BENSON AND HEDGES: SYMPHONY OF FIRE
IS UP IN THE AIR
By: Tara Sandhu
St No. 90931973
Economics 490
Professor White
April 2001
Email: tarasandhu@hotmail.com
Website: http://www.oocities.org/tarusan/homepage.html
TABLE OF CONTENTS
I. INTRODUCTION ............................................................................................ 4
II. BACKGROUND INFORMATION ................................................................... 5
1. INVOLVED GROUPS ......................................................................... 8
III. EFFECTS OF THE SYMPHONY OF FIRE ................................................... 9
1. TRAFFIC PLAN AND AFFECTED AREAS ........................................ 10
2. LITTERING & OTHER ENVIRONMENTAL ISSUES ......................... 12
3. NOISE POLLUTION & TOBACCO SPONSORSHIP ......................... 13
IV. BENSON & HEDGES PULLS OUT THEIR SPONSORSHIP ....................... 14
1. PUBLIC OPINIONS FROM THE MEDIA ........................................... 15
2. VANCOUVER A BORING CITY ? ..................................................... 17
V. COSTS & BENEFITS OF THE SYMPHONY OF FIRE ............................... 17
1. COST OF THE SHOW ...................................................................... 18
2. HIDDEN COSTS ............................................................................... 22
3. ENVIRONMENTAL & SOCIAL COSTS ............................................. 23
VI. BENEFITS ASSOCIATED WITH THE FIREWORKS .................................. 25
1. RESTAURANTS & BOAT CHARTERS .............................................. 25
2. TOURISM ........................................................................................... 26
3. SOCIAL BENEFITS ............................................................................ 30
VII. STATISTICAL ANALYSIS PART 1 .............................................................. 30
1. SAMPLE ONE - PUBLIC OPINION ON THE FIREWORKS ............... 31
A. SURVEY METHODOLOGY & RESPONSE RATES ............... 32
B. SAMPLE ONE STATISTICS .................................................... 34
C. ALTERNATIVE SPONSORS, POSITIVE & NEGATIVE
ASPECTS ................................................................................. 35
D. LOGIT REGRESSION ON THE VARIABLE CONT .................. 38
E. OLS REGRESSION ON RATE ................................................. 40
F. LOGIT REGRESSION ON FEE ................................................ 42
G. LOGIT REGRESSION ON SMK ............................................... 44
2. SAMPLE TWO - OPINIONS OF LOCAL BUSINESSES ...................... 45
A. SURVEY METHODOLOGY & RESPONSE RATES ................. 48
B. SAMPLE TWO STATISTICS .................................................... 50
C. LOGIT REGRESSION ON SPONSORSHIP ............................. 51
D. OLS REGRESSION ON PRFTINC ........................................... 53
VIII. SOLUTIONS .................................................................................................54
CONCLUSION .................................................................................................. 56
ENDNOTES ......................................................................................................... 57
THE SYMPHONY OF FIRE
I. INTRODUCTION:
Imagine a night filled with people of all ages and cultures, enjoying the weather,
relaxing, trying to grab the best seat in the house, in anticipation of a night full of spectacular fireworks. The restaurants and coffee jobs buzz with customers coming throughout the night. The streets are closed down in order to facilitate large crowds of people from different age and cultural groups. Various components of the city's services come together, by joining forces to ensure that the crowds are kept under control and are safely directed. This infamous event is the international fireworks competition known as the Benson and Hedges, Symphony of Fire. Held annually in Vancouver, Montreal, and Toronto this event has become a tradition in Canada. For four nights, in the months of July and August, various countries compete for trophies that recognizes the best musical fireworks display. The residents of Vancouver, neighboring cities, and many tourists have been enjoying this annual summer event for an entire decade. Attracting 1.2 million people every year, this event fills the streets and beaches of the West End. However, despite its vast popularity among locals, there has been recent controversy that has raised concerns regarding the sponsorship of this event. As suggested by the title of the event, "Benson & Hedges: Symphony of Fire" is to a great extent funded by the donations of two leading tobacco companies: Benson & Hedges and Rothman's. An example of such concern, is the opportunity for tobacco companies to inadvertently advertise their products and possibly influence the youth into using tobacco or create brand name loyalty. However, others feel that the sponsorship has no direct effects on the general public and that it does not promote the use of tobacco. Thus, the aim of this report is to examine the various issues that arise from the fireworks: the positive and negative impacts on local residents of the West End, the environmental impacts, which groups are actively involved with running this event, sponsorship issues, the costs involved, who pays for running the entire operation, the economic impacts on the businesses of Vancouver, how much tourism is creates, and lastly after 2001 should the fireworks be continued?
