Charles Nelson
Associate Professor of Park,
Recreation and Tourism Resources, Michigan State University, 131 Natural
Resources Bldg., East Lansing, MI 48824-1222, 517-353-5190, nelsonc@msu.edu
Christine Vogt
Assistant Professor of Park,
Recreation and Tourism Resources, Michigan State University, 131 Natural
Resources Bldg., East Lansing, MI 48824-1222, 517-353-5190, vogtc@msu.edu
Joel Lynch
Research Specialist in Park,
Recreation and Tourism Resources, Michigan State University, 131 Natural
Resources Bldg., East Lansing, MI 48824-1222, 517-353-5190, lynchjoe@msu.edu
Daniel Stynes
Professor of Park, Recreation
and Tourism Resources, Michigan State University, 131 Natural Resources Bldg., East
Lansing, MI 48824-1222, 517-353-5190, stynes@msu.edu
Abstract: This paper discusses community and economic
benefits associated with two recreational bicycle special events held on the
Pere Marquette Rail-Trail (PMRT) in Midland County Michigan during the summer
of 1999. One event was an annual ride to fundraise for the Rails to Trails
Conservancy of Michigan. Approximately 1,800 participants rode in the event
which included two days of riding on the Pere Marquette Rail-Trail. Overall the
event produced $207,000 of direct spending by travel parties in Michigan. The
second event was the Midwest Tandem Bike Rally, an annual event staged in a
different location each year over a weekend. In 1999, Midland was selected as
the site and attracted 550 tandem bicycle teams. Overall the event produced
$260,000 of direct spending by travel parties in Michigan. The two events
brought visitation to Midland that otherwise would not have occurred and for
25% of both events’ participants, the Pere Marquette Rail-Trail was the primary
draw to ride participation. The communities along the trail benefited from the
exposure as over three-quarters of the participants were riding the trail for
the first time. Further, the majority from both events indicated they were
likely to return to the Pere Marquette Rail-Trail and county on a future trip.
Discussion and implications of this research includes: (1) ways of maximizing
economic impact through fee structure and overnight accommodation arrangements,
(2) the importance of Rail-trail facilities to draw visitors to an area, and
(3) how residential trail use displacement can be minimized during recreational
bicycle events.
Introduction
Typically, research on trails
developed from abandoned rail road right of ways, herein referred to as
rail-trails, has focused on the use and benefits by local residents (Moore,
Scott and Graefe, 1998; Mowen, Graefe and Williams, 1998). However, such
facilities also attract visitors from beyond the local area, thereby
contributing to local economies. For instance, Schutt (1998) showed that the
use of the Bruce Trail in Ontario Canada was primarily by tourists (67%) and
that many stayed overnight near the trail during the course of their trail use.
Special trail-related events are also instrumental in attracting tourists.
These events may be held using existing trail facilities and the tourism
infrastructure (i.e., restaurants, hotels, bike-related retail, other retail).
The purpose of this paper is
to report on and discuss community and economic impacts of two recreational
bicycling events to a local economy in Michigan. These impacts will be reviewed
according to community and economic variables and explained across both
short-term and longer-term effects.
Description of Research Study, Rail-Trail and Two Special Events
A group of faculty from the
Department of Park, Recreation and Tourism Resources at Michigan State
University is conducting a two-year study of a single rail-trail in Michigan.
The goal is to document some of the economic, social and community benefits
such facilities provide. The Michigan Department of Transportation and Michigan
Agricultural Experiment Station are the primary financial supporters of the
research project. The project includes a group of advisory partners with
representatives from the National Park Service's River and Trails Assistance
Program, Michigan office of the Rail-to-Trails Conservancy, Michigan Department
of Natural Resources, Michigan Department of Transportation, and the Midland
and Isabella County Park and Recreation departments. These partners contribute
in-kind and financial assistance and meet on a quarterly basis to suggest
research direction and discuss applications of results. The focus of this
research is the segment of the Pere Marquette Rail-Trail (PMRT) located in
Midland County, Michigan. Midland County’s population is approximately 80,000
people and is world headquarters to Dow Chemical Corporation. Initially
developed in 1993, the 22 paved miles of the PMRT in Midland County connect
three communities, including several public park and recreation facilities. A
six-mile extension into the adjacent county is under construction, and due to
open in the summer of 2001.
