Governors Ball Music Festival: Economic Impact Analysis 2017

Transcription

1 Governors Ball Music Festival: Economic Impact Analysis 2017

2 TABLE OF CONTENTS Introduction Governors Ball Facts Impact Dashboard Methodology Economic Impact Cumulative Economic Impact Sustainability Appendix About AngelouEconomics Governors Ball Economic Impact 2

3 INTRODUCTION Founders Entertainment & The Governors Ball Music Festival In 2011, Founders Entertainment began the Governors Ball Music Festival, which takes place each summer in New York City. In its first year, the single day festival set the record for highest attendance for any eve nt taking place on Governors Island. In 2012, the festival was expanded to two days and moved to Randall s Island to acco mmo date the growth in popularity of the festi val. Again in 2013, the festival grew into a three-day event to meet the rising demand set by festival goers. In 2017, the festival e xpanded and welco med 150,000 attendees for the 3 day event. AngelouEcono mics (AE) was hired by Founders Entertainment in 2014 to evaluate the economic impact of the Governors Ball Music Festival on New York s economy. AE and Founders Entertainment s long-ter m partnership e nables the impacts to be me asured on an annual basis. As this is the four th ye ar of the partnership, the cumulative impact of the festival is measured, along with the festival s impact in In order to model the entire effe ct of the festival, this analysis considers both expenses for festival operations as well as expenditures of out-of-town festival attendees. The later has been calculate d using survey data provided by Founders Entertainment along with AngelouEconomics proprietary knowledge of music festivals and economic impact analyses. Governors Ball Economic Impact 3

4 2017 GOVERNORS BALL FACTS v 150,000 visitors flocked to Randall s Island for Governors Ball Music Festival. v 67 musical artists from around the world. v 55 food vendors from some of the best eateries, food trucks, and chefs that New York has to offer. v 6 non-profit organizations benefited from volunteer programs, employment opportunities, and charitable donations by Governors Ball and its attendees. v 14 of New York City s most infamous street artists created art installations throughout the festival grounds. v 64.8% of waste diverted from landfills with the help of fans, volunteers, and staff. Governors Ball Economic Impact 4

5 IMPACT DASHBOARD Festival Attendee Impact: $39.3M Economic Impact Festival Operations Impact $23.1M Total Economic Impact on NYC Economy: $62.4M Employment & Tax Impact Full Time Job Equivalents: 433 Labor Income: $31.3M State & Local Tax Revenue: $3.8M Governors Ball Economic Impact 5

6 METHODOLOGY AngelouEconomics employed the IMPLAN (IMpact Analysis for PLANning) model for the analysis of the Governors Ball Music Festival. The model utilizes multipliers specific to the New York County economy. The total economic output of Governors Ball is comprised of two inputs: Festival Operations & Attendee Expenditures Ticket sales and festival operations data were provided by Founders Entertainment and were used in generating the festival operations input. The attendee expenditures input was calculated using inputs from survey data and assumptions estimating the amount of money spent by attendants on various categories of expenditures. By applying 2015 IMPLAN multipliers on the inputs mentioned above, AngelouEconomics generated output data for festival operations and attendee expenditures, the sum of which creates the total economic output for the Governors Ball Music Festival. Festival Operations Attendee Expenditures TOTAL ECONOMIC OUTPUT Governors Ball Economic Impact 6

7 METHODOLOGY The total economic impact of Governors Ball is the result of direct spending on festival operations and attendee expenditure. These expenditures are translated into revenue for local businesses that support or supply Governors Ball. As these businesses experience revenue growth, they can increase spending on new goods or employees. By hiring new employees or purchasing additional goods, money flows back into the local economy. The following dollar amounts given in this report reflect the value of 2017 dollars. Economists call this snowball spending effect the multiplier effect, and it is comprised of direct, indirect, and induced impacts. AE utilizes IMPLAN s Input-Output model to measure the effects of direct spending to New York County. The IMPLAN model utilizes multipliers that are specific to New York County. Moreover, these multipliers capture the unique relationships that exist between industries in New York. Through these multipliers, the model is able to measure the economic output of the direct, indirect, and induced effects, which are defined below. Direct Limited to the effects in the local economy that occur as a direct result of Governors Ball expenditures. Indirect Includes increases to sales, incomes, and jobs in business sectors that support or supply Governors Ball. Induced The household spending patterns of employees through all business sectors that experience increased earnings as a result of Governors Ball. Governors Ball Economic Impact 7

8 ECONOMIC IMPACT Total 2017 Economic Impact Total Economic Impacts of The Governors Ball Music Festival: The 2017 Governors Ball Musi c Festival contributed $62.4M to the New York economy. The 2017 Governors Ball Music Festival is responsible for 433 full-time job equivalents. The 2017 Governors Ball Music Festival provided $31.3M in income to employees throughout the New York economy. Over 25% of the total economic output can be attributed to downstream businesses and employees. Restaurants & Bars: $13.8M Top Impacts on Major Sectors Hotels: $4.7M Transit & Ground Transportation $4.5M Total Economic Impacts Full-Time Job Equivalents Labor Income To tal Economic Output Direct 363 $23,995,092 $46,819,945 Indirect 41 $4,909,900 $10,060,129 Induced 29 $2,355,924 $5,529,250 Total 433 $31,260,915 $62,409,324 Total State & Local Tax Revenue: $3.8M $1,053,918 $1,034,321 $1,682,268 Sources: AE, Implan, Founders Entertainment Sales Tax Property Tax Other Governors Ball Economic Impact 8

