Measures That Ma+er. Economic Benefits of Sister City Rela5onships. SCI Annual Conference Washington DC
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1 Measures That Ma+er Economic Benefits of Sister City Rela5onships SCI Annual Conference Washington DC Jay Mathur Founder & CEO, valueideas July 15, valueideas. All rights reserved. valueideas & proprietary 1
2 Session Flow Background on SCI and valueideas Overview of Network Economic Impact Study results Lessons learned Member Data Process Case Studies results Early Insights Next Steps 2016 valueideas. All rights reserved. valueideas & proprietary 2
3 Economic Impact of SCI Network Why Measures That MaOer? Recession of 2008 had huge impact on economies of ci5es and states Stakeholders such as grantors, sponsors, city officials, sister ci5es supporters needed to jus5fy every dollar spent Over 60 years of its existence, SCI did not have comprehensive informa5on or a process to understand its economic significance Offered to help in measuring the economic impact of the SCI network using valueideas Measure That MaOer methodology Kicked off project in late 2014 and released the final report in October, med to the start of the 60 th year of SCI s existence
4 Sister Ci5es Interna5onal Network Economic Impact Results Highlights Over 14,000 visitors from 1100 inbound exchanges 10,000 U.S. residents par5cipa5ng in about 1000 outbound exchanges 33,000 volunteers involved throughout the U.S. Over 15,000 youth involved Over 2300 total sister city events in the U.S. with par5cipa5on from 1.13 million people
5 Sister Ci5es Interna5onal Network Annual Economic Impact U.S. Economy Total $525.7 million Some highlights: Inbound Exchanges: $63.7 million Sister City hosted events: $56.5 million Foreign host students: $70.1 million Total jobs supported: 3715 Payroll $45.5 million Taxes $29 million
6 Sister Ci5es Interna5onal Network Annual Economic Impact Global Economy Total - U.S. Dollars $537.7 million Total - Global Purchase Price Parity (PPP)* $41.9 billion Some highlights: Outbound Exchanges (USD): U.S. host students (USD): Total Global Direct (PPP) $29.7 million $17.5 million $18.5 billion *Global Purchase Price Parity Index (PPP) compares the value of goods and services in local currencies and assigns a mul@plier against US dollar
7 Sister Ci5es Interna5onal Network Economic Impact Study Key Lessons Es5mated only a small frac5on of the economic drivers Need to expand economic benefit dimensions Understand the economic impact of the SCI members in their communi5es and globally Need to share the complete story with city leaders, sponsors, grantors, supporters etc., by including the economic effect of the sister city rela5onships
8 Member Economic Impact Study Pilot Process Refined and expanded survey Included Business and Foreign Direct Investments impact Solicited members for the pilot study Had one on one discussions with interested par5es Conducted webinar for par5cipants Helped clarify and assist in data collec5on as necessary
9 Major Areas of Economic Impact Travel and Tourism Exchanges Events Host students Visitors Volunteers and In- Kind Contribu5ons Business and Investments Local and Foreign investments New Jobs, payroll and incremental tax revenues Tourism
10 Case Study: Atlanta Economic Profile Local Impact Direct & Indirect Travel & Tourism Total Direct In- Kind Contribu5on Foreign Direct Investment New Jobs Increased Tax Revenue Total Global Impact (USD) Total Global Impact (PPP) $84.5 million $53 million $23.4 million $1.2 million $3.0 million $24.4 million $ 3.0 million $153 million $706 million Local Impact per Capita $189 Global Impact per Capita (USD) $342 Global Impact per Capita (PPP) $1575
11 Case Study: Fort Worth Economic Profile Local Impact Direct & Indirect Travel & Tourism Total Direct In- Kind Contribu5on Other Economic Benefits $14 million $11.1 million $2.3 million $0.5 million $5 million Jobs Supported 97 Payroll & Tax Supported Total Global Impact (USD) Total Global Impact (PPP) $1.9 million $16.6 million $1.6 billion Local Impact per Capita $17 Global Impact per Capita (USD) $21 Global Impact per Capita (PPP) $2031
12 Case Study: Nashville Economic Profile Local Impact Direct & Indirect Travel & Tourism Total Direct In- Kind Contribu5on Foreign Direct Investment New Jobs $25.8 million $5.9 million $2.6 million $0.6 million $12.3 million $7.0 million Other Economic Benefits $5000 Total Global Impact (USD) Total Global Impact (PPP) $29.6 million $54.1 million Local Impact per Capita $38 Global Impact per Capita (USD) $44 Global Impact per Capita (PPP) $81
13 Data Sources Some of the data sources include U.S. Department of Commerce White House Studies U.S. Tourism Associa5on U.S. Bureau of Labor & Sta5s5cs NAFSA: Associa5on of Interna5onal Educators Independent Sector City specific local, state and na5onal economic performance data Local Chambers of Commerce, Tourism and Economic Development organiza5ons
14 Early Insights The economic impact of sister ci5es is vastly underes5mated Each member story is unique, comparing economic benefits is wasteful Business Investments and tourism have huge impact on the economic benefits, but they are also much harder to measure Local enthusiasm and deeper sister city rela5onships are leading indicators of economic vitality Survey template as the basis for a measurement system will help document economic impact faster
15 Next Steps Further refine the survey document Develop a standard template for repor@ng Invite members to join in the effort Update informa@on on the SCI network Learn and improve the process
16 Be a Citizen Diplomat Be A Ci5zen Diplomat
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