Baltimore Update

[Otto-Matic]

http://www.baltimoresun.com/news/mar...,6528201.story

The $70 million for the local economy is laughable. If they sell every one of the 100,000 tickets it would mean that every one of those ticket holders would have to spend $700 each.......Ain't gonna happen

Dude you don't get it. That $70 Mil is not just race tickets, it's taking into account hotel rooms that have been booked; meals, parking passes, temp jobs for people to check tickets, work as parking officials, etc.; trinkets that tourists buy (" like a "I got Crabs in Baltimore" t-shirt"); general patronage in the local shops and surrounding areas. My dad and I booked a hotel room in the next town over because all the hotels in the harbor area were booked. So we'll get breakfast/dinner in that town most likely, so it’s residual.
Now if they actually get to $70 remains to be seen, but to think that number was based solely off of tickets sales is ignorant.

[Chamoo]

Dude you don't get it. That $70 Mil is not just race tickets, it's taking into account hotel rooms that have been booked; meals, parking passes, temp jobs for people to check tickets, work as parking officials, etc.; trinkets that tourists buy (" like a "I got Crabs in Baltimore" t-shirt"); general patronage in the local shops and surrounding areas. My dad and I booked a hotel room in the next town over because all the hotels in the harbor area were booked. So we'll get breakfast/dinner in that town most likely, so it’s residual.
Now if they actually get to $70 remains to be seen, but to think that number was based solely off of tickets sales is ignorant.

I think Anthony was including meals and such. What he was saying was that each person who bought a ticket would have to spend $700 (on top of the price of their ticket) outside of the track over the weekend, which includes meals and hotels.

I came down slightly hard on you Anthony, and I apologize, but I still stand by my words in regards to them coming closer to $70 Million than you think.

[Otto-Matic]

I think Anthony was including meals and such. What he was saying was that each person who bought a ticket would have to spend $700 (on top of the price of their ticket) outside of the track over the weekend, which includes meals and hotels.

I came down slightly hard on you Anthony, and I apologize, but I still stand by my words in regards to them coming closer to $70 Million than you think.

if that's the case, than i also apologize Anthony. maybe I mis-read your post, it sounded like you were just talking about race tickets. my bad

[Lee Roy]

I guess the real test will be if the City of Baltimore feels it made more or less money from this race weekend than it usually would have over a Labor Day weekend.

[anthonyvop]

I think Anthony was including meals and such. What he was saying was that each person who bought a ticket would have to spend $700 (on top of the price of their ticket) outside of the track over the weekend, which includes meals and hotels.

I came down slightly hard on you Anthony, and I apologize, but I still stand by my words in regards to them coming closer to $70 Million than you think.

Living in Miami I read about these benefits to the local economy reports all the time. Super Bowl, BCS, NASCAR...etc. Once you read past the headlines and look at the actual numbers you see the flawed math. They base the economic benefit from a zero starting point. In other words the numbers are gathered as if there was no economic activity going on if the event didn't happen.

Last year ISC released the Economic Benefit report for the previous year's NASCAR race in Homestead and their big claim was how much money was generated because the Hotel occupancy rate was 92% during the event....Hello!!! Miami in November already has high occupancy rate and in fact in the weeks before and after they had the same rate.

Then they don't take into account local attendees. The majority of people attending the race will be from Baltimore. If it wasn't for the race how many would have spent money on another from of entertainment anyway?

They also count out of town vendors at the event. It is great if the souvenir trailers sell a lot of stuff but that money leaves with them when they pack up and head home. The only real benefit benefit there is for the Government in the form of Sales tax collected.

The race will be a benefit to some local businesses but I take the $70 million number with a huge grain of salt. All one has to do is look at all the abandoned or unapproved street races to show how little benefit they truly are. If they were such a huge benefit Miami, Jan Jose, Las Vegas, Washington D.C. and others would still be holding them.

[Lee Roy]

Then they don't take into account local attendees. The majority of people attending the race will be from Baltimore. If it wasn't for the race how many would have spent money on another from of entertainment anyway?

Bingo. My buddy and I will be driving up for the day on Friday and Saturday (not planning on Sunday). I doubt very seriously if we buy much more than a couple of hot-dogs and a few beers.

[SarahFan]

economic impact=Statistics=funny fudged math


way back when CC/CART 3 day festivals of speed were the anti-christ I read an interesting article that calculated that every dollar cycled thru the local economy 7x...

so if the event gets 70k unique individuals who all send $100.... then $70 mil economic impact isnt that far fetched...but of coarse that doesn't make it any less fuzzy, funny or fudged

[Chris R]

As with many things involving the government, don't believe all the numbers.... That being said, I would imagine a well done event carried out over a number of years should be of significant benefit to the local economy. Exposure to a larger marketplace (even global) should be a benefit. Temporary jobs of locals should help. Added income for local businesses should help..... Does it add up to $70 million - I seriously doubt it - at least not for many years... However, Baltimore is the real deal - it is a place that is a pleasure to visit and there is plenty to do. The food is excellent, there are multiple quality cultural attractions, the is plenty of retail shopping and there is a reasonable opportunity for B to B interactions. It is an excellent destination for trade shows and conferences.... The exposure should help them build their tourism market in the long term.... However, I am sure someone promised them an immediate return on their investment, and that isn't likely to happen....

[anthonyvop]

so if the event gets 70k unique individuals who all send $100.... then $70 mil economic impact isnt that far fetched...but of coarse that doesn't make it any less fuzzy, funny or fudged

That adds up to $7 Million not $70....

One other point....The economic benefits predicted does not take into account those who will suffer economically from the event...and their will be.

[SarahFan]

That adds up to $7 Million not $70....

One other point....The economic benefits predicted does not take into account those who will suffer economically from the event...and their will be.

Actually it adds up to 49mil.... But I suspect you didn't read my whole post

Who is going to suffer from the impact of the event ... A couple realmworld examples please