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

Section 4: Existing Facilities Overview and Impacts | May 2017 Sports Market Business Strategy – Morgan Hill, CA PAGE 39

 Increased Earnings/ Personal Income – measures increased employee and worker compensation related to the events and activities at the facility being analyzed. This figure represents increased payroll expenditures, including benefits paid to workers locally. It also expressed how the employees of local businesses share in the increased outputs.  Employment Impact – measures the number of jobs supported in the study area related to the spending generated as a result of the activities occurring in the facility. Employment impact is stated in a number of full-time equivalent jobs. Direct spending associated with the existing Aquatics Center and Outdoor Sports Center is estimated by multiplying the visitation volume with the average daily spending per person. Information on overall visitation volume is provided by the City of Morgan Hill and Morgan Hill Youth Sports Alliance, while other attributes such as attendee origin, length of stay, and daily spending per person are obtained through intercept surveys conducted at four representative events: Summer Recreation Swim and Regional Swim Meet at the Aquatics Center, and a non-soccer sports tournament and a Regional Soccer Tournament at the Outdoor Sports Center. These will be detailed later in this section. Indirect spending, induced spending, increased earnings, and employment are then estimated using a set of multiplier rates unique to Santa Clara County that are applied to the amount of direct spending. Table 4-6 shows the multiplier rates utilized for this impact analysis.

Table 4-6

Morgan Hill Aquatics Center and Outdoor Sports Center Economic Impact Multipliers

Impact

Multiplier*

Base

Indirect Spending Induced Spending Increased Earnings

0.4500 0.3570 0.5550

of direct spending of direct spending of direct spending

Increased Employment (FTE)

12.6057 per $1 million of direct spending

*Basis for multipliers is Santa Clara County Source: Implan, Johnson Consulting

The multipliers mean that for every $1 million of direct spending, there will be $450,000 of indirect spending, $357,000 of induced spending, $555,000 in increased earnings, and 12.6 full-time equivalent (FTE) jobs supported in the economy.

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