Economic impact of the Memphis Motorsports Park.
The city of Memphis and Shelby County must begin to explore the untapped potential that motorsports represent. Motorsports has quietly prospered in Memphis with the support of the citizens of the Mid-South. Motorsports has grown in importance quickly and now represents the next frontier for professional sports in the Mid-South. With a growing fan base, Memphis ranked fourth as a new television market for NASCAR Nextel Cup races in 2003. Memphis Motorsports Park has expanded its professional staff and currently has a schedule of over 200 racing dates over a 10month racing season. Attendance at motorsports events has grown to over 500,000 people and ranks behind only the Grizzlies and the Redbirds as the top sports draw in Memphis (Table 1). And, motorsports events are unique in their economic impact on the community and on their potential for growth. With a growing regional fan base, an expanding variety of racing events that stretch across most of the year, and the potential for additional national and international racing events looming on the horizon, the only thing that holds Memphis back is the essential public-sector partnership necessary to move Memphis to the next level. The public and private sector working together is necessary and sufficient to make Memphis a major destination for motorsports fans from across the nation.
Within motorsports are the venues that will provide the greatest return for the taxpayer's investment in professional sports. As the NASCAR Media Guide reports: (1)
* Contrary to the stereotype, typical NASCAR fans are not blue-collar workers with little or no education earning less than $20,000 annually. In fact, 36 percent of fans have annual incomes of $20,000-$39,000, and 44 percent have incomes over $40,000. Plus, 48 percent of fans work in professional, managerial, technical, clerical, and sales positions. Eighty-eight percent are high school graduates, with 38 percent pursuing higher education. The NASCAR fan is a well-educated professional in a high-paying position with strong buying power abilities.
* Age: 3.0% 18 and Under 15.0% 19-24 29.0% 25-34 25.0% 35-44 16.0% 45-54 12.0% 55 and Over * Marital Status: 22.0% Single 64.0% Married 14.0% Divorced/Widowed * Gender: 62.0% Male 38.0% Female * Occupation: 27.0% Professional/Managerial 64.0% Technical/Clerical/Sales 14.0% Craft/Precision * Education: 12.0% Some High School 88.0% High School Graduate 38.0% Some College or graduate 12.0% Retired/Unemployed 17.0% Other * Employment Status: 72.0% Full-Time 10.0% Part-Time 18.0% Retired/Unemployed * Income: 7.0% Less Than $10,000 14.0% $10,000-$19,000 17.0% $20,000-$29,000 19.0% $30,000-$39,000 15.0% $40,000-$49,000 29.0% $50,000 and Over * Residence: 28.0% Rent 72.0% Own
The market for Memphis Motorsports Park events stretches across the Mid-South region (see Map 1). Motorsports fans travel long distances to see special events. The bigger the event, the broader the market for attracting race fans to Memphis.
As Memphis Motorsports Park grows, more major events will be held in Memphis (Table 2). Major events mean major tourism and hospitality expenditures during race weeks, from Beale Street to the casinos to local restaurants and retail establishments. Making Memphis a racing center would contribute substantially to the economic base of the city.
Dover Motorsports, Inc., the owner of Memphis Motorsports Park, is committed to providing the highest quality racing experience for fans in Memphis and the Mid-South. (2) Dover Motorsports, Inc., currently hosts 16 major national events, including 13 NASCAR, 2 NHRA, and 1 IRL events, at its racing facilities in Memphis; Dover, Delaware; East St. Louis, Illinois; and Nashville, Tennessee. In addition, Dover Motorsports, Inc., operates and produces the major U.S. Champ World Series, the Toyota Grand Prix of Long Beach. Dover Motorsports, Inc., is on the move, and Memphis Motorsports Park is a major reason for its optimism.
