The Economic Impact of Sport Business Travelers to a Football (Gridiron) Event.

Christopher Keshock, Brooke Forester, Shelley Holden, Steven PughUniversity of South Alabama, USA

European Sport Tourism ConferenceMay 2015 Limerick, Ireland

Outline

Economic Impact Sporting Events

True Economic Tourists

Mobile, Alabama

Senior Bowl-College FB All Stars

Sport Business Travelers

Methodology

Results

Economic Impact Sporting Events

Amount of new money entering region from hosting sporting event.

True Economic Tourists- new local spending from those residing outside impact region.

Results help convince the public whether event is good investment.◦ PUBLIC SUBSIDIZATION- ROI

◦ VIK- USE OF PUBLIC VENUES/RESOURCES

◦ OPPORTUNITY COST for Mobile, Alabama?

True Economic Tourists

Spectators

Teams

Business Travelers?◦ Media

◦ Vendors

◦ Sponsors

◦ SGM

◦ Governing Body Officials

◦ Coaches, Scouts, Agents

Mobile, Alabama

Sport Business Travelers- Senior Bowl

Methodology

Random Sampling-game, ancillary events, programs Hotel Headquarters, Convention Center, Cruise Terminal,

Practices, Game Day- Press Box, Tailgate, Sponsors Registered 2,452 NFL 38% Media 27% NCAA 10% Sponsors 10% Agents 9% Financial Advisors/Other

6%

Results

Business Travelers Spectators

N=278 Registered 2,452

Group Size 1.67

Number Days 4.53

Number Nights 3.67

Outside City 95.6%

Stay 92.4% paid lodging

Years Senior Bowl 6.28

N= 436 Attendance 33,643

Group Size 3.03

Number Days 1.99

Number Nights 1.21

Outside City 69%

Stay 31.1% paid lodging

Years Senior Bowl 5.97

Senior Bowl Visitors

Business Travelers Spectators

True Economic Tourists◦ 88.1% Out-of-Towners

◦ 11.9% Locals

Stay◦ Hotel 90.5%

◦ Family/Friends 2.3%

◦ Commute 5.3%

◦ BB/Condo 1.9%

True Economic Tourists◦ 69.3% Out-of-Towners

◦ 30.7% Locals

Stay◦ Hotel 22.5%

◦ Family/Friends 15.9%

◦ Commute 53%

◦ BB/Condo 8.6%

Results- Direct Spending Per Person

Business Spending Per Day Spectator Spending Per Day

F&B $83.15

Entertainment $42.07

Retail $11.95

Rental Transport $47.58

Private Auto $26.96

Other Expenses $14.19

Tickets $9.09

$234.99

Lodging $144.87

F&B $28.25

Entertainment $7.82

Retail $9.81

Rental Transportation $5.89

Private Auto $21.70

Other Expenses $8.92

Tickets $22.56

$104.95

Lodging $117.26

Results-True Economic Tourist Expenditures

Business Travelers◦ Lodging $1,312,522

◦ Other Direct Spending $2,299,320

◦ Total $ 3.6 Million City Fiscal Impact $180,592

Spectators◦ Lodging $613,387

◦ Other Direct Spending $4,869,128

◦ Total $ 5.5 Million City Fiscal Impact $274,125

Cost/Benefit Analysis

Costs Benefits

$150,000 public subsidy

Use Stadium Tues-Sat

$5,000 per day ($25,000)

Use Convention Center for week ($10,000 per day) 4 days $40,000

Police and EMT

Crowding Out- Hotel

Negative Externalities

Opportunity Costs

Fiscal Impact $454,717 ROI 203% Free Use Public Venues ROI 111% Stadium Concessions, Parking,

Vendors, SB 5 fulltime employees Parking, Local Caterers, Fan Frenzy,

FCA, Fun Run $152,900 MASA given to local

charities Social Impact- live to see another

football game, NFL Players (Pigskin Cult)

Nation-wide audience, Repeat Tourists

110 hours NFL Network NFL PERSONALITIES IN TOWN

Questions?