2014 Alaska State Fair Economic Impact Study

January 2015

PREPARED FOR

Alaska State FairPREPARED BY

Alaska State Fair, 2014 The Socioeconomic Impacts of the

Alaska State Fair, 2014

The Socioeconomic Impacts of the Alaska State Fair, 2014

Prepared for: Alaska State Fair

Prepared by:

Juneau Anchorage

January 2015

Table of Contents

Executive Summary .................................................................................................................. 1

Employment............................................................................................................................. 1 Payroll ...................................................................................................................................... 1 Total Spending ......................................................................................................................... 1

Methodology ............................................................................................................................ 3 Alaska State Fair Profile ............................................................................................................ 4

History of the Alaska State Fair ................................................................................................. 4 ASF Employment ...................................................................................................................... 4 ASF Revenue and Expenses....................................................................................................... 5 ASF Facilities ............................................................................................................................. 5 Interim Events .......................................................................................................................... 7

ASF Vendor Impacts ................................................................................................................. 8 Fair Vendor and Organization Booths ....................................................................................... 8 Vendor Survey Results .............................................................................................................. 9

Fairgoer Spending Impacts .................................................................................................... 13 Attendance and Ticket Sales ................................................................................................... 13 Fairgoer Characteristics .......................................................................................................... 14 Fairgoer Spending .................................................................................................................. 14

Total Economic Impacts of ASF .............................................................................................. 15 Employment and Payroll ........................................................................................................ 15 Spending ............................................................................................................................... 16 Total Multiplier Impacts ......................................................................................................... 16

Other Impacts of the Alaska State Fair .................................................................................. 18

Executive Summary

Since its founding nearly 80 years ago, the Alaska State Fair (ASF) has grown to be Alaska’s largest social and

cultural event. Regularly hosting 300,000 visitors over a 12-day span each fall, the Fair celebrates the

contemporary while staying connected to its early beginnings. ASF contracted with McDowell Group, an

Alaska-based research firm, to conduct an analysis of the socioeconomic impacts of its year-round operations

and its main event that occurs each fall. A summary of this research is provided below.

Employment

An estimated 2,362 direct jobs are associated with ASF and Fair vendor operations. The majority of positions

occur only during the 12-day Fair. Specifically, direct Fair-related employment includes:

• 292 positions are directly employed by ASF year-round, seasonally, or just during the Fair.

• An additional 400 people are contracted during the Fair to provide essential services such as

security, parking, and admission.

• An estimated 1,670 people are employed to operate Fair vendor booths.

Jobs are also created in the support sector as a result of Fair-related spending. Total estimated Fair-related

employment including all direct, indirect, and induced impacts is estimated at 2,600 jobs.

Payroll

Payroll from ASF, fair vendors, and ASF contractors was an estimated $3.5 million in 2014.

• ASF payroll for a variety of full-time, part-time, seasonal, and fair-time employees totaled $1.6

million.

• Fair vendors had an estimated payroll of $1.4 million for employees working during the Fair.

• Fair contractors hired for parking, security, and admissions had an estimated payroll of $0.5 million.

As money spent in support of ASF-related operations flows through the economy an additional $3.6 million in

payroll is generated. Total ASF-related payroll is estimated at $7.1 million.

Total Spending

Sources of spending include expenditures on purchases of goods and services and payroll by ASF and fair

vendors, as well as money spent by fairgoers at the fair (estimated at $55 per fairgoer). Unduplicated

spending by these sources is an estimated $15.6 million.

The Socioeconomic Impacts of the Alaska State Fair, 2014 McDowell Group, Inc. Page 1

• ASF spending totaled approximately $8.2 million. Expenditures on events, payroll, and marketing

were some of the most significant costs.

• Fair vendor spending was an estimated $5.5 million. Inventory and payroll costs were the majority

of these costs. Payments to ASF are not included in this total.

• Fairgoers spent an estimated $1.9 million during 2014 outside the fairgrounds on food, lodging,

gas, and other items.

When this spending circulates throughout the economy, an estimated $23.0 million in total economic

impact (including payroll) occurs. This spending that would not take place in the absence of ASF.

Summary of Estimated ASF Impacts 2014

ASF

ASF and Contracted Employees 692

Total ASF Spending $8.2 million

Fair Vendors

Number of unique vendors* 416

Number of vendor employees 1,670

Number of vendor volunteers 2,000

Total Vendor Spending $6.1 million

ASF Fairgoer

Number of Fair visitors 293,827

Average spending per person $55

Total Fairgoer spending $14.2 million

Total Impacts of ASF (direct, indirect, and induced)

Employment (predominantly jobs during the Fair only) 2,600

Payroll $7.1 million

Total Unduplicated Spending (including payroll) $23.0 million *Some vendors had multiple booths/operations.

