Event spending categories?

Hi, I'm measuring the economic impact of a wine festival. We did a survey to obtain the out-of-town visitor average spending in each category including food & beverage, lodging, retail, entertainment, transportation, and gasoline (I saw sometimes gasoline is put in the gasoline product sector instead of retail-gasoline. This region doesn't have refinery, would retail-gasoline a better sector to put in?).

We also obtained the data from the festival organizer - the local wine association, on their income and spending on host the festival. Income includes admission tickets, extra tasting tickets, winery booth, vendor booth, and sponsors, and expenses include rent, legal, permit, security, winery payout (for tasting tickets), entertainment, etc. My question is, do we put in the organizer's expense in the model under relevant category (I assume the expense wouldn't have been expended if there were no festival, so although it's local money it's retained impact. Correct me if I'm wrong)? If so do we omit the admission tickets from the visitor spending (I saw similar analysis put this part in entertainment) to avoid double counting? What should I do with the booth fee paid to them? Wineries are from both local and other regions. Do I calculate the booth fee paid by out-of-town wineries? What sector is booth fee fall into?

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    Hello Feifei!

    For the gasoline purchases, you could model this as an Event in the retail gasoline Industry, but note that this Industry does not exclusively sell gasoline (as it includes associated convenience stores). It would be a better idea to model this as a Commodity Output Event with the specification of 3154 - refined petroleum products, as this is what the visitors are actually spending their money on here. However, I would also note that you should consider what portion of this value is impacting the local area, as it is likely that some of these gasoline purchases would be made outside of the Region. The same could be said about transportation, as a plane ticket will be impacting both the region of departure and the destination region. 

    You indicated that this is a local wine association, so any impacts associated with them could be modeled locally. When thinking about this festival from the perspective of the wine association, we can model this as the expenditure approach (what they spend money on) or the revenue approach (what money they receive), but we need to be especially careful not to double count dollars with either approach. I would recommend that you model the revenue of this association from the festival as an Industry Impact Analysis Event Type with the specification of Industry 523 - business and professional associations, which would include any fees collected if the fee goes to the association. Any dollars that are associated with the revenue earned from the wine festival (food and beverages, ticket sales, etc.) will need to be excluded from the visitor spending, as they are included in the revenue of the wine association and will be modeled in the IIA event. The  expenditures made for the festival on things like security or rent will be included in the Spending Pattern for Industry 523. Intermediate Inputs included in the Spending Pattern can be edited in the IIA Event to more accurately reflect the values you have.

    Regarding the Industry for this analysis, it could also be modeled as an Industry Spending Pattern Event for Industry 500 - Promoters of performing arts and sports and agents for public figures, as that is where festival organizers tend to fall under. This would be especially important if you were to opt for the expense approach, as the Intermediate Inputs for this industry are more typical for "events", whereas the revenue approach would be better aligned with Industry 523 as some of the revenue and profit from the event went towards paying their own employees.


    Hope this helps!

    Michael Nealy






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