II. BACKGROUND INFORMATION:
Before any further discussion of the Symphony of Fire, a brief historical background must be given in order to fully comprehend this annual event. During the last two weeks of July and the beginning two weeks of August, for four nights the Symphony of Fire is held. The scheduled days for 2001 are as follows: August 4th, 8th, 11th, and the grand finale will be held on the 15th of August. Since it's inception in 1990, the City of Vancouver has allowed the fireworks to be an opportunity for the hosting countries to gain future international customers, by displaying their pyrotechnical show. Past participants have been Italy, France, Spain, and Australia. Starting at 10:15pm, the assigned country conducts a half hour show, that is synchronized to various types of music. The show is broadcast live on a local radio station, Rock 101.1 FM, and the highlights are shown on the late night new stations, such as Vancouver Television (VTV). Since 1987, Frank Furtado has been the Executive Producer of the Symphony of Fire. The aims of organizers are to try and win the renown recognition of winning the international fireworks competition. The judges base their decision on the following criteria: synchronization, coordination of the fireworks with the music, height variety, color, design, the actual music, and length of the show. (1) For two consecutive years, Spain won the gold trophy in 1998 and 1999. Below is copy of a report given to Vancouver's City Council by the Engineering Services, on behalf of a local organization known as, the Vancouver Fireworks Festival Society. This report provides further information and it has become the foundation upon which improvements are based on, in order to ensure that a minimal amount of impact is felt by the local residents of Vancouver: (2)
II. 1. INVOLVED GROUPS:
Thus, as stated in the above report, by involving the local residents and maintaining City by-laws, with the cooperation of various sectors of the City's services and other private organizations, the Symphony of Fire has operated smoothly and has been approved until 2001. It is the collective efforts of the Vancouver Police, City Hall's Engineering Department, Parks Board, Fire Department, Health Board, Coast Guard, Harbor Master, and Ambulance Services, that contribute to the harmony and safety of the firework nights. These groups are coordinated by the FEST Committee which is chaired by the Engineering Department with representatives from the Police Department, Fire Department, and the Transit and Parks Board. This committee is an active group that is involved in many major public events such as, the annual Vaisakhi Parade in Vancouver. Another important group that is heavily involved with the fireworks is the Vancouver Fireworks Festival Society. This organization is headed by Mr. Raymond Greenwood, who is actively participates in all City Councils meetings that are related to the fireworks and he is also heavily involved in the efforts to ensure the continuation of the Symphony of Fire in the future.
III. EFFECTS OF THE SYMPHONY OF FIRE:
The Symphony of Fire has many positive and negative aspects that affects particular groups such as, the local residents of the West End, the public, and the local businesses of Vancouver. The fireworks is an anticipated event that brings people together, to view a spectacular sight, while creating a sense of community awareness. The fireworks also provide an opportunity for people of all ages and cultures to come together to enjoy the unique setting of English Bay, which makes Vancouver one of the best cities in the world. It also provides an economic opportunity for the local economy to make additional profits, due to the extra business created from the locals as well as many tourists that come from abroad. However, on the other side of the spectrum, there are also negative aspects that arise. For example, the residents are greatly affected by the fireworks as they are faced with traffic restrictions and pollution. With over one million spectators in attendance, there are naturally problems associated with large crowds such as traffic congestion, conflict, and at times rowdiness. Each of these aspects will be discussed in depth in the preceding sections, as well how various steps are taken to ensure a minimal amount of impact.
III. 1. TRAFFIC PLAN AND AFFECTED AREAS:
As a result of the discussion held with the West End residents in March of 1991, many suggestions were made to improve the efficiency of operating the fireworks event. One of the major repercussions felt by the local residents was the extra traffic and congestion that was created by the first Symphony of Fire in 1990. Consequently, the suggestion was made to block all non-residential traffic, and instead promote the use of other methods of transportation such as walking, rollerblading, biking, boating, or taking the SkyTrain, SeaBus, or Transit. Various combinations of traveling methods are also popular, as many people drive and park just before hitting Downtown Vancouver, and then take one of the suggested methods of transit. The bus services are also expanded in order to facilitate heavier foot traffic and the hours of operation are extended until the crowds have disappeared. In addition, the SkyTrain and SeaBus also have heightened services set up for larger crowds. Since the original meeting in 1990, the traffic plan is now reviewed every year, in order to make any necessary adjustments that may arise. The following is the traffic plan enforced for the Symphony of Fire held in the summer of 2000. (3)
III. 2. LITTERING AND OTHER ENVIRONMENTAL ISSUES:
Another issue that arose from the 1991 meeting is the concerns that residents had with regards to littering and access to public washrooms. As a result of this, public warnings such as the one below are released, to ensure that citizens use their best judgement and dispose their garbage in the appropriate places. (4)
III. 3. NOISE POLLUTION AND TOBACCO SPONSORSHIP:
It is through trial and error and learning from past experiences that has allowed the Symphony of Fire to only improve over the years. Each year the necessary changes are made to ensure that there are enough facilities present and preventive measures are in place to ensure that everything runs smoothly. However, despite these efforts, certain concerns have been raised over the years regarding the tobacco sponsorship and over the noise pollution that is created. For example in 1996, during a meeting of the Board of Parks and Recreation, the following issues were raised: (5)
In an attempt to find out what the general feelings of local residents are, in particular, those who live adjacent to English Bay and Kitsilano Beach, a survey questionnaire was distributed. These results will be discussed later on, however, the issue of tobacco sponsorship has been a concern of the City's for quite some time. The Vancouver City Council has the right to veto any sponsor, should they feel that it is necessary, and they have expressed concerns in the past that a new sponsor should eventually be found to replace Benson & Hedges. In a Council meeting in May of 2000, a motion was also raised to "support the Symphony of Fire event, subject to the removal of the sponsor name." This motion was denied, however, City Council agreed to collectively work with the Vancouver Fireworks Society in order find an alternative sponsor. (6) Ironically, in the midst of this report Benson & Hedges has actually pulled their sponsorship out and this will be discussed next.
