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Economic GeneratorsRecreation and parks are significant Economic Generators in Your Community!
A 25% point increase in the 1995 physical activity participation rate increases labour productivity in the whole economy between 0.25 and 1.5%. Arbitrarily settling on a conservative level, it is assumed that labour productivity in the whole economy is raised by 0.75% (Ontario Ministry of Culture, Tourism and Recreation, 1994)
Johnson and Johnson implemented a comprehensive program of lifestyle improvement programs including physical activity programs. At sites without a fitness program, the physical activity participation was between 7 and 19%. In contrast, in sites with a fitness program (Live for Life), the participation rates remained high with 20 to 30 % of pre viously sedentary employees remaining active after two years. The Live for Life groups had about half the hospital costs and lower rates of increases in hospital days and admissions. (Ontario Ministry of Culture, Tourism and Recreation, 1994)
Absenteeism costs Canada 11 times the time lost in strikes. Some sectors reported rates high as 23 days per year and costs of $10 billion per year. Studies have reported a wide range of decreases in absenteeism as high 20 to 30% among participants in physical activity programs. Shephard points out that even if the impact is small, there is still a cost savings in payroll costs. (Ontario Ministry of Culture, Tourism and Recreation, 1994)
The Conference Board of Canada reported that the average net cost factor for an absent worker in Canada is 1.26 times the cost of the employee’s wage. This increase works out to be approximately $1,781 per year/worker. (Alberta Community Development, 1995)
The 1992 National Workplace Survey (CFLRI, 1994) reported that more than 60% of companies with physical activity/fitness programs reported realizing the following benefits:
The following benefits were also realized:
The Ontario scene (CFLRI, 1992) - National Workplace Survey Results stated the following benefits with among over half (50%) of those surveyed:
A review that looked at the effect of smoking on absenteeism stated; smokers had an average of 15 hours per year more sick leave than non-smokers. (Jones et al., 1994)
In 1991, Ontarians reported that they reduced their regular activities as a result of acute health problems for 0.55 days on average in a two week period. (Statistics Canada, 1994)
Reductions in regular work performance as a result of health problems have an impact on productivity; replacement labour is used about 75% as effectively leading to economic impacts of absenteeism. (Shephard, 1990) Ontarians lose an average of 0.24 days in a two week period or as many as 6.24 days annually. (CFLRI, 1994)
Reduced absenteeism in a Saskatchewan government pilot project with staff from four departments resulted in a return on investment of $1.82 for every $1.00 spent on employee wellness. (Vance, C., 1991)
Active Canadians recover more quickly from injury and are less likely than-inactive people to miss school or work; 61% of active Canadians missed school or work (in year preceding survey) compared with 74% of inactive Canadians. (CFLRI, 1992)
Researchers found that adherence to a work-based physical activity program increased as a result of an incentive based intervention. In addition, there were significant improvements in cardiovascular efficiency and work capacity. (Robison et al., 1992)
The 1988 Campbell Survey on Well-Being in Canada indicated that workers who are active in their leisure time are less likely to have work-loss days than those who are inactive. (Stephens et al., 1990)
Shephard concluded that in most studies, reduced absenteeism was related to participation in fitness programs. In his recent analysis, 35 out of 39 studies reported significant decreases in absenteeism; decreases were related to the fitness level of participants. (Shephard, 1992)
Significant reductions in absenteeism have also been associated with lower exercise requirements such as those in fitness breaks. What is the expected impact of regular physical activity on work-loss days? Averaging across studies - calculating an average decrease in absenteeism of 1.6 days or 30% per participant per year, resulting in savings of 1.1% of payroll costs. (Shephard, 1990 & 1992)
A study looked at the effect of an on-site fitness center on perceptions of worker productivity after 9 months measuring the relationship between regular exercise and worker productivity with 539 members and 504 non members. Results showed a strong positive relationship between membership status, exercise adherence, and perceived worker productivity; thus the program affected perceptions of worker productivity. (Leutzinger et al., 1991)
Researchers examined the relationship of physical activity and cardiovascular fitness to absenteeism and medical care claims with 654 males and 80 female law enforcement officers (21 to 60 years). Sedentary officers were absent significantly more often than active officers. Female officers were absent significantly more than male officers; although proportionally more female officers than males scored above the 50th percentile on fitness, increased fitness for females was not related to decreased absenteeism and increased fitness for mate officers was related to decreased absenteeism. Medical care claims for a subsample of 363 male officers were lower for more fit and more active officers. (Steinhardt et al., 1991)
Studies conducted in the private sector have shown that wellness programs connected to the workplace are cost effective investments with a high rate of return in the form of:
Researchers found that participants with low fitness levels took over 2.5 times as many days off work as their very fit counterparts. (Tucker et al., 1990)
Kaman & Patton (1994) have recently reviewed the benefits of an active society and concluded that there is a moderately strong relationship between physical activity and short term economic impact on productivity. This is consistent with the international summary of productivity changes presented by Shephard (1992).
