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The Honolulu Advertiser
Posted on: Saturday, February 21, 2009

Honolulu Marathon generates more than $100M

By Michael Tsai

$100.7 million

amount of visitor spending from 2008 marathon

$108.9 million

amount of visitor spending from 2007 marathon

$28.6 million

amount of visitor spending from this year's Pro Bowl

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Last year's Honolulu Marathon generated $8.2 million less in spending than in 2007, but Japanese runners bearing potent yen still helped the race account for more than $100 million in total economic impact and more than $4 million in taxes for the state.

According to an economic-impact report prepared by Hawai'i Pacific University professor Jerry Agrusa, the marathon accounted for $100.7 million in visitor spending and $4.2 million in state taxes. In 2007, the race generated $108.9 million in spending and $3.5 million in taxes.

In comparison, this year's Pro Bowl generated $28.6 million and $2.9 million in taxes. Unlike the Pro Bowl, which has been subsidized by an annual $4 million payment by the Hawai'i Tourism Authority to the National Football League, the Honolulu Marathon does not receive financial assistance from the state.

"What really stands out is the amount of Japanese spending," Agrusa said.

According to Agrusa, the relative strength of the yen against the dollar helped to offset what could have been a much more significant decrease in overall spending because of a 17-year low in entries, with Japanese visitors spending roughly $40 more per day than they did the previous year. Previous studies have shown that Japanese visitors spend about $100 more per day than other visitors.

The marathon received 23,232 entries last year compared with 27,827 in 2007.

Once again, Japanese runners accounted for more than half of the field (14,407). Hawai'i residents (6,405) accounted for the next largest group, followed by runners from the Mainland (1,637) and foreign countries other than Japan (783).

Agrusa's study takes into account friends and family members who accompany runners but do not run in the race.

The average Japanese participant was joined by 0.96 friends or family (down slightly from the previous year) and stayed for 5.4 days.

Runners from the Mainland brought along 1.3 companions and stayed for 9.3 days, while those from countries other than Japan brought 1.9 friends or family and stayed for 12.3 days.

"At a time when tourists from Japan are continuing to decline (a loss of more than 900,000 Japanese tourists over the past decade), having so many Japanese runners in the Honolulu Marathon accompanied by friends and family members, substantially impacts tourism and tax dollars," the study concluded. "The economic impact of the Honolulu Marathon is quite significant and gives a much-needed boost to the economy."

ECONOMIC IMPACT

The study, which is underwritten by a grant from the Honolulu Marathon Association, measures economic impact with the same formula used by the state Department of Business Economic Development and Tourism.

Agrusa and his team surveyed 1,584 marathon participants, 1,012 in Japanese and 572 in English.

The report shed light on other marathon-visitor tendencies:

• 94 percent of respondents said they had a positive experience with the marathon.

• 92 percent of Japanese runners said they would visit Hawai'i again for reasons other than the marathon.

• 42 percent of English-speaking participants said they would visit another Hawaiian island during their trip; only 15 percent of Japanese participants said they also intended to visit another island.

• 98.5 percent of respondents said they would recommend Hawai'i to friends or family; the remaining 1.5 percent said they were neutral, and none said they would not recommend such a visit.

Honolulu Marathon Association president Jim Barahal said the report affirmed that the race is "a huge destination marathon" and said a confluence of factors — a strong yen, relatively low fuel costs and a booming Japanese interest in marathoning -could yield better returns next year.

"It's hard to predict where we'll be in the fall, but I think we'll do pretty well," he said.

RACE SELF-SUFFICIENT

In years past, the Honolulu Marathon Association actively and unsuccessfully sought funding from the state. Barahal now views the race's financial self-sufficiency as a particular strength given current economic conditions.

"There was a time when we were jealous or resentful of the incredible amount of money given to the Pro Bowl, as well as to a large number of smaller events, some athletic and some not," he said. "But the NFL always had a lot of leverage because they could always take their ball and go, which is what they've done. We might have some leverage if we said that we were going to move the race to Orlando, but that's absurd and it will never happen.

"We finally understood that we were never going to get (funding) so we just got on with our lives, and over time it's become clear that it's better to stand on our own two feet," he said. "The loss of the Pro Bowl next year is a huge blow. Hopefully, it comes back and we are also able to get other smaller events. But I would not want to be dependent on taxpayer subsidies to continue. It's a scary time."

The annual NFL All-Star game ended a 30-year run in Hawai'i this month and next year will be played in Dolphin Stadium in Miami a week before the Super Bowl. The state is in talks with the NFL about bringing the Pro Bowl back to Hawai'i the following year.

Reach Michael Tsai at mtsai@honoluluadvertiser.com.