2014 Community and Economic Impact Report

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IMMD Economic Impact in Dorchester Cty.
$2.80MM ($4.08MM impact w/Eagleman)
IMMD Economic Impact in Region
$3.41MM ($5.35MM impact w/Eagleman)
Visitors to Dorchester County
4,600 (from 48 states, 11 countries)
Exposure to desirable demographic (age)
70% of participants were age 35-54
Exposure to desirable demographic (income)
66% HH income greater than $100,00
Hotel Stays
85% participants stayed in hotels and B&Bs
Multiple Days in the Area
65% participants stayed 3 or more nights
Spending in the Area (not incl. entry fee)
66% spent $750 or more during event
55% spent $1,000 or more
Positive Experience During Visit
On a scale of 1-10, the average overall
experience in our area received 8.62
Potential for Return Visits
On a scale of 1-10, the average rating for a
return visit received a 6.03
Word of Mouth
75% of participants would recommend
IRONMAN Maryland to a friend
Volunteerism
1,500 volunteers helped with the event
Community Engagement and Buy-In
IRONClub of Maryland attracted 233
members and raised $65,000 in 4 months
Opportunity for County & City to Show
Insightful Leadership
City of Cambridge budget commitment:
$50k ($15k cash, $35k in-kind)
Dorchester County budget commitment:
$25k in-kind
* See Appendix A for BEACON Economic Impact Report, including study methodology and limitations.
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A full-length, 140.6 mile triathlon is regarded as the pinnacle of endurance athletic accomplishments. On
April 10, 2014, Dorchester County, Maryland was selected by World Triathlon Corporation (WTC) as the
12th location in the United States to host an annual, 140.6 mile IRONMAN triathlon. IRONMAN is a
well-known and respected sports brand and over 80,000 athletes choose to compete in the IRONMAN
global series each year. IRONMAN Maryland is the only full-length IRONMAN triathlon in the midAtlantic region, providing Cambridge, Dorchester County and surrounding communities up and down
the Eastern Shore the unique opportunity to showcase the region’s beautiful landscape, rich history, and
fun and inviting atmosphere to thousands of visitors from across the country and around the world.
The IRONMAN Maryland course showcases Dorchester County’s beautiful landscape and many
ecologically and historically important sites. The race begins at Great Marsh Park with a 2.4-mile swim
in the Choptank River. The 112-mile bike takes athletes through Dorchester County and into the
Blackwater National Wildlife Refuge, while the 26.2-mile run loops through the West End neighborhood,
historic High Street and downtown Cambridge. The course is the flattest of all IRONMAN events in North
America, which makes it appealing to first-time IRONMAN racers and competitors trying to qualify for
the IRONMAN World Championship. Importantly, IRONMAN Maryland offers 30 age group slots to the
yearly World Championship race in Kona, Hawaii.
Every IRONMAN host city pays a licensing fee to WTC. This fee is often covered by support from the host
State, County and City, as well as other public and private donations as needed.
The licensing fee for IRONMAN Maryland is $100,000, to be paid each year the race is held. In order to
meet this financial obligation in the five short months between when the race was awarded and race
day, several fundraising strategies were implemented:
IRONClub Maryland
IRONClub of Maryland (IRONClub) was created soon after the
race was awarded to Dorchester County as a booster club
with two goals: 1) To generate community awareness and
enthusiasm for IRONMAN, and, 2) To raise funds to help cover
the licensing fee. The club was promoted via a website,
www.ironclubmd.com,
an
active
Facebook
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page,
www.facebook.com/ironclubmd, various local media, support from media sponsors MTS Broadcasting
and The Dorchester Banner, outdoor signage, collateral, and a number of fundraising events around the
county.
During a four month period, IRONClub solicited
memberships at six membership levels:

