Download The Economic Impact of Edmonton`s Late Night Economy

The Economic Impact of
Edmonton’s Late Night
Economy
International Responsible
Hospitality Conference
May 22, 2014
Agenda
What Is the Late Night Economy?
• Size and location
• Expenditures
Economic Impacts
• Expenditures
• Employment Impacts
• GDP Impact
Other Benefits
• Ancillary Spending
• Labour Attraction and Retention
Slide 2
Late Night Economy in 2010
• 235 Establishments
Establishments by
or 23% of all Licensed
Type
Other
Establishments
Nightclub
4%
26%
• 69,865 Licensed
Seats or 27% of all
Licensed Seats
• The bulk of late night
establishments are
classed as
Bar/Lounge/
Nightclub
Bar/Lounge
Bar/Lounge
2%
Slide 3
68%
Where Late-Night Establishments
Cluster
Slide 4
Expenditures of Late-Night
Establishment Expenditures
General
Occupancy Admin.
5%
Municipal Costs
9%
Costs
Other
4%
2%
Utilities
2%
Wages &
Salaries
31%
Promotional
10%
Marketing
Food &
5%
Music & Beverage
Direct
24%
Operating Entertainment
3%
5%
Total Spending in 2010 $467 Million
Slide 5
Late-Night Impacts in 2010
Category
Total Impact
Economic Output
$686 Million
Wages and Salaries
$215 Million
Returns to Capital
$84 Million
Full-Time Equivalent Jobs
Slide 6
5,807
Solid Growth in Establishments and
Seats
350
120,000
300
100,000
250
80,000
200
60,000
150
40,000
100
20,000
50
0
0
2007
2008
2009
2010
Establishments
2011
2012
Seats (Right Scale)
Slide 7
2013
Implications of Growth Since 2010
• Total expenditures in the range of $670
million for 2013.
• Impact on the economy in the order of
$900 million for 2013.
• Generating full-time equivalent jobs of
approximately 7,700 in 2013.
Slide 8
Other Major Benefits
• A major source of entry level positions for
students and young people.
– 72% of positions are part-time of which 60% are held
by students.
• Compliments special events such as the
International Jazz Festival and Fringe Festival.
• Significant ancillary impacts via patron spending
on retail, food, transportation and other sectors.
• Important factor in attracting and retaining highly
skilled and mobile labour.
Slide 9
Patron Survey
• Survey of 1145 individuals.
• 72% between the age of 18 and 30.
– Scanning data reported average age of 24.76
to 27.3 years for males and 23.4 to 25.4 years
for females
• 57% of those surveyed were male.
– Scanning data report 61% males
Slide 10
Average Monthly Ancillary
Expenditures
Food &
Restaurants
15%
Transit & Taxi
9%
Clothing &
Accessories
20%
Other
Entertainment
39%
Personal Care
17%
Total Average $318.72 per month
Slide 11
Ancillary Spending
• Scanning data for the Jasper and Whyte
avenue clusters indicated approximately
85,000 individual visits a month.
• Late-night activity in these two clusters is
associated with ancillary spending of
approximately $27 million per month.
Slide 12
Edmonton’s Labour Market Powers
Ahead
n
m
on
to
er
ta
A
lb
•
C
an
ad
a
•
Outstanding growth in
employment, labour
force and population.
Current growth is only
possible with strong net
in-migration.
Late-night economy is a
key factor in attracting
and retaining labour.
Ed
•
% Annual Growth to April
2014
0
Work Age Pop
1
2
3
Labour Force
Source: Statistics Canada
Slide 13
4
5
Employment
6
Q&A
John Rose
Chief Economist
Financial Services and Utilities
5th Floor, Chancery Hall
Edmonton, Alberta, T5J 2C3
(780) 496-6070
[email protected]
Updates and newsletter available at:
www.edmonton.ca/economicnews
Slide 14