9 ECONOMIC IMPACT Impact of Festival Operations The econo mic impacts of Founders Entertainmen t s operational expenses to host Governors Ball: Festival Operations co ntributed $23.1M to the New York economy. Festival operations are responsible for 125 full-time job equivalents. The 2017 Governors Ball Music Festival provided over $12.1M in income to employees throughout the New York economy. Over 37% of the total economic output can be attributed to festival operations. Equipment Rental & Leasing $1.4M Top Impacts on Major Sectors Facilities Support Services $1.0M Public Relations & Advertising: $970,000 Festival Operations Impacts Full-Time Job Equivalents Labor Income To tal Economic Output Direct 90 $8,531,238 $16,100,030 Indirect 24 $2,639,078 $4,867,169 Induced 11 $898,814 $2,109,426 Total 125 $12,069,129 $23,076,625 Total State & Local Tax Revenue: $1.1M $612,010 $253,075 $249,685 Sales Tax Property Tax Other Governors Ball Economic Impact 9

10 ECONOMIC IMPACT Impact of Attendee Expenditures The economic impacts of Governors Ball attendee expenditures: Festival attendees contributed $39.3M to the New York City economy. Festival attendees gener ated 309 full-time job equivalents via their expenditures during Governors Ball. Festival atte ndees produced over $19.2M in income to employees throughout the New York City economy. Nearly 74% of the total econo mic output can be attributed to attendee expenditures. Top Impacts on Major Sectors Attendee Expenditures Impacts Full-Time Job Equivalents Labor Income To tal Economic Output Direct 273 $15,463,854 $30,719,915 Indirect 18 $2,270,822 $5,192,960 Induced 18 $1,457,110 $3,419,824 Total 309 $19,191,786 $39,332,699 Total State & Local Tax Revenue: $2.7M $1,070,258 Restaurants & Bars: $13.2M Transportation: $4.4M Hotels: $4.4M $800,843 $784,636 Sales Tax Property Tax Other Governors Ball Economic Impact 10

11 CUMULATIVE ECONOMIC IMPACT Year-to-Year Economic Impacts of Governors Ball: Total Impacts, Year Festival Operations Attendee Expenditures Total 2014 $17,752,491 $20,698,377 $38,450, $24,668,262 $24,584,084 $49,216, $24,846,154 $12,658,145 $37,504, $23,076,625 $39,332,699 $62,409,324 Cumulative Total $90,343,532 $97,273,305 $187,580,838 The economic impact of the 2017 Governors Ball Music Festival far surpassed the impacts that have been amassed in previous years. All of this growth was observed in the impact of attendee expenditures which is primarily due to the increased attendance of this year s festival. Additionally, festival goers spent more money while in the New York County area. Another factor which contributed to this year s success was pristine weather. In 2016, the festival was cut short by a day due to inclement weather which impacted attendee expenditures significantly. In total, the Governors Ball Music Festival has contributed $187.6 million to the New York County economy over the past four years. Governors Ball Economic Impact 11

12 SUSTAINABILITY Founders Entertainment partnered with Clean Vibes to facilitate responsible on-site waste management at this year s festival. Clean Vibes is an organization that aims to promote recycling, composting, and proper waste disposal by diverting waste from landfills and increasing the amount of material that is recycled and composted. With over a decade of experience, Clean Vibes has a consistent track record of providing greener results for festivals around the country. By working with Clean Vibes, Founders Entertainment provided real substance to Governors Ball s greening efforts. Across the festival, Clean Vibes volunteers collected loose litter from the grounds and consolidated bags of recycling and refuse. In exchange for their service, Clean Vibes volunteers received access to each day of the festival. In total, 64.8% of all waste materials collected were recycled and diverted from landfills. Recycling and Landfill Disposal Profile Material Collected Weight (tons) Diversion/Disposal Type Paper, Cardboard, Plastics, Glass, and Metal Recycle Wood 38.3 Recycle Non Recoverable Trash Landfill; Waste-To-Energy Total Recycled Total Materials Collected Percent Recycled 64.8% Governors Ball Economic Impact 12

13 APPENDIX I. Additional Definitions Multipliers: are unique to the region being studied and use d to calculate the specific effects brought about by a change to a regional economy. For instance, a positive econo mic activity will have a multiplier greater than 1. This means that the econo mic i mpacts are greater than just the direct expenditures from the analyzed acti vity. Simply put, a multiplier is the ratio that de fines the total economi c output create d for each dollar invested. Jobs: are created through induced effects and are full-time equivalents. Tax Impacts: include state,and local impacts which are included in the total economic output. Labor Income: includes all forms of employment income. This includes both wages and benefits. Governors Ball Economic Impact 13

14 ABOUT ANGELOUECONOMICS AngelouEconomics partners with client communities and regions across the United States and abroad to candidly assess current economic development realities and identify opportunities. Our goal is to leverage the unique strengths of each region to provide new, strategic direction for economic development. As a result, AngelouEconomics clients are able to diversify their economies, expand job opportunities and investment, foster entrepreneurial growth, better prepare their workforce, and attract new economy companies. Project Team Angelos Angelou Principal Executive Officer William Mellor Vice President General Manager, Economic Impact Anthony Michael Project Manager To learn more, visit Governors Ball Economic Impact 14