THE ECONOMIC IMPACT OF THE 2002
AGRICULTURAL FAIRS
IN
By: Dr. Laurence
E. Goss, Jr.
Dr. Mark
J. Okrant
Project Economist
Project
Manager
The
Institute for
Eleven
agricultural fairs were held during the summer and fall of 2002 in
In
addition to those who attended the fairs, other people worked or
exhibited at
them. Based upon information provided by each fair, it is estimated
that a
total of 1,272 people worked directly for the operators of the fairs,
either as
paid workers or as volunteers. These 1,272 people received total
reported wages
and salaries of $737,132. In addition, it is estimated that vendors and
subcontractors (including security) comprised a total of 2,014 paid
employees
(or self-employed people) at the fairs, with an estimated $965,550 in
income.
Finally, there were an estimated 1,205 volunteers and unpaid exhibitors
at the
fairs. Agricultural fairs are an important source of income for local
churches
and other charities and non-profit groups that operate food tents and
have
other fund-raising activities. A total of 593,391 people—attendees plus
workforce—populated the fairgrounds during these eleven fairs. This is
an
average of 53,945 people per fair or 11,061 people per day.
The
Institute for New Hampshire Studies at Plymouth State College conducted
a
survey of attendees at the 2002 New Hampshire Agricultural fairs.
Approximately
750 useable survey forms were returned by travel parties who visited an
agricultural fair during the summer or fall. The typical travel party
had three
members—two adults and one child.
In
addition spending by the visitors, it was estimated that the employees
of the
fairs spent an average of $14.00 per day at the fair. Also, it was
estimated
that the vendors and volunteers spent $14.00 per day at the fair and an
added
$15.00 average per day away from the fairgrounds. Given this
information, it is
estimated that $14,211,800 were spent at the fairgrounds and an
additional
$26,380,750 away from the fairgrounds, for a total of $40,591,550. This
level
of spending is equal to 1.1 percent of all spending by tourists and
travelers
in New Hampshire for the July 2001 to June 2002 period, the most recent
period
for which these data are available. During the August to October 2002
period, tourists
and travelers in the state spent about 1.25 billion period; visitors to
the 11
agricultural fairs spent approximately 3.3 % of that total. In terms of
the number
of visitor trips, approximately 2.3 percent of all party trips in
Therefore,
the following breakout is assumed for spending at the
fairgrounds for all the fairs:
$4,308,000 for admission tickets
$4,711,700 for rides and games
$500,000 for farm products and crafts
$1,747,100 for other retail sales
$2,945,000 for meals
Total estimated spending = $14,211,800
Visitors,
volunteers and vendors are estimated to have had the following spending
away from the fairgrounds:
$7,500,000 for meals
$6,935,000 for lodging
$6,754,750 for retail sales
$1,830,000 for private sector services
$1,300,000 for transportation and
communications
$1,100,000 for government services
$800,000 for other recreation services
$160,000 at farms and farmers markets
Total estimated spending = $26,380,750
Estimated total trip direct spending = $40,591,550
This
direct spending produced employment at the fairgrounds and in other
parts of
the state’s economy. There were 4,491 people who worked at the
fairgrounds
either for salary, wages or as a volunteer. It is estimated that of the
3,286
who received pay, there were 430 who were farmers or craftsmen, 400 in
retail
trade, 480 in food services, 564 who ran amusement rides and games, 140
in
security and the 1,272 who worked in various roles for the fair
organization.
On an annualized basis, these 3,286 short-term paid positions equaled
303
full-time jobs. An additional 497 annualized, full-time jobs were
supported by
visitor direct spending away from the fairgrounds. Over 80 percent of
these
jobs (405) are estimated to have occurred at restaurants and lodging
establishments. Smaller numbers of jobs occur in private sector
services (21);
government (21); retail trade (38); on farms (5) and in other economic
sectors
(7). The total number of annualized jobs from direct visitor spending
is 800.
This is about 1.2 percent of all jobs supported by all direct travel
and
tourism spending in the state, just above the 1.1 percent of all direct
spending by visitors that occurred at the agricultural fairs. The total
household income that resulted from the direct visitor spending equaled
an
estimated $13,023,000. In addition, it was assumed that one million
dollars out
of the value in sales of meals and retail goods at the fairgrounds was
transferred to non-profit organizations and churches, rather than paid
as wages
to the workers.
Economic
impact studies often focus on the multiplier effects of the direct
visitor
spending on total state sales, employment and revenues to state
government. The
$40,591,550 in direct visitor spending was calculated to produce
$64,980,000 in
indirect and induced sales and revenues within the state’s borders, for
a total of $105,571,550 in sales and
revenues, including household incomes. This calculation was done
using the
state fiscal year 2000 input-output model prepared by the Institute for
New
Hampshire Studies for the New Hampshire Department of Resources and
Economic
Development. The resulting sales multiplier was 2.60, which means that
each
original dollar in direct visitor spending added an additional $1.60 to
the
state’s economy. This sales multiplier is slightly higher than the 2.56
multiplier found for all visitors to the state in the Fiscal Year
2000
Travel Economics Report prepared by the Institute for New Hampshire
Studies.