In addition to the economic impacts detailed above, brief case studies illustrate how the Fair benefits Alaska in other ways. For example:

• The Fair is the Blood Bank of Alaska’s most important blood drive.

• Approximately 20 percent of fall applicants to the Anchorage Police Department originated from

contact made at the Fair.

• In 2014, The Gathering Place featured 54 dance performances, 36 story-telling sessions, 30 traditional

artists, 23 concerts, and four World Eskimo Indian Olympic athletic demonstrations.


Methodology

To better understand how the Alaska State Fair (ASF) and associated year-round events affect the region’s

economy and residents, McDowell Group was contracted to conduct a study of ASF’s socioeconomic impacts

in 2014. This study provides an update of The Economic Impacts of the Alaska State Fair, 2005, also conducted

by McDowell Group.

Several sources of information were used for this analysis, including a survey of fair vendors. The purpose of the

survey was to gather information from ASF booth vendors about their employment, spending, volunteerism,

residency, and other issues affecting their economic impact during the Fair. A survey was sent to all 416 ASF

vendors in September 2014. Respondents were given the option to complete the survey on paper or online

from both desktop and mobile platforms. Three incentive prizes ($250, $500, or $1,000 2015 fair booth credit)

were offered to boost response rates. A response rate of 57 percent was achieved with 238 completed surveys.

Respondents closely resembled the proportionality of vendor types, as seen in the following table, suggesting

a representative survey sample.

Vendor Survey Respondents and Sample, by Vendor Type

Vendor Type % of Total Respondents

% of Total Vendors

Commercial 44% 42%

Gifts/novelties 16 19

Non-profit 11 12

Food 14 15

Crafts 8 6

Carnival rides 2 2

Games of skill and chance 5 4

ASF provided attendance, revenue, expenditures, employment, wages, and other background information on

the organization’s operations. Fairgoer survey research conducted for ASF by McDowell Group in 2006, 2010,

and 2013 was also used in conjunction with 2014 attendance data to extrapolate and estimate (adjusting for

inflation and attendance trends) fairgoer spending impacts in 2014.

A representative from the City of Palmer was interviewed to gain an understanding of the impact of sales tax

paid by ASF vendors. Information gathered from this interview was used when modeling the broader impact

of the Fair. Finally, a series of brief case studies illustrating the importance and intangible impacts of ASF were

developed based on executive interviews with a cross-section of ASF vendors. The following is a list of

organizations interviewed:

• Anchorage Police Department

• The Medallion Foundation

• Alaska Division of Homeland Security and

Emergency Management

• Blood Bank of Alaska

• Select ASF artists and vendors


Alaska State Fair Profile

History of the Alaska State Fair

In 1935, 203 families from Minnesota, Michigan, Wisconsin, and Oklahoma moved to the Matanuska Valley.

With funding from the federal government, the families settled in Palmer to build an agriculture-based

community. In the summer of 1936, after building homes and clearing land, a fair was held. Admission was $1

for adults and free for children. The fair crowned a Fair Queen, showcased boxing matches, and hosted horse

races. Agriculture was a central theme, with competitions ranging from giant cabbages to grain. Three years

after its founding, the fair was attended by 1,600 visitors.

The fair was shuttered during WWII, but hosted 160 exhibits upon reopening in 1947. The 1950s saw growth

in attendance, the addition of carnival rides, and an air show. In 1956, a petition was sent to the Alaska

Legislature seeking an official designation of the Alaska State Fair. However, the Tanana Valley Fair of Fairbanks

had made a similar request. The solution to this problem was to have the Tanana Valley Fair of Fairbanks

deemed the official State Fair in odd years and the Matanuska Valley Fair holding this title in even years. Today,

they are simply known as the Tanana Valley State Fair and the Alaska State Fair.

ASF celebrated its 25th anniversary in 1960 and was attended by presidential candidate John F. Kennedy and

30,000 other visitors. In 1967, with the purchase of 221 acres, the Fair moved to its current location. The 1970s

saw both investment in modern infrastructure and a preservation of buildings which dates to colony days of

Palmer; many are still used today.

The Alaska State Fair Inc., which operates ASF, is a 501(c) 3, private, non-profit organization governed by a

board of directors. No regular government funding is received by ASF.

