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College students impact W-S economy by $92M

By Elizabeth Bland
 News Editor

According to a study released April 23, college student spending in the Winston-Salem area contributes $92 million in economic impact dollars -- $45 million of which originates from this university. The Winston-Salem Chamber of Commerce commissioned the study as part of a plan to revitalize the downtown business area and make the city more amenable to student's needs.

Though the numbers indicate students spend a considerable amount of money, they aren't spending as much as they could. Economic impact is not the literal monetary value, but rather the effects of those dollars on the rest of the community. For example, in rent given to a landlord will then be recycled and used toward the landlord's expenses, thus expanding the original dollar's value.

"Clearly we see an opportunity we're not taking full advantage of," James McCoy, '99, the Chamber's director of government affairs, said. "We always had a sense that we weren't taking appropriate steps to answer needs of students as a community and (the study) confirms that in fact we don't have as strong a relationship in the collegiate environment as we should."

According to McCoy, Gayle Anderson, the president and CEO of the Chamber, requested that the Babcock School of Management look into the economic impact of student spending -- in part just to find out what the impact is -- but also to more effectively utilize student's disposable incomes.

The economic impact data was calculated by collecting student expenditure data through an online survey given to students at this university, the School of Medicine, Winston-Salem State University and Salem College. Results from students at the North Carolina School of the Arts were determined from paper surveys. Results varied by school -- with the combined university and medical school students spending the most money. The report indicates university students spend $17,513,892 in real dollars in retail expenditures. The corresponding economic impact is $45,024,824 per year.

"I was personally astounded at the figure," McCoy said. "I didn't have anything to base it on, but I thought it would be lower than $92 million." The $92 million figure equates to $9,500 in economic impact per student.

The survey looked at spending in eight specific categories: groceries, eating out (restaurants and snacks), alcoholic beverages, alcoholic beverages consumed in bars/parties, transportation/gas, personal services, clothing/shoes and off-campus housing.

It also determined the likelihood of student spending on-campus, within three miles of campus, at Hanes Mall, downtown Winston-Salem and online. The survey also collected data about gender, marital status, specific programs of study and post-graduate plans. One way the report is meant to aid businesses is through a comparison with other college student spending.

The North Carolina State University conducted an economic impact study in 1999 and found that the average expenditure per student per year was $14,117.

According to the 2002 Winston-Salem study, "The (NCSU) study is analogous to the study we conducted because it reported student-spending impact separately from the rest of the impact of the university. Additonally, the variety of majors and backgrounds, as well as the size of the NCSU student body, are similar to that of the average Winston-Salem university student." The 2002 study is intended to give insight into the possibilities that "job growth and increased social outlets may have on the economic impact of Winston-Salem."

A supplementary phase to the economic impact study is applying those numbers to business and entertainment possibilities in Winston-Salem. The survey said, "Based on national rankings of area schools, it is clear that Winston-Salem students are receiving a high-quality education that will have a substantial effect on their lifetime future earnings." But the city's low graduate retention rate indicates "it is unlikely that these benefits will be realized (in Winston-Salem) if the majority of students continue to leave the area after completing their program of study."

McCoy anticipates that phase two of the study will lead to improved college-community relations. "It's still really early," he said. "This is going to be part of a larger effort to track this information and really use it to our advantage."

 



 


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