Using
annualized employment numbers, direct visitor spending resulted in 800
year-round, full-time jobs. An additional 325 jobs were created within
the
state by the indirect and induced spending effect. The resulting
employment
multiplier of 1.41 is just below the 1.45 level found for all visitors
spending
during state fiscal year 2000. The $13,023,000 in household income that
resulted from the direct visitor spending resulted in an added
$11,514,000 in
household income from the indirect and induced spending. This
multiplier of
1.88 reflects the fact that the jobs that result from indirect and
induced
spending have higher average annual wages and salaries than do the jobs
paid
from the direct visitor spending.
Finally,
based on the break-out of the spending displayed above, the state and
local
government tax revenues were estimated. The state government’s tax and
fee
revenues were estimated as:
$1,375,000 for the rooms and meals tax
$600,000 for user fees and licenses
(Such as State Parks campgrounds, parking
fees, fishing licenses)
$300,000 for State Liquor Store sales
$250,000 for gasoline taxes and tolls
$200,000 for the business profits tax
The
local and state-wide property taxes and local parks and parking fees
collected
by local governments are estimated at $400,000. This is a total of
$3,125,000
in state and local government taxes and fees from the direct visitor
spending,
or 7.7 percent of direct spending. This is below the percentage level
paid by
all travelers and tourists in the state of 11.2 percent. The reason for
this is
that a large share of the spending at the fairgrounds was for
activities which
do not pay a rooms and meals tax or a property tax. The indirect and
induced
spending of the visitors produced an estimated additional $5,161,000 in
state
and local government taxes and fee revenues. This is a total
of $8,286,000 in state and local government revenues that results
from the direct spending of all visitors to these eleven agricultural
fairs
during the summer and fall months of 2002. This is 7.8 percent of
the total
of direct, indirect and induced spending and is slightly lower than the
9.0
percent of the direct, indirect and induced spending for all travelers
and
tourists in the state that ends up as state and local government
revenues. INHS
believes this is still a relatively strong performance given the level
of
funding that state government provides to promote the state’s
agricultural
fairs.
Appendix I
New Hampshire
(Results in italics next to question)
The New Hampshire Association of Fairs and
Expositions has contracted with the Institute for New Hampshire Studies
at
Plymouth State College to conduct research about the impact of
agricultural
fairs upon
1. How many
people are in your travel party
during this visit to the Fair?
_____#
adults (2.7 adults
-- Percentages: one 14.2%, two 56.9%,
three 11.9%, 4+ 17%)
_____# children under 18 (2.3 --
Percentages:
one 33%, two 38.1%, three 13.5%, 4+ 15.5%)
_____TOTAL # in party (4.2 – Percentages:
one 8.5%, two 30.3%, three 17.9%, four 20.3%, five 8.9%,
six 4.8%, seven
2.6%, eight 1.2%, nine 1.5%, 10+ 3.9%)
2. Please
indicate your state/province of
residence _______ and your Zip/Postal Code ________
(NH 74.1%, MA 9%, ME 4.6%, VT
3.8%, CT 1.5%, NY 0.9%, Others 3.2%)
3. How many
total days will you
attend this Fair? _____ days (Mean = 2.0)
( Percentages: one
57.4%,
two 16.2%, 3+ 26.4%)
4. Please
indicate the number of nights
you will spend in each of the following accommodations during this
visit.
_____ Hotel/Motel/Resort
(3.7%
staying overnight w/average stay of 1.8 nights)
_____ Campground
(6.3%
staying overnight w/average stay of 1.9 nights)
_____ Bed and Breakfast/Inn
(0.9%
staying overnight w/average stay of 1.4 nights)
_____ Home of Friend or Relative
(17.8%
staying
overnight w/average stay of 1.7 nights)
_____ Timeshare
(0.7%
staying
overnight w/average stay of 1.4 nights)
_____ Other
_____ Second Home/Condominium
5. Please indicate the specific
New Hampshire Agricultural Fair you are visiting today. name of fair
6. In
the space provided, please provide your best
estimate of expenditures for your entire trave
party---
$_________Total spending at
the fair grounds during this experience
($129)
$_________Total spending away
from the fair grounds (lodging, transportation costs, etc.)
($242.29)
during this experience.
7. Which of the following fair grounds
activities
have you or members of your travel party
patronized during your visit?
(check
all that apply)
____Agricultural Area (86.2%)
____Grandstand Show/Performance
(57.3%)
____The Midway
(67.9%)
____Entertainment
(62.2%)
____Agricultural Education/Farm Museum/Sugar
House
(70.8%)
____The Commercial Sales Area
(67.5%)
Finally,
please respond to the following three items:
8. Briefly
describe what you have liked best
about your experience during this visit.
9. Briefly
describe what you have disliked most about this Fair experience.
10 Is there anything that you did not see at
the
fairgrounds during this visit that you would like to see in the future?