Ever wonder what the impact of the Super Bowl is on businesses?
I did.
Here's an interesting article by Nancy Wagner on the subject.
How Do the Super Bowls Affect Businesses?
The lure of an economic windfall often convinces larger cities to host the Super Bowl, but the picture might not be as rosy as some would suggest for area businesses. The National Football League says the Super Bowl impacts a host city’s economy by $300-$400 million, but in reality, the economic impact of the big event is more likely less than 25 percent of the NFL’s estimate, according to a study by Williams College. Even so, small businesses able to sell their products and services during the event are likely to see an increase in sales.
Visibility
Tourism exposure for a city might normally cost millions of dollars to obtain without the aid of a Super Bowl, but hold a Super Bowl, and the city gets a real boost when it comes to future tourism. Studies by the NFL show that Super Bowl influences the city’s future business more than any other event or convention held in the United States. People who watch the Super Bowl and the programming centered around the event might become more interested in visiting the area long after the game is over.
Outsider Spending
Businesses that sell products and services to people from outside of their community, such as fans, competing teams and the media, see an intense period of spending from these newcomers. In 2012, more than 116,000 non-residents spent $295.2 million during the Super Bowl held in Indianapolis. Restaurants, hotels, retail stores, cultural attractions and transportation services all share in the spoils while also adding to the city and state tax coffers. According to Williams College, the 1999 Super Bowl held in South Florida attracted outsiders who spent more than twice that of the average visitor who traveled to the area during the peak tourist months of January and February.
Local Spending
It’s a bit of a toss-up, says Williams College, about how Super Bowl spending by locals affects businesses. The study suggests that spending by people who live in the same city as the Super Bowl might increase because the residents spend their hard-earned money in their own town instead of traveling to another city to watch the Super Bowl. On the other hand, local residents might go out less often to avoid congestion and higher prices during the event.
Job Openings
Some businesses offer more job openings in preparation for and during Super Bowl events, making it necessary for them to conduct searches for, interview, hire and train more employees to handle the influx of businesses. According to Williams College, 2,736 jobs were created due to the Super Bowl held in Atlanta, in 1994. The new job openings help contribute to the local economy as these employees are more likely to spend their earnings in the area.