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

6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125

www.chjc.com

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

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.

Morgan Hill Aquatics Center and Outdoor Sports Center

Economic Impact Multipliers

Impact

Multiplier*

Base

Indirect Spending

0.4500

of direct spending

Induced Spending

0.3570

of direct spending

Increased Earnings

0.5550

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