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Section 2: Introduction and Executive Summary
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May 2017
Sports Market Business Strategy – Morgan Hill, CA
PAGE 13
6 East Monroe Street
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Fifth Floor
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Chicago, Illinois 60603
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Phone: 312.447.2010
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Fax: 312.444.1125
www.chjc.comTable 2-8
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
Economic and Fiscal Impact
Economic Impact ($000)*
Aquatics Center Outdoor Sports Center
Combined
Direct Spending
$3,897
$6,557
$10,454
Indirect Spending
$1,754
$2,951
$4,704
Induced Spending
$1,391
$2,341
$3,733
Total Spending
$7,042
$11,849
$18,891
Increased Earnings
$2,163
$3,640
$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
Aquatics Center and Outdoor Sports Center