LIHU‘E — A recently released report indicates that promoting health and community interaction can also be a source of economic wealth for Kaua‘i. Sports and recreation events attracts additional visitors and helps them to build affinity with the island, thus
LIHU‘E — A recently released report indicates that promoting health and community interaction can also be a source of economic wealth for Kaua‘i.
Sports and recreation events attracts additional visitors and helps them to build affinity with the island, thus promoting subsequent trips, according to the report presented to the Kaua‘i County Council last week.
“Sports and recreation events bring many unrecognized benefits to the local economy, and these events may improve the quality of life of the island’s residents by allowing them the opportunity to watch, view and also participate,” said Jerry Argusa, a hospitality and tourism management professor at Hawai‘i Pacific University on O‘ahu.
Argusa was hired as a consultant by the nonprofit Kaua‘i Planning & Action Alliance, with funds from the county Office of Economic Development, to prepare a study of the economic impacts of sports and recreation events already taking place on the island.
Argusa and KPAA President Diane Zachary presented the study to the Kaua‘i County Council on Feb. 13. Zachary said the criteria for the selection of events included events that target visitors from other islands and from outside of Hawai‘i, and that those visitors stayed here for at least one night.
Tourism is one the main economic drives in Hawai‘i. Argusa said more than 7.36 million visitors come to the islands annually, spending more than $11.5 billion dollars.
Recognizing the vulnerability of this revenue source, state tourism officials have implemented a two-pronged objective — increase the number of visitors and increase their affinity to the islands. Argusa said sport tourism is a powerful opportunity to meet these goals.
By using data gathered from the Hawai‘i Tourism Authority, Argusa found that visitors — Hawai‘i residents and out-of-state tourists — spent an average of $154.70 per day on Kaua‘i in 2011.
He applied that average to his calculations for 2012, and found that the total amount of money spent by those attending sports events on Kaua‘i amounted to roughly $4.31 million last year. But because money coming in from off-island has a “multiplier” effect of 1.66 in the local economy (in that the money spent by tourists is re-spent by locals), those tourist-dollars in 2012 were equal to $7.15 million.
Worldwide, sport tourism is one of the fastest growing areas of the $4.5 trillion global travel industry, according to Argusa. Some countries have as much as 25 percent of their visitor-industry revenues coming from sports-related events. Sports Travel Magazine estimates that sports-related tourism is worth more than $118 billion, Argusa said.
Even events in which there is a one-time participation — such as those where people check off a marathon finish from their bucket list — continue to generate revenues year after year. Argusa said many who choose the Kaua‘i Marathon as their first and last marathon, will still return to Kaua‘i because of the affinity they built with the island.
And those who come for sports events usually bring family and friends with them, increasing revenues and expanding the island’s exposure, because those friends and family members will also talk about Kaua‘i to many others, thus marketing the island further, Argusa added.
The 2012 Kaua‘i Marathon had a total of 1,829 participants: 883 from 45 U.S. states, 553 from Kaua‘i, 293 from other Hawaiian Islands, and 101 from other countries. The 1,276 visiting runners brought additional friends and family members with them, which added to 3,458 more visitors on Kaua‘i just because of the marathon.
The 2012 Kaua‘i Marathon’s direct economic benefit — by adding car rentals, room revenues and daily expenditures — amounted to $1.93 million. By using the 1.66 “multiplier,” Argusa said the total economic benefit of the marathon was $3.21 million.
Other sports and recreation events on Kaua‘i also brought a large sum of tourist-dollars last year.
The 13th annual Koloa Plantation Days Rodeo alone generated approximately $1.37 million in sales, $659,966 in income and $52,797 in taxes, according to Argusa. The TriKaua‘i Triathlon and 5K Run brought approximately $1.58 million in sales, $762,627 in income and $61,010 in taxes. The 8th annual Da Bash Baseball Tournament generated $69,355 in sales, $33,281 in sales and $2,662 in taxes.
The report analyzed in detail several other events, including basketball, baseball, softball, golfing and swimming tournaments, races, surfing contests, rodeos, canoe races and biking events.
OED Director George Costa said sports and recreation was one of the six job clusters that provide growth opportunities for the island, which were identified in the Comprehensive Economic Development Strategy 2010-2015 report prepared by the Kaua‘i Economic Development Board. The CEDS report was unveiled to the council two years ago.
The other five job clusters in the CEDS report are food and agriculture, health and wellness, culture and arts, science and technology, and sustainable technologies and practices.
Visit www.kauainetwork.org to download the Economic Significance of Kaua‘i Sports and Recreation Events report.
Top scenic marathon
On Feb. 12, the Kaua‘i Marathon was cited as one of the world’s top-seven most scenic marathons by outdoor-gear maker Wenger, better known as the brand that supplies half of the original Swiss Army Knives to the Swiss government to be used by its army.
“Held annually over Labor Day weekend, the trail leads amongst famous beaches, volcanic mountains and tropical rainforests. Runners are amazed at the scenic coastline that allows the mind to drift away from the pain,” Elizabeth Kovar wrote at Wenger’s website on her description of the marathon.
Kovar is the same writer who, in an earlier posting, cited the 11-mile Kalalau Trail as one of the world’s seven most strenuous hikes.
The Kaua‘i Marathon has also been named as “Race of the month” in Runner’s World and No. 9 on the “10 destination races to run before you die” in Shape.
• Léo Azambuja, staff writer, can be reached at 245-3681 (ext. 252) or lazambuja@ thegardenisland.com.