IV. BENSON & HEDGES PULLS OUT THEIR SPONSORSHIP:
During a news broadcast on November 29, 2000, BCTV reported that Benson & Hedges has pulled their sponsorship out of the Symphony of Fire due to the recent amendments to the Federal Tobacco Act. Benson & Hedges expressed that "anti-tobacco laws in effect restrict any promotion of the event," (7) which is why they have also extracted their funding for other local events such as, the Vancouver Film Festival. The federal government had decided to make the changes to the Act in order to fulfill health objectives, with the public in interest, and it is also a part of a growing global movement to eventually abolish any "sponsorship promotion linked to the brand names of tobacco products." (8) By eliminating sponsorship from tobacco companies, it is thought to sever the link "between tobacco products and appealing lifestyle images and promotions," to groups that are most vulnerable: young children. (9) In fact, if a merchant is found to be selling tobacco products to a minor, they are fined and publically banned from selling tobacco products for two years. The federal government seems to be taking a serious approach to tobacco use and is educating the public on the serious health risks associated with smoking. For more information on this legislation or other related information please refer to following websites: http://www.infotobacco.com and
http://www.hc-sc.gc.ca/english/archives/releases/1998/9834ebk1.htm. Now that Benson & Hedges has officially pulled out their sponsorship, what will happen to the Symphony of Fire? According to Mr. Raymond Greenwood, they are looking and open to take any willing sponsors but unfortunately as of yet, no sponsors have been found. Mr. Greenwood has prepared proposal's and has distributed them to potential sponsors such as, the B.C. Lottery Corporation. However, he has been faced by many obstacles such as, the majority of the businesses either do not have the funding or they have limited funding for Vancouver, since the majority of the head offices are located in Toronto. Now that there is no funding for the Symphony of Fire to continue, should the annual event be cancelled or should other means be found to ensure its continuation? In the following sections, a cost and benefit analysis will be done to provide a better understanding of what this event actually entails for the City of Vancouver, and whether or not the general public actually wants the event to continue or not.
IV. 1. PUBLIC OPINIONS FROM THE MEDIA:
In the same news report mentioned above, the general feelings towards the fireworks were split. Some residents were pleased to find out the fireworks may not continue as the extra traffic was a nuisance to them; whereas others felt that Vancouver is simply becoming a boring City, and that they would miss the fireworks if they did not continue. From an economic perspective, it seems that the general consensus is that the end of the fireworks means a loss of extra business for the local economy. A coffee shop on Denman Street, called "Delany's," was disappointed in the recent news, as their establishment benefits from the extra customers created from the fireworks. A survey questionnaire was distributed to local shops and restaurants, however, these results will be discussed later. The debate over the continuation of the fireworks seems to be divided between two sides, one being people objecting to tobacco or corporate sponsors, and the other side being people in favor of the fireworks continuing. The following are excerpts from a Vancouver Sun article: (10)
"Vancouver is not a two-bit place with nothing happening. It is a modern,
upbeat, world-class city deserving of such renowned events.....Please don't be
a Scrooge. Keep the Symphony of Fire alive and kicking."
"Hey, I'm going to start smoking because these fireworks are so nice. Children
start smoking by watching other people smoke, especially their parents."
"The local economy will lose $13.2 million a year if the Symphony of Fire is cancelled once Benson & Hedges ends its sponsorship. The money will not disappear: It will simply be sent on something else and, hopefully, that something else will not be associated with an industry that prematurely kills thousands of Canadians annually."
As it can be seen, the problematic part of the Symphony of Fire seems to be the tobacco sponsorship, not the fireworks themselves. Therefore, now that the tobacco sponsorship issue has disappeared, should the fireworks still continue? This depends on the popularity of the event, whether a new sponsor can be found, and if it is worthwhile from an economic perspective to keep this event. The popularity and support of the event seems to be there, for example, Chris Breikss from 6S Marketing (www.6smarketing.com) has started an on-line campaign to show potential sponsors that the residents of British Columbia do no want to lose the Symphony of Fire. Mr. Breikss, who is also the Web Master for Discover Vancouver's website (www.discovervancouver.com), started the viral campaign on February 14, 2001 and as of April 1, 2001 over 21,000 people have signed the petition to show their support to help keep the Symphony of Fire alive.