In general, the park and
recreation departments of Midland County and the city of Midland allow limited
use of the PMRT for special events. They view the trail as a public facility
that should be open to all. Hence, events such as a bike race, that might
otherwise displace normal use of the trail or endanger users, are generally not
permitted. Two bicycling events that fit the special event use criteria were
studied. The first is an annual event called the Michigander, organized by the
Michigan Office of the Rails-to-Trails Conservancy to promote recreational
cycling and to raise money. The second is the Midwest Tandem Bike Rally, which
is staged at a different Midwest location each year and promotes tandem cycling
and raises funds. Both events used the PMRT during the summer of 1999.
A mail survey was used to
collect data regarding the two special events. The Michigander was held in July
1999 and attracted 1,800 participants. Half of the participants rode the
two-day event which primarily took place in Midland County, one-third rode six
days and the remainder rode the full seven days, the longer time segments
traversed the central part of Michigan. From the registration list (excluding
individuals under the age of 18 years old), 600 participants were randomly
selected. After a Dillman modified survey procedure including a reminder postcard
and a second mailing, a 71 percent response rate (n=424) was achieved. The
Midwest Tandem Rally was held over the Labor Day holiday in 1999 and attracted
1,100 participants or 550 tandem teams. Six hundred individuals from the
registration list were randomly selected to receive the survey. Using the same
mailing procedure as described above, a 75 percent response rate (n=452) was
achieved.
The mail questionnaire
consisted of four pages and included 27 questions. Questions focused on
measuring experience levels with the event and the PMRT; whether the event was
the primary reason for the trip; the nature of the travel party (i.e., friends)
and spending party (i.e., family); spending before, during and after the event;
intention to return to the Pere Marquette Rail-Trail and area; and
demographics. Economic benefits are illustrated by calculating event spending,
measuring the amount of tourism or out-of-county visitation the event yielded,
and the potential for future visitation by the participants. Community benefits
are illustrated by measuring the proportion of participants who were introduced
to the bicycling event or rail-trail through these two special events.
A demographic profile of the
respondents to the two day event is found in Table 1. While a minority (26%) of
Tandem Rally participants were from Michigan, a strong majority (95%) of
Michigander participants were (Table 1). In both groups, about half of the
participants earned $80,000 or more in 1998 annual household income and the majority
were employed on a full-time basis. A minority of Michigander and Tandem
participants had children in their household.
Table 1. Demographic profile
of 1999 Michigander and Midwest Tandem Rally participants.
|
|
Michigander (n=424) |
Midwest Tandem Rally (n=452) |
|
Residency |
|
|
|
Michigan
resident |
95% |
26% |
|
Nearby
states/providence’s (IN, OH, IL, WI, Ontario) |
3% |
48% |
|
Other
states/providence’s |
2% |
26% |
|
1998 Household income
levels |
|
|
|
Under
$40,000 |
10% |
9% |
|
$40,000
to $80,000 |
44% |
40% |
|
Over
$80,000 |
46% |
51% |
|
Household composition |
|
|
|
With
children |
40% |
26% |
|
Without
children |
60% |
74% |
|
Employment status |
|
|
|
Full-time/self
employed |
76% |
72% |
|
Retired |
9% |
17% |
|
Other |
15% |
11% |
Michigander participants
were less likely than Midwest Tandem Rally participants to be members of a bicycling
organization (Table 2). Of those who were members of an organization,
Michigander participants were most likely to be members of the Rail-to-Trails
Conservancy while Tandem Rally participants were most likely to belong to a
local bicycling organization, followed by the League of American Bicyclists and
the Rail-to-Trails Conservancy. The financial commitment of participants in
both events to cycling is significant, with Michigander participants averaging
almost $750 and Tandem participants averaging almost $2,500 per year in cycling
related expenditures during 1998. The largest proportion of expenses for both
groups was equipment, followed by events/membership fees and repair costs.
