How Local Economies Benefit From Big Sporting Events
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Local economies are historically the biggest victims of recessions. When the market takes a turn for the worst, it is local shopkeepers, restaurant owners, hotels and other merchants who feel the squeeze most personally. Accordingly, most cities are eager for any economic stimulus they can get. Over the years, one of the great economic boons to any major town or city has been major sporting events. No matter how bad the economy has been, there is nothing like a World Series, Super Bowl, or World Cup game to infuse some much-needed vitality into local markets. Many fans believe the locations of these events are an afterthought, but economically speaking, nothing could be further from the truth. During the 2009 World Series, for instance, ABC estimated that the event was “…expected to funnel some $25 million into the local economy” of Philadelphia, including “…$3 million or more directly to the city in taxes.” Given the amount of money at stake, and especially the current economic climate, a deeper examination of how local economies benefit from major sporting events seems timely.
Hotel Reservations
Among the most obvious ways a city benefits from hosting a premier sporting event is a surge in hotel reservations. Naturally, the many fans, onlookers, journalists, and friends and family of the athletes need places to stay for the duration of the event. This is true even for events like the Super Bowl, which only last one day but are purposely held in tourist-friendly areas to encourage extended stays. (This year’s Super Bowl XLIV, for example, is slated to be played in sunny Miami, Florida.) Indeed, a spike in hotel reservations is a driving force behind the intense competition that occurs between cities to host the Super Bowl. A January 2009 article from Bradenton.com predicted the economic impact of last year’s Super Bowl between the Pittsburgh Steelers and Arizona Cardinals by interviewing hotel owners in Tampa. Patti Davis, owner of Harrington House Bed & Breakfast on Anna Maria Island, confirmed that, “…it does add quite a bit to our business.” USA Today likewise predicts that fans will fill, “…an estimated 110,000 hotel rooms during the 10-day buildup” to Super Bowl XLIV, in addition to the NFL having reserved, “…the entire 433-room Westin Beach Resort in Fort Lauderdale” as its base during the event.
Hotels can benefit even more during events like the World Series, which encompass several games in a given city. Joe Broderick, a doorman for forty years at Center City’s 10,400 room Latham Hotel, spoke excitedly last fall about the, “…uptick in business only the sport’s biggest spectacle can create.” The NHL’s Stanley Cup Finals are another boon for nearby hotels, given the potential for a full seven game series. <a rel="nofollow" href="http://pittsburgh.bizjournals.com/pittsburgh/stories/2009/06/01/daily31.html" ...
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Categories: Uncategorized Tags: Amount Of Money, Economic Climate, Economic Stimulus, Recessions, Super Bowl, Vitality, World Series