IV. 2. VANCOUVER A BORING CITY?
Another reason why Vancouverites are so passionate about keeping the Symphony of Fire is the recent loss of many major city events. Despite the fact that Vancouver has once again been voted as one of the best cities in the world, people still seem to feel that there is a lack of art and entertainment. For example, an article in the Vancouver Sun stated the following:
"Vancouver is on the verge of losing vaunted symbols of civic pride: the Molson Indy, the Symphony of Fire and the Grizzlies. Mild winters, gorgeous scenery, and Stanley Park aren't enough, it seems, to avert a municipal crisis of confidence. The Vancouver Board of Trade is so worried, it has created a task force to find a way to rebuild civic pride and put some fun back into the city. The task force, chaired by Carole Taylor, invited board members and the public to email suggestions." (11)
As a direct result of the loss of such major events, the Vancouver Board of Trade has been given the task to rebuild the city's spirit. They have established a 'Community Leadership Task Force' that will bring together prominent leaders and businesses to keep events such as the Symphony of Fire continuing. The Board of Trade hopes to collectively bring in the interest of potential sponsors, who can help fund and promote events that will return Vancouver's reputation to the way it used to be, a city that is unique and fun, which attracted many big events such as Expo and the Sand Festival.
Further information on the Board of Trade can be found on their website, http://www.vancouver.boardoftrade.com.
V. COSTS AND BENEFITS OF THE SYMPHONY OF FIRE:
In order to determine whether or not the fireworks should continue, one must examine the entire event from a distance and look at the total costs and benefits to see whether or not they counterbalance each other, or if one side dominates the other.
V. 1. COST OF THE SHOW:
It is estimated that the annual event costs $1.5 million per year and the cost of providing the necessary city services, such as extra policing, is $400,000. (12) Since the inception of the Symphony of Fire, Benson & Hedges has completely paid for the total costs. Only in the year 2000, did the City of Vancouver pay for the extra policing costs, as a direct result of a proposal that was presented to City Council. Due to the large crowds that are created on the nights of the fireworks, extra policing is required in order to ensure the safety of the public and to keep the crowds under control. Below is a report given on behalf of the Vancouver Police to Vancouver's City Council, that outlines the costs involved and who actually ends up paying for these additional expenses. (13)
V. 2. HIDDEN COSTS:
The recent media coverage over the use of tobacco and tobacco sponsorship has raised the eyebrows of many. A large number of people and organizations feel that tobacco sponsorship is just another method of advertising a product that kills millions worldwide. As previously mentioned, due to the changes in the federal legislation, tobacco companies are now greatly restricted in the ways that they can advertise and sponsor events. Even though the tobacco company is no longer associated with the Symphony of Fire, there may have been previous adverse effects which still need to be considered. On November 7, 2000 a meeting was held with Christina Scheuer, who is a Tobacco Reduction Coordinator for the Vancouver/Richmond Health Board. Several issues were raised such as: Does tobacco sponsorship increase the probability of smoking among children and young adults? Does it create brand name recognition and loyalty? How much money does Benson & Hedges donate to actual health care costs? In order to find out the answers as to how children and young adults are affected, Ms. Scheuer suggested to survey this particular age group to see how many actually know what Benson & Hedges is, and whether or not tobacco sponsorship has affected them in anyway. Although this task is outside the scope of this project, some general conclusions can be drawn. Approximately 100 students from a local high school in Richmond were surveyed, and it seemed to be a general consensus that tobacco sponsorship had no affect or impact on their decision to start smoking. Most students felt that it was their sole decision to smoke or not, and the fact that the Symphony of Fire was sponsored by Benson & Hedges, played no role in this decision making process. In an attempt to raise awareness the Vancouver/Richmond Health Board has created a contest called, "Tobacco is Wacko.com Contest." The aim of this project is primarily to raise awareness, by educating youth about the consequences of smoking and involving their input to promote a healthier lifestyle. More information on this project and on the Vancouver/Richmond Health Board can be found on their websites: http://www.tobaccoiswacko.com and http://www.vcn.bc.ca/vrhb. With respect to tobacco sponsorship, it is believed that "teens are influenced more by Big Tobacco advertising than by peer pressure," and that "78% of experts believe that Big Tobacco advertising changes behavior and increases smoking among youth." (15)
V. 3. ENVIRONMENTAL AND SOCIAL COSTS:
Another cost that must be examined are the costs associated with the surrounding areas of the fireworks. There is litter that is created by the fireworks, which is cleaned up by city services to the best of their ability. However garbage, such as unexploded fireworks, washes up the shores of English Bay for days subsequent to the event. During the actual event, the sky is filled with smoke which must pollute the air in some manner and must indirectly, affect the natural wildlife. Also, due to the extra foot traffic, the ground and soil of English Bay and Kitsilano Point are damaged, making the grounds unusable for the summer. There is also noise pollution created from the actual fireworks and the crowds that loiter around the streets afterwards, which may affect the local residents during late hours of the night. Extra pollution is also created from a sea full of boats and yachts, and traffic created from residents from other cities traveling into Vancouver. The extra traffic also becomes a major downfall for everyone, especially the residents of the West End, who are faced with road closures and have a difficult time traveling outside of their residential area. In addition, due to the large crowds, inevitably there are problems associated with harassment, vandalism, loitering, and conflict. Many locals have also raised the issue over how the city police suspend civil liberties of movement and association. Incidents of liquor seizures by the Vancouver Police Department have raised questions about whether the city police are overstepping their authority. In an article in The Vancouver Courier it was stated that, "prior to the Symphony of Fire in July, (Anne) Drennan complained that if officers were not allowed to seize liquor from patrons, the department would ask city hall to ban the event." (16) However, according to Chris Braiden, who is a retired Edmonton police superintendent, "by law, a person has every right to refuse a cop's request to search his or her bags. A cop cannot interfere with free movement, nor one's right to congregate in public." (17) As a result, the police department has recognized that although they were given instructions to have zero tolerance, this did not include searching for and seizing any liquor, the intention was to seize only visible liquor.