There are clear indications, supervisor reported evaluations that physical activity is positively related to productivity, and to reduction in absenteeism, turnover, accidents. (CFLRI, 1995)
A study conducted by the Canadian Life Assurance Company stated there was a 22% reduction in absenteeism for employees who participated on a regular basis in a fitness program as compared to non -participants. Productivity was shown to increase by 7% plus a reduction in employee turnover. Large economic gains were realized because fitness program adherents showed less turnover than non-participants.
The same document refers to a study at Esso Resources in Calgary where participation in aerobic fitness and strength training activities related significantly to reduced days absent from work. Similar results were found when workers in the industrial sector were studied. Also, in a Los Angeles study of fire fighters, results showed significant decreases in disabling injuries, and reduced workers' compensation costs were found for those participating in fitness activities.
The same study, Canadian Life Assurance Company, found a 13.5% reduction in turnover rates in companies that ha-d employee recreation programs. (Cox et al., 1991)
Corporate sponsored physical activity programs will decrease employee turnover, decrease absenteeism, decrease industrial injuries, decrease corporate medical costs, and increase productivity. (Gibbons, 1989)
In an Angus Reid Survey (1992), Calgary ranked first overall in terms of quality of life in Canada; 37% said the best parts about living in Calgary are the parks and recreation features and activities. Companies who choose to relocate or establish new businesses said that the availability of recreation, parks and open space is very high on their priority list of important features to consider. (Crompton et al., 1993)
"A vibrant arts community is critical when corporations decide where to locate, when people decide where to work. To attract them, communities must pay more attention to symphonies, opera, art, and the ballet", says David Circh, an expert on business development and director of MIT's program on neighbourhood and regional changes. (Alberta Community Development, undated)
Arts education also plays a role in improving and maintaining a community’s business climate. In a study of 142 businesses looking at "The Perceptions of Business and Community Leaders Regarding the Economic Importance of the Arts and Arts Education in Mississippi"; results showed that most agreed that cultural amenities, including arts education, were important "quality of life" factors in their location decisions. (In National Endowment for the Arts, 1995)
The Mobil Oil Corporation, whose advertisements urge corporations to support the arts, believes that the arts spark economic development, encourage commercial and real estate projects, foster tourism, and attract new business. (Naisbitt, Megatrends 2000, in Alberta Community Development, undated)
Tourism at Monte Verde has promoted the development of more than 100 local businesses along with a number of local residents who are employed in the preserve. Also, 1,000 acres of Central America's rainforest are being protected through ecotourism while enhancing economic development on a national and local level. Specifically, Lapa Rios nature reserve will:
Vanderbilt University reported that for every 10 park jobs created by a state park, between 1.6 and 3.3 additional jobs were created in nearby local economies primarily through businesses who sell to park visitors. (Jensen, 1995)
There are numerous examples based on different communities that support quality of life as the main factor in locating a business. Quality of life includes convenient access to natural settings; recreational and cultural opportunities, and open space; greenways, and rivers, traits adjacent to office sites. (National Park Service, 1990)
Recreation is also a factor in the migration or relocation decisions of individuals and households. Herzog and Schtottmann (1986) found that recreation, along with crime, education and housing costs, to be significantly related to migration.
In 1994, parks, recreation, culture/arts, and sports groups provided facilities, programs and services to a significant portion of the 16 million tourists who arrived in Canada from other countries.; this is a 6% increase over 1993; and there is a sharp up swing of 30% in nights spent by tourists from Asia/Oceania. Private journeys (holidays, family) accounted for 83.2% of the foreign tourists. This increase is partly due to the benefits of parks/natural attractions, recreation facilities and services, arts/museums, and casinos. (Organization for Economic Cooperation & Development, 1996)
In 1991, some 1,240,000 people attended Alberta arts festivals. Members of the Alberta Arts Festival Association programmed 3,258 events. (Alberta Community Development, undated)
A 1988 study of visitors to various arts festivals in Edmonton found that over 21% were tourists. (Alberta Community Development, undated)
The 1990 Alberta Non-Resident Travel Exit Survey showed that 540,982 or 13% of visitors to the province attended fairs and festivals, 21.9% of 911,346 had visited art galleries and museums. (Alberta Community Development, undated)
Chemainus, B.C. (population 4,500) draws over 350,000 tourists annually to see its historic murals - there were virtually none in 1982 when the project was initiated. (Alberta Community Development, undated)
The Town of Stony Plain, Alberta (pop. 7200) commissioned 15 murals on the exteriors of public buildings; in 1992, 250,000 tourists visited the murals and the local Multicultural Centre. (Alberta Community Development, undated)
A real success story for the arts involves the Town of Rosebud in Alberta (population 46) which developed a theatre attraction several years ago which now draws 30,000 to 40,000 tourists each year, each leaving behind approximately $30. (Alberta Community Development, undated)
Ecotourism (Sustainable tourism development) offers opportunity for financial support for resource protection from the proceeds of tourism. (Ziffer, 1989)
The study, titled 'Economic Benefits of British Columbia Parks', found that expenditures related to parks totaled $430 million in 1993 (includes parks operations and spending by park visitors). About 90% was generated by park visitors; about 38% was from out of province residents.
