Retailers disagree on economic impact of race

When the Memorial Hermann IronMan Texas triathlon returns to The Woodlands May 19 for the second year of a five-year run, some facets of the community will be hailing its economic impact, while others say the event was not the big financial boost they expected.

Last year, IronMan Texas held its inaugural race in The Woodlands. The race included a 2.4-mile swim down Lake Woodlands and through Waterway, a 112-mile bike course through The Woodlands and Sam Houston National Forest and a 26.2-mile run course.

More than 2,100 competitors participated, hailing from countries around the world and often bringing with them friends and family to root them on. Estimates conducted by The Woodlands Convention and Visitors Bureau show more than 18,000 descended on The Woodlands last year, including contestants and spectators.

The event brought the expected revenue boost to Woodlands hotels. According to The Woodlands Township financial records, the township garnered $502,785 from hotel occupancy taxes for the month of May 2011, 39 percent more than the township expected to receive.

"Numerous individuals and businesses in The Woodlands and surrounding areas benefit from the economic activity that is generated by the IronMan event," said Monique Sharp, township financial director. "Those who provide services related to transportation, lodging, dining, shopping, entertainment and event production may be positively impacted by the influx of participants and spectators."

IronMan at Market Street

But while Woodlands hotels did big business during IronMan, some local retailers and restaurants were unimpressed. Market Street, the outdoor shopping and entertainment district in Town Center, was a primary hub for all things IronMan. The center had vendor and information booths and roads were closed to traffic as portions of the 26.2-mile run route wound through the center. Hundreds packed in to see their friends and family cross the finish line while loud, energetic music played and a boisterous emcee announced names of those who crossed the finish line.

Jenny Taylor, marketing director for Market Street, said that while overall retailers there did see an increase in sales during last year's event, they turned down the opportunity to once again be the host for IronMan-related activities and a portion of the course, including the finish line.

"We decided to pass this year due to concern from our retailers," Taylor said. "[IronMan] definitely wanted to be back here. At a minimum, they wanted to have the finish line here. But on a Saturday in May, unfortunately the numbers were not good enough for us to say, 'Let's do that again.'"

According to a post-race survey conducted by the CVB, 60.4 percent of Market Street retailers said they experienced a decrease in sales during IronMan. However, 62.7 percent of those same retailers stated that Market Street "should continue to be a part" of IronMan.

"Overall it definitely had an impact on us, on our retailers, restaurants and otherwise," Taylor said.

While the hotel occupancy levels in The Woodlands were the highest of the year in May, sales tax revenue for that month was eighth most for 2011. According to township financial records, in May 2011 the township received $2.3 million in sales tax revenue, an increase of 7.6 percent over the previous year.

Year-round impact

Scott Langan, race director for IronMan Texas, said the event has an economic impact of more than just one day.

"It's not just a three, four-day flash in the pan," Langan said. "[The competitors] will stay a weekend and stay out on the course, they stay in the area. There is a year-round impact from athletes coming in from days and weeks ahead. It's not just The Woodlands, it's the county in general."

Langan said that in preparation for this year's event, race organizers took into account comments and requests from residents and the business community in The Woodlands. As a result, the course will follow a slightly different route. The course route had not been completed at press time.

Prior to last year's event, World Triathlon Corp. provided a financial analysis to the State Comptroller's Office on the economic impact the event would have on a community. The report estimated an $8 million "direct economic impact," which included hotel stays, food and beverage sales, retail sales and impact to airlines.

Township Financial Director Monique Sharp said she was unable to verify if those numbers were accurate, but Langan said last year's event likely had "right around" a $10 million economic impact.

'Not bad, just not special'

Jim Hallers, president-elect of the Greater Montgomery County Restaurant Association and owner of two Tailgators Pub and Grilles, said many association restaurants saw no sales increase, with some even experiencing a loss.

"[IronMan was] not bad, it just was pretty much a big nothing for us," Hallers said. "Those people (the competitors) coming in are on a pretty specific regimen. Because of the traffic closures, it actually lowered some of the business. Did they really go out and eat at area restaurants? Not that we saw."

He said local businesses often receive a bigger sales boost from other events.

"We're not saying [IronMan] is bad, we're just saying it's not special," he said. "Give me a good Pavilion concert that impacts Waterway and Market Street much more. People fly in from all over and they are in a party mode."