Page 37 - MidJersey Business - May 2014

ECONOMIC IMPACT OF THE SPECIAL OLYMPICS 2014 USA GAM
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The Special Olympics provides an implicit and explicit economic impact. The implicit impact
t is that
it is recognized by 97 percent of the population; nearly 50 percent of the public has donated t
to the
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organization, and 77 percent of the public will conduct business with a company if it support
ts
s
Special Olympics. Finally, the 2014 Games increase local visibility and, ultimately, the brand DIRECT

integrity of Special Olympics is distinguishable regionally, nationally, and internationally.

The explicit economic impact is that the 2014 Special Olympics USA Games will gener-
ate a capital low that would have otherwise been unavailable if the event did not take

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will be retained by New Jersey.
T&T INDIRECT
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travel industry, which includes direct industries, indirect industries, and in-
duced industries.

Direct industries that will be affected include accommodations,
dining and catering, entertainment, recreation, transportation, and

travel-related services. The indirect industries include printing and
p u b l i s h i n g , u t i l i t i e s , i n a n c i a l s e r v i c e s , s a n i t a t i o n s e r v i c e s , f u r n i s h i n g s

a a n n d d e e q q u u i i p p m m e e n n t t s s u u p p p p l l i i e e s s , , s s e e c c u u r r i i t t y y s s e e r r v v i i c c e e s s , , r re e n n t t a a l l c c a a r r m m a a n n u u f f a a c c t t u u r r i i n n g g , ,
t t r ra a n n s s p p o o r r t t a a t t i i o o n n a a d d m m i i n n i i s s t t r ra a t t i i o o n n , , t to o u u r r i i s s m m p p r ro o m m o o t t i i o o n n , , s s h h i i p p b b u u i i l l d d i i n n g g , ,
TOURISM &
a n d a i rc r a f t m a n u f a c t u r i n g . I I n n d d u u c c e e d d i i n n d d u u s s t t r r i i e e s s i i n n c c l l u u d d e e f f o o o o d d a a n n d d
beverage, retail, business services, and housing.
TRAVEL INDUCED

THE SPECIAL

OLYMPICS

BUDGET
VOLUNTEER TIME AND SPENDING

The total cost of produc- Independent Sector’s value of volunteer time in New Jersey is $25.19 an hour. The 2014

tion is $15 million, which USA Games will host 10,000 volunteers, each of whom will contribute 15 hours.

includes staff costs of
10,000 volunteers x 15 hours x $25 = $3.9 million
$2.7 million. From these

igures, state and federal tax
revenues can be inferred: Volunteers will also increase their typical spending. Eighty percent of volunteers will

The state income tax, utiliz- travel by car, averaging 40 miles, and 20 percent of them will travel by public transporta-
ing an average rate of 3.5 tion, averaging a cost of $10. The projected New Jersey gas price during the summer is

percent, is $94,500; federal, around $3.50 per gallon, and average miles per gallon (MPG) equals 20 MPG. Volunteers
at 10 percent, equates to who drive to the 2014 USA Games will spend approximately $56,000. Public transporta-

$270,000.
tion will cost volunteers approximately $20,000. The total cost of all volunteer transpor-
Meals and housing tation will be close to $76,000, with sales tax generating more than $5,000.

arrangements cost about A small percentage of volunteers—approximately 10 percent—will stay in hotels. With
$1.7 million. Venues cost an average cost of $106, these volunteers will spend more than $106,000 on hotel reserva-

$600,000, entertainment tions. This will generate $12,720 in New Jersey state taxes and $3,180 in municipal taxes.
$500,000, ground transpor- Entertainment costs are estimated at $5 for 50 percent of the volunteers, equaling

tation $500,000, volunteers $25,000 and generating $1,750 in sales tax.
$500,000 (which may Dining costs will be around $15 for 50 percent of volunteers, which will equal $75,000,

increase), IT/communica- contributing $5,250 to sales tax.
Retail spending will be $10 for half of the volunteers, which equals $50,000; of that,
tion $200,000, rental ofices
$130,000, venue insurance $3,500 will go to sales tax.

$125,000, warehousing The average cost of sightseeing tours will be around $10 for 50 percent of volunteers,
$70,000, guest services which is $50,000; of that, $3,500 will go to sales tax. Volunteer total spending will be ap-

$25,000, and emergency/ proximately $382,000.
medical services $25,000.

may 2014 35