Money races in during Long Beach Marathon - Long Beach Press-Telegram
LONG BEACH — A new economic study shows the Long Beach Marathon generates at least $27 million annually for the local economy, with more than 90 percent of runners coming from outside the city.
Sponsored by International City Bank, the race is Long Beach's third-largest annual public event after the Grand Prix and Pride Parade and Festival, drawing an estimated 25,000 runners and some 60,000 family, friends and spectators.
The race, which falls on Oct. 9 this year, provides a significant boost to local hotels, restaurants, small businesses and even city coffers, according to a study performed by Forward Analytics, Inc. of Pittsburg, which was contracted by race organizers.
According to the report, Long Beach restaurants, hotels, retailers, bars, city-owned and private parking venues and other businesses received $7.4 million in direct spending, which in turn generated $20 million in indirect spending locally.
Indirect spending was calculated by reviewing the amount of money re-circulated by businesses, nonprofits and individuals profiting from the race. Such indirect spending can include employee wages and money for supplies, food, and other goods and services, said Candace Campbell of Forward Analytics.
Researchers, who interviewed 2,086 athletes and others following last October's race, noted that spending contributed $71,000 in hotel bed taxes for Long Beach, while Los Angeles County received about $111,000 in sales taxes.
The
state, which keeps the bulk of sales taxes, collected $646,546."When an event such as the Long Beach Marathon brings people and money into the area, tax revenues are generated for local and state governments," researchers said. "Taxes are paid directly by race participants and event management on purchases such as food and drinks, overnight lodging, advertising, products and services, etc."
Campbell said the survey had a margin of error of 2.03 percent.
The study found that runners from out-of-state, including international competitors from such nations as Brazil, Austria, Venezuela and Canada, spent an average $264 during race weekend, primarily because of lodging and transportation costs.
This year, the race is drawing people from at least 25 countries, said John Parks, a race organizer who estimates more than 25,000 will compete this year.
"We have people coming in from everywhere, all 50 states and dozens of other countries," Parks said. "It's become a widely known and popular marathon, known by runners on every continent. The first year we took over operation of the race (2001), we had about 4,500 registrants. We've grown strongly every year since, and we expect 30,000-plus within a few years."
The 26.2-mile race begins near Shoreline Village and follows a route along Ocean Boulevard before veering north through Cal State Long Beach and back downtown.
The report didn't include airfare in transportation estimates, which would increase the economic impact if even a few thousand visitors flew into Long Beach Airport, which connects with most major U.S. cities.
Runners residing outside Los Angeles County, who were also more likely to stay at a hotel, spent an average $141, while local runners contributed an average $81 each.
Forward Analytics, which specializes in the financial impacts of large sports events, said the race continues boosting Long Beach's economy year-round through fitness clubs, training groups and the businesses catering to them.
"For example, groups like 'A Running Experience Club,' 'Sole Runners,' and 'Team Runners High' often meet for food, drinks or entertainment before or after their training runs, which in turn contributes to the city's economy," said Campbell.
Researchers further polled runners on their overall experience.
They reported 72.6 percent were "satisfied" or "very satisfied," with 63 percent saying they planned to run again.
More than 73 percent of runners also said that if the Long Beach race were canceled, as it was between 1996-1999, they would travel elsewhere to run a marathon.
"I think this shows that organizers are doing it right," said Jane Netherton, CEO of International City Bank and longtime marathon supporter and participant. "They're definitely meeting the expectations of runners and their friends and family, and that took years of outreach, organization, hard work, volunteerism and exposure."
Researchers estimated 2,056 volunteers donated 10,280 hours alone, saving the race and city some $240,000 in additional costs. Race organizers pay fees to the city for police, fire, street closures and other services.
The race is also a major fundraiser for local and national nonprofits, among them the Long Beach Rescue Mission, St. Mary Medical Center, Miller Children's Hospital and Special Olympics Southern California.
Parks said runners have raised $3.5 million for charities since 2005.
Finally, the study said the overall financial impact "should be considered a conservative measure."
"Because there is no 'admissions gate' to determine the full number of spectators, or how many of those in attendance came from outside of Long Beach and Los Angeles County, the (study) does not measure the impact of general spectators, ... persons watching who are not friends and family of runners."
kristopher.hanson@presstelegram.com, 562-499-1466
Marathon impact
Direct spending by the roughly 85,000 participants, families, friends and spectators was estimated at $5.6 million in 2010. Total economic impact from direct spending and money spent by individuals and businesses profiting from the race was estimated at more than $27 million.
The 2011 marathon, half-marathon and related events are Oct. 9. For more information visit www.runlongbeach.com.
Direct Long Beach spending
Food and drinks at restaurants: $2.4 million
Entertainment: $575,000
Retail: $585,000
Car rental: $215,000
Ground transportation: $69,000
Parking: $580,000
Gasoline: $590,000
Lodging: $591,000
Total: $5.6 million
Source: Forward Analytics Inc.; City of Long Beach; Long Beach International City Bank Marathon
26 Sep, 2011--
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