ASF Employment

ASF employs 292 workers, including 15 full-

time and six part-time permanent

employees, plus 55 seasonal and 216 fair-

time employees. Employees fulfill a variety

of roles including marketing, sponsorship,

and event coordination for the fair, as well

as maintenance of fairgrounds and facilities

throughout the year. Total wages paid in

2014 were $1.6 million.

An aerial photo of the Fair. Source: ASF


ASF Revenue and Expenses

REVENUE

ASF’s 2014 unrestricted income of $8,305,381 was generated from several sources: admissions into the Fair

and events ($3,923,510), payments from vendors ($1,451,546), and Fair sponsors ($916,555). Another source

of revenue for the Fair is rental of storage area for booths, R/Vs, vehicles, and boats. In 2014, the Fair earned

about $130,000 through their winter storage program. The Farm Exhibit Hall, Flowers Exhibit Hall, and other

facilities are used for these services from early October to the end of April.

Additional income was generated from parking, facility rentals, beverage sales, souvenirs, the France Equestrian

Center, and other sources. In addition to unrestricted income, the Fair often receives grants designated for

special projects or programs.

EXPENSES

ASF’s 2014 expenses totaled $8,154,176. The Fair’s biggest expenses were entertainment and events

($2,376,781), salaries ($1,596,489), marketing ($731,521), and provision of security, parking, and gate

admission services ($519,276). Approximately $166,000 in sales taxes were paid to the City of Palmer by ASF.

Additional expenses included insurance, interest, licenses, utilities, maintenance, office expenses, and other

costs.

ASF Facilities

There are a number of permanent

facilities located on ASF fairgrounds that

can be rented for events ranging from

presentations or workshops for small

groups to conventions or trade shows

with thousands of attendees. Rental of

these facilities generated $119,770 in

revenue in 2014. Following is a brief

description of these facilities.

FRANCE EQUESTRIAN CENTER

One of the best developed equestrian centers in Alaska, the Center is well-suited for competitions, clinics,

educational programs, and public rental. The Center includes four large arenas, three stables housing 102 stalls,

and concession stands. Bleachers, a VIP area, a lunging corral, a judge’s booth with two announcer positions

and PA systems are also available. Riders interested in attending open-riding sessions are charged $10 per

person per day.

The Alaska State Fair was honored to receive the Maynard Smith Award at the Alaska State Horse Shows Banquet

in 2014. The purpose of the award is to honor Alaskans who have contributed to the horse industry in Alaska

and have worked to promote horses and horsemanship.

Raven Hall with holiday decor. Source: ASF


RAVEN HALL

The 20,000-square-foot Raven Hall, with a maximum capacity of 1,200 people, is one of the newest structures

on the fairgrounds. With overhead doors, high ceilings, restrooms, kitchen area, and Wi-Fi, this building is well

suited for large events. The Hall has been used for small conventions, trade/consumer shows, large meetings,

graduations, and weddings. It offers a central location on the fairgrounds close to parking.

SHELDON EVENTS CENTER

Events not needing the space of Raven Hall often fit well in the Sheldon Events Center. This 8,000-square-foot

building, available during the summer, is ideal for small trade shows, clinics, assemblies of up to 400 people,

and multiple events requiring close proximity. Amenities include on-site restrooms and an exterior area

designed for barbeques or other outdoor activities.

HOSKINS EXHIBITS

This 4,800-square-foot, multi-use facility is used for small banquets, auctions, hobby shows, demonstrations,

and sewing and cooking classes. Available during the summer, the building offers a kitchen, stage, restrooms,

and a large, open area surrounded by built-in displays.

COLONY THEATRE

Completed in 1937, the Colony Theatre was originally a church used by the early colony. The building was

moved to its current location in 1975, and later renovated. Today, it is available year-round as a multi-use

facility featuring a 1,100-square-foot main area, small kitchen, and two handicapped accessible restrooms. Past

uses include board meetings, workshops, weddings, and classes.

SOUTH PALMER STATION

In 2004, the South Palmer Railroad Station opened adjacent to

the fairgrounds. On select days during the Fair, trains deliver

fairgoers to and from Anchorage. Over the past decade, the

Fair Train has increased in popularity; between 2005 and 2014

ridership to the Fair increased from 523 to more than 3,000.

Sponsored in part by Green Star (a non-profit organization that

encourages businesses to practice waste reduction, energy

conservation and pollution prevention), round-trip tickets cost

$12 for adults and $8 for children.

Featuring restrooms and covered areas, the station may

become part of a future commuter system transporting workers

between the Mat-Su Borough and Anchorage.