Memphis Motorsports Park is one of the most versatile motorsports facilities in the country (Table 3). It has a 3/4-mile paved, oval track that has modern grandstands and luxury skyboxes. The oval is currently used to host NASCAR Busch Series, NASCAR Craftsman Truck Series, and USAC Silver Crown races. The track currently holds 35,000 and could be expanded to hold 90,000 or more. With the expanded capacity, the Motorsports Park would be nearly 43.0 percent larger than the Liberty Bowl. The Motorsports Park also has a major-league dragstrip that annually hosts an NHRA POWERade Drag Racing Series national event--the O'Reilly Mid-South Nationals presented by Pennzoil.
In the future, it is hoped that Memphis Motorsports Park will be host to a NASCAR Nextel Cup Series event. Given strong community support and the expansion of the Nextel Cup schedule to include other cities and racing dates, this event could attract over 100,000 racing fans to Memphis and could have an economic impact of more than $50 million on the area.
With some assistance, Memphis Motorsports Park can easily become one of the premier sports and tourist attractions in the region. This would have a major positive impact on the otherwise neglected industrial properties and residential areas that surround the North Memphis facility. When combined with the potential for complementary commercial developments, Memphis Motorsports Park may well define the future of North Memphis. The residents of the area deserve some good economic news, and Memphis Motorsports Park could lead the way for other economic development initiatives.
Motorsports Events Are Major Economic Engines
National and international sporting events attract millions of fans to the communities that host the events (Table 4). Unlike the limited seasons and markets in baseball, basketball, and football, motorsports facilities play host to events throughout most of each year. Major events are held almost weekly throughout the year in the United States, Europe, and other areas of the world. Motorsports is truly international in scope and stature, and racing attracts millions of fans to areas widely recognized for their involvement in the sport. Some facts about the sport include the following:
1. Auto racing is the world's most popular sport, with over 2 billion tickets sold worldwide and with 50 billion televised impressions in 2002.
2. Auto racing has the highest number of live spectators of any sport in the U.S. Over 13 million tickets were sold in 2002, and that is more than those sold by the NBA, the NFL, and major league baseball combined.
3. Auto racing is far less seasonal than other sports, and most racing series operate from 8 to 10 months per year.
4. Race tracks are spread all across America, and the local and national fan bases are enormous.
5. Media coverage of motorsports events is up 1000.0 percent in the last 10 years. (3)
Most major businesses support, sponsor, or are involved with the sport of racing. FedEx is one of the major sponsors of motorsports events in this country. Motorsports-related businesses are abundant in Memphis, including AutoZone, O'Reilly Auto Parts, Comp Cams, and many others. The list of corporate sponsors for the 2003 season clearly demonstrates the diversity of corporate support that motorsports events receive in Memphis.
Budweiser, Burger King, Cellular South, Chevrolet, Coca-Cola, Comp Cams, Domino's Pizza, Enterprise Rent-A-Car, Hertz Rental Equipment, Hilton Properties, Ikon Office Solutions, Kroger, Ledbetter Meats, Millington Telephone Company, O'Reilly Auto Parts, Polaris, Safety Kleen, Saint Francis Hospital, Sam's Town Hotel and Gambling Hall, The Final Detail, and Thompson Machinery were all local sponsors. Many other local firms were involved by either advertising, sponsoring cars or drivers, or working with the racing teams to provide creative world-class quality automotive parts and supplies. Local advertisers included not only most of the firms previously listed, but Admiralty of Plantation Oaks, ARAMARK, Bell South The Real Yellow Pages, Brims Snack Foods, Champions Sports Bar and Grill, Craftsman, Hawthorne Suites, Hampton Inn and Suites, Holiday Inn Mt. Moriah, Hooters, Landers Dodge, La Prensa Latina, Mahaffey Tent and Party Rental, Magnolia Suites and Inn, Marriott Downtown, Navy Liquors, Ridgeway Inn, and TCI. Obviously, the list of participating corporate sponsors and involved business partners will increase over the racing season. Some examples of the global importance of motorsports include the following excerpts and highlights of studies of motorsports events in the United States and around the world.
