also referenced time and winning bid for 2028. again throughout Los Angeles’s winning bid Given traditional destination sport tourism for the 2028 Olympic Games (Povalitis, 2016). funding models which emphasize economic More recently, Salt Lake City was the choice as impact, the story of the LA84 Foundation is USOC’s Candidature City for the 2030 Winter an anomaly (Kidd, 2019). It is also a model to Games, a choice with minimized risk because follow for sport tourism destinations, which have of Salt Lake’s existing venues, its experience innate close-to-home incentives—the ability to after previously hosting the Games, and vast pass assessments, willingness of venue partners community support (McCombs & Pells, 2018). to offer available dates and garnering the vital During the winning bid process for the support of residents in competitive bid processes, 2028 Los Angeles Summer Olympics, the to name a few—for helping to provide pathways community’s support hovered above 81% of access for local and regional participants. (LA28, 2017), thanks in part to the success Because sport tourism will contract, destination of the Games 35 years ago and existing and organizations should proact. By joining initiatives pre-planned infrastructure already in place for like Project Play 2020, sport tourism destinations 2028. Furthermore, the LA28 Bid Committee can use leverage to help increase local and (2019) notes the experience of the 1984 regional participation in amateur athletics, and Games still resonates positively with the City’s essentially create industry sustainability from the residents, with a highly visible and very active inside out. 1

9 REFERENCES

The Aspen Institute Project Play (2019). State of Play 2018 LA28 (2016). Stage 1 Vision, Games Concept and Strategy Trends and Developments [Research Report]. Retrieved from [Bid Document]. Retrieved from https://la28.org/assets/pdf/ https://assets.aspeninstitute.org/content/uploads/2018/10/ LA2024-candidature-part1_english.pdf StateofPlay2018_v4WEB_2- FINAL.pdf LA28 (2016). Stage 2 Governance, Legal and Venue Funding Brich, J.P. (2019, April). Phone interview. [Bid Document]. Retrieved from https://la28.org/assets/pdf/ LA2024-candidature-part2_english.pdf Chalip, L. (2004). Beyond impact: A general model for sport event leverage. Sport tourism: Interrelationships, impacts LA28 (2017). Stage 3 Candidature Questionnaire [Bid and issues (pp.226-252). Clevedon, UK: Channel View Document]. Retrieved from https://la28.org/assets/pdf/ Publications. LA2024-candidature-part3_english.pdf Chalip, L. (2006). Towards social leverage of sports events. LA84 Foundation (2019). Our story. Retrieved from https:// Journal of Sport & Tourism, 11 (2), 109-127. la84.org/our-story/ Cove, T. (2017, March). 2017 SPORTS ETA Sports Event McClain, D. (2019). Destination marketing planning. Symposium. Powerpoint presentation at 2017 SPORTS ETA Powerpoint presentation at 2019 CDME Spring Learning Symposium, Sacramento, CA. Week, Banff, AL, CN. Cove, T. (2019). State of Play 2018 Trends and McCombs, B. & Pells, E. (2018). Salt Lake City gets approval Developments [Research Report]. Retrieved from https:// to bid for 2030 Winter Olympics. Retrieved from https:// assets.aspeninstitute.org/content/uploads/2018/10/ www.reviewjournal.com/sports/olympics/salt-lake-city-gets- StateofPlay2018_v4WEB_2- FINAL.pdf approval-to-bid-for- 2030-winter-olympics-1551584/ Destinations International. (2017) DestinationNEXT: A National Association of Sports Commissions (2017). Sports strategic roadmap for the NEXT generation of global tourism: A state of the industry report [Research Report]. destination organizations, 2017 futures study update. https://www.sportscommissions.org/Portals/ Retrieved from http://mktg.destinationsinternational.org/ sportscommissions/Documents/Reports/17_state_ of_ acton/attachment/9856/f-06ca/1/-/-/-/- /Destinations_ industry_final4.pdf International_DestinationNEXT_2017_Futures_Study.pdf Pathik, D. (2018). The price of youth sports [Video Destinations International. (2019). Event impact calculator. Feature Story]. Retrieved from https://www.youtube.com/ Retrieved from https://destinationsinternational.org/event- watch?v=AGxxBER5xJU impact-calculator Pathik, D. (2019). Sports facility expert: Kids, parents need Epling, R.T. (2019, April). Email interview. alternative to travel teams [Online Interview]. Retrieved from Fischer, B. (2018, August). LA28 marketing arm set to launch https://www.aspenprojectplay.org/devpathikqa operations this week. Sports Business Daily. Retrieved Physical Activity Council. (2019). 2019 Physical Activity from https://www.sportsbusinessdaily.com/Journal/ Council’s Overview Report on U.S. Participation [Research Issues/2018/08/06/Olympics/USOC-LA.aspx Report]. Retrieved from http://www.physicalactivitycouncil. Frankel, J. (2017). Youth sports inc. [Video Feature com/pdfs/current.pdf Story]. Retrieved from https://www.youtube.com/ Pigeassou, C. (2007). Sport and tourism: the emergence of watch?v=9ATwFkYpVys sport into the offer of tourism. Between passion and reason, Frankel, J. (2018). The price of youth sports [Video Journal of Sport & Tourism 4, 24-27. Feature Story]. Retrieved from https://www.youtube.com/ Povalitis, N.C. (2016). Spirit of Responsible Sports. Sports watch?v=AGxxBER5xJU Planning Guide. Retrieved from http://sportsplanningguide. Gast, M.A. (2019). Strategic issues in destination com/spirit-responsible-sports/ management. Powerpoint presentation at 2019 CDME Spring Schwark, J. (2007). Sport tourism: Introduction and overview. Learning Week, Washington, DC. European Journal for Sport & Society, 4, 117-132. Gibson, H.J. (1998). Sport tourism: A critical analysis of Sports Facilities Advisory. (2019). History. Retrieved from research. Sport Management Review, 1, 45-76. https://sportadvisory.com/about/history/ Gibson, H.J. (2019, March). Phone interview. Stoll, J.A. (2018). Sport tourism entity desired outcomes Gibson, H.J., Kaplanidou, K. & Kang, S.J. (2012). Small-scale and processes (Unpublished doctoral dissertation). Troy event tourism: A case study in sustainable tourism. Sport University Troy, AL. Management Review, 15, 160-170. Stoll, J.A. (2019 March). Phone interview. International Olympic Committee. (2019). Sustainability. Visa. (2019). Visa travel insights. Retrieved from https://usa. Retrieved from https://www.olympic.org/sustainability visa.com/partner-with-us/visa-consulting- analytics/global- International Olympic Committee. (2019). Welcome to the travel-and-tourism-insights.html ancient Olympic games. Retrieved from https://www.olympic. Weed, M.E. (2009). Progress in sports tourism research? org/ancient-olympic-games/the-sports-events A meta-review and exploration of futures. Tourism Kidd, A.R. (2019, April). SPORTS ETA 10-Year Membership Management, 30, 615-628. Growth Year End 2018. PDF source from National Association Whitson, D. & Macintosh, D. (1993). Becoming a world-class of Sports Commissions in April 2019. city: Hallmark events and sport franchises in the growth Kidd, A.R. (2019, March). Phone interview. strategies of western Canadian cities. Sociology of Sport Journal, 10, 221-240.

10 EDGE THE COMPETITION

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