The Economic Effect of Canceling Horse Shows Due to EHV-1

With the outbreak of the Equine Herpes Virus (EHV-1) at the National Cutting Horse Association's Western National Championships in Ogden, Utah, horse owners across the country are concerned about their horses' safety. Many horse shows have been canceled, entries at others have dropped, and some veterinarians have recommended curtailing any unnecessary travel for horses. However, the California Department of Food and Agriculture has been monitoring the situation closely and consulting with animal health officials and veterinarians and are not recommending the cancelation of horse shows. In addition, UC Davis has reported that it is safe to proceed with caution and attend horse shows and other events (Read more at http://celake.ucdavis.edu/?blogpost=4949&blogasset=21880). The Arabian Horse Association issued a statement early on with their official stance that it was premature to cancel horse shows.

As of May 25th, there have been a total of 18 confirmed cases of EHV-1 in California, 16 of which attended the Utah cutting event, and two of which attended the Kern County Cutting Event in Bakersfield on May 13. To date, no other horses have been affected in California, yet horse shows have been canceled left and right, many exhibitors have dropped out of the shows that are still on, and numerous barns have put themselves under voluntary quarantine. While it may seem to be the prudent thing to do for the safety of all horses, there are some other factors to consider.

While EHV-1 is highly contagious, it has been contained to a small group of horses, all of which participate in cutting events. There is little, if any, crossover between this group and non-stock horse breeds and non-working western disciplines. Therefore, the chances of an affected horse attending an Arabian, dressage, or hunter/jumper horse show, among others, is slim to none.

The Economics of EHV-1

It seems a simple decision: keep your horse home and he won't get sick, so why not play it safe, even though there is minimal risk when going to most events? Beyond the problems that go with giving in to fear, consider the economic impact. Horse shows are a business. Just as telling a business owner to close their retail store for four days could be devastating to them, canceling a horse show has many effects beyond mere inconvenience.

Langer Equestrian Group, one of the largest horse show management companies in the country, has elected to continue holding their shows, following the guidelines set forth by the CDFA and UC Davis for reducing risk to exhibitors' horses.

"We have been closely monitoring the situation since it began, working with the various state agencies and veterinarians," explains Marnye Langer, Vice President and Chief Financial Officer of Langer Equestrian Group. "The state agencies and veterinarians have been very responsive, and they made it clear the disease was contained to cutting horses, which is a very specific group. For the Memorial Day Classic, many horses were already here and everyone is on heightened alert for any horse that may show signs of illness. We have also consulted with the Los Angeles Equestrian Center and our official show veterinarian, Dr. Robert Bradley, among others."

A show like the Memorial Day Classic generally draws in the neighborhood of 600 entries. However, over half of those have dropped out due to concerns over EHV-1, although Langer reports that entries seem to be picking up again as fears subside. "When a show of this size is canceled or even reduced in size, there is much more to consider than the loss of income to LEG," Langer says. "There is also money we will actually have to pay out that would not be covered by entry fees. There is also loss of income to other people; the trickle-down effect is huge. We had to let go of fully half of our staff and officials, each of which was counting on income ranging from $150 to $500 per day for the week. Trainers are scrambling because they are missing out on the revenue they expected from showing, which means grooms and braiders aren't working--and shows are generally a significant part of their income."

There are a few more ways the loss of entries to this show alone will affect the economy in California. At least half of the original 600 entries would have come from out of town, staying in hotel rooms and eating at area restaurants.

Hotel: 300 x $65 x 3 nights (average) = $58,500

Food, coffee, and other minor purchases: 300 x $25 x 3 days = $22,500

Gas: 300 x 15 gallons (average of one tank purchased in town) x $4.00/gallon = $18,000

Shopping, movies, and other entertainment: 100 x $20 = $2,000

Total impact on local economy from out of town entries: $101,000

In addition, vendors who rely on the shows as an important part of their revenue will lose half of their sales, and v arious community groups lose from several hundred to a thousand dollars because their activities for their fundraising associated with the horse show will be severely curtailed or non-existent.

This is just one show--imagine the cascading impact from canceling multiple events, none of which were likely to foster the spread of the disease because of the isolated group that was affected.

Is caution necessary for horse owners to ensure the health and safety of their animals? Absolutely, which is why LEG and other shows are following the recommendations set forth by UC Davis, and you should, too.

If your horse has not been exposed to an affected horse or any that could have been, and you don't plan to go to any events where the only affected horses, cutters, are likely to be, follow the advice of the state agencies and veterinarians: take your horse out and enjoy him.