The province receives about $40 million in tax revenues from the operation of its provincial park system. Other findings indicate that park expenditures are particularly important in non-urbanized regions; Vancouver and Victoria (3/4 of the population) account for only 20% of the park expenditures and employment generated. (Outdoor Recreation Council, 1995)
Wilkinson (1992) states that ecotourism has a positive influence on environmental conservation with the recognition that without effective conservation, there would be no tourism industry. Recreation has a positive impact on environmental attitudes and perceptions.
Visitor revenues (entrance fees, donations, taxes) in protected areas can be used to increase resource management and land leases can be used to aid conservation. (Gunn, 1994)
Benefits of having a National Park Service are twofold:
Ecotourism offers the opportunity to develop a language of hospitality that enhances the visitor experience, contributes to conservation, and benefits the local economy. Ecotourism can generate funds for the protected area, employment opportunities for people who live around the protected area, advanced environmental education, and minimize negative impacts. (Eubanks, 1995)
Nature based tourists represent a recent phenomenon in the tourist market and is big business, providing substantial economic rewards for a multitude of destinations (Berle, 1990). Nature-based tourists spend $14 billion annually viewing wildlife, photography, and traveling to see nature. (Vickerman, 1988)
U.S. research suggests that at least six benefit dimensions of nature-based tourism exist:
The importance of the environment in attracting vacation travel is significant, "natural beauty and cultural heritage represent a competitive advantage" (Williams, 1992). An Angus Reid poll (1993) stated (65%) that, "a place that takes care of its environment is very important in choosing a destination ... a chance to see wildlife and nature undisturbed" was rated very important.,
The linkage between environment as an attraction and economic impact can be substantial; half of the economic impact from Montana's tourism industry can be attributed to recreation activities occurring in wildland settings. (Yuan, 1992)
There is strong evidence that images of beautiful and serene landscapes, or even a live or recorded voice describing them causes relaxation and reduces stress. (Delaney & McVeight, 1991, p. 117). The impact of the natural environment on tourists ... extends well beyond the psychological benefits. The direct curative properties of natural resources have been known since antiquity ... health tourism, which attracts millions of tourists all over the world, has a long history, the main forms being balneology; hydrotherapy (e.g., Vichy, France); thalassotherapy (St. Malo, France, Dead Sea, Israel, Jordan); climatotherapy (Alps, Davos, Switzerland where one could go to cure tuberculosis); China's hot sand bathing to cure rheumatism and arthritic diseases; and Salt Mines in Poland to cure respiratory ailments. There is a large body of scholarly literature discussing health tourism and the significance of associated impacts. (Mieczkowski, 1995)
The Army of Corps in the US accommodates recreation visits at day use and camping facilities; in 1994 they began to charge user fees at their day use sites. Conservative projections of revenue returns for six (6) sites only range from a low of $1.3 million (@ $1/day) to $7 million (@$5/day). (Reiling, 1994)
The U.S. Travel and Tourism Administration estimates that tourism is the nation's second largest retail industry growing from $53 million in 1977 to $300 Million in 1992. At both state and community levels, tourism generates revenue that supports local programs, creates jobs, increases the tax base, and contributes to civic pride. (U.S. Travel & Tourism Council, 1993)
Some facts about the economics of recreation are:
| A sample of Britons visiting Colorado ranked the value and perceived vacation benefits as follows: (1 - not at all important - 4 - very important to me) | |
| National parks and forests | 3.10 |
| Good beaches for swimming | 2.90 |
| Sightseeing excursions | 2.83 |
| Historic old cities | 2.82 |
| Wildlife or birds | .033 |
| Wilderness and nature | 3.07 |
| Lakes and rivers | 2.97 |
| Local crafts | 2.74 |
| Museums and art galleries | 2.54 |
| Local festivals | 2.53 |
| Historical sites | 2.63 |
| Amusement and theme parks | 1.91 |
| Hiking and climbing | 2.17 |
| Casinos and gambling | 1.30 |
| (Mill & Morrison, 1992) | |
Birds are big business. According to a survey by the U.S. Fish and Wildlife Service (1991) 63 million people report they watch and feed birds at home. Birders spent $5.2 billion in 1991 on goods and services related to bird feeding and watching. 24.7 million Americans reported they travelled to watch birds. These "birding tourists" spend $100.00 to $130.00 per day, not including travel to and from an area. (Southwick Associates, 1995)
Tourism Canada and US Travel and Tourism conducted research in overseas countries and found that three main benefits were identified as to why people in Great Britain were interested in visiting Canada and the U.S.:
Many sectors benefit from tourism demand; tourism has a great impact on the domestic economy. In Canada, direct and indirect employment in tourism in 1992-93 was 467,000 people which is about a 4% share of the total labour force and 4% share in Gross Domestic Product (GDP). In the United States, direct and indirect employment was 6,000,000 people and 5.1% of the total labour force and 6% in GDP. The absolute figures relating to employment dependent on tourism are 1.2 million in Canada. Government contributes to favourable conditions for tourism by investing in infrastructure and tourist facilities, land-use planning, and protection of parks and natural resources. (Organization for Economic Cooperation and Development, 1995)
In Canada, for every 1 million dollar increase in travel and tourism gross output in 1994, 21.9 new jobs will be created; also, in Canada in 1994:
The British Columbia parks system is a major employer in the province providing a source of employment for about 9,300 persons on an annual basis. This is calculated on a basis of full-time job equivalent, which means these benefits are spread across many more individuals, allowing for the possibility of part time work and seasonal employment. (Outdoor Recreation Council, 1995)
Acre for acre, parks and recreation creates three times more jobs than forestry in Alberta. The study 'Alberta Environmental Protection' reported the following:
Economic Impact of Alberta Parks 1993/94 |
||
Gross Domestic Product |
Employment |
|
| Park visitors | $143.9 |
3,500 |
| Park operations | $41.5 |
1,085 |
| Total | $176.4 |
4,585 |
Economic Impact of National Parks |
||
| Park visitors | $840.5 | 18,760 |
| Park operations | $41.2 | 1,050 |
| Total | $881.7 | 19,810 |
| (Thompson, 1997) | ||
The direct and indirect economic impact of leisure in Ontario in 1990 was calculated at almost 7.7 billion dollars (including 2.5 billion dollars from physical activity). This represents a contribution of 3.2% (1.0% for Physical Activity) to the entire Ontario Gross Domestic Product. Purchases of good and services in leisure activities in Ontario also contributed up to $600 million dollars in taxes to all levels of government.
Many Ontario jobs are a result of recreation activity. Nearly 150,000 jobs of approximately 3.5 million jobs in 1990) were attributed directly and indirectly to participation in leisure activities in Ontario in 1990 (and another 9,300 jobs due to the export of leisure goods). Over half of these jobs were in the community, business and personal services industries, and another 24,000 (16%) were in manufacturing. For the more narrow-defined physical activity, there were almost 38,000 jobs in 1990. About 40% of these were in the community, business and personal services industry. Each job created 0.33 jobs resulting in a multiplier of 1.33. (Conference Board of Canada report for Ontario Ministry of Culture, Tourism and Recreation, 1993)
Direct and indirect payment to Saskatchewan's labour in sport and recreation is estimated at $200 million. This corresponds to approximately 13,400 persons years of employment annually. (Saskatchewan Sport, Inc, 1991)
Ten European countries examined sports and consumer expenditures and revenues, and found that sport contributes substantially to consumer expenditure and consequent economic wealth. Sport related expenditures exceeds spending on newspaper/magazines and radio/TV in Denmark, United Kingdom, and Netherlands. They found governments receive substantially greater returns in taxation than they make available in sport expenditure; also in addition to its social and physical benefits, sport contributes to job creation and employment. (Jones, 1990)
The Conference Board of Canada (1991) estimated that the level of economic activity generated by fitness related expenditures in 1986 contributed $5.6 billion to Canada's GDP and translated into:
In Alberta in 1991, the leisure service industry directly employed 66,924 people which is 5% of the total experienced labour force. (Statistics Canada)
Alpine skiing in Quebec generates a higher number of jobs in the province than the manufacturing industry, and has a lower volume of imports. (Canadian Ski Council, 1991)
A three year study (1990, 1991, and 1992) conducted by the National Assembly of Local Arts Agencies (NALAA); revealed that the nonprofit arts industry spends $36.8 billion annually and supports 1.3 million full-time jobs in the US., 908,800 of these jobs are in the arts sector. The estimated total of personal income paid out by Local arts agencies is $25.2 billion. (Neiman, 1994)
The National Endowment for the Arts (NEA) estimates that 2.7% of the US workforce, or 3.2 million jobs, are in the arts and entertainment complex of industries. (Neiman, 1994)
Statistics Canada, in their 1994 Working Document of the Economic Impact of the Arts and Cultural Sector, states that in 1992/93 the direct impact of this sector in Canada resulted in 460,898 jobs and a direct economic impact of $15,935,400,000. Note that these jobs include professional stage performers (56,591 jobs), other stage performances (32,250), Libraries (33,560), and visual arts (35,876) as well as media, film, heritage, and government jobs.
