You are on page 1of 34

DC Caribbean Carnival:

Economic Impact Study 2011

DC Caribbean Carnival: Economic Impact Study 2011 Yuvay J. Meyers, Ph.D. Debby Lindsey-Taliefero, Ph.D. Allison J.

Yuvay J. Meyers, Ph.D.

Debby Lindsey-Taliefero, Ph.D.

Allison J. Morgan, Ph.D. Lynne J. Kelly, Ph.D.

Howard University School of Business

Roadmap

Background

Study Overview

Survey Results Patrons

Survey Results Business Owners

Financial Analysis

Final Recommendations

Background

The DC Caribbean Carnival, Inc. was started to celebrate Caribbean culture in Washington

metropolitan area in 1993.

Flagship

Event

-

DC

Parade and Festival

CARNIVAL™

Extravaganza

Approximate annual attendance - 400,000 people

Parade live performances and bands

International Marketplace, “DE SAVANNAH”

Background

DC CARNIVAL™ is centered on Georgia Avenue in the District of Columbia.

The District benefits economically and culturally

from the celebration.

The event also serves to strengthen community ties, promote social harmony, as well as foster multiculturalism.

Study Overview

DC Caribbean Carnival, Inc. charged the Howard University School of Business (HUSB) to quantify

the economic impact of the DC Caribbean Carnival.

Data collection was carried out on June 25, 2011

during the Carnival.

Information gathered from both Carnival patrons and business owners.

Study Overview Research Tasks

Three major tasks including:

A survey of event attendees focusing on the specific economic contribution to the District of Columbia.

A survey of local small businesses focusing on the economic revenues earned during that event.

An economic impact assessment, which involves an evaluation of the direct contribution of the carnival attendees on the District of Columbia.

Study Overview Research Tasks

The goal of the study was to provide the following:

Estimate of the expenditures of the patrons attending the 2011 Annual DC

CARNIVAL™.

Estimate of the incremental sales tax revenues generated by 2011 Annual DC CARNIVAL™.

Estimate

DC

of

the

business

revenues

generated

by

2011

Annual

CARNIVAL™.

Estimate of the incremental business tax generated by 2011 Annual DC CARNIVAL™.

Study Overview Data Collection

Participants

685 patrons

50 business owners

Survey

Hard copy survey administration

No financial compensation

Participants entered to win an Apple iPad

Survey Results

Key results summarized for patron survey and business owner survey.

Survey Results - Patrons

The majority of Carnival Patrons are local to Washington metropolitan area.

Survey Results - Patrons • The majority of Carnival Patrons are local to Washington metropolitan area.

Survey Results - Patrons

The majority of Carnival Patrons attended the Carnival with family and/or friends.

Survey Results - Patrons • The majority of Carnival Patrons attended the Carnival with family and/or

Survey Results - Patrons

Many patron attended the Parade and Marketplace while at the Carnival.

Survey Results - Patrons • Many patron attended the Parade and Marketplace while at the Carnival.

Survey Results - Patrons

The anticipated spending for the Carnival was on average less than $50.

Survey Results - Patrons • The anticipated spending for the Carnival was on average less than

Survey Results - Patrons

Carnival Patrons reported being positive comments in terms of satisfaction with the Carnival more frequently.

Patrons • Carnival Patrons reported being positive comments in terms of satisfaction with the Carnival more

Survey Results - Patrons

The most frequently mentioned method to improve satisfaction at the Carnival was to extend the Parade.

- Patrons • The most frequently mentioned method to improve satisfaction at the Carnival was to

Survey Results - Patrons

The primary information sources for the Carnival were by Friends/Family and Word of Mouth.

Survey Results - Patrons • The primary information sources for the Carnival were by Friends/Family and

Study Results Business Owners

Most of the business owners found an increase in customers during the Carnival.

During the DC Carnival, did your business receive any additional customers?

28.3% 71.7%
28.3%
71.7%
Yes No
Yes
No

Study Results Business Owners

Average customer expenditures during the Carnival was $50 or less.

On average how much did each customer spend during the DC Carnival?

