University of Houston-Victoria

President

Visitor spending impact

UHV students in Jaguar Hall

Hundreds of out-of-region visitors came to UHV in FY 2018-19 to participate in various activities, including commencement, sports events, and orientation. UHV estimated that 1,546 out-of-region visitors attended events it hosted in FY 2018-19. Table 2.7 presents the average expenditures per person-trip for food, transportation, and other personal expenses (including shopping and entertainment). Based on these figures, the gross spending of out-of-region visitors totaled $125.1 thousand in FY 2018-19. However, some of this spending includes monies paid to the university through non-textbook items (e.g., event tickets, food, etc.). These have already been accounted for in the operations spending impact and should thus be removed to avoid double-counting. We estimate that on-campus sales generated by out-of-region visitors totaled $27.8 thousand. The net sales from out-of-region visitors in FY 2018-19 thus come to $97.4 thousand.

Hundreds of out-of-region visitors came to UHV in FY 2018-19 to participate in various activities, including commencement, sports events, and orientation.

TABLE 2.7: AVERAGE PER-TRIP VISITOR COSTS AND SALES GENERATED BY OUT-OF-REGION VISITORS IN THE COASTAL BEND, FY 2018-19*

                                                                                                   

TABLE 2.7: AVERAGE PER-TRIP VISITOR COSTS AND SALES GENERATED BY OUT-OF-REGION VISITORS IN THE COASTAL BEND, FY 2018-19*
Food  $40  
Entertainment and shopping   $20  
Transportation   $21  
Total expenses per visitor   $81  
Number of out-of-region visitors   1,546  
Gross sales   $125,138  
On-campus sales (excluding textbooks)   $27,787  
Net off-campus sales   $97,352  

* Costs have been adjusted to account for the length of stay of out-of-region visitors. No expenditures associated with overnight accommodations are listed for visitor expenditures. Transportation has been adjusted downward to recognize that, on average, two visitors share the costs of transportation. Numbers may not add due to rounding. Source: Sales calculations estimated by Emsi based on data provided by UHV.

Calculating the increase in income as a result of visitor spending again requires use of the MR-SAM model. The analysis begins by discounting the off-campus sales generated by out-of-region visitors to account for leakage in the trade sector, and then bridging the net figures to the detailed sectors of the MR-SAM model. The model runs the net sales figures through the multiplier matrix to arrive at the multiplier effects. As shown in Table 2.8, the net impact of visitor spending in FY 2018-19 is $53.8 thousand in labor income and $30.8 thousand in non-labor income. This totals to $84.6 thousand in added income and is equivalent to supporting two jobs.

TABLE 2.8: VISITOR SPENDING IMPACT, FY 2018-19

                                                                                                                                                                                                                                   

TABLE 2.8: VISITOR SPENDING IMPACT, FY 2018-19
 Labor income (thousands)  Non-labor income (thousands)  Total income  (thousands)  Sales (thousands)  Jobs supported  
Initial effect   $0   $0   $0   $97   0  
Multiplier effect            
Direct effect   $28   $16   $45   $80   1  
Indirect effect   $11   $6   $16   $30   <1  
Induced effect   $15   $9   $24   $42   1  
Total multiplier effect   $54   $31   $85   $152   2  
Total impact (initial + multiplier)   $54   $31   $85   $250   2  

Since UHV expects that its student enrollment will grow by approximately 6% per year, it was estimated that the number of visitors attending UHV events (commencement, sports events, orientation, lectures, etc.) will also increase at a similar but slightly lower rate. To maintain the conservative nature of this study, UHV estimates that the number of out-of-region visitors will grow 5% per year. Using that growth rate, UHV will see 2,644 out-of-region visitors by FY 2028-29. Assuming that expenses per visitor remain unchanged, the net-off campus sales amounts to $166.5 thousand (compared to the $97.4 thousand in Table 2.7). As shown in Table 2.9, the net impact of visitor spending in FY 2028-29 is $92 thousand in labor income and $52.7 thousand in non-labor income. This totals to $144.7 thousand in added income and is equivalent to supporting three jobs.

By serving more students, and thus attracting more visitors, UHV is increasing its visitor spending impact by 71%, from $84.6 thousand in added income in FY 2018-19 to $144.7 thousand in added income in FY 2028-29.

TABLE 2.9: VISITOR SPENDING IMPACT, FY 2028-29                                                                                                                                                                                         

TABLE 2.9: VISITOR SPENDING IMPACT, FY 2028-29
 Labor income (thousands)Non-labor income (thousands)Total income (thousands)Sales (thousands)Jobs supported
Initial effect   $0   $0   $0   $167   0  
Multiplier effect            
Direct effect   $48   $28   $76   $137   2  
Indirect effect   $18   $10   $28   $52   1  
Induced effect   $26   $15   $40   $72   1  
Total multiplier effect   $92   $53   $145   $260   3  
Total impact (initial + multiplier)   $92   $53   $145   $427   3