Employment in the cultural field is both information-rich and labour-intensive unlike many capital intensive activities of the information age. From 1971 to 1991, the cultural labour force in Canada grew by 122% (from 156,000 to 346,000) compared to 58% for the national labour force as a whole. During that same period, the cultural labour force increased from 1.81 percent of the total Canadian Labour force to 2.53 percent. (Statistics Canada, 1992)
In 1991, members of the Alberta Arts Festival Association programmed 3,258 arts festival events, employing 4,902 people in the process. (AAFA)
Creation of employment in the arts field is cost-.effective. The Canada Council has estimated that creating an 'arts job' costs $20,000 compared to $100,000 per job in tight industry or $200,000 per job in heavy industry. Some 300-400 new employment opportunities can be created by a $1,000,000 investment in arts employment. (Statistics Canada: The Arts and Economic Development)
"The $36 billion nonprofit arts industry is a source of future employment for students" , The National Assembly of Local Arts Agencies, (Brown, 1994) stated that; "Out of a classroom of 30 children, maybe 10 will be employed in an arts-related occupation someday." Today arts provides about 1.3 million jobs per year. The economic dimensions of the nonprofit arts sector of $36 billion jumps to $314 billion when the commercial arts sector is added. (In National Endowment for the Arts, 1995)
The Alberta Leisure services industry was the fourth largest generator of new jobs (8,900 or 7% of at (new jobs ) between 1986 and 1990. 1994 statistics show there were 5,100 new jobs created in artistic and recreational occupations between May, 1993, and November, 1994 which is a 24.5% growth rate - the highest of any occupational sector in Alberta. (Statistics Canada, 1994)
In Ontario in 1986, there were 329,000 jobs associated with sport, fitness, and recreation. Purchase of sport and fitness related goods and services created more jobs than general consumption. Government spending on sport and fitness created jobs less expensively than spending in other areas - 33% cheaper. (Ontario Ministry of Tourism and Recreation, 1991)
Revenues from ski expenditures in Ontario created 2,300 full-time seasonal positions and a further 2,500 part-time seasonal positions. (Ruston et al., 1990)
The adventure travel operators generated 3,238 person-years of direct employment, 2,199 as full-time jobs (68%), and 1,039 as part-time jobs, plus another 2,622 indirect jobs representing $293.7 million in wage income and $69.1 million in taxes for all levels of government. (Industry Canada, 1995)
Culture Counts, a marketing program of the Saskatchewan Council of Cultural Organizations, (1996), stated the benefits of culture to employment as follows:
Labour force is increasing rapidly. Between 1986 and 1991, the arts and culture sector rose by 3.0% while the total provincial labour force increased by only 0.8%. (Statistics Canada)
Cultural activity contributes to a rich quality of life for Saskatchewan people. Culture creates 20,000 jobs and contributes more than $420 million to Saskatchewan's economy. (Statistics Canada)
The Ontario Arts Council (1994) presented in Art Facts, a summary of the employment impact of the arts and culture sector in Ontario, as follows:
| Statistics Canada produced a special report on the "Regional Economic Impact of the Arts and Culture Sector" (revised in Dec. 1994). A highlight of the report for Canada overall is: | ||
| Arts and Culture Sector (92/93) | Jobs |
GDP ($000,000) |
Direct and Indirect Impact |
||
| Written media | 84,295 |
6,185.9 |
| Film | 55,178 |
1,804.6 |
| Broadcasting | 71,997 |
5,071.9 |
| Record production/distribution | 4,844 |
360.7 |
| Manufacturing – sound/music | 4,604 |
390.5 |
| Wholesale | 10,137 |
1,343.1 |
| Retail | 77,417 |
2,310.2 |
| Stage performances, professional performing arts | 73,568 |
360.9 |
| Other stage performances | 41,925 |
437.7 |
| Heritage - without parks | 103,634 |
955.0 |
| Heritage – parks | 17,594 |
346.1 |
| Libraries | 46,984 |
1,494.1 |
| Government | 26,422 |
1,804.4 |
| Visual arts | 41,616 |
928.4 |
| Total Canada | 660,224 |
23,793.3 |
| The total economic impact of Arts and Culture for each province/region is: | ||
| Arts and Culture Sector | Jobs |
GDP ($000,000) |
Direct and Indirect Impact |
||
| Total Atlantic | 37,836 |
1,152.4 |
| Total Quebec | 143,594 |
5,763.5 |
| Total Ontario | 259,621 |
