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Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 41 <br />INDUSTRY TRENDS4 <br />Overview <br />The economy of any destination can be influenced by many factors <br />outside the control of community leaders.Economic conditions, <br />corporate relocations,changes in governmental or institutional <br />presence and other factors will influence employment,income,tax <br />revenues and other critical aspects of an economy. <br />In Mounds View,as with many communities,the visitor industry <br />also plays an important role in local and regional economic health. <br />Visitors to a market offer an opportunity to inject new dollars into <br />the economy,with relatively limited use of public infrastructure. <br />Visitor spending then generates net new tax revenue,reducing the <br />tax burden on residents. <br />At the same time,the competition for visitor industry market share <br />is fierce.Communities throughout the country,many competing <br />with Mounds View,continue to invest in assets and amenities that <br />are designed in part to attract visitors.Much of this investment <br />involves sports tourism facilities. <br />The market success of sports tourism facility products can be <br />partially attributed to broader industry characteristics and trends.In <br />order to assess the current and future strength of the market with <br />regard to sports tourism activity that could utilize a potential new <br />sports facility product in Mounds View,it is important to evaluate <br />prominent and emerging trends from a national perspective. <br />Sports tourism is one of the fastest growing sectors of tourism.An <br />increasing number of communities throughout the country are <br />investing in the development and operation of large,multi-sport <br />amateur sports complexes for the purpose of driving new sports <br />tourism,as well as better accommodating local sports and <br />recreation demand.An increase in the number of travel sports <br />programs and participation has been matched by the recognition by <br />many communities of the oftentimes high return-on-investment <br />modern sports complexes can have in host destinations in terms of <br />driving visitation,hotel room nights and economic impact. <br />In 2022,Sports Events and Tourism Association (Sports ETA) <br />released its annual State of the Industry report for 2021 noting an <br />estimated direct spending impact of $39.7 billion.This impact <br />resulted in a total economic impact of $91.8 billion,creating <br />635,000 full-and part-time jobs and generating $12.9 billion in tax <br />revenue for municipalities throughout the country.Additionally,the <br />study noted that despite decreased attendance at sports tourism <br />activities in 2020,the industry rebounded in 2021 to levels <br />comparable to 2019 levels. <br />Significant investment in sports facilities and multi-component <br />sports complexes has occurred throughout the country.Modern <br />sports and event facilities have significantly evolved in terms of <br />capabilities,flexibility,amenities,operating efficiencies and revenue <br />generation opportunities.