Major Economic Benefits from Fireworks Show

Major Economic Benefits from Fireworks Show

THE BIG BAY BOOM
A STUDY OF ITS  ECONOMIC IMPACT

Big Bay Boom firworks image

PLNU, Fermanian Business & Economic Institute logo

Point Loma Nazarene University and the Fermanian Business & Economic Institute Authors

• Lynn Reaser, PH.D., CBE – Chief Economist
• Thomas Hale – Senior Research Associate
• Danielle Best and Sharon Guerra – MBA Student Researchers
• Sarah DiSalvo, Nathaniel Hosmer, Jake Bikle – PLNU Undergraduate Student Researchers

Executive Summary

  • San Diego’s Big Bay Boom fireworks show, conducted each July 4th, generated $10.1 million in incremental sales in 2018 for the local area’s hotels, restaurants, retail shops, tour operators, museums, charter cruise firms, boat rental companies, and other businesses.
  • Including the various ripple or multiplier effects produced through the supply chain and additional consumer spending, the fireworks event created a total of $17.8 million in sales in 2018.
  • Due to extra staffing and additional pay, the Big Bay Boom generated $7.9 million in earnings for San Diegans working in the region’s various businesses during the July 4th event.
  • Staged each year since 2001, the Big Bay Boom hosts a live audience of over 500,000 watching fireworks launched from four barges around Shelter Island, Harbor Island, and the North and South Embarcadero Marina Parks. Funds raised from the show are donated to the San Diego Armed Services YMCA, which serves families of the military in the San Diego region. The Big Bay Boom provided the charity with $82,000 in 2018 and has donated $967,000 to it since 2001.
  • Local businesses reported sales increases due to the event ranging from 20% to over 30%. Approximately 65% of hotel guests on July 4th in 2018 came explicitly to see the Big Bay Boom. Most of them stayed for close to three days. About three-fourths of hotels guests during the July 4th holiday was from outside San Diego County.
  • The Big Bay Boom generated approximately $587,000 in revenues for the Port of San Diego in 2018. After expenses for traffic control, park cleanup, and other services, as well as a $190,000 sponsorship for the Big Bay Boom, the Port realized a net dollar benefit of $257,000. This represented a return on investment (ROI) of 78%.
  • The City of San Diego benefited from taxes of an estimated $1.0 million collected from sales and hotel tax revenues during the July 4th event in 2018.
  • The Big Bay Boom generated a large amount of media exposure for San Diego in 2018, benefiting its businesses and tourist industry. Live TV broadcasts in San Diego and Los Angeles, simultaneous radio coverage, articles in newspapers and magazines, streaming, and social media equaled an estimated $1.1 million in value. A combined 148,000 households watched the Big Bay Boom in San Diego and Los Angeles on TV in 2018, making it the most watched locally-produced July 4th special in the country.

Impact of the Big Bay Boom 2018 July 4th Fireworks

Read the full EIR report here 

Background

San Diego has hosted the Big Bay Boom fireworks show each year on July 4th since 2001, which has grown to become one of the region’s greatest holiday events. Four barges launch pyrotechnics around Shelter Island, Harbor Island, and the North and South Embarcadero Marina Parks. Over 500,000 viewers attend the annual show.

Funds raised from the show are donated to the San Diego Armed Service YMCA, which serves families of the military in the San Diego region. This charity offers about forty different programs for the families of young enlisted men and women in addition to wounded warriors at the Balboa Naval Hospital.

Approximately 75 companies and agencies plus about 300 private individuals supply funding for the annual show. Another group of trustees and foundations provides additional support. The Port of San Diego is the title sponsor. Many of the sponsors, including hotels, restaurants, retail stores, and marina facilities, are Port tenants. Non-port tenant sponsors include various corporations and other organizations not located on the tidelands. Private donations from individuals and trusts account for a significant amount of the total contributions raised ($30,000 in 2018.). Overall donations reached $82,000 in 2018 and have totaled $967,000 since 2001.