Table 2. Bicycling profile of
1999 Michigander and Midwest Tandem Rally participants.
|
|
Michigander (n=424) |
Midwest Tandem Rally (n=452) |
|
Membership in bicycling
organizations: |
|
|
|
Local
group |
10% |
66% |
|
League
of American Bicyclists |
5% |
30% |
|
Rails-to-Trails
Conservancy |
29% |
25% |
|
League
of Michigan Bicyclists |
5% |
12% |
|
Average annual spending on
bicycling |
|
|
|
Equipment
purchases |
$478 |
$1,860 |
|
Repairs |
$80 |
$230 |
|
Events/membership
fees |
$190 |
$356 |
|
Average total spending on
bicycling |
$748 |
$2,446 |
When asked about the purpose
of their trip that included event participation, almost all participants in
both events cited the event as the main purpose for the trip (Table 3). This
suggests that the visit to the Midland area would not have occurred if there
was no event. Furthermore, 27% of Michigander participants and 23% of the
Tandem participants indicated that the Pere Marquette Rail-Trail “highly or
moderately influenced” their participation in the event.
Table 3. Purpose of trip for
1999 Michigander and Midwest Tandem Rally participants.
|
|
Michigander (n=424) |
Midwest Tandem Rally (n=452) |
|
Primarily purpose of trip
related to event |
99% |
99% |
|
Pere Marquette venue
influence |
|
|
|
Not
much |
52% |
61% |
|
Some
|
21% |
16% |
|
Moderate
|
14% |
14% |
|
High
|
13% |
9% |
On a per person and overall
basis, Tandem Rally participants spent more than Michigander participants
(Table 4). Excluding the registration fee, Michigander participants and their
travel parties spent $207,000 in conjunction with the event or $233 per travel
party. This amounts to $100 per person over the course of the event. Of the
$207,000 total spending, half was spent before or after the event and half
during the event. Six-day participants were responsible for 50% of the overall
spending. The $81,700 in Michigander registration fees paid to the Michigan
Office of the Rails-to-Trails Conservancy provided some funds for the
organization's fund raising efforts and for services and supplies to support
the ride. Michigander sponsors also arranged camping at locations such as
schools, fairgrounds, etc., so many participants did not stay overnight in paid
accommodations. In total, Michigander participants booked an estimated 510
hotel room nights, including 150 room nights during the event.
Table 4. Spending profile of
1999 Michigander and Midwest Tandem Rally participants.
|
|
Michigander (n=424) |
Midwest Tandem Rally (n=452) |
|
Total spending |
$207,000 |
$260,000 |
|
Proportion of spending |
|
|
|
Before
and after trip |
50% |
15% |
|
During
trip |
50% |
85% |
|
Average spending per party |
$233 |
$566 |
|
Average party size |
2.3 |
2.5 |
|
Total hotel room nights |
510 |
1,100 |
As for the Midwest Tandem
Rally participants, they paid fees for each aspect of their experience (i.e.,
fee per day of riding, banquet, box lunches, etc.). Since the researchers were
not provided the registration fee data paid per participant by the sponsors, we
asked this of respondents. Overnight accommodations were arranged separately.
Over three-quarters (82%) of the Tandem Rally participants stayed overnight in
a hotel, with a small segment camping or staying with friends or family. In
total, 1,100 hotel room nights were estimated. Including the registration fee,
participants and their travel parties spent $260,000 in conjunction with the
event or $566 per travel party (average 2.5 persons). Of this $218,000 was
spent during the event (mostly likely in the Midland area) and $42,000 was
spent in Michigan getting to and from the event. With multiplier effects, the
total impact on the state economy is $390,000 in sales, $140,000 in personal
income, $222,000 in value added, supporting about eight jobs, mostly in Midland
County. These figures assume all of the spending would not otherwise occur in
Michigan, as 74% of the participants were out-of-state residents.
The economic impact of these
events may extend into the future as 79 percent of the Michigander participants
and 54 percent of the Midwest Tandem Rally participants said they are extremely
or quite likely to ride the rail-trail again (Table 5). Ninety-four percent of
the Michigander participants rated the Pere Marquette Rail-Trail “very good” or
“good.” The event experience was rated “very good” by 54 percent of the
participants and “good” by 36 percent. An even greater proportion of Tandem
Rally participants were positive about the rail-trail. Ninety percent rated it
“very good” and eight percent rated it “good.” The Tandem Rally event was also
rated higher than the Michigander, with 71 percent rating it “very good” and 27
percent rating it “good.”
