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expenditures were estimated by examining typical equipment costs (rental versus <br />individually owned) and expected travel costs. A very conservative estimate would be <br />approximately $29 to $34 a day for someone in the area kayaking the course. The second <br />component of direct economic value, consumer surplus, can be estimated from the <br />literature. Although numbers are as high as $67.25 for kayaking on the Colorado River <br />(in 2001 dollars), a conservative estimate of $35.62 to $39.91 is used. This range was <br />based upon a database of many individual studies that examined kayaking and rafting, as <br />compiled by John Loomis, a professor of economics at Colorado State University, and a <br />study done on kayaking on the Crystal, Roaring Fork and Yampa rivers by Walsh et al. <br />(1980). <br />Based solely upon conservative estimates of users during 2001, the direct economic value <br />would be estimated at more than $75,000. This value is subject to change based upon a <br />pending review of the user information. In addition, the 2001 TEVA Whitewater Festival <br />created additional economic value. Of the 2,300 attendees, 47% came from outside Eagle <br />County and 26% spent at least one night. Those staying overnight stayed an average of 3 <br />days. On Saturday alone, the average spectator spent a total of $133 for food, lodging <br />and shopping, meaning the spectators for one day of the competition generated over <br />$305,000 in spending. <br />It is important to note that the above economic results reflect only "direct" spending <br />effects and do not consider multiplier or economic stimulus effects that occur when <br />money spent by travelers is re- circulated. Cordell et al (1990) and Norton et al (1981) <br />find that for every $1 of travel spending, from $2.03 to $2.88 of economic activity is <br />generated in the local economy. Accordingly, based solely upon the limited 2001 data, <br />and the spectators for the TEVA whitewater festival, the total economic benefits for the <br />Town of Vail were conservatively in the range between $715,000 - $1,033,000. When <br />that amount is capitalized over 20 years, at 7 %, the value is as high as $11.8 million. <br />As the reputation of the Vail whitewater course is enhanced over time, use of the course <br />would be expected to increase which, in turn, would increase its economic value. It <br />would be reasonable to assume that the value of the Vail whitewater course will be even <br />greater than the above estimate. <br />Other economic value associated with Vail whitewater nark The above estimate <br />documents that the whitewater park clearly has economic value, but it underestimates the <br />true economic value. The following are additional economic values not quantified: <br />The economic value associated with user days does not include any lodging, meals, <br />lessons, shopping and other expenditures by the boaters or their companions. <br />Additional whitewater events will be held in 2002 and in the future. Although the 2001 <br />TEVA Whitewater Festival provides an estimate of the value associated with spectators, <br />there is additional value in the distance traveled by boaters, the entrance fees, advertising, <br />sponsors, vendors and the community at large <br />Ph0402 -4- <br />