Investing in Bicycle Infrastructure to Spur Statewide Economic Growth Through Bicycle Tourism

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Investing in Bicycle Infrastructure to Spur Statewide Economic Growth Through Bicycle Tourism INVESTING IN BICYCLE INFRASTRUCTURE TO SPUR STATEWIDE ECONOMIC GROWTH THROUGH BICYCLE TOURISM F I Principal Investigator N Daniel P. Piatkowski, PhD A Assistant Professor of Community and Regional Planning L R E Co-Principal Investigator P Fadi Alsaleem, PhD O Assistant Professor of Architectural Engineering R T Graduate Student Researcher (Lead/Primary Author) Pedro Aguero Arroyo, MBA M. Arch Candidate University of Nebraska-Lincoln 1400 R St Lincoln, NE 68588 Sponsored By Nebraska Department of Transportation and U.S. Department of Transportation Federal Highway Administration December 2020 TECHNICAL REPORT DOCUMENTATION PAGE 1. Report No. 2. Government Accession No. 3. Recipient’s Catalog No. TSPTI-05 4. Title and Subtitle 5. Report Date Investing in Bicycle Infrastructure to Spur Statewide Economic Growth through Bicycle Tourism 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. Pedro Aguero Arroyo, Daniel P. Piatkowski, Fadi Alsaleem If applicable, enter any/all unique numbers assigned to the performing organization. 9. Performing Organization Name and Address 10. Work Unit No. University of Nebraska-Lincoln 1400 R St 11. Contract Lincoln, NE 68588 Enter the number of the contract, grant, and/or project number under which the report was prepared (e.g., WHRP 0092- XX-XX). 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered Nebraska Department of Transportation Final Report Research Section 1400 Hwy 2 Lincoln, NE 68502 14. Sponsoring Agency Code 15. Supplementary Notes 16. Abstract Bicycle tourism is a growing industry that has been shown by prior studies to contribute significantly to the economy of numerous states. The economic benefits of recreational bicycling are not limited to the direct effects of the transactions of bicyclists in related industries, but also spillover effects such as the reduction of automobile activity and its associated costs to society, or the decrease of the costs of obesity and inactivity to the healthcare system. This study focuses on the former and provides a qualitative and quantitative analysis of the economic impacts derived from recreational bicycling expenditure, as well as an assessment of the implications of bicycling events and activity for Nebraskan communities, local and state governments 17. Key Words 18. Distribution Statement Bicycling, Economic Impacts, Bicycle Tourism, Recreational No restrictions. This document is available through the Travel, Bicycle Infrastructure National Technical Information Service. 5285 Port Royal Road Springfield, VA 22161 19. Security Classification (of this report) 20. Security Classification (of 21. No. of Pages 22. Price Unclassified this page) 46 Unclassified Form DOT F 1700.7 (8-72) Reproduction of completed page authorized 2 DISCLAIMER The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the information presented herein. The contents do not necessarily reflect the official views or policies neither of the Nebraska Department of Transportations nor the University of Nebraska-Lincoln. This report does not constitute a standard, specification, or regulation. Trade or manufacturers’ names, which may appear in this report, are cited only because they are considered essential to the objectives of the report. The United States (U.S.) government and the State of Nebraska do not endorse products or manufacturers. This material is based upon work supported by the Federal Highway Administration under SPR-P1(see your contract for this #. Any opinions, findings and conclusions or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the Federal Highway Administration.” 3 TABLE OF CONTENTS TABLE OF CONTENTS 4 LIST OF FIGURES & TABLES 5 CHAPTER 1: INTRODUCTION 6 Research Overview 6 Scale and scope of the study 7 CHAPTER 2: CASE STUDIES 9 Introduction 9 Case Study 1: Robidoux Quick and Dirty 10 Case Study 2: Kool-Aid Classic Bicycle Tour 14 Case Study 3: Nacho Ride 18 Case Study 4: SATURDAY MORNING NO DROP FAT BIKE RIDE 22 Case Study 5: GRAVEL WORLDS 25 Case Study 6: NEBRASKA UNITED METHODIST BIKE RIDE FOR HUNGER 29 Discussion 32 CHAPTER 3: IMPLAN ANALYSIS 33 Introduction 33 Recreational Bicycling Activity 34 Bicycling Tourism 34 Residential Recreational Bicycling 36 Recreational Bicycling Expenditure 37 Bicycling Tourism 37 Residential Recreational Bicycling 40 Total Expenditure 41 Findings 43 Discussion and Conclusion 45 CHAPTER 4: CONCLUSIONS AND IMPLICATIONS 46 Economic Impacts for the State and Local Economies 46 Implications for NDOT Operation and Planning 47 4 LIST OF FIGURES & TABLES Figure 2.2.1: Kool-Aid Classic Participants by Year and Origin 17 