Return to story

Marine Half was full-fledged financial success

October 4, 2008 12:16 am

By PAMELA GOULD

The first Marine Corps Historic Half race generated between $1.97 million and $2.79 million in direct spending in the Fredericksburg region, according to an economic impact study conducted by the University of Mary Washington.

And though those numbers are on the low end of organizers' original projections of $3 million to $4 million in direct impact from the event, the study's range is considered a conservative estimate.

Employing what's known in economic circles as a "multiplier," the roughly $2 million to $3 million in direct spending translates into between $4 million and $6 million in economic impact, said Robert S. Rycroft, the UMW economics professor who supervised the study.

Rycroft said the multiplier results from a new influx of money being spread around the region by the thousands who visited Fredericksburg for the May 18 race. That money traveled from customers to waiters and restaurant owners, for example, and then from them in countless directions.

That spending was a "bright spot" for the city's economy and couldn't have come at a better time, said Fredericksburg City Manager Phil Rodenberg.

He said it countered a "serious" drop in sales-tax revenues for the fiscal year, and is an event the city is counting on for continued revenue in the coming years.

Marine Corps Marathon officials are committed to running the 13.1-mile race in Fredericksburg each May indefinitely, race coordinator Angela Huff said recently.

Nearly 6,000 people registered for the first Historic Half. And, according to the UMW study, between 12,672 and 17,952 people traveled to the city for the event.

With nearly 68 percent of participants coming from outside the Fredericksburg region, the Historic Half is just the kind of event local officials like to see.

"An event that brings people in from outside their ZIP code is a shot for our economy," Rodenberg said. "It gives us a chance to show off our tourism attractions and downtown."

MEALS AND LODGING REVENUES

Spending by the weekend's visitors helped fill the region's coffers--generating between $64,000 and $91,000 in tax revenue, according to the study.

Fredericksburg financial data show the city recorded a significant increase in meals-tax revenues--23.46 percent--and lodging-tax revenues--20.97 percent--when comparing activity in May 2008 with May 2007.

And while it is impossible to say all of the increase is due to one event, budget manager Mark Whitley said the race's impact can't be ignored.

"We're tickled," he said.

The impact on Stafford and Spotsylvania counties was less evident.

Spotsylvania saw a 7.99 percent increase in lodging-tax revenue and an 8.4 percent increase in meals-tax revenue when comparing activity in May 2008 with May 2007.

Stafford saw a 6.78 percent increase in lodging-tax revenue but a 2.24 percent decline in meals-tax revenue for that same period.

Stafford spokeswoman Cathy Riddle said the drop in meals-tax revenue reflected an economic slowdown and may also be the result of payments that were late.

While pleased with an increase in both revenues, Spotsylvania Economic Development Director Russ Seymour said his county's impact may be more a result of a Civil War re-enactment held the same month.

Rachel DeLooze, Spotsylvania's tourism marketing coordinator, said hotels were disappointed with the number of room nights sold for the race, and may use a minimum stay of multiple nights for the next one.

Ronnie James, general manager of the Hampton Inn & Suites and Homewood Suites in Celebrate Virginia South, also was disappointed with the lodging numbers.

He said the occupancy rate for his hotels--located adjacent to the race's start and finish line--was hurt by the fact that most people stayed just Saturday night although he and other hoteliers had blocked rooms for two nights until just a few weeks prior to the event.

James, like Spotsylvania and Stafford economic officials, is hopeful that increasing next year's race field to 9,000, along with moving the Healthy Lifestyle Expo to Friday and Saturday, will prove more profitable for businesses.

"It was a learning experience," James said of the first year.

CONTINUING IMPACT

Karen Hedelt, Fredericksburg's tourism manager, said the event "exceeded expectations" and that the region is continuing to profit from the positive reception people received while in the area.

Already, she said, people who were first-time visitors in May have made return visits to the city.

The UMW study estimated that 45 percent of the people who ran in the 13.1-mile race or were part of a runner's party had never visited the region before.

It also found that more than 38 percent of the runners who took part earn incomes over $100,000.

"This, hopefully, will be one of the biggest events in the Fredericksburg region for the foreseeable future," said Fredericksburg Economic Development Director Kevin Gullette.

Pamela Gould: 540/735-1972
Email: pgould@freelancestar.com