Economic Impact Study

Halifax Summit - Visitor Expenditure

April 24, 1995

Prepared by Nova Scotia Department of Finance, Economic Policy and Analysis Division for Provincial G-7 Summit Committee.

Project Outline

In June 1995 the G-7 Summit will be hosted in Halifax. It is assumed that there will be approximately 5,100 additional visitors to Nova Scotia directly connected to this summit: 2,000 official delegates; 1,000 security from outside Nova Scotia; and 2,100 media. The expenditures of these visitors will create economic impacts in Nova Scotia. This report provides an economic impact assessment of the estimated expenditures of these visitors. This assessment does not include expenditures by host governments and agencies.

Data Sources

International and Convention Expenditures from the 1992 Visitor Exit Survey, an estimate of the modal hotel rack rate in the Halifax area and estimate of hotel occupancy rates attributed to the G-7 June 10-June 18 were provided by the Economic Renewal Agency and officials from the Provincial G-7 Committee provided information on number of visitors and possible schedules.


The average daily individual expenditure in 1992 by International (for pleasure) and Convention visitors was calculated and escalated by the Nova Scotia Consumer Price Index to state the amounts in 1995 dollars.

The visitors were divided into 3 components: security (1,000); official delegations (2,000); and media (2,100). The expenditure patterns of the three groupings were assumed to be different, particularly over the time of the official meetings. Efforts were made to ensure that expenditures that would be covered by host agencies would not be double counted.

Once the broad expenditures (Accommodations, Entertainment, Taxi and Car Rental, Shopping, Gas and Auto Repair, Groceries and Liquor, and Other) for each group were calculated and summed, the methodology that was earlier developed by the Economic Policy and Analysis Division to calculate the impacts of tourism expenditures was used to allocate expenditures to industry category.

An impact simulation was conducted using the Nova Scotia Input-Output System. Employment was derived from calculated household income and Statistics Canada information on wages and salaries.


All Visitors

  1. It is assumed that 5,100 people are attending: 1,000 are security; 2,000 are official delegates; and 2,100 are media.

  2. The following participation rates of G-7 visitors were used: June 10 - 55%; June 11 - 78%; June 12- 85%; June 13 - 90%; June 14 - 95%; June 15, 16, and 17- 100%; June 18 - 80%; June 19 - 50%; June 20 - 40%, June 21 - 30%, June 22 - 20% and June 23 - 10%. A 100% participation rate translates to 5,100 rooms.

  3. A hotel rack rate of $95/night was assumed. The resulting calculated amount of accommodation replaces the amount from the Visitor Exit Survey.

  4. It is assumed that there will be no expenditures on campground fees.

  5. It is assumed that the Groceries and Liquor expenditures are 100% Liquor expenditures.


  6. Although most of the security costs will be covered by the federal government, a decision was made to include accommodation expenses in this analysis. It is assumed that the accommodation rates will follow the general pattern. Other Expenses (same level as Atlantic Canadian convention delegates) were included to reflect incidental expenditures that might occur. However, many other expenses were not included.

    Food/restaurant expenses were not included. Since these people are assumed to be on duty over meal hours it was assumed that boxed lunches would be provided, possibly from a federal institution (e.g., a base mess).

    Entertainment, Shopping, Groceries and Liquor expenses were not included as they were assumed to be on 24 hour duty, either actively or on stand-by.

    The federal government was assumed to cover any transportation-related expenses such as car rental and gas. It is assumed that a considerable portion of this will occur within the operating budgets of the RCMP, CSIS and DND.

  7. It is assumed when calculating their expenditure pattern that the following percentages of security personnel are in Nova Scotia on the dates below: June 10 - 70%; June 11 - 75%; June 12 - 80%; June 13 - 90%; June 14, 15, 16, 17, and 18 - 100%; June 19 - 50% and June 20 - 25%.

    Official Delegates

  8. It is assumed that there are 2,000 official delegates.

  9. From June 10 to June 14, they are assumed to spend in a pattern similar to an international visitor (campground fees are omitted and another accommodation number is calculated and substituted).

  10. On June 15 to June 17, they are assumed to spend in a manner consistent to the pattern of International Convention Visitors. This is to reflect the fact that many of the same things that the federal government is providing are also provided to Convention Visitors (e.g., meals, entertainment).

  11. From June 18 onward, official delegates are once again assumed to spend in a pattern similar to International Visitors.


  12. It is assumed that there are 2,000 media.

  13. From June 10 to June 14, they are assumed to spent in a pattern similar to an International Visitor (campground fees are omitted and another accommodation number is calculated and used).

  14. On June 15 to June 17, they are assumed to spend like International Convention Visitors. This is to reflect their on-site work commitments and many of the same things that are provided to Convention Visitors (e.g., meals, entertainment) will be provided to the Media through activities planned for them.

  15. From June 18 onward, Media are once again assumed to spend like International Visitors.

    Economic Impacts

    Economic impacts are divided into direct, spinoff and total impacts. Direct impacts are impacts that occur directly because of the visitor expenditure (i.e., purchase of goods and services). Spinoff impacts are the sum of indirect impacts (interindustry impacts) and induced impacts (impacts caused by household spending). Total impacts are the sum of direct and spinoff impacts.

    The impacts are reported for Household Income, Employment and Provincial Government Revenue. Household income includes wages and salaries and benefits. Employment is expressed in person-years and Provincial Government Revenue is comprised of personal income and consumption (sales) taxes and taxes on business inputs. It does not include corporate income tax.

    These impacts are based on an estimated expenditure by visitors of $7.3 million. Additional expenditures not incorporated in the analysis (for which data were not available include: expenditure by the federal, provincial or municipal governments or other agencies on food, entertainment, or transportation for the G-7 or expenses other than accommodation for security; or expenditures on any receptions by the visiting government bodies. There will also be visitors for related events such as the P-7 whose expenditures were not included.

         Economic Impacts of Infrastructure Projects for the Halifax Summit
                                              Direct  Spinoff  Total
              Household Income                   2.6      2.1    4.7
              (millions 95$)
              Employment                          90       80    170
              Provincial Government Revenue      0.3      0.3    0.6
              (millions 95$)
    Accommodation and Restaurant expenditures were summed resulting in an expenditure of approximately $6 million in the Accommodation and Food Service Industry. Two other spending categories had spending of approximately $0.5 million: Shopping; and Taxi and Car Rentals. Naturally the largest impacts are found in the Food and Accommodation Services Industry. Retail Trade and Transportation Industries will experience the next largest impacts.

    This spending by visitors supports 170 person-years of direct and spinoff employment. It should be noted that the employment impacts will be compressed into a two-week period indicating a substanial number of jobs will be supported by these expenditures.