Economic Impact of National Designation
After more than a decade working to get the St. Croix Watershed designated a National Heritage Area (NHA), communities in the proposed North Woods and Waters of the St. Croix Heritage Area can now see what’s at stake for local economies when the effort succeeds. Results of a four-month economic impact study on the region were released May 5, 2021. To gather the projections, North Woods and Waters partnered with the University of Minnesota’s Carlson School of Management. The work of five students — Vincent Shaw, Brendan Laliberte, Claire Caschetta, Wen Chai, and Hudson Brama — and their director, Dave MacCallum, was supported by the McKnight Foundation.
Impact of St. Croix Watershed National Heritage Area Designation
The Carlson School of Management’s projections showed that visitor numbers would increase slowly in the first two years, then pick up speed, increasing from the current 640,000 to about 700,000 (a 10% increase in visitors ) after five years, and 1.9 million after 10 years.
St Croix NHA’s Economic Impact at a Glance:
Takeaways
- $7 million increase in Gross Domestic Product (GDP), or .3 percent, within two years of designation;
- 3.2% job growth over two years, or 1,300 jobs;
- 2.3% average increase in income, or $950 per person, two years from designation;
- 10% increase in visitors to the watershed — from 640,000 to 700,000 — within five years of designation;
- $30 million increase in direct visitor spend after five years; and $84 million after ten years.
Visitor Spending Contributes to the Increase of these Main Five Tourism Sectors
Economic Impacts of Heritage Areas Nationally
Nationally, Heritage Areas support tens of thousands of jobs and contribute billions of dollars to local economies. NHAs are catalysts for economic development in the communities in which they are located. An independent 2012 study by Tripp Umbach found that NHAs’ overall annual economic impact in the U.S. is $12.9 billion, which significantly exceeds the amount of federal funding provided to NHAs by as much as 5:1. The economic impact consists of three main areas: tourism, operational expenditures and grantmaking activities; the majority of impact (99%) is generated by tourism spending.”
Read National Economic Impact Research
Learn more about the economic impact of National Heritage Areas on communities throughout the United States.
https://www.nps.gov/subjects/heritageareas/economic_impact_studies.htm
Find out more about the Carlson Consulting Enterprise
The Carlson Consulting Enterprise partners with organizations ranging from non-profits to Fortune 500 companies to provide hands-on learning opportunities for high-caliber students. Student consultants gather crucial insights and analyze data to address strategic or operational challenges.
Special thanks go out to the team of consultants who researched this economic impact study:
- Vince Shaw
- Brendan Laliberte
- Claire Caschetta
- Wen Chai
- Hudson Brama
https://carlsonschool.umn.edu/enterprise-programs/consulting-enterprise
Get in touch with the Economic Impact Task Force
Economic, community development and business leaders are meeting monthly with a mission to “Unite groups throughout the watershed through a shared vision of economic development based on the region’s exemplary natural, cultural, and historic resources.” To get involved with this group or for more information, contact info@northwoodsandwaters.org
Watch the Carlson School of Management presentation
In 2021, the Carlson School of Management through its Carlson Consulting Enterprise conducted an economic impact study to determine if designation as a National Heritage Area would benefit communities in the St. Croix Watershed. This video is the final presentation of their findings.
Watch “Harnessing the Power of our Watershed for Economic Development”
These webinars features experts from Minnesota and Wisconsin tourism and a fascinating discussion about the benefits of designation as a National Heritage Area among the economic and community development professionals from our region who attended.
2023 Harnessing the Power of Our Watershed for Economic Development
2022 Harnessing the Power of Our Watershed for Economic Development