Economic Impact Studies of Motorsports
A recent study of Grand Prix races in Europe found that 2 million spectators attended the 11 Grand Prix events in Europe in 2002. (4) Over $500 million was estimated to have been spent by event spectators, and the spending took place across 127,339 businesses that employed 738,354 workers. The researchers concluded that the Grand Prix events created economic benefits at the local level that were unequaled among sporting events anywhere in the world.
In the U.S., Mark Rosentraub, Dean of the Levin College of Business at Cleveland State University, found that the Indianapolis Motor Speedway had an annual impact of $727 million on the Indiana economy. (5) The Indianapolis Motor Speedway hosts three of the largest sporting events in America each year. The 1999 study found that the Indianapolis 500 had an impact of $336.6 million--the largest for any sporting event in America. The Daytona 500 was second with an impact of $240 million, followed closely by the Brickyard 400 with an impact of $219.5 and the United States Grand Prix at $170.8 million, the latter two races held in Indianapolis. By comparison, Rosentraub found that the Atlanta Super Bowl had an impact of $215 million. (The 2002 San Diego Super Bowl was estimated to have had an economic impact of $367 million on San Diego County. (6))
Thus, in the United States, four of the top five sporting events in 1999 were motorsports events, and three were held in Indianapolis (Table 4). Clearly, motorsports events mean big money for the communities that serve as their hosts.
Recent studies of various racing facilities around the country have reached similar conclusions about the returns that communities might expect from single events and from the operation of racing facilities in general. Dover Motorsports found that each NASCAR Nextel Cup race that was held in Dover, Delaware, contributed approximately $45 million to the local economy. (7) Over a year, the two NASCAR Nextel Cup events generated $94 million in revenue in Delaware, including $86 million from outside the state and $8 million from local operations and capital investments.
Dover International Speedway will currently accommodate 140,000 racing fans--a typical size for the new generation of super speedways that have been built in major markets across the country. An analysis of the proposed speedway in Piano, Illinois, estimated that the facility would generate $90 million in economic impact annually after a $176 million construction phase. (8)
Some of the newest super speedways have been built in partnership with public entities. For example, the state of Kansas contributed over $35 million in infrastructure costs and granted a 30-year tax abatement for the development of the Kansas Speedway, which represented a total contribution of $150 million over the life of the agreement. (9) The Kansas Speedway hosted its initial NASCAR Nextel Cup event in 2001. The track was intended to accommodate 150,000 race fans when finished and was expected to contribute $170 million annually to the Kansas economy. During the track's construction phase, over 2,000 construction jobs with a $50 million payroll were expected to add substantially to the economy of the area.
The state of Kansas, units of local government, and the Kansas City Board of Public Utilities were key partners in the project's development. They made their investment decisions on the expected impact of the races (five major races would equal the impact of the Chiefs and the Royals combined), the fact that the track would be in an otherwise neglected portion of the city, the tremendous exposure they would get to the nation's top companies, and the public exposure the city would receive. The combined tourism district development/track and retail facilities that were planned in association with the track were on 1,100 acres of land owned by International Speedway Corp. (ISC) and 400 acres of land owned by the county. Sales taxes generated by the project were used as part of the effort to further development of the facility and the tourism district. International Speedway Corp. also owns the Michigan International Speedway that holds over 165,000 race fans and has an approximate $303 million direct annual impact on the region surrounding the track. (10)
Another major race track owned by ISC is located in Phoenix and has seating for 78,000. The Phoenix race track was estimated by the University of Arizona to contribute approximately $290 million annually to the community. (11) Other racing events such as the Toyota Grand Prix of Long Beach contribute to the local community, but do so only one weekend per year. The Grand Prix of Long Beach was estimated to have a $39 million impact on the community in 2002. (12) Most of the other Grand Prix events in the United States, such as the Grand Prix of St. Petersburg and the Grand Prix of Denver (all of which are operated by Dover Motorsports, Inc.) have a similar impact. (13) The 2.3 mile road course and Barber motorsports museum facility in Birmingham is expected to generate hundreds of millions in economic activity in Birmingham each year. (14) The track will be host to two major races in 2003 and expects the American Motorcycle Association Super Bikes Championship event to generate over $10 million for the local economy. The developers are expecting a planned industrial and business park development around the track and museum complex. The Homestead Miami Speedway is estimated to be the largest sporting event facility in Florida when measured by economic impact. (15) The 2000 NASCAR weekend at Homestead was estimated to have generated $120 million in additional revenue for the local area. The 2002 four-day NASCAR event was expected to do much more (expected attendance was 150,000 for the four-day event), and the track is now hosting three NASCAR events, so the impact of the track is expected to be much more than the $120 million impact estimated in 2000. The Homestead facility operates over 200 days a year.