11,177.5 |
| Total Manitoba | 26,754 |
631.7 |
| Total Saskatchewan | 24,071 |
520.3 |
| Total Alberta | 79,678 |
1,912.3 |
| Total British Columbia | 85,377 |
2,491.6 |
| Total Yukon/Northwest Territories | 3,014 |
79.3 |
| Human Resources Development Canada produced a report 'Arts, Culture, Sports and Recreation: Career Moves', (1993) summarizing the following employment statistics: | |
| 1991 Employment by Sector | 1991-2005 Growth |
| Sales and service 24.9% | 30.0% |
| Business, finance and administration 22.8% | 26.6% |
| Manufacturing 11.2% | 11.6% |
| Trade and transportation utilities 14.6% | 15.0% |
| Social services, education and religion 7.2% | 22.6% |
| Health 5.7% | 47.5% |
| Resources 5.4% | -4.0% |
| Natural/applied sciences 4.0% | 40.7% |
| Senior management 2.2% | 34.9% |
| Arts, culture, sports, recreation 1.7% | 44.8% |
| (Stats based on Canadian Occupational Projection System (COPS), Employment and Immigration Canada, 1993) | |
International tourist receipts account for $6,308.6 million dollars in 1994 (an 8.1% increase over 1993) and expenditures of $9,433.7 million. (Organization for Economic Cooperation and Development, 1996)
A major beneficial impact of tourism is that local residents can realize an improved standard of living and take advantage of enhancements in community infrastructure such as leisure centres, zoos, heritage/cultural centres, etc. Other positive aspects of tourism are: individual economic independence (wages), labour force displacement and migration to tourism region, changes in employment and acquisition of new skills, increase in land value, potential growth of depressed regions, cross-cultural exchange, preservation of cultural heritage; revival of traditional art forms and growth of pride in one's community. (Crandall, 1994)
The 1991 Canada Winter Games in Prince Edward island projected that:
In 1986, the Sport and Fitness industry contributed 5.6 Billion dollars to the Canadian economy. (Ontario Ministry of Tourism and Recreation, 1991)
A report was prepared for the City of Burlington, Ontario summarizing 'The Local Economic Impact of Public Recreation in the City of Burlington' The study showed; "There is a great deal of money spent in Burlington that can be accounted for through direct expenditures associated with participation in sports; in fact, combined organizational expenditures of the sport groups contributed over $1.6 million to the community. Estimated expenditures of parents and/or participants and coaches contribute yet another $419,000 bringing conservative estimates of expenditures to over $2 million. Hotel revenue contributes yet another $400,000 thereby bringing the financial return to approximately 1.5 times the city's original investment of $1 million in 1992. The estimated multiplier is 1.34. In the case of minor sports, the return is far greater because the original estimate does not take into account the 100 organized groups that currently function in the city, the other hotels not accounted for in the study and the other indirect expenditures (e.g. monies spent by visiting participants for meals, souvenirs). (Sailor et al., 1993)
| Total economic impact of sports and recreation expenditures in Saskatchewan in 1991 was calculated using the Saskatchewan Transactions Model Results reported are: | |
| Direct expenditures | $540 million |
| Less: Imported goods and services | $187 |
| Direct impact | $353 |
| Add indirect impacts | $335 |
| Total impact | $688 |
| Multiplier effect | 1.95 |
| Impact on Saskatchewan's gross domestic product (included in gross output impact above) is about $270 million. This is the addition to the province's value-added due to expenditures on sports and recreation. (Saskatchewan Sport, 1991) | |
The 1996 World Figure Skating Championships in Edmonton will generate $10 million in new revenue with a multiple effect of $43 million. (ASRPWF, 1995)
A study of the economic benefits of seven sporting events in Alberta, concluded that an estimated $4.06 million was generated from the games. Participants and visitors accounted for $1.78 million. (Conrad, et al., 1980)
The total annual expenditures on active sport and recreation in Saskatchewan in 1991 was estimated to be $540 million. This direct expenditure generated approximately $350 million in direct economic impact, with indirect spending bringing the total impact close to $700 million. This economic activity added an estimated $270 million to Saskatchewan's Gross Domestic Product and accounted for 1.4% of total provincial value added. This economic activity produced approximately $200 million in labour income and over 13,000 person-years of employment annually. This represents 4% of the total provincial non-agricultural employment. (Peat-Marwick, Stevenson and Kellogg, 1991)