Alaska Railroad’s Fair Train in the South Palmer Station. Source: ASF


Interim Events

While most may associate the fairgrounds with just the annual fair, events are held throughout the year.

Excluding the Fair, 60 events on the fairgrounds were attended by more than 65,000 visitors in 2014. Events

included gun and dog shows, the Wasilla prom, and various training programs. Some events such as the Girl

Scouts Encampment or Interior Distance Education of Alaska Testing last multiple days while other events last

just one evening.

Alaska State Fair Interim Events by Number of Participants, 2014

Event Participants

Scottish Highland Games 12,500

Transportation Fair 5,000

Lions Gun Show 3,600

Alaska Gun Collector’s Show 3,200

Alaska State Fair Holiday Bazaar 3,200

Bella's Kids 3,000

Color Fun Fest 3,000

Matanuska Valley Sportsman’s Gun Show 2,900

Alaska Gun Collector’s Association Spring Gun Show 2,800

Interior Distance Education of Alaska Student Testing 2,200

All other events 24,400

Total 65,800


ASF Vendor Impacts

ASF hosted approximately 500 booths/operations with 416 unique owners at the 2014 Fair representing a wide

variety of non-profit and for-profit organizations.1 To understand the economic impact of ASF vendors, a

mail/internet survey was sent to all vendors that had rented a booth or space during the 2014 Fair. The survey

asked for information on number of employees, employee residency, payroll, and spending. A total of 238

vendors completed the survey, representing 57 percent of all vendors. Results are detailed below.

Fair Vendor and Organization Booths

There are seven categories of Fair vendors and booths:

• Commercial: Most vendors (173 vendors or 42 percent of all vendors) are commercial businesses

selling goods and services ranging from greenhouses to satellite TV subscriptions.

• Gift and Novelty: Gift and novelty booths have smaller goods available such as t-shirts, leather goods,

and flags.

• Food: Food vendors sell a wide range of food and beverage options.

• Non-profits: Non-profit organizations, such as the American Red Cross, Iditarod Historic Trail Alliance,

and political advocacy groups, operate booths, often through volunteer staffing.

• Craft: Craft vendors sell a variety of art including pottery, rugs, and wood carvings.

• “Games of skill and chance”: These booths are run by non-profits with licenses to raffle off an item to

support their organization (such as rifles to support the Alaska Friends of the NRA, and quilts to support

the Valley Quilters Guild).

• Carnival Rides: This vendor type includes all children and adult carnival rides, as well as carnival games.

They are also referred to as percentage vendors because they share revenue with ASF.

Alaska State Fair Vendors by Type, 2014

1 Note: Some vendors had multiple booths/operations.

% of Total Count

Commercial 42% 173

Gifts/novelties 19 79

Food 15 63

Non-profit 12 50

Crafts 6 26

Games of skill and chance 4 17

Carnival rides 2 8

Total 100% 416


Vendor Survey Results

Employment

• An estimated 1,670 employees, including

owners, worked at ASF vendors at the 2014

Fair.

• A quarter of all vendor booths only had one

paid employee. Most booths (65 percent)

employed two to ten workers. Ten percent

had more than 10 employees. On average,

vendors employed 4.5 workers during the

Fair.

• Craft vendors were much more likely to be

sole proprietors at 69 percent.

• Food vendors hired an average of nine

workers, the highest employer of all vendor

types (except carnival rides).

Including yourself, how many paid employees worked for your company or organization at the 2014 Alaska State Fair?

% of Total

1 25%

2 16

3-4 20

5 – 10 29

11 – 40 9

40+ 1

Avg. number of employees 4.5 people

Residency of Vendor Owner/Operators

• Nine out of ten (91 percent) Fair vendors were Alaska residents. Thirty-seven percent were from

Anchorage, 37 percent from the Mat-Su Borough, and 17 percent were from other areas in Alaska.

• Nine percent were from outside Alaska.

• ASF vendors represent 37 different communities in Alaska.

(See table on next page)

An ASF vendor booth with employees. Source: ASF


Residency of Vendor Respondents % of Total

Anchorage 37%

Mat-Su Borough 37

Other Alaska 17

Outside Alaska 9

Employee Residency

• The majority of paid employees (55 percent) were Mat-Su residents; 37 percent live in other areas of

Alaska, and 9 percent were from outside Alaska.

• The average number of Mat-Su residents hired per vendor was 3.3.

Of your paid employees, how many are… % of Total Mat-Su Residents 55%

Other Alaska Residents 37

Outside Alaska Residents 9 Note: Columns may not total 100 percent due to rounding.