Tourism in General
The Memphis Convention and Visitors Bureau (MCVB) estimates that Memphis plays host to more than 8.0 million visitors each year. Many of those tourists spend money at hotels, eating and drinking places, tourist attractions, special sports and entertainment events, gasoline stations, and shopping malls throughout the city. An estimated 4.2 million visitors go to the Beale Street Historic District each year.
According to the MCVB, the Overton Square Entertainment District attracts 1.5 million visitors annually, and Graceland is estimated to have 700,000 visitors each year. Memphis in May, with the Beale Street Music Festival, the Sunset Symphony, and other music events, attracts 277,000 visitors each year. Over 300,000 people attend Orpheum Theater events each year, and most of those involve music. B.B. King's Blues Club on Beale Street attracts over 150,000 people each year and is only one venue in the Beale Street Historic District. Finally, Memphis Motorsports Park adds over 348,000 visitor days to the tourism industry in Memphis.
The list of tourism attractions and the attendance data shown in Table 5 were provided to the Memphis Convention and Visitors Bureau by the various attractions. The data include both resident and visitor attendance and help tell a story about the diverse entertainment options available in Memphis. Clearly, Memphis Motorsports Park is a major tourist attraction that contributes to the diversity of entertainment options in Memphis and to the economic impact of tourism in general.
The Memphis Convention and Visitors Bureau does an outstanding job of maintaining visitor information. In a recent study (updated in March 2003) entitled The Economic Impact of Travel in Memphis and Shelby County, the Convention and Visitors Bureau reported the following information:
* Eight million people visited Memphis.
* Convention delegate average daily expenditures were $266.00.
* Corporate traveler average daily expenditures were $162.13.
* Leisure traveler (2.1 persons) average daily expenditures were $230.00.
* Daytripper average daily expenditures were $60.00.
* Total visitor expenditures were estimated to be $2.3 billion.
* Visitor spending supported payrolls of approximately $1.6 billion.
* Over $165.0 million in state and local taxes were generated from visitor spending, or slightly more than $20.00 per visitor.
Obviously, tourism is a major economic engine for the community.
The Economic Impact of Memphis Motorsports Park
Impact studies are not without critics. As a result, wherever possible, this study contains conservative estimates and identifies the impact of the assumptions. In addition, it should be noted that it is very difficult to identify the impact of any investment, whether public or private, on the overall growth of a community. Any one event or business activity is a small part of the economic activity that takes place in a community. Motorsports, like the Grizzlies, Redbirds, concerts, the Memphis Zoo, and all the other activities, become a part of the social fabric of the community.
Impact on Tourism
Motorsports are a major part of the Mid-South sports scene. Since 1999, nearly 2.2 million race fans have attended events at the Motorsports Park. In addition, fan attendance is expected to increase each year. With sufficient public support, Memphis Motorsports Park could easily become the largest tourism attraction in Memphis, exceeding the Grizzlies, Redbirds, and all other sporting events. One Nextel Cup event would attract over 100,000 raceday fans and many more fans to associated event activities. So, in spite of the presence of the NBA, the growth potential for motorsports far exceeds any other activity in Memphis and Shelby County.