“Swimmer” - $24

“Cyclist” - $112

“Runner” - $262

“Eagleman” - $700

“Triathlete” - $1,400

“Elite Athlete” - $5,000
The Hyatt Regency Chesapeake Bay Golf Resort, Spa & Marina and The Nathan Foundation stepped up
as Elite sponsors in support of the event. Over four months, IRONClub secured 233 memberships and
raised just over $65,000. For a full list of IRONClub members, go to ironclubmd.com/members.
Dine Around
Several local restaurants agreed to host an IRONMAN evening when a percentage of diners’ checks
would be donated to IRONClub. Participating restaurants included Bay Country Bakery, Bistro Poplar,
Elliott's Bakery, High Spot, Leaky Pete's, Stoked, Ocean Odyssey, RAR, and Riverview at the Point.
Wine & Big Cheese Fundraiser at Layton’s Chance Vineyard &
Winery
Layton’s Chance Vineyard & Winery hosted a fundraiser and
auction benefiting IRONClub that raised over $5,000 in one
evening.
IRONClub Golf Tournament
Thirty-four people participated in the IRONClub golf tournament,
which raised $3,000. This event was well-received and is
expected to become an annual event.
By race day, funds from these activities, in combination with
financial and in-kind support from the State of Maryland,
Dorchester County and the City of Cambridge, met the
requirement.
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In November 2014, IRONMAN Maryland won the statewide Maryland Tourism Council Award for “Best
Media & Public Relations Campaign.”
Dorchester County Tourism Director Amanda Fenstermaker accepted the award, which recognized the
hard work that went into bringing the IRONMAN Maryland triathlon to Dorchester County. In the space
of only five months, Fenstermaker led an effort to build local support and raise most of the $100,000
licensing fee for the race by forming the booster club IRONClub Maryland and by rallying community
involvement. Volunteer support came from Dorchester County resident and marketing professional
Heather Rosato, who helped bring all the media and promotion efforts together.
Amanda Fenstermaker accepts the Maryland State Tourism Award for IRONMAN Maryland from John Fieseler,
Frederick County Tourism Council (left) and Matt Neitzey, Prince George's County, Maryland, Conference & Visitors
Bureau, during the Maryland Tourism and Travel Summit on November 13, 2014.
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As a way to encourage IRONMAN Maryland participants to dine in local restaurants during the race
weekend, each participant received a meal voucher worth $25 in their welcome kit. When presented to
a participating restaurant, $25 was deducted from the meal bill and reimbursed to the restaurant by
WTC. Participating restaurants included: in Dorchester CountyBistro Poplar, Craniums at the Beach,
Elliott’s Baking Company, High Spot, Jimmie and Sooks, Leaky Pete’s, Ocean Odyssey, Portside, Stoked,
Peking House, The Wine Bar at A Few of My Favorite Things, Suicide Bridge Restaurant; in Easton
Mason’s, Scossa, Washington Street Pub; in OxfordMasthead. In all, close to $22,000 was reimbursed
to local restaurants for vouchers used during the event.
BEACON, the Business Economic and Community Outreach Network at Salisbury University, was asked
to conduct economic impact studies for IRONMAN Maryland and Eagleman 70.3 to estimate the
economic benefit of these two IRONMAN events. In the first phase of the study, BEACON surveyed a
sample of participants to gather a visitor profile. This information was then used to estimate the
economic impact of IMMD and Eagleman within Dorchester County and the region. The study found the
total estimated economic impact of IRONMAN Maryland is approximately $3.41 million, with $2.80
million staying within Dorchester County. When combined with the economic impact of Eagleman, the
numbers increase to $4.08 million impact in Dorchester County and $5.35 million in the region. The
numbers do not include local, race-related expenditures by WTC. To see the reports, see Appendix A.
Shortly after the successful completion of IRONMAN Maryland, the IRONMAN Foundation Community
Fund announced the award of $45,000 in grant funding to initiatives and groups in the greater
Cambridge community in conjunction with the 2014 IRONMAN 70.3 Eagleman and IRONMAN Maryland
triathlons. Thirty-five thousand dollars of this funding will support non-profit organizations with a
volunteerism component in and around Cambridge. One $10,000 community grant will be awarded to
the Dorchester County Family YMCA to support the cost of replacing the ceiling of the organization’s
gymnasium.
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From The Progress, (New Jersey)