Volunteers

• About 2,000 volunteers worked at the 2014 Fair, with approximately 1,400 volunteering at non-profit

booths.

• Slightly more than half of vendors (54 percent) had no volunteers and 12 percent of vendors had over

100 volunteers.

• The average number of volunteers for all booths was 4.9. However, for only booths that reported using

volunteers, the average number rises to 10.7.

• For booths reporting the use of volunteers, non-profit groups averaged approximately 26.5 volunteers

while for-profit organizations averaged 4.0.

How many volunteers worked in your 2014 Alaska State Fair Booth? % of Total

Zero 54%

1 – 4 27

5 – 10 7

Over 100 12

Avg. number of volunteers 4.9

Avg. number of volunteers (from booths with volunteers)

10.7


Payroll

• One in four vendors (26 percent) had no employee payroll.

• Average payroll was $4,100 per vendor; however, the majority of vendors (55 percent) paid $2,000 or

less.

• Food vendors reported the highest payroll, averaging $7,800 per booth.

Total Vendor 2014 Fair Payroll % of Total

Zero 26%

$1 - $2,000 29

$2,001 - $5,000 24

$5,001 - $7,000 4

$7,001 - $10,000 10

$10,000+ 7

Average Payroll Spending $4,100

Operational Expenses

SPENDING BY CATEGORY

• On average, total spending for all operational expenses, excluding payroll, was $11,300 by all vendors.

• Food vendors had the highest average spending of more than $20,000. Commercial vendors spent an

average of $9,900, while gift and novelty vendors spent an average of $6,300.

• Inventory costs were 67 percent of total spending by vendors, followed by supplies (10 percent), and

combined payments for transportation, lodging, and meals (10 percent). All other spending equaled

13 percent.

Total Vendor Spending Estimates Goods and Services for 2014 Fair Operations (excluding payroll)

Spending % of Total

Cost of Goods Sold (inventory) $7,600 67%

Supplies 1,100 10

Transportation and Travel Costs 700 6

Lodging and Meals 450 4

Other Spending 1,500 13

Average total spending $11,300 100% Note: Columns may not total due to rounding.


SPENDING BY LOCATION

• Most spending by Fair vendors (88 percent) took place in Alaska.

• One-third of spending from vendors (32 percent) occurred in the Mat-Su Borough, 56 percent in the

rest of Alaska, and 12 percent outside the state.

Vendor Spending Estimates by Location Avg. Spending % of Total

Mat-Su $3,600 32%

Rest of Alaska $6,300 56

Out of State $1,400 12

Total Avg. spending $11,300 100%

Percent of Vendor’s Annual Revenue

• Sixteen percent of vendors rely exclusively on the Fair for their annual revenue.

• Approximately one in four vendors (27 percent) generated the majority of their annual revenue from

their booth at the 2014 Fair.

• Most vendors (58 percent) generated 25 percent or less of their annual revenue from the Fair.

• Of all vendor types, food vendors are most reliant on the Fair as a source of their annual revenue.

Percent of All Vendor Revenues Generated by 2014 Fair Only

% of Total

1 – 25 percent 58%

26 – 50 percent 15

51 – 75 percent 6

76 – 99 percent 5

100 percent 16


Fairgoer Spending Impacts

Fairgoer spending includes expenditures with ASF, Fair vendors, and purchases of goods and services outside

the Fair. McDowell Group ASF research conducted in 2006, 2010, and 2013 was used in conjunction with

2014 data to estimate attendance trends and fairgoer spending.

Attendance and Ticket Sales

• Fair attendance has been relatively stable over the last five years, ranging between 290,119 in 2010 to

307,894 in 2011. In 2014, total estimated attendance was 293,827, a 2 percent increase from 2013.

Total Estimated Fair Attendance, 2010 to 2014

Attendance

2010 290,119

2011 307,894

2012 305,721

2013 288,499

2014 293,827

• The most popular day to visit the 2014 Fair was the final Saturday (43,930 fairgoers), while the lowest

attendance was the first Monday (6,858 fairgoers). Day-to-day variance in admissions is considerable,

and is often affected by weather, concert offerings, events, and day of the week.

Attendance by Day of Fair, 2014

18,062

24,141

43,785

20,792

6,858

21,268

14,904 11,139

24,621

43,930

37,279

27,047


• In 2014, the Fair generated $2,359,689 in admission sales. Admission to the Fair can be purchased

online, at some stores in Anchorage and Mat-Su, or at the gate. Online sales have grown significantly

over the last five years, increasing from 13,703 admission tickets in 2010 to 41,077 in 2014

(approximately 14 percent of all admissions).