Motorsports can add tremendously to the Memphis tourism market. Memphis Motorsports Park attracts a large percentage of visitors from outside the Memphis area and their expenditures make a large, positive impact on the local economy. The 557,554 fans who attended the 219 events in 2003 are estimated to have spent 87,512 room nights and a total of 325,053 days in Memphis. (16) In 2003, these visitors are estimated to have spent $6.1 million on hotels and $22.3 million on goods and services from Memphis businesses of all varieties (Table 6). Over the next two years, visitor expenditures in Memphis and Shelby County are expected to exceed $13.1 million on hotels and $50.7 million on other goods and services in the community. Non-sponsor revenues from ticket sales and other sources for the 557,554 fans who attended were slightly over $5.67 million in 2003, an average of approximately $10 per person. Obviously, premium events have higher entry prices, while other events do not. Complementary and other ticket concessions also reduce the average revenue per person. The data in Table 6 show different rates between those people who attended a race and spent the night and those who were simply daytrippers (150-mile radius) from the Memphis region.
The data in Table 7 reflect the total impact of visitors to Memphis Motorsports Park. The data clearly demonstrate that Memphis Motorsports Park is a major contributor to the Memphis Convention and Visitors Bureau estimates of the impact of tourism on Memphis. In addition, Memphis Motorsports Park is growing in importance as a source of economic stimulation for Memphis and the Mid-South. The direct spending of visitors has a major impact on the income of businesses and workers throughout the community. This spending works its way through the community multiple times before the leakages from the Memphis economy exhaust the initial impact. This indirect impact measure accounts for the subsequent spending that takes place in Memphis as a result of the spending of visitors to the motorsports facility. When combined, the direct and indirect impacts form the total impact of an injection of new money into the Memphis economy as a result of visitors to Memphis Motorsports Park.
As shown in Table 7, the total impact of visitor expenditures was estimated to increase output by $54.4 million, earnings by $14.8 million, and employment by 720 jobs in 2003. The combined 2004 and 2005 estimates of total economic impact were to increase output by $111.0 million, earnings by $30.0 million, and employment by 1,565 jobs. By working with Dover Motorsports to further the development of Memphis Motorsports Park, Memphis and Shelby County can dramatically increase the benefits that accrue to the most Memphis-area businesses and employees. Motorsports is the future of professional sports in the Mid-South. Memphis and Shelby County must compete for the major motorsports races by working with Memphis Motorsports Park or lose the economic benefits to competitors from other locations.
Motorsports Events Generate Tax Revenues
Memphis Motorsports Park is unlike other investments in sports facilities in Memphis. It generates tax revenues for Memphis, Shelby County, and Tennessee without involving public subsidies of the facility. Quietly and privately, Memphis Motorsports Park has operated successfully in North Memphis. Memphis Motorsports Park has generated millions of dollars annually in tax revenues for all levels of government in Tennessee.
The data in Table 8 indicate the impact of expanding economic activity on taxes. An economic injection of $1,000 generates $12.39 in Memphis taxes, $12.33 in Shelby County taxes, and $44.69 in state taxes. Memphis Motorsports Park generated $54.4 million in direct and indirect economic activity from tourism in 2003. An injection of $54.4 million generates $674,016 in Memphis taxes, $670,752 in Shelby County taxes, and $2,431,136 in state taxes. In the two subsequent years, the economic activity generated by the fans of motorsports was $118.5 million in direct and indirect spending from tourism. The injection of $118.5 million in total economic activity generates $1,468,215 in Memphis taxes, $1,461,105 in Shelby County taxes, and $5,295,765 in Tennessee taxes. Over the three-year period of 2003-2005, expenditures by fans who attend events at Memphis Motorsports Park are expected to generate over $12 million in state and local tax revenues.
