RAGBRAI: Cyclists roll in dough

University of Northern Iowa researchers found a common thread when they interviewed hundreds of RAGBRAI participants two years ago.

Riders and their friends and family who drive cars across Iowa don't just spend money. They spend lots of it, and at every stop. The average RAGBRAI group, which consisted of approximately two people, spent $1,900 in Iowa during the weeklong bicycle tour. The estimated impact: Every dollar spent created about 49 cents in local spending.

That's significant revenue going to businesses. RAGBRAI generated more than $16 million in direct spending within Iowa in 2008, said Sam Lankford, a UNI professor and the project's director.

“That's probably the highest bang for their buck you could be doing compared to anything else, tourism-wise,” he said.

This year's 442-mile ride, which begins the last week of July, stretches from Iowa's western edge to the eastern border. Overnight stops will be in Sioux City, Storm Lake, Algona, Clear Lake, Charles City, Waterloo and Manchester.

The ride ends in Dubuque, which likely will see the biggest economic impact.

That is because most participants stay for more than one day at the final stop.

Business owners said proximity to the overnight staging area, where most riders will rest, will likely decide how much of an impact RAGBRAI makes.

The big winners during RAGBRAI are bike shops, sporting good stores, restaurant and bars, researchers found. Only a small percentage of participants stay at hotels, but they still see some benefit because of the sheer size of the event.

“It's a good time to be in the bike business. That was amazing, the expenditures there — not just bikes, but bike repair, clothing, new clothing,” Lankford said.

“Then, of course, the restaurants and bars also do pretty well,” he added. “It looks like they consume large amounts of alcohol.”

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