INDIRECT AND INDUCLD IMPACTS

The indirect and induced impacts are part of the chain of economic transactions
that result from the direct impact. The indirect impact occurs when the host
organization or a service provider in the community re-spends the new income on
goods and services provided in the community, thus having a further positive
impact on those businesses. The induced impact is the result of the local spending
of household income earned by employees, contractors and businesses who have
benefited from the influx of new money into the community.

INCOME MULTIPLIER_

The income multiplier is a number used to calculate, in dollars, the indirect and
induced impact generated by the total direct expenditures. In this case the
appropriate multiplier? to use is 1.3. This means that for every dollar generated in
direct income by the Nanaimo Maple Sugar Festival, it is estimated that an
additional thirty cents of income is generated in the community.

The total visitor and organization expenditures in Nanaimo is $351,997. By
applying the multiplier we can deduce that an additional $105,599 of income was
generated by the Festival.

EMPLOYMENT MULTIPLIER_

The employment multiplier is a multiplier used to determine how much
employment is created elsewhere in the community by the number of person hours
of employment directly created by the Festival. BC Stats compiles these
employment multipliers for different industries and communities in British
Columbia’.

BC Stats has not developed any regional income multipliers for the Nanaimo area. The
multiplier chosen for this study is a conservative estimate derived from a number of
information sources (see Bibliography) and known multipliers for other communities
and regions of British Columbia.

Garry Horne, British Columbia's Heartland at the Dawn of the 21st Century: 2001 Economic
Dependencies and Impact Ratios for 63 Local Areas, BC Ministry of Management Services,
January 2004.

Nanaimo Maple Sugar Festival 2004.4 study of economic and non-econoniic iinpacts on the Nanatino area 25