Therefore, instead of costing taxpayers money, Memphis Motorsports Park is a major generator of economic activity, jobs, and tax revenues. It is easy to see that Memphis Motorsports Park is a major asset for Memphis and Shelby County. Memphis Motorsports Park generates millions of dollars in activity and tax revenues without public assistance. With small investments in public infrastructure to support the motorsports park, the potential for motorsports to contribute to the growth and prosperity of Memphis and Shelby County can be greatly expanded. If one Nextel Cup race has an economic impact of $55 million, the community cannot afford to pass up the opportunity to grow the largest and most rapidly expanding professional sport. Motorsports is the next major sports venue for Memphis and Shelby County.
Table 1. Attendance at Memphis Sporting Venues, 2002 Event 2002 Season Memphis Motorsports Park 514,808 Memphis Grizzlies 614,301 Memphis Redbirds 794,550 Liberty Bowl 55,207 University of Memphis Men's Basketball 266,283 University of Memphis Football 175,542 Memphis Riverkings 25,215 Memphis Explorers 20,352 FedEx/St. Jude Golf 150,000 (e) (e) = Estimate. Sources: Memphis Motorsports Park, Ballparkwatch.com, and BasketballReference.com. Table 2. Memphis Motorsports Park Attendance, Actual for 1999-2002 and Estimates for 2003-2005 Year Attendance Percent Change 1999 324,540 -- 2000 353,805 + 9.0 2001 452,985 +28.0 2002 514,808 +13.6 2003 (e) 551,554 + 7.1 2004 (e) 570,143 + 3.4 2005 (e) 590,604 + 3.6 (e) = Estimate. Source: Memphis Motorsports Park. Table 3. Number Memphis Motorsports Events and Average Attendance, for 1999-2002 and Estimates for 2003-2005 Year Number of Events Average Attendance 1999 98 3,312 2000 105 3,370 2001 141 3,213 2002 207 2,487 2003 (e) 219 2,519 2004 (e) 225 2,534 2005 (e) 231 2,557 (e) = Estimate. Source: Memphis Motorsports Park. Table 4. Attendance at Major Sporting Events, 2002 Event Total Attendance Kentucky Derby 148,530 NBA Finals 114,231 World Series 306,414 Super Bowl 67,603 Daytona 500 150,000 (e) Brickyard 400 300,000 (e) Indy 500 400,000 (e) SAP U.S. Grand Prix 200,000 (e) (e) = Estimate. Source: Mark Rosentraub, "Indianapolis Motor Speedway Economic Impact Study," Indiana University, Indianapolis, 2001. Table 5. Attendance at Memphis Area Attractions, 1996-2001 Area Attraction 1996 1997 Botanic Garden 92,426 106,880 Brooks Museum 85,723 80,441 Children's Museum 109,044 117,355 Coors Belle 44,085 39,767 Fire Museum -- -- Graceland 680,928 736,568 Hunt Phelan Home 47,623 41,550 Libertyland 245,352 205,575 Lichterman Nature Center 32,384 35,181 Magevney House 4,735 3,800 Mallory-Neely House 6,583 12,774 Memphis Queen Line 150,773 147,925 Memphis Zoo and Aquarium 668,526 721,725 Mud Island River Park 186,715 177,555 National Civil Rights Museum 92,933 110,685 Pink Palace and Planetarium 605,789 549,657 Pyramid 3,874 13,218 Woodruff-Fontaine House 10,656 8,903 WONDERS -- 630,818 (1) Total 3,088,713 3,740,377 Area Attraction 1998 1999 Botanic Garden 134,385 123,823 Brooks Museum 92,120 62,239 Children's Museum 119,681 121,533 Coors Belle 29,325 3,688 Fire Museum -- 23,718 Graceland 664,446 619,815 Hunt Phelan Home 28,105 16,584 Libertyland 263,312 263,492 Lichterman Nature Center 27,817 21,670 Magevney House 3,396 3,208 Mallory-Neely House 11,725 10,626 Memphis Queen Line 153,249 143,958 Memphis Zoo and Aquarium 655,136 666,227 Mud Island River Park 139,445 155,729 National Civil Rights Museum 105,288 122,302 Pink Palace and Planetarium 557,782 479,359 Pyramid 8,425 5,072 Woodruff-Fontaine House 4,940 6,684 WONDERS 175,645 (2) 45,286 (3) Total 3,144,897 2,895,013 Area Attraction 2000 2001 Botanic Garden 132,656 140,150 Brooks Museum 74,022 82,956 Children's Museum 124,098 117,395 Coors Belle 3,364 1,652 Fire Museum 