• A total of 29,214 fairgoers attended 12 concerts at the 2014 Fair which generated $1,128,234 in

revenue.

Fairgoer Characteristics

• An estimated two-thirds (or 196,500 attendees) of 2014 attendees originated from outside Palmer or

Wasilla.

• The estimated average party size among fairgoers was 3.4 people.

• Approximately one in ten visitors from outside the Palmer-Wasilla area overnight near the Fair,

averaging a stay of 2.5 nights.

• On average, visitors attended the Fair approximately 2.2 times during the 12-day Fair duration.

Fairgoer Spending

• Average spending is estimated at $55 per person based on previous survey research extrapolations.

• Applying this average spending to all fairgoers, an estimated $15.9 million was spent at the 2014 Fair.

• Over 70 percent of fairgoer spending went to fair events and purchases from ASF vendors.

• Parking and admission spending totaled $2.7 million.

• Expenditures outside the Fair totaled nearly $2 million, including spending on fuel, food and beverages,

and overnight accommodation.

Estimated Fairgoer Spending, 2014

Amount

Fair events and purchases from vendors $11.3 million

Parking and admission $2.7 million

Other expenditures outside the Fair $1.9 million

Total Fairgoer spending $15.9 million

Average per person spending $55.00


Total Economic Impacts of ASF

This chapter examines the employment, payroll, and total economic impact of ASF. From an economic

perspective, the Fair is unique as the majority of employment and spending associated with ASF takes place

over a short period of time (12 days). However, year-round activity at the fairgrounds affects both the local

communities of Palmer and Wasilla, and broader Alaska region as spending circulates through the economy.

Employment and Payroll

Just over 2,360 workers are directly employed at the Fair or by ASF. This total includes:

• 292 workers directly employed by ASF year-round, seasonally, and during the Fair.

• 400 people contracted during the Fair to provide essential services such as security, parking, and

admission.

• Estimated 1,670 people employed to operate Fair vendor booths.

Estimated Direct Employment Associated with ASF Operations, 2014 Amount

ASF Employees

Full-time 15

Part-time 6

Seasonal 55

Fair-time 216

ASF Employees 292

Fair Employment

All Vendor Types 1,670

Fair Services Contractors 400

Estimated Direct Employment 2,362

The 2,362 people directly employed at the Fair or by ASF earned an estimated total $3.5 million in annual

payroll. This includes wages earned by year-round and seasonal ASF employees and wages earned by paid

employees of vendors. Most of this payroll is earned during the days leading up to and including the 12-day

Fair period.

Estimated Payroll Associated with ASF Operations and the Fair, 2014

Amount ($ Million)

ASF Employees $1.6

Fair Vendor and Contractor $1.9

Estimated Direct Payroll $3.5


Spending

ASF and related activities generate a large amount of spending that impacts the local and regional economies.

ASF operates with an annual budget of approximately $8.2 million, including payroll and purchases of a wide

variety of goods and services. Visitors to the Alaska State Fair spent an estimated $14.2 million in 2014,

including spending on Fair admissions, parking, events, and with the many vendors selling food, drinks, and a

wide variety of other items and activities during the Fair. This total also includes estimated spending outside

the fairgrounds at gas stations, motels, restaurants, and elsewhere. Further, Fair vendors spent approximately

$6.1 million in support of the operations, including payroll, cost of goods sold, lodging, meals for workers, etc.

For purposes of economic impact analysis it is important to recognize that this spending is not additive. That

is, much of ASF annual budget is funded through fairgoer admissions, parking fees, and payments from

vendors. Similarly, most of the dollars spent by vendors are the same dollars fairgoers spend with vendors.

Total unduplicated ASF-related spending is estimate at $15.6 million. This is the total amount of new dollars

circulating in the economy as a result of ASF. It includes the wages described above, and purchases of goods

and services with dozens (perhaps hundreds) of Alaska businesses that serve ASF and vendors.

Estimated Spending Associated with the Alaska State Fair

and Related Operations, 2014

Direct Unduplicated Spending

($ Million)

ASF Spending $8.2

Fair Vendor Spending (excluding payments to ASF)

$5.5

Fairgoer Spending (Spending outside the fairgrounds)

$1.9

Estimated Total Spending $15.6

Palmer Sales Tax Impact

The City of Palmer generates revenue through a 3 percent sales tax. As of January 2015, ASF vendors paid

approximately $133,000 for activities taking place during the 2014 Fair.2 This figure likely will be adjusted once

all payments have been received. In 2013, ASF vendors paid approximately $149,000 is sales tax to the City.