Winterlude, 1991 produced a total economic impact (direct, indirect and induced benefits) at the provincial level (Ontario) of $28.6 million. This is comprised of $24.7 million in direct GDP $3.9 million in secondary GDP. (Gallup Can, 1991)
In Ontario (1983), the private sector invests some $271 million annually in recreation facilities, the average family in Ontario spends $2,300 a year on recreation. In total, this amounts to 7.3 billion; added to this is $314 million associated with athletic clothing; thus the total relating to sport and physical activity can be almost 1 billion dollars annually (in 1982/83 dollars). (Berger et al., 1983)
There are 81 recognized Provincial Sport Organizations (PSO's) in Ontario. Based on a very modest estimate of $1 million dollars per sport, PSOs contribute through the running of events 'minimally 81 million dollars per annum' to the Ontario economy. (Yardley et al., 1990)
The Manitoba Sports Federation (undated) produced a resource book called 'Playbook; Sports for Life' They stated that each year sport turns the government's initial financial investment into a significant contribution to the provincial economy. Some of the documentation from this resources states:
In a study of the 1995 Saskatchewan Softball Girls Pee Wee A,B,C,D level provincial finals held in Regina, North Battleford, Carnduff and Lafleche, it was estimated each family from the host community spent $174.11 within that community. As well, each travelling family also spent $79.64 outside the host community as a result of the tournaments. The total estimated economic impact of the tournaments was $111,029. (Saskatchewan Sport Research Committee, 1996)
Economic theory states that people derive economic value or benefit from natural resources such as fish and wildlife by using them to produce products (goods and services) that have economic value. People use Alaskan fish and wildlife to produce a variety of commercial and subsistence food and clothing products. Also, people use Alaskan Fish and Wildlife to produce recreation and leisure products; hunting trips, health products, science and education products, lifestyle products and existence services. (Peterson et al., 1992)
In 1993, Statistics Canada conducted a survey on 'Adventure Travel Operations in Canada' Highlights of the benefits determined by this study include:
The Utah Department of Parks and Recreation spent $76 million on recreation facilities for camping and waterfront activities; the project is designed to attract 500,000 visitors per year and contribute more than $2 million annually in financial benefits. (Data from the Utah Department of Parks and Recreation, 1993)
Non-consumptive wild-life related recreation is a significant leisure activity among Albertans and makes a substantial contribution to the Alberta Economy; in 1990 direct expenditures of half a million dollars. High participation rates and expenditures combined with the Potential for increased participation indicates that wildlife are an important natural resource. (Natural Resources Canada, 1993)
Economic cost and benefit studies have been conducted comparing options; Johnson, (1986) presents a calculation comparing the local benefits of ecotourism in South Moresby National Park, British Columbia with benefits of logging. Ecotourism is the clear winner .. similar examples of ecotourism paying for nature conservation abound. ... Tourism should stand in the forefront in the struggle for the conservation of nature. (Mieczkowski, 1995)
Government (Saskatchewan Parks Branch) expenditures on provincial parks in the 1987-88 fiscal year were estimated to be $15.4 million. Over 3 million visitors made use of the provincial parks and spent an estimated $32.7 million. The government expenditures generated $15 million labour income, contributed $18 million to the provincial GDP and generated 526 person-years of employment. Of these, $11.4 million of labour income, $12.1 million of GDP and about 390 person-years of employment were direct impacts. The estimated provincial parks ratio multipliers were: income 1.32 - 1.61; GDP 1.50 to 1.73 and employment 1.35 to 1.38.