24,672 25,761 Graceland 577,273 558,987 Hunt Phelan Home 3,381 -- Libertyland 244,056 164,538 Lichterman Nature Center 20,690 39,894 Magevney House 2,768 2,153 Mallory-Neely House 10,581 8,315 Memphis Queen Line 130,719 125,735 Memphis Zoo and Aquarium 641,339 657,983 Mud Island River Park 143,311 174,326 National Civil Rights Museum 129,069 131,858 Pink Palace and Planetarium 470,283 456,807 Pyramid 3,796 1,423 Woodruff-Fontaine House 5,368 5,492 WONDERS -- 288,841 Total 2,783,104 2,327,923 Note: In 2001, the Rock 'N' Soul Museum had 48,301 visitors, while the Gibson Guitar Factory had 5,370 visitors. (1) = 1997: Titanic Exhibit. (2) = 1998: Ancestors of the Incas and WWII Through Russian Eyes exhibits. (3) = 1999: WWII Through Russian Eyes. Source: Memphis Convention and Visitors Bureau. Table 6. Motorsports Tourism in Memphis, 2003-2005 2003 2004 Attendance (e) 557,554 570,143 Room Nights 87,512 90,461 Visitor Days 175,024 180,922 Daytrippers 150,029 155,086 Total 325,053 336,008 Expenditures/Average Average Room Night * $ 70.00 $ 71.00 Average Visitor Day ** 76.00 80.00 Average Daytripper ** 60.00 63.00 Expenditure/Total Accommodations $ 6,125,840 $ 6,422,731 Visitors 13,301,824 14,473,760 Daytrippers 9,001,740 9,770,418 Total $28,429,404 $30,666,909 2005 Attendance (e) 590,604 Room Nights 93,708 Visitor Days 187,416 Daytrippers 160,657 Total 348,067 Expenditures/Average Average Room Night * $ 72.00 Average Visitor Day ** 84.00 Average Daytripper ** 66.00 Expenditure/Total Accommodations $ 6,756,976 Visitors 15,742,944 Daytrippers 10,602,966 Total $33,092,886 (e) = Estimate. * Inflated at 1.2 percent of 2004 and 2005 via estimates from Pinkowski and Associates of 2002 ADR of $69.65 and D of 1.2 percent. ** Inflated at 5.0 percent for 2004 and 2005. Initial estimate for 2003 provided by the Memphis Convention and Visitors Bureau. Source: Memphis Motorsports Park and Memphis Convention and Visitors Bureau. Table 7. The Economic Impact of Visitor Spending at Memphis Motorsports Park, 2003 Direct Impact in 2003 Dollars Spending in Category 2003 Dollars Output Earnings Employment Retail Trade $5,543,357 $10,633,267 $3,297,743 143.5 Hotels, Lodging, and Amusement 6,125,840 11,989,494 3,608,120 154.0 Eating and Drinking Places 5,543,357 10,942,032 3,221,245 191.3 Racing and Track Operations 5,673,492 11,989,791 2,809,513 151.4 Miscellaneous Services 5,543,357 8,892,653 1,875,872 79.8 Totals $28,429,403 $54,477,238 $14,812,493 720.0 (1) Because the multipliers are based upon 2000 regional data, direct expenditures needed to be converted to 2000 dollars for use with the multipliers. (2) Each entry in this column represents the total dollar change in output that occurs in all industries for each additional dollar of output delivered to final demand by the industry corresponding to the entry. (3) Each entry in this column represents the total dollar change in earnings of households employed by all industries for each additional dollar of output delivered to final demand by the industry corresponding to the entry. (4) Each entry in this column represents the total change in number of jobs that occurs in all industries for each additional one million dollars of output delivered to final demand by the industry corresponding to the entry. Table 8. Estimated Tax Revenues from Tourism Generated by the Motorsports Park, 2003-2005 Economic Memphis Impact Taxes 2003 $54,400,000 $674,016 2004-2005 118,500,000 1,468,215 Total 2003-2005 $172,900,000 $2,142,231 Shelby County Tennessee Taxes Taxes 2003 $670,752 $2,431,136 2004-2005 1,461,105 5,295,765 Total 2003-2005 $2,131,857 $7,726,901 Note: Tax revenues per $1,000 were $12.39 in Memphis, $12.33 in Shelby County, and $44.69 in Tennessee. Source: Sparks Bureau of Business and Economic Research, The University of Memphis.