VI. BENEFITS ASSOCIATED WITH THE FIREWORKS:
The Symphony of Fire allows for the various participating countries to display their work and gain future potential customers. Many of the local businesses, such as restaurants, coffee shops, street vendors, hotels, bars, clubs, and boat charters all benefit from the extra business created on the nights of the fireworks. According to Walt Judas, who is the Director of Marketing and Communications for Tourism Vancouver, the fireworks "generate anywhere from $12 to $15 million in economic impact each year." (18)
VI. 1. RESTAURANTS AND BOAT CHARTERS:
Since the fireworks occur late in the evening, most spectators usually do something before or after the event. Activities usually include dining out, going for coffee, dessert, or a drink, and perhaps even going to a night club. As a result, many of the downtown core establishments economically benefit from the extra business that is created on the nights of the fireworks, particularly on the Saturday night show. The restaurants in the West End and downtown area are booked solid during the nights of the fireworks and time limits have to be enforced, in order to ensure that new customers are allowed to the opportunity to come in. This vast exposure creates future customers, especially if the customer enjoyed their dining experience, they are more likely to come back again. Local businesses were surveyed in the English Bay area and one restaurant on Denman Street, in the summer of 2000, made over $20,000 in profits on the nights of the fireworks. However, these results will be further discussed in the following sections to come. The boat charters of Vancouver have also been estimated to make a profit of $1.2 million due to the customers who wish to view the fireworks in style. (19) The Pride of Vancouver Boat Charters charge $84.95 per person, and this includes a full course meal, live entertainment, and of course a spectacular view of the fireworks. (20)
VI. 2. TOURISM:
British Columbia also economically profits from holding the fireworks because it promotes tourism, which is one of the leading agents in the service sector. Of the 1.2 million people who attended the fireworks this year 34% were tourists, and out of this percentage, 70% were tourists that were from outside of British Columbia. (21) As a result, the hotels profit from the tourists that come and stay in their establishments. It is also economically beneficial for local retail stores and restaurants because tourists will purchase goods and services from them. In search of quantitative data on how much tourism, in terms of dollars, is injected into the economy because of the fireworks, Mr. Judas was contacted. As previously mentioned, Mr. Judas is the Director of Marketing and Communications for Tourism Vancouver. With his guidance data was obtained from his manager, Nicky Douglas, who provided documents that specifically show how the Symphony of Fire allows tourists the opportunity to spend money on goods and services, how many jobs are created, and the size of salaries and taxes that are directly received from this activity. The following is an economic impact and visitor analysis received from Tourism Vancouver: (22)
VI. 3. SOCIAL BENEFITS:
The Symphony of Fire is an event that brings thousands of community members of the Lower Mainland together. It is not restricted to any particular social, ethnic, or economic group. It is appropriate for people of all ages, making it a great family event that so many people enjoy coming to every year. Since its inception, the Symphony of Fire has grown to become a city event that contributes to the uniqueness, diversity, and civic pride of Vancouver. It is the perfect summer-time event, inexpensive and it allows everyone to enjoy the beautiful surroundings of the West Coast. It also creates global awareness as a result of the foreign countries that participate, and the tourists that are attracted to Vancouver by the event. Lastly, the actual firework display is the reason why the event has been continued for so long, it is unforgettably breathtaking.
VII. STATISTICAL ANALYSIS PART 1:
Data was collected using two different survey's for two distinct sample groups, and this data was then used to test various hypotheses and economic models with the aid of a computer program, SHAZAM. For more information on this statistical tool, please visit http://shazam.econ.ubc.ca.
