Bureau of Business Research
Date of this Version
1-23-2007
Abstract
Entertainment venues are an important component to the quality of life in cities and states. Venues provide local residents with an opportunity to attend events that interest them without requiring them to travel to another city. This saves local residents money and allows residents to attend more events. Both factors increase the quality of life for local citizens, in much the same way that having more local shopping options raises the quality of life.
Lincoln’s need for new entertainment venues to improve the quality of life and to retain or attract younger residents has been a recent topic of discussion in the city. For example, a new arena and other facilities have been discussed for the downtown area. This analysis considers another potential entertainment venue for the Lincoln area: a National Hot Rod Association (NHRA) Motorplex Facility. In particular, Nebraska Motorplex has recently proposed developing and operating a motorplex venue in Lancaster County. This analysis considers the annual economic impact of such a NHRA Motorplex Facility. That is, the jobs, income, and economic activity that would be generated each year as a drag racing facility attracts visitors to the Lincoln area or helps retain the spending of local motorsports enthusiasts within the county. Such an economic impact would be in addition to the quality-of-life benefits discussed above.
The economic impact estimate focuses on the potential “tourism” impact of the drag racing facility due to the spending at area restaurants, lodging places, and retail outlets either by 1) tourists attracted to the area, or 2) local residents who would otherwise travel out of town to Topeka, Denver, or other regional tracks to attend or participate in drag racing events. The report uses conservative assumptions and focuses on the tourist impact.
Comments
A Bureau of Business Economic Impact Analysis From the University of Nebraska–Lincoln. Prepared for Nebraska Motorplex. Used by permission.