Study Purpose and Scope

This report seeks to assess the total economic impact of the Big Bay Boom by analyzing the results of 2018. This is important to the Port of San Diego, which contributes significant funds to the effort as do other agencies, non-profit entities, businesses, non-profit entities, media outlets, and individuals.

The study attempts to provide an objective analysis of the net economic benefits in terms of sales, income, GRP, and tax receipts to the local San Diego area. The analysis is also made of the return on investment (ROI) for the Port of San Diego based on the rents on sales generated for Port tenants and the expenses for safety, emergency, and other services.

The total economic benefits are analyzed not only in terms of the direct impact on sales activity of hotels, restaurants, and other businesses but also the various “ripple” or multiplier effects. These multiplier impacts reflect the supply chain effects and additional consumer spending caused by increases in hours worked and income. The value of media exposure is also evaluated and presented.

Survey Results

In order to gauge the impact of the Big Bay Boom, surveys were distributed to hotels, restaurants, retailers, transportation companies, attractions, and other Port tenants. Hotel guests were also surveyed.

Big Bay Boom Attracts Hotel VisitorsThose surveyed were questioned on a variety of issues, including the reason for their visit to San Diego during the July 4th holiday, the residence of hotel guests, the impact on sales compared with a typical summer day, the duration of hotel stays, and the impact on staffing and pay. The surveys are included in the Appendices of this report.

Respondents to the survey indicated substantial increases in their business due to the fireworks. Relative to a typical day during the summer season (excluding holidays), restaurants saw about a 25% advance in sales on July 4th, while retailers experienced a rise of about 21%. The advance was substantially higher for many boat operators and parking venues.

Most Hotel Guests are Non-San DiegansHotels experienced daily sales gains averaging about 23%. Guests stayed for an average of 2.75 days, indicating the impact on “shoulder” days before and after the July 4th holiday itself. Hotels realized high rates of occupancy during the July 4th event. Survey respondents indicated an average occupancy rate of 99% during the time of the July 4th event, with many properties experiencing 100% occupancies. In comparison, occupancy rates averaged about 91% during other days during the summer season.

Significantly, about 65% of hotel guests came explicitly because of the Big Bay Boom. As an indication of the Big Bay Boom’s draw of “outside” money, nearly three-fourths of hotel guests on July 4th were from outside the County of San Diego.
 

Read the full EIR report here 
 

 


THE FERMANIAN BUSINESS & ECONOMIC INSTITUTE (FBEI)

The FBEI specializes in providing a variety of business and economic consulting services to employers, for-profit and nonprofit companies, individuals, organizations, government entities, and others throughout the San Diego Region, as well as nationally and internationally. Consulting services include economic analysis and forecasting, economic impact studies, business plans, customer and consumer trends, market research, feasibility studies, expert opinion, and many other contemporary needs of the business and economic community, public and private, for-profit and non-profit. The Institute also has extensive experience in presenting materials to government officials at all levels and in conducting interviews with local and national media outlets.

Read the full EIR report here 

FBEI Authors

• Lynn Reaser, PH.D., CBE – Chief Economist
• Thomas Hale – Senior Research Associate
• Danielle Best and Sharon Guerra
      MBA Student Researchers
• Sarah DiSalvo, Nathaniel Hosmer, Jake Bikle
      PLNU Undergraduate Student Researchers

Copyright © 2018 by the Fermanian Business & Economic Institute at Point Loma Nazarene University. All rights reserved.

Point Loma Nazarene University and the Fermanian Business & Economic Institute disclaim any and all liability from the use of this material. Publication or distribution of any portion of this document is prohibited without the express approval of the Fermanian Business & Economic Institute.

For interest in supporting the Port of San Diego’s Big Bay Boom July 4th Fireworks Show benefiting the Armed Services YMCA, please contact H. P. “Sandy” Purdon, Executive Producer at 619-822-1177 or Send email.