The Ironman Maryland competition was by far Bach’s
favorite event, he said. Placing first and the aftermath of
his win was a dream, he added.
“It was an honor to run through the finishing banner and
hold it above my head in a moment of glory; it was as from
a dream,” Bach said. “I never dreamed I’d get the chance
to do that! Spectators and other participants congratulated
me all weekend, asked for autographs, and I even had
several selfie requests!”
First Ironman Maryland Race Kicks Off in Cambridge - WBOC
Cambridge Businesses Impressed by Ironman’s Numbers - WBOC
2014 IRONMAN Maryland - Race Day - Youtube
First Md. Ironman is 'awesome' - The Star Democrat
Bach, Capone win inaugural Ironman Maryland event – The Baltimore Sun
Ironman Maryland electrifies Cambridge - Dorchester Banner
Ironman Maryland – The Huffington Post
Ironman Maryland results 2014 featured excellent racing in the inaugural event on
Saturday September 20 – ironstruck
Team Fit Werx Athlete Matthew Bach Wins Ironman Maryland! – fitwerx.com
Matthew Bach and Lauren Capone Capture the Title at Inaugural IRONMAN Maryland –
Lava Magazine
Matt Bach - Unexpected Champion – slowtwitch.com
Triathlete Matt Bach: Newly Crowned Ironman Champion on Winning IM Maryland as
an Amateur – Endurance Planet
Ironman winner heads to Hawaii world championship – The Progress
The IRONMAN Foundation Gives Back to the Greater Cambridge Maryland Community
– ironman.com
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APPENDIX A
Economic Impact of the 2014 IRONMAN Maryland Triathlon
in Cambridge, Maryland
Introduction
The BEACON team was asked to conduct an economic impact estimation study for the IRONMAN
Maryland Triathlon that took place in Cambridge, Maryland in September 2014. In the first phase of the
study, BEACON surveyed a sample of participants to gather a visitor profile. This information was then
used to estimate the economic impact of this event within Dorchester County.
The IRONMAN Maryland Triathlon bought nearly 1,500 participants and an estimated 3,100 additional
event attendees to Dorchester County. Many of these participants traveled from other states with nearly
90% of survey respondents traveling 100 miles or more to attend the event. Just over 80% of participants
also traveled with at least one other person. Nearly 79% of participants stayed in Dorchester County
overnight with an average stay of 3.59 nights. The remaining 21% of those surveyed stayed overnight in
surrounding cities. Excluding race fees, over two thirds of those surveyed spent over $750 while visiting
the county; over one third spent over $1,500. Detailed spending data by category was other gathered to
help build the economic impact models.
Surrounding areas that benefited from this event through increased tourism including overnight visitors
and those on day trips include Annapolis, Easton, Ocean City, St. Michael’s, Salisbury, and Tilghman
Island in Maryland; Seaford and Rehoboth Beach in Delaware; and Richmond, Virginia.
Economic Impact
The total estimated economic impact of the IRONMAN Maryland Triathlon is approximately $3.41
million1 with nearly $2.80 million of the impact staying within Dorchester County.
Economic Impact Estimates
Within
Dorchester
County
Direct Effect
$2,160,169
Indirect Effect
$289,434
Induced Effect
$348,921
Total Effect
$2,798,523
Outside
Dorchester
County
$474,107
$65,343
$76,309
$615,759
Total
$2,634,276
$354,777
$425,230
$3,414,282
A portion of the economic impact of this event leaks to the surrounding areas. Beyond just the
participants who stay overnight, eat, and shop in surrounding cities and towns, local business in
Dorchester County spend money on vendors outside of the county and employee residents of other
1
This includes the direct, indirect, and induced impacts. Direct impacts are the impacts of spending by the entities/businesses,
indirect impacts are the impacts of spending by the vendors of these entities, and induced impacts are the impacts of portions of
incomes spent locally by the institutions’ and the vendors’ employees.
counties who take and spend their paychecks at home. The total estimated leakage (beyond the local
impact) that leaves Dorchester County but stays in the surrounding areas is approximately $616K.
Methodology
The economic impact estimate modeling for the study was done using the IMPLAN software. IMPLAN
was originally developed by the University of Minnesota in conjunction with the United States
Department of Agriculture’s Forest Service. Since that time, it has been further developed by MIG, Inc.
and has become the gold standard for conducting economic analysis.
