Predicting the Aggregate Economic Impact of Rural Community Events

Rural tourism is an important source of revenues for rural communities. This study develops a model that can be used to predict aggregate economic impact of any rural community event on the local economy. Event characteristics and community characteristics are used to explain and predict this impact. Developed model explains 63 percent of total variation in aggregate economic impact of any rural event. Results show that variables event days, number of years of event, community investment, miles driven to the event, and community population have a positive and significant impact in explaining aggregate economic impact. Distance from major city and median family income have a negative and significant economic impact on a participating community. Several dummies for weather and event type are used in the model. Findings show that inclement weather adversely affects travel causing lesser turn out for the event; and among all types of events nature tourism brings most dollars to the