Table 2.1.1: RQD Registration Fees Revenue by Course 11 Table 2.1.2: RQD Visitors by Length of Stay 12 Table 2.1.3: RQD Participants by Lodging Type 12 Table 2.1.4: RQD Lodging Industry Revenues 12 Table 2.1.5: RQD Restaurant Industry Revenue 12 Table 2.2.1: Kool-Aid Classic Meal Expenditure 16 Table 2.3.1: Nacho Riders to Strava Users per Event Instance 20 Table 3.1.: Event Frequency, Duration and Annual Attendance 34 Table 3.2: Registration Fees by Event 37 Table 3.3: Average Lodging Expenditure per Case Study 38 Table 3.4: Average Food & Drinks Expenditure per Case Study 39 Table 3.5: Average Fuel & Groceries Expenditure per Case Study 39 Table 3.6: Residential Recreational Expenditure by Category 40 Table 3.7: Critical Total Recreational Expenditure by Category 41 Table 3.8: Optimal Total Recreational Expenditure by Category 41 Table 3.9: Optimal Total Recreational Expenditure by Category 42 Table 3.10: Critical Economic Impacts of Recreational Bicycling in Nebraska 43 Table 3.11: Realistic Economic Impacts of Recreational Bicycling in Nebraska 43 Table 3.12: Optimal Economic Impacts of Recreational Bicycling in Nebraska 43 Table 3.13: Critical Tax Revenue of Recreational Bicycling in Nebraska Table 3.14: Realistic Tax Revenue of Recreational Bicycling in Nebraska Table 3.16: Optimal Tax Revenue of Recreational Bicycling in Nebraska 5 CHAPTER 1: INTRODUCTION RESEARCH OVERVIEW Bicycle tourism is a growing industry that has been shown by prior studies to contribute significantly to the economy of numerous states.1 The economic benefits of recreational bicycling are not limited to the direct effects of the transactions of bicyclists in related industries, but also spillover effects such as the reduction of automobile activity and its associated costs to society, or the decrease of the costs of obesity and inactivity to the healthcare system. This study focuses on the former and aims to provide a qualitative and quantitative analysis of the economic impacts derived from recreational bicycling expenditure, as well as an assessment of the implications of bicycling events and activity for Nebraskan communities, local and state governments. This research will: 1. Identify recreational bicycling events and quantify unorganized bicycling activity in Nebraska. 2. Estimate the direct, indirect and induced economic impacts of bicycle tourism and recreational bicycling in Nebraska. 3. Discuss specific ways in which the State’s bicycle infrastructure can promote or inhibit the development of bicycle tourism and recreational activity. The study consists of two main components: 1. A compilation of six case studies of bicycle tourism events that currently take place in Nebraska. For each case study, data about participation and user expenditure was gathered and used to estimate the economic impact at the county-level, and to assess the event’s implications. 2. An estimation of the overall recreational bicycling activity and its economic impact in the State of Nebraska, considering both bicycle tourism and unorganized activity. This estimation relies on data from the case studies and prior research to determine the expenditure of bicyclists in the State, and uses IMPLAN to calculate direct, indirect and induced economic impacts. The case studies contain an in-depth analysis of the different types of touristic events and how they affect their localities, while the second component aims to approximate the size of the recreational bicycling industry in Nebraska. Altogether, both components provide an ample overview of the nature and scope of recreational bicycling activity in Nebraska that can inform government officials and policy-makers’ decision process in regards to operations that affect the future of the State’s bicycle tourism industry. 1 Research available at: https://peopleforbikes.org/our-work/statistics/statistics-category/?cat=economic-statistics 6 SCALE AND SCOPE OF THE STUDY A literature review of similar studies on different states was conducted prior to the identification of bicycle tourism events in Nebraska. These prior studies presented different methodologies and estimates for bicycling activity, expenditures and economic impacts in the states of Colorado, Wisconsin and Iowa.2 While this research covered 46 individual bicycle tourism events in Nebraska, the six case studies that are included in Chapter 2 were chosen as they represent the wide variety of bicycle races that the State’s has to offer in terms of: 1. Location: Urban versus rural, with single or multiple locations and routes. 2. Size: Events ranging from a dozen to several hundred participants. 3. Type of race: Road races versus off-road events such as gravel grinders. 4. Target market: Competitive races, casual recreational rides, or family-oriented events.
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