As WaterFire Providence prepares to start its 2005 season on May 7, organizers are highlighting the economic impact the event has had on the city for the last 10 years.
WaterFire Providence attracted more than 1.1 million visitors to the state capital in 2004 and had a direct economic impact of $33.2 million that year, including $2.3 million to $2.5 million in sales tax from WaterFire events, Acadia Consulting Group reports. WaterFire Providence hired Acadia to conduct an economic impact study to put value on the event for sponsors, the city and the state.
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Acadia polled 4,248 visitors at four different WaterFire events last season to find out where people come from to experience WaterFire and how much they spend in the city on those nights.
It is the first study of WaterFire attendance and its economic impact.
Of those polled, 69 percent of Rhode Island residents said they would not be there if it weren’t for WaterFire, and 79 percent of out-of-state attendees were only in downtown because of it.
The typical out-of-stater polled said it was their first visit to the event.
“WaterFire is a reason for people out of state to come here, eat in restaurants and enjoy the city. It may be the reason they come back again,” said Tim Ray, WaterFire Providence spokesman.
The survey shows that 63 percent of attendees come from Massachusetts, 8 percent from Connecticut, and 6 percent from New York.
The average group of people (between three and four) at WaterFire spend about $105 on food and beverages and stay for about two and a half hours.
Following Acadia’s study, the Rhode Island Economic Development Corporation did its own, which showed an even bigger impact based on more than just the “night of” expenditures.
Because 79 percent of visitors to WaterFire come from out of state, the EDC determined that visitors also stay at hotels overnight and spend money during the day. The EDC study projects that WaterFire 2004 brought in $55.8 million and $3.8 million in state tax revenues.