2 Per personal communications with Joe Hannan, City of Palmer, 1/20/2015.


Total Multiplier Impacts

As ASF, vendors, and fairgoers spend money in the local and regional economies, there are a range of indirect

and induced economic impacts. Indirect impacts are those created when, for example, vendors purchase food

from wholesalers, or otherwise purchase supplies needed to support booth operations. Induced impacts are

those that occur when employees of ASF or of vendors spend their wages at local businesses. Together, indirect

and induced impacts are termed “multiplier effects.”

Based on economic impact modelling conducted for purposes of this study, it is estimated that the total

unduplicated spending of $15.6 million has a total spending or “output” impact of $23.0 million. That is, as a

result of ASF and related activity there is $23.0 million in spending and payroll that would not otherwise exist.

This total includes an estimated $7.1 million in wages.

Employment related to ASF is largely characterized as short-term and concentrated around the time of the Fair.

Nevertheless, it does have employment effects in the support sector. In other words spending by ASF, vendors,

and fairgoers creates income (wages) in the support sector that would not exist if not for the fair. While it is

not possible to measure all of the jobs in the local and regional economies that in some way benefit from Fair-

related spending, modelling suggests that, beyond those directly employed in ASF activity, around 250 jobs in

Alaska are positively impacted by spending of the ASF, fairgoers, and fair vendors.

Estimated Total Impacts of ASF, 2014 Direct Total

Employment (full-time, part-time and temporary) 2,362* 2,600*

Payroll $3.5 Million $7.1 million

Unduplicated Spending (including payroll) $15.6 Million $23.0 million

*Composed primarily of jobs during the Fair.


Other Impacts of the Alaska State Fair

An examination of just the economic impacts of ASF does not tell the whole story of the important contribution

of ASF to Alaskans. ASF influences Alaska culture, disaster preparedness, non-profits, and the arts, among other

aspects of the nearly 80-year old event. A selection of these impacts are briefly detailed below.

The Gathering Place

Continuing the tradition of representing Alaska culture, the

2014 Fair opened The Gathering Place, a three-acre plot

dedicated to Alaska Native artists, athletics, vendors, and

performers. Currently in its first phase of development,

future expansion will be guided by the goals of sharing

Alaska Native history, culture, arts, and entertainment;

promoting economic self-sufficiency; and cultivating cross-

cultural interaction with fairgoers.

During the early design process, an Alaska Native intern

suggested that visitors should experience what it is like to

spend time in a rural village. This vision has been adopted,

and will be reflected in the design of future structures.

The current site includes a performance stage, a covered

eating pavilion, the Fish On! Camp Grill salmon bake, and

the Alaska Native Arts Market with eight cabins housing

traditional artists. Future development will see the addition

of a permanent stage, a plaza with more vendor booths and

demonstration areas, a multi-purpose building, restroom facilities, art installations, as well as landscaping and

infrastructure updates, including water and sewer extensions. Long-term plans have The Gathering Place being

used year-round for camping and other events.

In 2014, The Gathering Place featured 54 dance performances, 36 story-telling sessions, 30 traditional artists,

23 concerts, four World Eskimo Indian Olympic athletic demonstrations, and one session of Raven’s Radio Hour,

a public radio show highlighting Alaska Native culture, and established itself as an important avenue to impart

Alaska Native arts and culture.

Disaster Preparedness

The Fair has come to play a role in Alaska’s disaster preparedness. Offering a well-known, centrally-located site

with permanent facilities that can be used during an emergency, the 2014 Alaska Shield drill was held on the

fairgrounds. This drill took place on the 50th anniversary of the 1964 earthquake and simulated the outcome of

a magnitude 9.2 earthquake.

A dance performance at The Gathering Place. Source: ASF


The Fairgrounds hosted the Alaska National Guard, Alaska Department of Health and Social Services, and other

organizations which provided medical care to 74 “injured” individuals. Within 12 hours of the staged

emergency, the temporary medical center was providing medical care. An emergency medical services

professional stated, “The Fair is a great spot. It is close to the Palmer airport, there is lots of room for landing

helicopters, areas for erecting temporary buildings, and everyone knows where it is.”

ALASKA DIVISION OF HOMELAND SECURITY AND EMERGENCY MANAGEMENT

The Alaska Division of Homeland Security and Emergency Management (DHSEM) provides emergency services

and supports recovery after disasters such as terrorism, floods, and earthquakes. A large part of their mission is

encouraging preparedness for future disasters. A DHSEM representative said, “The Fair really is a place to

highlight State of Alaska resources that are out there, and to once again remind people they need to be

prepared for a disaster.”

