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Western Maryland Rail Trail Economic Impact Study |
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Thursday, 18 August 2005 |
EXECUTIVE SUMMARY
The Western Maryland Rail Trail (WMRT) Economic Impact Study provides a
plausible measure of the economic impact resulting from trail user
expenditures associated with the first 10-mile phase of the trail. The
study findings were used to assess the direct impact of the WMRT to the
Town of Hancock, identify new commercial opportunities in the Town of
Hancock, recommend WMRT improvements necessary to increase trail usage
rates and overall user satisfaction, and develop a marketing plan to
increase the WMRT’s overall benefit to both trail users and the Town of
Hancock.
The WMRT is owned and managed by the Maryland Department of Natural
Resources (DNR), State Forest and Park Service, Fort Frederick State
Park, where a four-block downtown section is leased to the Town of
Hancock for Maintenance of the downtown section of the trail. The WMRT
is a level asphalt trail following the railroad bed right-of-way from
Big Pool Junction to Hancock Station (the recent opening of the Phase
II section extends the trail another 10 miles to Polly Pond). The trail
traverses an area that is rural and is bordered by canopies of trees
and bushes, providing natural beauty for the trail user. The trail runs
along portions of the C&O Canal Trail, which is a dirt and gravel
trail. The length, asphalt surface and level gradient make the WMRT a
most unique trail experience.
The research methods employed in the WMRT Economic Impact Study include
the following: (1) project team workshop meetings; (2) manual and
electronic trail counts; (3) trail user, resident and business survey
research; (4) visual assessments; (5) an economic impact expenditure
model. The manual trail user counts were taken at varying two-hour
periods for 30 days over four seasons, where the counts identified
users by type of use, time of day, and day of the week. The survey
research identified general needs and opportunities, user
characteristics and expenditures, and other useful information to
determine the economic impact of the WMRT to the Town of Hancock. In
total, 324 trail user questionnaires were collected and 1,455 trail
users were visually identified by counting personnel.
Standard Rail Trail User Profile
Based on the research findings, the model WMRT user possesses the
following characteristics: a 41 to 70-year-old day tripper from
Maryland, Pennsylvania or West Virginia; riding a bicycle 10+ miles or
walking one to three miles in groups of two; averaging 100 days of
trail use per year; using the WMRT in the morning or early afternoon,
most likely on weekends; using a car to get to the WMRT; entering and
exiting at the same location (most likely Hancock Station or Big Pool
Junction); using the WMRT to link to the C&O Canal Tow Path Trail
and local restaurants; purchasing prepared foods, beverages, and
gasoline; using this trail because it is flat, paved, convenient,
scenic, quiet and possessing natural beauty; more likely a male user
than a female user; desiring more (1)) restrooms, (2) water fountains,
(3) picnic areas, (4) historical interpretive sites, and (5) camping
areas.
WESTERN MARYLAND RAIL TRAIL PRIMARY USES
Bicycling
| Walking
| Roller Blading
| Other Activities
| | 46% | 44% | 3%
| 7% |
Statement of Economic Impact
The WMRT is estimated to generate $1.7 million in annual gross direct
spending from approximately 76,000 user visits. It is estimated from
the survey research that 48 percent of WMRT user gross expenditures
come from non-Maryland residents. Fifty-two percent of gross
expenditures come from Maryland residents. Thirty-seven percent of WMRT
user expenditures come from residents of Pennsylvania, West Virginia,
and Virginia. Approximately 11 percent of gross spending comes from
users living outside the four-state region. The estimated mean spending
per visit for a WMRT user is $13.
ESTIMATED ANNUAL GROSS DIRECT SPENDING FROM WMRT USERS
ACCRUING TO
| Spending to State of Maryland from Non-Maryland Residents | $843,730
| | COMING FROM | Spending from Residents of Nearby States:
Pennsylvania, West Virginia, Virginia | $654,465
| | TOTAL SPENDING | Annual Gross Direct Spending from All Rail Trail Users
| $1,768,825 |
Mean values derived from the business community survey were
incorporated into the economic impact model and are assumed to reflect
the true parameters of the standard business enterprise found in the
Town of Hancock. The economic impact expenditure model measures
net (1) direct spending resulting from the WMRT, (2) indirect spending,
and (3) additional rounds of expenditures. The expenditure
multiplier is estimated at 1.1212.
