Displacement

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    IMPLAN Support
    Hello Brian, Ideally, you could find or collect survey data to determine what local residents would have done with their time/money if they hadn’t attended the sporting event. Without such information in hand, determining how much of the local spending to include in the analysis requires assumptions best made by those with a strong understanding of regional demographics. More often than not local spending is totally excluded from the analysis. However, for some very small regions that do not have many alternatives for entertainment, a large percentage of the local spending can justifiably by included (as import substitution, aka leakage prevention); however, we would not recommend ever including the total local spending value, as not all local residents who attend a game would have been willing to travel outside the region for entertainment had the stadium not existed (they would have just stayed home). We do not recommend the proposed methodology. The best way to account for local attendee spending is to remove it completely or (if you have the data to defend your numbers) include the net portion of local attendee spending with your non-local attendee spending. Regards, IMPLAN Staff
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