Note: According to the industry standard, "motorsports" is considered a singular noun and is reflected as such throughout this article.
(1) NASCAR Media Guide, Simmons Market Research Bureau, Inc., and Performance Research, 2001 (http://www.g2motorsports.com/ Demographic.htm).
(2) Current information on the Memphis Motorsports Park and Dover Motorsports, Inc., can be obtained from their respective web sites, http://www.memphismotorsports-park.com/and http:// www.dovermotorsportsinc.com/.
(3) The West Virginia Motorsports Council, http://www. wvmotorsportscouncil.com/wvmcInfo.asp.
(4) William Lilley III and Laurence J. DeFranco, "The Economic Impact of the European Grands Prix," February 18,1999.
(5) Ideanamics, http://www.racing.com/indyNEWS115.htm,April 12, 2001.
(6) "Super Bowl XXXVII Generates $367 Million Economic Impact on San Diego County," NFL News, http://www.nfl.com/news/story/6371262, May 14, 2003.
(7) "The Economic Impact of the Dover Downs Facility on Delaware," June 9, 2001.
(8) Denise Perry Donavin, "Conflicting Studies on Proposed NASCAR Track," The Elburn Herald, http://www.elburnherald.com/sgboard/ sg07.htm, May 14, 1998.
(9) "Kansas Speedway," Business Facilities, http://www.facilitycity.com/ busfac/bf_01_06_special2.asp, June 2001.
(10) "Haskett Steps Down at Michigan Speedway," The Holland Sentinel, December 13, 2000.
(11) Phoenix International Raceway, http://ww.msports.com/ PhoenixIntlRaceway/aboutphx_history.cfm.
(12) Mark A. Rossi, "Grand Prix Association of Long Beach Given Green Flag to Bring Major Motorsports Event to Streets of St. Petersburg," http:// www.stpetegrandprix.com/news/pressReleases/02_07_02.html, February 7, 2002.
(13) Chris Esslinger and Adam Saal, "Dover Motorsports, Inc. and Championship Auto Racing Teams Announce Grand Prix of St. Petersburg," http://www.gpstpete.com/news/pressReleases/ 03_18_02.html, March 18, 1996.
(14) Michael Tomberlin, "Barber Motorsports Park," The Birmingham News, March 13, 2003.
(15) Sherri C. Ranta, "Homestead NASCAR Weekend May Generate South Florida's Largest Sports-Related Impact," Miami Today, November 14, 2002.
(16) Ratios based on calculations from Dr. John Gnuschke, "The Economic Impact of the Memphis Motorsports Park," November 1996.
John E. Gnuschke, Ph.D., Director, Sparks Bureau of Business and Economic Research/ Center for Manpower Studies The University of Memphis
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|Date:||Sep 22, 2004|
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