ESTIMATED WMRT ECONOMIC IMPACT: Base-Line and Maximum Expenditure Impact Estimates to the Town of Hancock
| | DIRECT SPENDING
| INDIRECT SPENDING
| TOTAL SPENDING IMPACT FROM WMRT | IMPACT RANGE
| $248,000 to $409,000
| $30,058 to $49,571
| $278,058 to $458,571 |
The WMRT generates an estimated $278,000 to $458,000 in annual total expenditures to the Town of Hancock.
Marketing Plan
The WMRT represents a very valuable community asset to both the region
and the Town of Hancock. From a regional and national marketing
perspective, the WMRT and Town of Hancock need to jointly raise their
marketing footprint. The WMRT is estimated to have over 70,000 trail
user visits annually. Reaching a broader potential user base through
increased marketing and promotional activities could attract thousands
of out-of-region visitors, generating additional annual user visits of
70,000 and raising use levels to over 140,000 annual total visits.
The Town of Hancock is located near the halfway point of the 20-mile
stretch of trail, representing an ideal location to capture commerce
from trail user activity. Hancock’s location along the WMRT is
analogous to the old stagecoach or train “way station” located between
two travel destination points, where stops were made to rest and/or
acquire new provisions. In attempting to capture maximum spending
from visitors, overnight and long-term stays are most desirable. In
addition, trail users must be prompted to avail themselves of other
commercial/recreational opportunities, and new trail users must be
attracted to the WMRT venue.
The marketing plan is designed to capture greater economic benefit from
WMRT use, where the economic benefit accrues to the residents and
businesses of the Town of Hancock. The marketing plan details the
requisite actions necessary to increase the beneficial impact of the
WMRT to the Town’s economy. The marketing plan is organized around the
following marketing elements – product/service descriptions, needs
analysis, target customers, competitive assessment and opportunities
for expanded commercial activities, advertising and promotion,
marketing strategy, and a concept plan. The concept plan identifies
trail facilities/improvements that were determined to be needed based
on the research-derived needs analysis. The concept plan includes an
illustrative plan map, a signage plan, trail support facilities, trail
linkages, and other needed actions.
Based on the needs analysis, the marketing strategy is organized into
two sections: (1) Advertising and Promotion and (2) Physical
Enhancement. Jointly, the WMRT and Town of Hancock need to cultivate
their images regionally and nationally. Short-term advertising and
promotional actions needed to increase the economic benefit include
more community involvement and leadership, more special events
programming, marketing tie-ins with Fort Frederick, weekend tourist
packages, trail user discount coupons, a color brochure and
distribution plan, a dedicated web site specific to both Hancock and
the WMRT, and a promotional post card and distribution plan. Long-term
actions include recruitment activities directed at finding uses for
vacant and underutilized properties along the trail and attracting a
developer to build a larger hotel to promote more overnight visits.
Based on the survey research findings, various types of physical trail
enhancements were identified as needed to increase the benefit derived
from the WMRT, where some higher priority needs like water fountains
and camping areas are not included in DNR’s Master Plan for the WMRT.
Recommended physical enhancements supporting local business merchants
include a permanent sign or billboard along I70; outside tables,
chairs, benches, bicycle racks, and canopies located in the downtown
area; kiosks of local stores/services; signs on the trail identifying
local venues; access points from the WMRT to local venues; a permanent
restroom facility downtown; commercial frontage along the WMRT in
Hancock.
Visitors generally report a great experience using the WMRT, but
additional trail enhancements and compatible supporting services and
venues will not only add to the experience, but allow the capture of
additional tourism dollars through longer stays or higher spending
levels. The physical enhancements, improved marketing, and an increased
range of commercial/recreational opportunities will all act to spread
the spending impact throughout a wider area, thereby spreading the
economic benefit more uniformly throughout the Town of Hancock.
DNR has made a big investment in the WMRT. DNR maintains an on-going
commitment to managing the WMRT and implementing the Master Plan. Given
that the Town of Hancock wishes to achieve greater economic benefit
from the WMRT, representatives of the Town will need to continue to
work cooperatively with DNR representatives and seek creative ways to
advance the marketing strategy so as to capture a greater economic
impact from trail use. In order to effectively implement the marketing
plan, the Town should appoint a Task Force responsible for planning,
fund raising, management and implementation. The Task Force should have
representation from Town officials, DNR, the Maryland Department of
Planning. Fort Frederick State Park, the Hancock Chamber of Commerce,
residents and other interested parties or contributing organizations.
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