The IMPLAN software uses input-output (I-O) analysis, a subset of a family of methods called social
accounting models. Input-output models attempt to describe an array of economic transactions between
various sectors in a defined economy for a given period, typically a year. These models provide
researchers not only with estimates of the economic multipliers but also support a detailed decomposition
of the multipliers.
Limitations
I-O analysis is used to show the relative importance of a series of economic transactions in an economy. .
Like any economic estimate, the I-O analysis used in this study is a representation of the real economy
and depends on assumptions. Nevertheless, I-O analysis is valuable because it yields easy to understand
estimates about the value of a series of transactions (i.e. those that are triggered by the IRONMAN event
in Dorchester County). In addition, I-O analysis uses multiplier effects to estimate the total impact, which
means secondary (ripple) effects of the series of economic transactions under investigation can also be
estimated. While such estimates cannot predict the future with 100% accuracy, they provide valuable and
actionable information about the direction and potential magnitude of the value that can potentially be
created by said economic transactions. This information, in turn, can be highly valuable to decisionmakers in the private and public sectors when making future resource allocation decisions.
Economic Impact of the IRONMAN 70.3 Eagleman Triathlon
in Cambridge, Maryland
Introduction
The BEACON team was asked to conduct an economic impact estimation study for the IRONMAN 70.3
Eagleman Triathlon that took place in Cambridge, Maryland in June 2014. In the first phase of the study,
BEACON survey a sample of participants to gather a visitor profile. This information was then used to
estimate the economic impact of this event within Dorchester County.
The IRONMAN 70.3 Eagleman triathlon bought 2,200 participants to Dorchester County. Many of these
participants traveled from other states with 80% of survey respondents traveling 100 miles or more to
attend the event. Just over 80% of participants also traveled with at least one other person. Over 84% of
participants stayed in Dorchester County overnight with an average stay of 2.27 nights. The remaining
16% of those surveyed stayed overnight in surrounding cities. Including race fees, over two thirds of
those surveyed spent over $750 while visiting the county. Detailed spending data by category was other
gathered to help build the economic impact models.
Surrounding areas that benefited from this event through increased tourism including overnight visitors
and those on day trips include Easton, St. Michael’s, Salisbury, and Ocean City in Maryland and Seaford,
Rehoboth Beach in Delaware.
Economic Impact
The total estimated economic impact of the IRONMAN 70.3 Eagleman Triathlon is approximately $1.94
million1.
Economic Impact Estimates
Direct Effect
$1,499,474
Indirect Effect
$202,807
Induced Effect
$240,835
Total Effect
$1,943,116
A portion of the economic impact of this event leaks to the surrounding areas. Beyond just the
participants who stay overnight, eat, and shop in surrounding cities and towns, local business in
Dorchester County spend money on vendors outside of the county and employee residents of other
counties who take and spend their paychecks at home. The total estimated leakage (beyond the local
impact) that leaves Dorchester County but stays in the surrounding areas is approximately $663K.
1
This includes the direct, indirect, and induced impacts. Direct impacts are the impacts of spending by the entities/businesses,
indirect impacts are the impacts of spending by the vendors of these entities, and induced impacts are the impacts of portions of
incomes spent locally by the institutions’ and the vendors’ employees.
Methodology
The economic impact estimate modeling for the study was done using the IMPLAN software. IMPLAN
was originally developed by the University of Minnesota in conjunction with the United States
Department of Agriculture’s Forest Service. Since that time, it has been further developed by MIG, Inc.
and has become the gold standard for conducting economic analysis.
The IMPLAN software uses input-output (I-O) analysis, a subset of a family of methods called social
accounting models. Input-output models attempt to describe an array of economic transactions between
various sectors in a defined economy for a given period, typically a year. These models provide
researchers not only with estimates of the economic multipliers but also support a detailed decomposition
of the multipliers.