City of Morgan Hill Bikeways, Trails, Parks and Recreation Master Plan

Section 2: Introduction and Executive Summary | May 2017 Sports Market Business Strategy – Morgan Hill, CA PAGE 13

Table 2-8

Aquatics Center and Outdoor Sports Center

Economic and Fiscal Impact

Economic Impact ($000)*

Aquatics Center Outdoor Sports Center

Combined

Direct Spending Indirect Spending Induced Spending Total Spending Increased Earnings

$3,897 $1,754 $1,391 $7,042 $2,163

$6,557 $2,951 $2,341 $11,849 $3,640

$10,454 $4,704 $3,733 $18,891 $5,803

Employment (FTE Jobs)

49

83

132

Fiscal Impact ($000)*

Aquatics Center Outdoor Sports Center

Combined

Sales Tax **

$330

$522

$852

Transient Occupancy Tax

$23

$42

$66

Total Tax Revenue

$353

$564

$917

*Figures are rounded to the nearest thousand ** Total sales tax is 8.75%. City of Morgan Hill receives 1% of gross sales, or $97,000. Source: Johnson Consulting

Events held at both facilities are estimated to have generated $18.9 million in total spending, $5.8 million in increased earnings, 132 FTE jobs, and $917,000 in tax revenues, annually. Morgan Hill would receive $97,000 of the sales tax revenues, $60,000 of which is through visitor impacts. RECOMMENDATIONS Johnson Consulting’s recommendations and strategies are presented in three steps that will, through a sustained strategy, contribute to the overall strengthening of the sports tourism marketing and activities in Morgan Hill. The recommendations will also impact local residents through improved facilities and attracting more visitor dollars to the City. The recommendations are detailed below. STEP ONE – Create Tourism/Destination Management Organization (DMO) The City of Morgan Hill is well-positioned to grow its tourism marketing efforts to transform into a destination, but Morgan Hill cannot yet compete with more established tournament venues nationally, as these facilities typically benefit from a unified marketing effort from local tourism stakeholders. Hotels, restaurants, entertainment and recreation venues will all collaborate with sports complexes to create travel packages for event owners and participants. Often, this effort is led by a Destination Management Organization (DMO) such as a Convention and Visitors Bureau (CVB) and/or regional sports commission. Morgan Hill lacks a cohesive effort from the tourism resources in town, including hotels, and should benefit

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