Table 5. Likelihood of
returning to area and satisfaction with event and PMRT for 1999 Michigander and
Midwest Tandem Rally participants.
|
|
Michigander (n=424) |
Midwest Tandem Rally (n=452) |
||
|
Likelihood of return visit |
PMRT |
Midland County |
PMRT |
Midland County |
|
Quite
likely |
50% |
54% |
15% |
12% |
|
Extremely
likely |
29% |
23% |
39% |
39% |
|
Quite
unlikely |
17% |
19% |
36% |
37% |
|
Extremely
unlikely |
4% |
4% |
10% |
12% |
|
Satisfaction level |
Trail condition |
Experience |
Trail condition |
Experience |
|
Very
good |
82% |
54% |
90% |
71% |
|
Good |
12% |
36% |
8% |
27% |
|
OK |
4% |
8% |
1% |
2% |
|
Poor |
1% |
2% |
0.5% |
0% |
|
Very
Poor |
1% |
0% |
0.5% |
0% |
Community benefits were
measured by the proportion of participants who were introduced to these annual
bicycling events or the PMRT through these two 1999 events. The assumption is
being made that encouraging participation in outdoor recreation activities like
bicycling enhances quality of life. Furthermore, the higher the first-time
event participation and Pere Marquette Rail-Trail users show growth in the
activity and trail use. Of the participants in the Michigander event, 42
percent were first-time event riders compared to 27 percent of the Tandem Rally
participants. Eighty-three percent of the Michigander participants were riding
the PMRT for the first-time and 91 percent of the Tandem Rally participants
were first-time PMRT users.
This research illustrates a
rail-trail offering a compatible, sustainable tourism resource for events that
produce positive economic impact to a local economy, while simultaneously
serving the needs of local residents. Combined these two recreational bicycling
events generated close to $500,000 of direct spending in the areas where
participants rode and stayed overnight. Moreover, our findings suggest many of
the participants indicated they would return to visit the area and/or ride the
rail-trail, bringing future economic benefits. The results also demonstrate
events introduce new people to activities, facilities and communities. Higher
levels of trail and community awareness can lead to increased future usage and
economic impact.
The results of this study
also demonstrate how different events can lead to different levels of economic
impact. The Michigander was primarily marketed to and attended by Michigan
residents. Therefore, the economic impact was more a redistribution of money
rather than new money to the state. The Michigander also generated fewer overnight
rooms and local bed taxes than the Tandem Rally as most participants camped in
the group camps set up by Michigander organizers. Also, most of the meals were
provided by the Michigander sponsor or donated by local groups, so spending on
food and restaurants was limited. The Midwest Tandem Rally was shorter in
length but more highly concentrated in the City of Midland and Midland County.
More hotel room nights, bed taxes and restaurant purchases were generated, as
the Rally did not have prearranged group camping and meal options. The Tandem
Rally attracted many more out-of-state participants to Michigan, which
represents “new” money. Another factor in calculating economic impact is to
consider how the registration fee is being spent. While the Michigander had a
higher registration cost it appears that a greater percentage of the budget was
spent out of the Midland County area on bulk event supplies and assisting the
Conservancy in their programs.
Local entities incurred some
costs to host these events. Local bicycle groups and the local convention and
visitors bureau had expenditures in planning and marketing the events. It is
not known if this resulted in additional memberships for the bicycle
organizations. The convention and visitors bureau fulfilled their mandate to
increase hotel occupancy using bed tax money for event marketing. The City of
Midland and Midland County Parks and Recreation Departments coordinated (and
paid for) police and park maintenance to service both events. Again, the image
of Midland as a quality destination to visit or place to live is an intangible
value that may more than compensate for these expenditures.
A final note is that these
events often require a park administration to draft and pass rules that suggest
how events can use the facilities. These rules should be focused on maintaining
the facility and allowing continued public use during the event. This can
promote positive interaction among visitors and locals and safeguard the
resource for future local use and major events. We learned of no problems or
conflicts that would suggest these two events caused harm to the community. On
the contrary, this study provided quantitative evidence that special events
held on rail-trails produce positive economic and community benefits.
Moore, R. Scott, D. and
Graefe, A. 1998. The effects of Activity differences on recreation experiences
along a
suburban
greenway trail. Journal of Park and Recreation Administration, 16(2). 35-53.
Mowen, A. Graefe A. and
Williams, D. 1998. An assessment of activity and trail types as indicators of
trail user
diversity.
Journal of Park and Recreation Administration, 16(1). 80-96.
Schutt. A. 1998. Trails for
economic development: A case study. Journal of Applied Recreation Research,
23(2).
127-145.
[1] Paper presented at the 2001 Northeast Recreation Research Symposium, April 1-3, 2001, Bolton Landing, NY