More than $400 $301 to $400 above $400 $301 to $400 $201 to $300 $101
More than $400
$301 to $400
above $400
$301 to $400
$201 to $300
$101 to $200
0.0%
0.0%
0.0%
0.0%
2.0%
2.0%
$76 to $100
2.0%
$51 to $75
$26 to $50
$11 to $25
$10 or less
2.0%
20.4%
32.7%
38.8%
0.0%
20.0%
40.0%
60.0%
$10 or less $11 to $25 $26 to $50 $51 to $75 $76 to $100
$10 or less
$11 to $25
$26 to $50
$51 to $75
$76 to $100
$101 to $200
$201 to $300
$301 to $400
above $400
$301 to $400
More than $400

Study Results Business Owners

The majority of Business owners felt the Carnival helped the Georgia Avenue corridor.

Do you think the DC Carnival help or hurt business on Georgia Avenue corridor?

8.2% Help Hurt 91.8%
8.2%
Help
Hurt
91.8%

Study Results Business Owners

All business owners believed the Carnival should continue.

As a local business, do you think the DC Carnival should continue? 120.0% 100.0% 100.0%
As a local business, do you think the DC Carnival should continue?
120.0%
100.0%
100.0%
80.0%
Yes
No
60.0%
40.0%
20.0%
0.0%
0.0%
Yes
No

Study Results Business Owners

Average annual business income reported was typically $80,000 or less.

What is your business income?

$80,000 or 18.6% greater $65,000 to 20.9% $79,999 $50,000 to 18.6% $64,999 $35,000 to 14.0%
$80,000 or
18.6%
greater
$65,000 to
20.9%
$79,999
$50,000 to
18.6%
$64,999
$35,000 to
14.0%
$49,999
$20,00 to
9.3%
$34,999
Less than
18.6%
$20,000
0.0%
10.0%
20.0%
30.0%

Less than $20,000$20,00 to $34,999 $35,000 to $49,999 $50,000 to $64,999 $65,000 to $79,999 $80,000 or greater

$20,00 to $34,999Less than $20,000 $35,000 to $49,999 $50,000 to $64,999 $65,000 to $79,999 $80,000 or greater

$35,000 to $49,999Less than $20,000 $20,00 to $34,999 $50,000 to $64,999 $65,000 to $79,999 $80,000 or greater

$50,000 to $64,999Less than $20,000 $20,00 to $34,999 $35,000 to $49,999 $65,000 to $79,999 $80,000 or greater

$65,000 to $79,999Less than $20,000 $20,00 to $34,999 $35,000 to $49,999 $50,000 to $64,999 $80,000 or greater

$80,000 or greaterLess than $20,000 $20,00 to $34,999 $35,000 to $49,999 $50,000 to $64,999 $65,000 to $79,999

Study Results Business Owners

Satisfaction with Carnival activities was typically positive from business owners.

Please tell how satisfied you were with 2011 DC Carnival?

Total Event

Marketplace

Parade

16 8 5 3 2 1 13 10 5 1 3 0 18 8 8
16
8
5
3
2
1
13
10
5
1
3
0
18
8
8
2
2
0
0
5
10
15
20

Completely satisfied1 13 10 5 1 3 0 18 8 8 2 2 0 0 5 10

Mostly satisfied0 18 8 8 2 2 0 0 5 10 15 20 Completely satisfied Somewhat satisfied

Somewhat satisfied2 0 0 5 10 15 20 Completely satisfied Mostly satisfied Neither satisfied or dissatisfied Somewhat

Neither satisfied or dissatisfied20 Completely satisfied Mostly satisfied Somewhat satisfied Somewhat dissatisfied Mostly dissatisfied Completely

Somewhat dissatisfiedMostly satisfied Somewhat satisfied Neither satisfied or dissatisfied Mostly dissatisfied Completely dissatisfied

Mostly dissatisfiedMostly satisfied Somewhat satisfied Neither satisfied or dissatisfied Somewhat dissatisfied Completely dissatisfied

Completely dissatisfiedsatisfied Mostly satisfied Somewhat satisfied Neither satisfied or dissatisfied Somewhat dissatisfied Mostly dissatisfied

Financial Analysis

Includes the following analyses:

Cost Benefit Analysis

Estimated Patron Expenditures

Generated Sales Tax Revenues

Financial Analysis - Assumptions

Washington

DC

government

support to the Carnival.

provides

$30,422

in

The Carnival Board is required to pay $338,700 in fees

to the Metropolitan Police Department for enforcement.

