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A Different Kind of Economic Stimulus

By Clarissa Ersoz

Cities, large and small, continually search for ways to stimulate their economy and funnel money into their communities, especially during economic hardship. Many towns rely upon tourism to create revenue and support local businesses. In order to attract attention and travelers, they need to give potential visitors a reason to come and hopefully return. Municipalities across the Northwest have found that hosting cycling events entices visitors, channels funds into the region and generates awareness.

Photo courtesy of Courage Classic

Droves of cyclists and their entourages travel each weekend to take part in various events, such as the Courage Classic (August 7-9). The money they spend is substantial and a boost for any community they visit.

Bend, Ore., hosted the USA Cycling Road National Championships and the USA Cycling Cyclocross National Championships in 2009. According to studies conducted by Kreg Lindberg of Central Oregon Research Services, each event generated over a million dollars in tourist revenue. The Road Championships precipitated $1.44 million, while the Cyclocross Nationals brought in $1.09 million during December, a month when tourism dollars usually declines. The four-day Cyclocross Championships attracted a total of 2,460 people and Road Nationals accounted for 2,840 visitors. In general, roughly 40% of those traveling to Bend hail from within the state, but for Cyclocross Nationals, only 14% called Oregon their home, and barely 5% of attendees at the Road Championships were from the host state.

Tourists generated revenue in almost every facet of Bend’s economy — Lindberg’s study states that 83% of the guests at the Road Championships remained within city limits, resulting in a total of 3,500 paid lodging nights. Those attending the Cyclocross Championships stayed at 56 different establishments for a total of 2,090 billable nights. Although cyclists on average spent less money per day than other guests, they stayed twice as long, doubling the total spending of an average traveler.

Visiting Bend for these events prompted many to express interest in investing in local real estate. Over 40% were first-time visitors and 10% of them conveyed an interest in moving to or purchasing property in the area, potentially producing a long-term investment in the municipality’s future.

Photo courtesy of Cycle Oregon

One of many rest stops on Cycle Oregon.

The city will host those two races again this year and has already secured the organization of the 2011 and 2012 Masters Road National Championships. Looking toward the upcoming years, Bend is currently bidding for the right to host the 2011 and 2012 Mountain Bike Marathon National Championships, with long term sights set on the next available UCI Mountain Bike Marathon World Championships.

Bend isn’t the only place in Oregon where cycling stimulates local economies. Every year Cycle Oregon attracts participants for a scenic week-long ride through the state. In 2009, 2,200 riders from 39 states and 10 different countries appreciated not only the bike trip, but also the hospitality of towns visited along the route. This upcoming September, Elgin, Enterprise and Pendleton in Oregon; Clarkston, Waitsburg and Walla Walla in Washington; as well as Lewiston in Idaho, will benefit from riders dropping by local businesses while generating a large amount of publicity.

All proceeds from Cycle Oregon are placed into the Cycle Oregon Fund and have been since the ride started in 1987. Approximately $120,000 a year is donated to communities who help host the event. Since the ride’s introduction, the Cycle Oregon Fund has awarded over $1 million in grants to a variety of recipients including local schools, advocacy programs and governmental departments. Towns are eligible for up to $3,500 in community grants or up to $50,000 for the signature grant awarded annually.

Photo courtesy of Cycle Oregon

Cycle Oregon - it's more than a ride.

One of the stops on the route for this year’s ride is Wallowa County and the town of Enterprise, Ore. According to Vicki Searles, executive director of the Wallowa County Chamber of Commerce, Cycle Oregon’s participants are welcomed visitors. Although the cyclists are self-contained and have most necessities provided for them, Searles remarks that riders still frequent local restaurants and shops and fill up hotels and bed and breakfast establishments. With more than 2,000 people exploring the area, they’ll generate significant revenue for the businesses and merchants in the region.

Waitsburg, Wash., anticipates similar success in its first year of involvement with Cycle Oregon. Kelly Steinhoff, the deputy city clerk, notes that the event’s participants will effectively triple the town’s population.

Baker City, Ore., experienced its third busiest weekend of the year during the ninth annual Elkhorn Classic Stage Race held from June 18-20. First established by Nathan Hobson, the event attracts close to 400 racers and draws an additional 200 spectators, according to Ernie Conway, the current race director. Conway also indicates that business owners often experience record sales during the three-day affair, which brings together the local residents who are a fundamental component of the event’s continued success. Visitors fill the town to 80% capacity and with each passing year, the Elkhorn continues to attract people from all over the West Coast and across the country.

Photo courtesy of Courage Classic

More than 650 riders will come to Cle Elum during the 2010 Courage Classic.

Other cycling events in the Northwest follow the same trend. Last April, Port Angeles, Wash., hosted the first round of the Pro Gravity Tour (ProGRT). According to Russ Veenema, executive director for the Port Angeles Chamber of Commerce, the race brought in a large influx of riders and visitors, filling all the hotels in the area — an atypical scenario. This year more than 400 downhillers and their entourages descended on the town and Veenema estimates that each guest spent between $90 to $115 a day.

This past June, Sun Valley, Idaho, hosted the Rhythm and Ride Festival, a combination of bicycling and music that Carrie Westergard, marketing director for the Sun Valley Chamber of Commerce, hoped would attract visitors to the area’s abundant and scenic cycling opportunities. Westergard admits that first-year events usually draw fewer visitors, but they can still entice between 1,000 and 1,500 guests with about 80% initially from within the host state. With time and continued promotion, Westergard believes these endeavors can bring thousands more people, funneling revenue directly into the regional economy.

Photo courtesy of Courage Classic

Gearing up for Blewett Pass with a little snack a few miles away from the foot of the climb.

Small cities aren’t the only areas benefiting from hosting bike related events. Since 1987, Boise has presented the Twilight Criterium, a race created with the specific purpose of drawing visitors to the downtown district and boosting business for local merchants. According to Karen Sander, executive director of the Downtown Boise Association, the race attracts approximately 200 cyclists and an additional 15,000 spectators. A study conducted by a local convention center found that each visiting attendee spends approximately $232 per day, injecting an estimated $46,400 into the local economy. Resident spectators spend between $20 and $75 per day, creating revenues in excess of $150,000. The amount of revenue generated by locals is harder to quantify, Sanders states, because the amount of money spent varies more than with out-of-state visitors.

Sanders cites that as the Criterium has grown, it continues to attract national caliber teams and an increasing number of spectators, translating into greater publicity and increased revenue. The Convention and Visitors Bureau helped Boise win a bid to host Ironman 70.3 for the next five years by showcasing the Twilight Criterium as an example. This triathlon draws 1,800 competitors along with numerous spectators and Sanders anticipates a large positive impact for Boise and the surrounding areas.

Northwest cities host rides and races to emphasize their natural beauty and local color and charm visitors into returning. These events assist businesses, provoke publicity and generally fuel economies. When thinking about where to book your next vacation, consider sticking around the Northwest and attending a regional cycling celebration. Rides, races and festivals not only pack the summer calendar, but also take place all year round. You’ll experience a new destination while invigorating the region’s economy and being part of a larger solution in times of economic hardship.