122 Early evidence of the economic effects of COVID-19 pandemic on the horse show industry

Abstract

The economic effects of the COVID-19 pandemic have diffused across all sectors of the global economy. Reporting the reduction of in person horse shows and an early assessment of its impact on the economy was the objective of this study. The survey instrument was disseminated to horse show participants through web-based modes and email. A Qualtrics survey was posted on numerous social media pages, including extension, horse shows, and breed associations and was also emailed to the APHA listserv of show participants (n = 251). Most survey respondents were female (n = 240; 95.6%) representing a cross-section of US states (n = 42; 84.0%). Participants reported planning to attend an average of 9.7 (SD = 7.15) in person horse shows in 2020, and had to miss an average of 4.17 (SD = 3.11) shows due to COVID-19 restrictions as of June 15, 2020. Horse show participants reported spending a mean of $991 (SD = $648.26; Range = $0.00 to $4,000.00) per show and therefore $9,612 annually on horse show-related expenses. Specific expenditures that were collected included lodging (either hotel or RV), fuel, meals, entry fees, stalls/boarding, and miscellaneous. The American Horse Council (2018) reported 1,227,986 horses make up the competition sector. On average, each horse owner shows 1.57 horses (US Equestrian Federation) and therefore horse show participation generates $7.5 billion annually when utilizing this survey's responses of average show expenditures of $991 per show. Due to the COVID-19 pandemic, the decreased attendance of in person shows from 9.7 to 5.53, resulted in a decrease in annual expenditures with an early estimation of potential economic loss to be $3.23 billion. In this study, the quantified direct effects were then used in the IMPLAN input-output model to estimate the total economic impact of expenditures within the economy. A reduction in economic output of $7.2 billion and a reduction in approximately 50,000 jobs that are directly or indirectly connected to the horse show industry, was the result of decreased attendance of in person horse shows. Additionally, the industry's contribution to GDP (value added) was reduced by $3.95 billion. Economic hardship caused by the COVID-19 pandemic has stretched across most sectors of the economy, including the horse show industry. Early assessments of the economic impact associated with a reduction of in-person horse showing is vital to understanding the long-term implications for the industry.