The total event cost is $584,483.

Comparisons

made

with

the Toronto Carnival,

Scotiabank Caribana.

Cost Benefit Analysis

The DC CARNIVAL™ makes $39.48 for each dollar spent and produces approximate sales tax revenues from the attendees of $1,298,230.00.

 

DC Caribbean

 

Carnival 2011

Toronto Scotiabank Caribana 1998

Budget*

$584,483

$416,250

Number of Attendees

400,000

1,200,000

Attendee Expenditure

$ 21,637,166

$198,000,000

Cost-Benefit Ratio***(Expenditure/Budget)

$37.02

$475.68

SalesTaxes Earned†

$1,298,230

$25,740,000.00

Carnival Estimated Patron Total Expenditure and Generated Sales Taxes by Number of Attendees

The Caribbean Carnival provides increasing returns scale to the Washington, DC economy on a whole.

Number of Attendees

 

400,000

 

300,000

 

200,000

Number of Patrons by Category

     

Family and Friends

 

111,839

 

83,879

 

55,919

Group

 

72,836

 

54,627

 

36,418

Individual

 

80,000

 

60,000

 

40,000

Total Patrons

 

264,675

 

198,506

 

132,337

Average Household Size, DC

 

2.21

 

2.21

 

2.21

Average Expenditure

 

$

81.75

 

$

81.75

$

81.75

Total Expenditures

$ 21,637,166

$ 16,227,875

$ 10,818,583

Cost- Benefit Ratio

$

37.02

$

27.76

$

18.51

Sales Taxes Generated @ 6% Tax Rate

$

1,298,230

$

973,672

$

649,115

Estimated Incremental Revenues by Number of Attendees

The estimated incremental revenue per business was $751.52. Depending on the number of business along the DC Caribbean Carnival parade route or at the marketplace, the incremental revenues range from $75,152 (n=100 businesses) to $300,608 (n=400 businesses).

Consumer's Average Expenditure Per Business

$

26.84

     

Average Additional Customers

 

28

     

Estimated Incremental Revenues Per Business

$ 751.52

     

Number of Business

 

100

200

 

300

400

Total Estimated Incremental Revenues along DC Caribbean Carnival Parade Route

$ 75,152

$ 150,304

$

225,456

$ 300,608

Final Recommendations

The DC Caribbean Carnival provides significant economic value to the Washington, DC economy. Additional key recommendations are

highlighted:

Final Recommendations

1. To encourage the expansion of the Carnival, advertising of the event earlier and using larger

outlets may help to yield a wider attendee base.

2. The DC Carnival is a family event. Therefore, materials promoting the Carnival as well as activities chosen to supplement the Carnival should bear this in mind.

Final Recommendations

3.

This

Corporations with a local presence should be made aware of

the opportunities available to sponsor the DC Carnival and support this cultural event in the District.

is

opportunity

for

corporate

sponsorship.

an

4. Attendees are spending the majority of their money on food and beverage items. Getting additional vendors to

participate in sales of these items may be able to encourage

additional individuals to attend the Carnival.

Final Recommendations

5. The age group of Carnival participants is on average between 18 and 45. The Carnival might be

attractive to individuals in other age brackets if

there were designated places to sit.

6. The carnival committee should continue to ensure that the event remains an affordable family friendly event.

Final Recommendations

7.

Extending

the

parade

route

could

be

of

great

benefit to attendees and businesses.

8. Some participants felt that law enforcement was

too aggressive to attendees. Possibly utilizing a civilian security detail could minimize part of this

problem. Or working with the city and the police force on cultural sensitivity may be necessary.

Final Recommendations

9. Viral marketing campaigns should be a key method of event advertising moving forward.

10. Working with the local businesses before the event is essential.

HUSB Research Team & Contact Information

Yuvay Meyers, Assistant Professor

202-806-1553 (w)

Debby Lindsey-Taliefero, Associate Professor

202-806-1568 (w)

Allison Morgan, Assistant Professor

202-806-1605 (w)

Lynne Kelly, Assistant Professor

202-806-1658 (w)