VII. 1. SAMPLE ONE - PUBLIC OPINION ON THE FIREWORKS:
The first group of people or sample was surveyed to find out the popularity of the fireworks, and how people generally felt about the event. Below is a copy of the survey that was used:
Two different methods were used to distribute this survey, by hand and through email. Fifty survey's were distributed, by hand, to co-workers at the Toronto Dominion Visa Centre. This group of individuals vary in age, experience, economic status, and residential location. One hundred survey's were also given, by hand, to Richmond high school students at Cambie Secondary School, and ninety two survey's were returned the following day. The remaining survey's were distributed via email by asking friend's to pass the survey on to other people, and a message was posted on Discover Vancouver's website that invited individuals to participate. Approximately forty survey's were received through email, and the remaining twenty survey's were received by surveying locals around the Robson and Denman Street area. A total of 202 survey's were completed, which were then converted into related variables that correspond to the questions that were asked, and SHAZAM was then used to test the relationship between the various variables. The following is a key to the variable names, definitions, and abbreviations:
VII. 1. B. SAMPLE ONE STATISTICS:
By compiling the responses of the 202 participants, the following statistics were found:
VII. 1. C. ALTERNATIVE SPONSORS, POSITIVE AND NEGATIVE ASPECTS:
In the same questionnaire, the participants were asked to suggest alternative sponsors that would be able to replace Benson & Hedges, and the following suggestions, which are ranked in order from the most to least popular, were given:
become new sponsors: beverage company, banks, airline companies, automobile companies, internet companies, Telus, BC Lotto, ICBC, or perhaps with the joint donations of local businesses and restaurants. Many of the mentioned corporations are already involved in sponsoring arts and entertainment events such as Vancouver Canucks and Grizzlies promotions and the Vancouver Film Festival. The City of Vancouver will probably not be able to add any further funds into this event. The City already uses their resources to organize the event, and they cover the costs that are incurred by all city services, including the cost of having extra policing. Many suggested having another tobacco company sponsor the event, however, that is not a viable solution because of the new legislation that prevents any tobacco company from sponsoring such public events that have people of all ages attending. In addition, participants were also asked to list both positive and negative aspects of the Symphony of Fire. The general feeling of the survey participants was they enjoyed going to the fireworks because it is an annual city event, that brings people together. However, in contrast, there are also problems that arise with having a large assembly of people, which are hard to avoid with an event that is open to the public. The City of Vancouver does review the traffic plan and litter control policies every year, and they are ready to make any necessary adjustments to improve the smoothness of the event. The following are their responses ranked in order of the most popular to the least popular answer.
VII. 1. D. LOGIT REGRESSION ON THE VARIABLE CONT:
The logit model was used to predict how the dependent variable CONT, which is whether or not a person wants the fireworks to continue or not, is affected by the following variables: NTIMES, RATE, MALE, AGE, and CTY. The results show how a person on a logit index, moves either positively up or negatively down the logit index. The model predicts how people would answer the question, 'Do you want the fireworks to continue?' based on the results of this sample size. The results also show how each of the above variables affects the outcome of the answer. The following results were obtained:
VII. 1. E. OLS REGRESSION ON RATE:
An OLS regression is used to show the relationship between various variables. In this particular case, the OLS regression is used to show the relationship between the dependent variable, RATE, with the following variables: NTIMES, ENGB, CTOB, MALE, AGE, and CTY. The hypothesis behind this model is that there should be a positive relationship between RATE and NTIMES because the more times one goes to the fireworks, the higher the rating would be, since there must some positive aspect that makes one go to the event numerous times. There should also be a positive relationship between RATE and ENGB because if one's favorite viewing spot is English Bay, there should be a positive rating on the fireworks since it is one of the best, if not the ultimate, viewing spot. The issue over the tobacco sponsorship may cause one to rate the fireworks negatively, because of the adverse effects of tobacco sponsorship. This relationship will be measured by RATE and CTOB, which is whether or not a person would still want the fireworks to continue if they were still sponsored by Benson & Hedges. Again, there should be a negative relationship between RATE, AGE, and CTY as the older one becomes they may not have the tolerance towards large crowds and the residents of Vancouver maybe affected negatively by the fireworks. Lastly, the results can be used to determine if there is still a negative relationship between being male and going to the fireworks, which was seen in the previous section. The following results were obtained:
VII. 1. F. LOGIT REGRESSION ON FEE:
Another logit regression was used to create a model that would predict how many people would be willing to purchase a ticket, for assigned seating arrangements at English Bay. The hypothesis for this model is that people would be more willing to pay for a ticket, the higher they rate and the more times they go to the fireworks, since they would value the fireworks more. Also, if English Bay is one's favorite viewing spot, then one might be more inclined towards purchasing a ticket, to ensure that they would be able to watch the fireworks from their favorite spot. It terms of the gender effect, males might be more willing to pay for a ticket because they generally have higher income levels than women as the gender wage gap still exists. It is estimated that women earn approximately 80% of what men earn, in terms of hourly wages, and 73% for full time full year earnings. (26) Also, the older one becomes the less likely they would be willing to purchase tickets to view the fireworks because with age, comes more responsibilities and more expenses. Lastly, if a person resides in Vancouver they are less likely to purchase a ticket, especially those living in the West End and around the Kitsilano Point area, because they could view the fireworks from their homes for free.
