The multiplier effect takes place when an increase in spending produces an increase in national income and consumption greater that the initial amount spent. For example, if you are in the arts and want to produce an album in another state (or country!), you will not only pay the studio and the engineer, but also the hotel and the number of places you will eat. The multiplier effect plays a much larger role in the Tournament of Roses, which takes place in Pasadena, California each January 1. The boom in Rose Parade and Bowl business translates to an influx of $306 million for Los Angeles County, according to recent studies, plus another $100 million for the surrounding area. Restaurants overflow and hotels across the region fill up with four-day minimum stays.
Visitors throw money at hotels, restaurants, shopping and transportation. Nearly three out of four visitors are from out of town, with a third checking into a hotel and a third sleeping at a private home or other lodging. Another 6 percent are from outside the U.S. Hotel visitors shell out an average of $526 per day. Even those staying with friends spend $291 on hamburgers, car rentals and local spas. And what about all those Rose Parade participants? The bands, the float participants, etc…? It doesn’t take long for the multiplier effect to generate more and more revenue.
The Rose Parade and events keeps California on the map and in people’s minds around the world, especially if they are in snow-packed freezing climates and they see the blue clear skies and beautiful weather. William B. Flinn, executive director of the Pasadena Tournament of Roses Association says, “The Tournament of Roses is the most significant event in the county on an annual basis, driving up these kinds of dollars…It certainly helps tourism. This helps to translate to more than 6,000 jobs throughout Southern California.”
As you think through your goals for the new year, can you think of any multiplier effect your business takes on? Hopefully our businesses will generate more than the initial amount spent-at least that is the plan! It is not too early or late to think through your goals carefully and to plan ahead. One of my favorite new quotes? “If you have a well-defined goal, you’ve just spelled hope in your life.” Here is to great hope in 2015!
Subscribe to Facebook Musician Page & Monthly Newsletter! ©Deborah Johnson • Twitter: @DJWorksMusic • www.DJWorksMusic.com “A Golden Rose for Southern California,” by Dana Bartholomew, Pasadena’s Rose Magazine (2015) p.30-32
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