At the 2014 Fair, DHSEM and the Municipality of Anchorage hosted a trailer-mounted earthquake simulator

that could mimic an earthquake up to a magnitude 6.2. More than 500 people sat through the 45-second ride

and saw the affects an earthquake can have on items around the typical house. Many riders reported feeling

the need to go home and secure water heaters, bookshelves, and other heavy items.

The DHSEM attends many events throughout the year but the Fair offers not only the best way to reach the

greatest number of people, but people from all over the state. The representative said, “We typically need to

go to where people are to get our message out. The Fair is different—we just come out to Palmer and everyone

comes to us.”

Non-Profit Organizations

BLOOD BANK OF ALASKA

The Blood Bank of Alaska (BBAK) facilitates donation of blood products and provides laboratory services to 21

Alaska Hospitals. Founded in 1962, the bank collected 682 units of blood in the first year of operation.3 More

than 50 years later BBAK collects approximately 20,000 units annually. A representative from BBAK reports,

“The Fair is our most important blood drive of the year, and every year we see more people donating blood.

This year was our best yet with 560 units of blood donated from 730 donors.”

BBAK has had a booth at the Fair since 1997 and reports many fairgoers give blood every year. One way BBAK

encourages donations is with a t-shirt given with a contribution. “Every year we have a different t-shirt made.

Donors really like the tradition or coming out to donate and get the shirt,” the BBAK representative reports. In

2012, Chad Carpenter, an Alaskan cartoonist known for his series “Tundra,” worked with BBAK to make a t-

shirt that proved very popular with donors.

3 One unit of blood is equal to approximately one pint.


MEDALLION FOUNDATION

The Medallion Foundation was founded in 2001 in response to the deaths of 192 Alaskan commercial pilots in

the previous decade. Dedicated to improve pilot safety and reduce insurance rates, the Medallion Foundation

is uniquely Alaskan; no other program like it is found in the nation. The Foundation offers 16 flight simulators,

one-on-one mentoring, and scenario based training to both private and commercial pilots.

The Medallion Foundation brought one of the most advanced single pilot flight simulators available to the Fair

in 2014. More than 250 people used the simulator at the Fair which put pilots in different flight scenarios to

learn how to best deal with emergencies. When asked why the Medallion Foundation made an effort to be at

the Fair, a representative said, “There really is no other event in Alaska where we can get in front of this many

people. Being able to be seen by nearly 300,000 people helps us get our message of aviation safety to a wide

audience.”

ANCHORAGE POLICE DEPARTMENT

The Anchorage Police Department (APD) typically attends the Fair when actively recruiting for new police

candidates. In 2014, APD attended the Fair with a staff of five and brought a Dodge Charger police car which

proved to be a conversation starter with civilians. An APD representative said, “People would come up to look

at the car and it gave us a chance to talk with folks. Most of the time people see us rushing around in an

enforcement capacity. At the Fair we have the time to answer questions and connect with the community.”

The APD said the Fair is a useful recruiting venue. “Nowhere else can we see so many people in just 12 days,”

the APD representative said, adding “About 20 percent of applicants in the fall of 2014 came from contacts we

made at the Fair.”

The Arts

Many artists attend the Fair to sell and showcase their paintings, sculptures, pottery, carving, and other

creations. During interviews with various artists, many spoke of the value that comes from being seen by so

many people. One artist said, “The Fair provides a chance for our work to be seen by many people that likely

would never make the effort to go to a traditional art gallery or smaller art-centered event.” Another indicated

they are always surprised by who bought their art, “I really can’t predict who will buy my work. I often see

someone who probably did not come to the Fair to buy art, but leaves with a $500 piece. And when you have

so many people walking by, these types of sales add up.”

One artist interviewed had been coming to the Fair for 19 years; another artist had been coming for 31 years.

They both spoke of maintaining a presence people could rely on. One artist, a potter, said, “People know I am

going to be here and plan accordingly. They actually will put off buying pieces during the winter in anticipation

of the Fair.” Another long-time art vendor said she is now selling to a second generation: “Kids who grew up

with my art in their house are now buying homes and starting their own collection.”

Besides sales during the Fair, one artist said it drove purchases later on in the year: “People will see my work at

the Fair, and later in the year contact me to have something commissioned. This all starts with someone seeing

potential and then we work to make it into reality.”


Documents

2014 Alaska State Fair Economic Impact Study