The following predictions were obtained for a logit regression:
VII. 1. G. LOGIT REGRESSION ON SMK:
Lastly, a logit regression was used to predict the relationship between the dependent variable, SMK, and the variables: NTIMES, CTOB, MALE, and AGE. Although the factors related to smoking go far beyond these variables, it is interesting to see if tobacco sponsorship has an effect on teenagers. Most people start smoking because a member of one's family or peer group smokes. Teenagers are often images of their role models, and if a parent smokes their child is more likely to take on the habit of smoking. Therefore, there are definitely more important factors that cause people to smoke besides the fireworks being sponsored by a tobacco company. However, the following results were obtained:
VII. 2. SAMPLE TWO - OPINIONS OF LOCAL BUSINESSES ON THE FIREWORKS:
The second group of people or sample was surveyed to find out how the fireworks affect the local businesses on Robson and Denman Street. By distributing the following survey, the aim was to find out in what ways were they affected by the extra foot traffic that gathers around their vicinity:
VII. 2. A. SURVEY METHODOLOGY AND RESPONSE RATES:
The main method that was used to distribute this survey was by hand, which involved going into stores and restaurants located on Robson and Denman Street. The survey questions were verbally asked and the responses were recorded as the participant answered. A few businesses, such as the boat charters, were approached via email and all surveys were completed. Approximately 40 businesses in total were approached and 27 survey's were filled out. However, these responses were not obtained easily as many obstacles were present. Primarily, many businesses would not answer the survey for confidentiality purposes, since they were not allowed to release any information. Secondly, some stores would not answer any questions because the manager was not present or was out of the county. Thirdly, many places were simply too busy to answer any questions, even though they were approached during a week day before lunch hour. Lastly, language was also a barrier as many did not speak English. In addition, sample two's survey also includes questions that are located in sample one's questionnaire, so that two survey's were combined into one. The results that pertained to sample one have already been included in the above section. The new information that was received, has been converted into variables and can be summarized in the following legend:
VII. 2. B. SAMPLE TWO STATISTICS:
By compiling the responses of the 27 respondents, the following statistics were found:
VII. 2. C. LOGIT REGRESSION ON SPONSORSHIP:
A logit regression for sample two has been created to predict whether or not a business would be willing to help sponsor the fireworks. However, due to the small sample size, the model is not very reliable. The hypothesis behind the regression is that a business would be more willing to donate monies for sponsorship if they are located in the vicinity of the event, as they would directly benefit from the opportunity to market the people that are attending the event. Secondly, an establishment would be less willing to sponsor an event that has a negative externality on their firm. Also, if the profits of the firm increase during the event, then they would be more willing and able to help donate some funds back by assisting with the sponsorship of the event. Even though the results of the model are not perfect, the following outcomes were obtained:
VII. 2. D. OLS REGRESSION ON PRFTINC:
The last regression is used to predict the relationship between PRFTINC and
DENROB, FOOD, XCUST, and ADTNLSTF. One would imagine that a businesses profits would increase if they were a restaurant or coffee shop, located in the English Bay area because most people either before or after the fireworks always grab something to eat or drink. XCUST may or may not have a positive affect on the PRFTINC variable because it really depends on the type of business one has. As mentioned before, many outlets have extra customers but very few actually buy merchandise. Also, if there are extra customers than additional staff would be required, which would inevitably decrease profits by having to pay employee's their owed wages.
The results of the regression are as follows:
VIII. SOLUTIONS:
Now that all the aspects of the fireworks have been introduced, should the Symphony of Fire continue? By counterbalancing the positive aspects against the negative, it seems in economic terms, that losing the fireworks will not be beneficial for our economy. Vancouver is dependent on the tourism industry, and it has been proven that the Symphony of Fire does contribute to the service sector. Thus, how can the fireworks be kept alive? Mr. Greenwood was contacted recently to find out the status of finding a new sponsor, however, a lot of information could not be released. B.C. Lotto was a definite candidate to be a new sponsor, but due to the media's hype over this, it seems that they have scared some potential sponsors away. Mr. Greenwood still has ongoing talks with the BC Lottery Corporation, telecommunication firms, banks, and soft drink companies. The problem that he is facing is that so many companies do not have the funding for this event or they are "concerned about the return on their investment." (28)
