Economic Impacts-- Tools and Data


Mostly older material here. More recent tools and data are in the MGM2 and MITEIM sections. The history below summarizes evolution of our models and tools.

Brief history of our own models

Our economic impact models have evolved with changes in IMPLAN and refinements we add with each new project. The original MI-REC system developed with support from the US Army Corps of Engineers was linked to the IMPLAN DOS program and oriented to water-based recreation. The system was gradually converted for use with the Windows version of IMPLAN (version 1.0) developed by MIG, Inc. and then overhauled extensively through a contract with Travel Michigan to develop a stand alone tourism economic impact estimator. The MITEIM model switched from a full I-O model approach to use of sector specific multipliers. These multipliers (extracted from IMPLAN models) were embedded into the MITEIM spreadsheet.  Spending categories were modified and segments to better fit general tourism applications were established as the defaults. The next major refinement was made in updating the National Park Service's Money Generation Model (MGM). The MITEIM model was adapted to typical National Park Visitor segments and the regional economic multipliers and spending data were further simplified through the development of "generic" spending and multiplier datasets.
    The model for the NPS was called MGM2. Neither the NPS nor our tourism clients have extensive regional economic expertise in-house, so we have provided some simpler ways of applying appropriate multipliers and economic ratios to spending estimates. Our experience has been that the largest sources of error in recreation and tourism economic impact estimates are first in the visit data (numbers and types of visitors) and secondly in spending data.  The I-O part of the problem, while the primary interest of regional economists, is not the most important part from the standpoint of how recreation and tourism impact estimates are used. Over time, we have therefore tried to draw more attention to estimation of visits and spending averages, and tried to simplify the handling of multiplier effects.
    The most common errors made by recreation and tourism analysts in using multipliers and I-O approaches are (1) applying state level and aggregate multipliers to local regions, (2) failure to correctly handle purchases of retail goods (margining and determining local production shares), (3) focusing too much on total effects without first pinning down direct effects, (4) relying too much on sales and jobs rather than income and value added as impact measures, and (5) simple misuse of multipliers.  By automating all of the margining and multiplier calculations on the spreadsheet model, we hopefully will reduce errors due to simple abuse of multipliers and calculation errors. Also by providing a range of "generic" multipliers and readily available multipliers for local areas, we should reduce a tendency to use state multipliers for local applications. Our MITEIM and MGM2 models also expand reporting of direct effects and provides total effects in a simpler more aggregate form. See the MITEIM and MGM2 pages for details. The MGM2 version has the most complete set of manuals and documentation.
 
 

network8.gif (488 bytes) MI-REC: Micro-Implan Recreation Economic Impact Estimation System The MI-REC system consists of two sets of utilities and customized procedures for estimating the economic impacts of recreation and tourism projects. MI-REC is designed to be used with Micro-IMPLAN, a regional economic modeling system developed by the USDA Forest Service and Minnesota IMPLAN Group. Currently there are two versions of IMPLAN systems available for analysts: the IMPLAN 91-F for DOS environment and IMPLAN Pro for Windows.

filview1.gif (264 bytes) Multiplier Lookup Page Range and distribution of economic impact multipliers of tourism and recreation spending. money2.gif (314 bytes)Price Indices (Source: Bureau of Labor Statistics, base year: 1982-1984=100)
The following table is for price adjustment of tourism spending. Here we included price indices for  the most used spending categories in tourism and recreation spending profiles. Note that BLS changed item codes in 1998, and a new group called Recreation (SAR) is available after 1998. For more information and categories not shown in this table please visit Bureau of Labor Statistics Series Reports.
 
Spending category BLS item code BLS name
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
Lodging sehb02 Lodging out
133
139
153
174
184
189
195
203
214
224
235
Food On-Site sefv Food away from home
122
127
133
138
141
143
146
149
153
157
161
Food Off-Site saf Food and beverages
118
125
132
137
139
142
145
149
154
158
161
Gas & Oil setb01 Gasoline, all
81
88
101
99
99
98
98
100
106
106
92
Other Auto Expense setd Motor vehicle repair
120
125
130
136
141
146
150
154
158
163
167
Amusement and Recreation serf02 Admissions
131
141
151
159
165
167
175
182
192
199
206
Other Recreation Fees serf02 Admissions
131
141
151
159
165
167
175
182
192
199
206
Sporting Goods serc Sporting Goods
108
111
115
119
120
120
122
124
123
123
122
Other Expense sa0 All items
118
124
131
136
140
145
148
152
157
161
163
Service sas Service
126
132
139
146
152
158
163
169
174
179
184
Apparel saa Apparel
115
119
124
129
132
134
133
132
132
133
133