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Economic/Fiscal Impact & Marketing Analysis of Sting in Taos 2019

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Economic/Fiscal Impact & Marketing Analysis of Sting in Taos 2019 SEPTEMBER 2019 ECONOMIC/FISCAL IMPACT & MARKETING ANALYSIS OF STING IN TAOS 2019 PRESENTED TO: TOWN OF TAOS 1139 PASEO DEL CANON SUR TAOS, NM 87571 PRESENTED BY: P.O. BOX 1506 SANTA FE, NM 87504 0 | P a g e 505.989.8500 SOUTHWESTPLANNING.COM Contents Executive Summary .................................................................................................................................................. 2 Economic Impact Summary ................................................................................................................................. 2 Marketing Summary .............................................................................................................................................. 3 Methodology ............................................................................................................................................................ 5 Economic Impact Analysis ....................................................................................................................................... 6 Attendee Spending .............................................................................................................................................. 6 Tax Benefits from Attendee Spending ................................................................................................................... 6 Marketing & Production Impact of the Event ....................................................................................................... 8 Estimated Total Tax Revenues ............................................................................................................................... 8 Indirect and Induced Impact of Spending ........................................................................................................... 9 Marketing Report .................................................................................................................................................... 10 Attendee Residency ........................................................................................................................................... 10 Demographics .................................................................................................................................................... 11 Attendance ........................................................................................................................................................ 13 Travel ................................................................................................................................................................... 13 Activities While in Taos ......................................................................................................................................... 17 Marketing ............................................................................................................................................................ 18 Attendee Experience .......................................................................................................................................... 19 Appendix A: Survey Instrument .............................................................................................................................. 20 Appendix B: Verbatim (Unedited) Open Ended Responses ................................................................................... 26 Q3a. How did you travel to Taos? (choose one) ................................................................................................ 27 Q5. What other things did you do while staying in Taos? ................................................................................... 28 Q6. How did you hear about Sting in Taos? (other) ............................................................................................ 33 Q7a. How would you rate your experience: with Sting in Taos and with Your Visit to Taos? Why do you say that? .................................................................................................................................................................... 38 Q16. Please use the space provided for any additional comments or suggestions you may have about your visit to Taos while attending Sting in Taos: ........................................................................................................... 87 1 | P a g e Executive Summary Economic Impact Summary The Sting in Taos Concert was held on Labor Day, September 2, 2019 in Kit Carson Park. The Town of Taos commissioned Southwest Planning & Marketing (SWPM) to determine the economic and fiscal impact of the event, as well as to do a concurrent marketing survey of attendees. Unique attendance to the event was provided by the event organizer based on ticket sales: 7,704 total attendance. Total spending by event attendees was $437,675 for lodging, $625,643 for event tickets, $420,477 for food and meals, $79,885 for transportation, $29,126 for outdoor recreation, $56,716 for attractions/entertainment, and $239,468 for shopping/miscellaneous. Total spending for all categories combined was $1,888,991. Based on spending as a result of the event, total gross receipts tax (GRT)1 from out-of-town attendees was estimated at $25,966 for the town, $25,966 for the county, and $78,861 for the state. The total GRT generated from local attendees was estimated at $2,826 for the town, $2,826 for the county, and $8,581 for the state. Spending by out-of-town and resident attendees together generated an estimated total GRT of $160,564. Attendees to the event spent an average of $254 on lodging during their stay. Based on this number, the estimated total taxable spending on lodging by attendees was $437,675, generating $21,884 in lodgers’ tax. The combined estimated gross receipts and lodgers’ tax on lodging paid by attendees was $59,086. The total combined gross receipts and lodgers’ tax paid by local and out-of- town attendees on all spending was estimated to be $182,448. The Town of Taos spent $16,470 (excluding GRT paid on these supplies and services) locally on marketing and production of the event. This generated an additional $1,400 in GRT. The direct economic impact of the event on the local economy, including spending by event attendees and by the Town of Taos on marketing and 1 Town and county GRT rates obtained from the New Mexico Municipal League; state rate obtained from the State of New Mexico Finance & Administration Department. 2 | P a g e producing the event, was estimated to be $1,905,461, resulting in $183,848 in total tax benefits, with $32,155 in GRT allocated to the Town of Taos. Applying an indirect and induced spending multiplier of 1.42 to direct spending generated $762,184 in indirect and induced spending. Combining this with direct spending yielded a total combined direct, indirect and induced impact of the event on the local economy of $2,667,646. Numbers may not total due to rounding. Marketing Summary • The majority (83.8%) of respondents were from New Mexico. • Over sixty-seven percent of respondents (67.1%) lived more than 50 miles from Taos; 32.9% lived in the area (within 50 miles of Taos). • Twenty-two percent (22.4%) lived in Albuquerque, followed by Santa Fe (21.1%) and the Town of Taos (12.7%). • 70.8% of respondents had a bachelor’s degree or higher. • The average age of respondents was 55.6 (ranging in age from 18-95). • Thirty-three percent (33.3%) of respondents were male, 62.5% were female. • Fifty-five percent (54.6%) of the respondents reported annual household incomes of $100,000 or greater. • The average attendee party size was 3.1. • Nearly all of the attendees (98.2%) indicated that the Sting in Taos Concert was the primary reason or a strong reason for visiting Taos. • The vast majority of respondents (95.2%) had visited Taos before. 2 Source: Tourism Economics-Tourism Economics utilizes a standard input-output model to generate the percentage of indirect/induced impact as a result of tourism; each directly affected sector also purchases goods and services as inputs into production (indirect impacts). Induced impact is generated when employees whose incomes are generated either directly or indirectly by tourism, spend those incomes in the local economy. 3 | P a g e • Seventy-five percent (75.2%) of respondents from outside the area (lived 50 or more miles away) indicated that they spent the night in Taos while participating in the event. These visitors spent an average of 2.3 nights in the area and an additional 1.5 nights in New Mexico (outside of Taos) as a result of attending the Sting in Taos Concert. • Half (50.1%) of the respondents who stayed overnight indicated that they stayed in a hotel/motel/B&B; 23.1% stayed in a vacation/short-term rental and 14.2% stayed with friends/relatives. • For those respondents that stayed in a vacation/short-term rental, most used Airbnb.com to book their stay (67.5%); VRBO.com was the next most widely used website for booking travel (23.3%). • For those respondents that stayed in a hotel, the Sagebrush Inn was the hotel most stayed at (14.4%). • Just under ninety-four percent (93.5%) of respondents reported traveling to Taos in a private vehicle. • Fifty-six percent (56.0%) of the respondents visited the Taos Plaza while in town for the event. Other activities most participated in by respondents were: fine dining (49.6%), shopping (43.0%), scenic drives (33.8%), visiting art galleries (29.0%), and visiting the Rio Grande Gorge (24.3%).
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