The local economic multiplier for the City of Regina was determined to be 1.82 in 1987-88. The city's estimated parks expenditures of $10.2 million generated a net surplus of $3.1 million. Applying the multiplier to this surplus, shows a net local impact of $5.6 million. (Saskatchewan Parks and Recreation Association, 1990)
The documented benefits of recycling railway corridors are derived from the United States experience with more than 500 rail-trails and on Canadian sources based on the work of rail-trails and greenway proponents. (Iles, 1993). Rail-trails and greenways can accrue considerable economic benefits for a community in several ways:
Every five years the U.S. Fish and Wildlife Service and U.S. Bureau of Census conduct a survey on the money spent in nature tourism (hunting, angling, watching wildlife, etc.) The 1992 survey found that $59 billion was spent on wildlife recreation in 1991. 48% of this total was spent on equipment, 39% spent on trip-related expenses (meals, motels, gas, etc. ), and 13% on other expenses. (EcoTourism Management, 1994)
'Culture Counts' is a marketing program of the publication by the Saskatchewan Council of Cultural Organizations, (1996) that presents the benefits of Culture as follows:
A three year study (1990-1992 inclusive) by the National Assembly of Local Arts Agencies estimated that the total economic impact of nonprofit arts agencies in the US included:
For 33 communities surveyed directly, 84% of the estimated expenditures were spent locally (within the community). (Neiman, 1994)
As an example of the economic impact of a single professional arts performance, the 1992 run of 'Phantom of the Opera' in Calgary's Southern Alberta Jubilee Auditorium, lasted for three months yielded a projected economic impact of $7.49 million for ticket sales alone, and a projected economic impact for the entire show of some $13.1 million. These projections are based on first time expenditures only and have no multiplier included. (Alberta Community Development, undated)
Estimates of the economic impact of 23 performing arts organizations in Alberta during 1992, (using Statistics Canada multipliers) indicate that:
In 1992/93, 28 performing arts companies in Calgary had expenditures of $28,528,000. Ancillary patron expenditures were estimated at $7,740,000 for total expenditures of $36,268,000. Using conservative multiplier measures, this results in:
In 1991-92, the direct and indirect impact on the GDP of Ontario's arts and culture sector was $10.1 billion. This amount represents:
The direct and indirect impact of Ontario's arts and culture sector ($10.1 billion) include contributions to GDP of:
In 1988, Toronto estimated that over 12,000,000 tickets were sold for arts and cultural events in the city - with sales estimated at $175 million. Plays and musicals were best attended, followed by popular music concerts, classical concerts, ballet and modern dance, and finally opera. (Alberta Community Development, undated; Task Force on Arts and Tourism, Report on the Arts)
A UNESCO sponsored study has demonstrated that within one or two years, each new dollar of municipal arts investment levers an additional $24 from other levels of government, private sector and audiences. (Alberta Community Development, undated; Toronto Arts Council)
The economic impact of six American Heritage Visitor Centres in 1992 was:
The National Park Service determined that after the last major expansion of Grand Teton National Park in Wyoming, the property values, sates tax receipts, and bank deposits in the county doubted in 8 years; primarily due to the park expansion. (Economic Factors, In Jensen, 1995)
Research has shown that the economic benefits of urban trees and forests are enormous and have significant positive impact on communities;
A study designed to calculate use values in existing forests showed that non-specialist day visitors to commercial forests place a high value on the wildlife, landscape, and access attributes of the sites. Results suggested a total use value of at least $34.6 million at 1988 prices. (Benson, 1993)
Increases in the price of residential property are positively affected by the quality of recreation facilities and negatively affected by the distance from them. Proximity to open space improves the visual environment and the quality of life. These two positive attributes result in higher prices for homes and land. In 1993, the value of a home near a well maintained golf course or park in Greeley was 8% to 10% higher than homes not located near such sites. (Colorado Parks and Recreation, 1993)
Many studies have revealed increases in property values where the property is located beside or near open spaces, including traditional parks, greenbelts (large open space areas), and greenways. Some studies have further determined that the potential for an increase in property value depends upon the characteristics of the open space and the orientation of surrounding properties. Property value increases are likely to be highest near greenways that highlight open space not highly developed facilities; have limited vehicular access, and have effective maintenance and security. (National Park Service, 1990)
An increase in property values generally results in increased property tax for local government. A study in Boulder, Colorado revealed the aggregate property value for one neighborhood was approximately $5.4 million greater than if there had been no green belt. This results in about $500,000 additional potential property tax revenue annually. (National Park Service, 1990)
A study of the economic significance of Saskatchewan parks illustrates that substantial returns are realized on taxpayers dollars spent in the development, operations, and maintenance of parks. (Goaltech Management 1990)
According to a study conducted at the University of Calcutta, India, one tree's contribution over 50 years in controlling air pollution, soil erosion, soil fertility, recycling water, and humidity is worth a total of $196,250. (National Recreation and Parks Association, 1994)
Proximity to open spaces has also been shown to increase real estate values substantially. According to the 1994 Commonwealth Fund/Harris poll, 57% of property owners living within two blocks of a city park in New York say that being located near the park enhances the value of their property. In Salem, Oregon, urban land next to a greenbelt was worth $1,200 more per acre than urban land 1,000 feet away. (Trust for Public Land, 1994)
Urban greenspaces provide places of shade, cooling of the air and ground, oxygen generation, erosion control, a place to retreat from city noises, space for recreation, and a haven from heat pollution and stress. The sites most popular for preservation in urban communities now include golf courses, greenways and urban waterfronts. Professor John Rooney's report from Oklahoma State University states, "Merely being in a golf-course community, even located next to the golf course can add another $15,000 to $20,000. And if the view includes a pond or other body of water, tack on still another $15,000" Thus, properties possessing, connection to parks and greenspaces will not only maintain their value, but increase at a rate greater than that of properties not possessing these attributes. (Sailor et al., 1993)
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Canadian Parks/Recreation Association
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