Mr. Breikss, who started the on-line petition to save the fireworks, will gather the signatures and approach individuals such as Jimmy Pattison, Peter Wall, and other major companies such as Coca-Cola and Microsoft. One possible solution is to "dedicate some of the $8 million generated annually by a two percent hotel room tax, which normally goes into Tourism Vancouver's coffers - to the festival." (29) Charging an admission fee of a $1 would surely cover the costs given the high attendance rates, however, this would be very difficult to administer. In the past, the city services were completely paid by Benson & Hedges. Last year, after a proposal from the Vancouver Police Department, the City decided to pay the costs of policing services. Now, in order to attract new sponsors, City Council has once again "approved spending $376,000 on policing and direct city services to help offset costs of the $1.5 million annual event." (30) With the City's direction and influence, along with the Vancouver Board of Trade, and the continued efforts of Mr. Greenwood, it is only a matter of time before some sponsors are found to help sponsor the event. Initiatives such as the 'Spirit of Vancouver' campaign has been launched by the Board of Trade, who hope to overcome the protests and opinions of small groups and try to make Vancouver less rigid when it comes to events such as New Year's Eve. In a meeting that commenced the beginning of the campaign, John Nightingale, who is the Director of the Vancouver Aquarium, stated "there were loud complaints from a few people inconvenienced by the Symphony of Fire, but do we accept that view and disenfranchise, we even had a debate about widening the (Stanley Park) causeway by 45 inches!" (31)
CONCLUSION:
It seems, with many other aspects of life, that once something is gone everyone
begins to appreciate it. Likewise, now that there is serious danger of losing the
Symphony of Fire, everyone has come to realize what a unique and special event it
truly is. After ten years, the City has now acknowledged that the fireworks has become
a popular event, that greatly benefits the local economy, and therefore the event should
be a city event. Hopefully with joint efforts, a new sponsor or sponsors can be found to
retain this priceless event. An event that not only economically promotes the local
economy, enriches the culture of Vancouver, and also mesmerizes the diverse crowd
for a full half hour. Despite the minor set backs that are caused by extra traffic, road
closures, and few rowdy people, it is small price to pay. After all, it is only four days out
of the year, but the event still has such a strong impact on Vancouver. A quotation from
the City of Vancouver's website sums up the event in the following statement:
"Residents and visitors alike have come to regard this family-oriented event as a
tangible symbol of Vancouver - the cosmopolitan city by the sea, with a world-class
spectacle in an equally spectacular natural setting." (32)
ENDNOTES: 1. Source: http://www.discovervancouver.com/symphony/facts.asp
2. Source: http://www.city.vancouver.bc.ca/ctyclerk/cclerk/960611/a2.htm
3. Source: http://www.city.vancouver.bc.ca/ctyclerk/newsreleases2000/nrsymphfire2000.htm
Source: http://www.city.vancouver.bc.ca/parks/news/000726rel1.htm
Source: http://www.city.vancouver.bc.ca/parks/bdpackg/961028/m96oct28.htm
Source: http://www.city.vancouver.bc.ca/ctyclerk/cclerk/000518/csbmins.htm
Source: http://vancouver.globaltv.com/bc/news/stories/news-20001129-134126.html
Source: http://www.hc-sc.gc.ca/english/archives/releases/1998/9834ebk1.htm
Ibid.
"Fireworks are a favourite, but sponsor is up in the air." The Vancouver Sun: August 14, 2000.
"Vancouver voices: Let's start rebuilding civic pride." The Vancouver Sun: March 21, 2001. Section B6-B7.
Bula, Frances. "Council mulls fireworks as civic event." The Vancouver Sun: February 19, 2001.
Source: http://www.city.vancouver.bc.ca/ctyclerk/cclerk/000518/csb1.htm
Source: http://www.city.vancouver.bc.ca/ctyclerk/cclerk/000518/csbmins.htm
Source: http://www.tobaccoiswacko.com/youth/index.html
Brunet, Robin. "Walking a think blue line." The Vancouver Courier: October 28, 2000.
Ibid.
Clayton, Ian and Katherine Monk, Michael McCullough. "Tobacco firm pulls support for fireworks." The Vancouver Sun: November 30, 2000.
Hoylk, Michelle. "Fireworks are a favorite, but sponsor is up in the air." The
Vancouver Sun: August 14, 2000.
Source: http://www.vancouvercharters.com/fire.html
Source: http://www.discovervancouver.com/symphony/facts.asp
Source: B&H Symphony of Fire 00.DOC from http://www.tourismvancouver.com
Source: http://www.tourismvancouver.com/docs/help/research/research_ei_ overnight_visitors_9699.html
Source: http://www.tourismvancouver.com/docs/help/res.../research_visitors_ expenditures_by_sector.html
Kinghorn, Kevin. "Local man hopes to get 25,000 signatures, support Symphony of Fire on-line." The Vancouver Courier: February 28, 2001.
Lectures notes from Economics 351. Professor Fortin - Women in the Economy,
January 9, 2001.
Source: http://www.statcan.ca/english/research/82F0077XIE/82F0077XIE.pdf
Kinghorn, Kevin. "Local man hopes to get 25,000 signatures, support Symphony of Fire on-line." The Vancouver Courier: February 28, 2001.
Ibid.
Fong, Petti. "Symphony of Fire to receive $376,000 from council." The Vancouver Sun: February 21, 2001.
Steffenhagen, Janet. "Petty rules, protesters robbing Vancouver's spirit, meeting
hears." The Vancouver Sun: March 31, 2001
Source: http://www.city.vancouver.bc.ca