NEW YORK, Jan. 30, 2017 /PRNewswire/ -- According to PwC US, the greater Houston area could see an approximate 40 percent increase in direct spending over the last time the market hosted the Super Bowl in 2004. Super Bowl LI is expected to generate approximately $190 million in direct spending by the National Football League (NFL), businesses, visitors, and media. This estimate includes spending on area lodging, transportation, food and beverage, entertainment, business services, and other hospitality and tourism activities. It is based on a proprietary analysis, which considers characteristics unique to this year's event such as the participating teams, local market attributes, national economic conditions, and scheduled corporate and other ancillary activities.
Excluded from the analysis is the so-called "multiplier effect," which accounts for "indirect" impacts, such as a concession company's purchase of goods from local producers and manufacturers, and "induced" impacts, which occur when the income levels of residents rise as a result of increased economic activity and a portion of the increased income is re-spent within the local economy.
The following graphic illustrates, in nominal dollars, the direct spending associated with each Super Bowl since 2008, as well as the last edition hosted by Houston in 2004. As shown in current dollars, the direct spending generated will exceed Houston's prior Super Bowl, but trail other recent editions held in markets with higher destination costs and/or more established winter tourism positioning.
"The Super Bowl offers a platform to highlight a community's branding efforts as well as its cultural and economic development. Houston is doing just that; using the game's spotlight to showcase its diversifying economy and recent enhancements to downtown, including the convention center, Discovery Green, lodging and transportation, among others," said Adam Jones, director, sports and tourism sector, PwC US.
"In contrast to the prior three games in the San Francisco Bay area, Glendale, and New York/New Jersey, Houston's centralized downtown with close proximity to the host stadium allowed this year's host committee to plan events within a relatively small radius, enabling visitors to spend more time on experiences and less time traveling – ultimately enhancing the visitor experience while capturing greater overall return," noted Jones.
Jones continued, "this year's participating teams provide a compelling match-up both on the field as well as in the stadium's seats; with one team making its first Super Bowl appearance in nearly 20 years and the other setting a Super Bowl record for seven appearances over the same period. Both team profiles signal high engagement and propensity to travel among NFL fans and the nation's business/entertainment communities; factors which should only be further supported by the Houston market's air access, central location within the US, and relatively mild winter climate.
For more information visit www.pwc.com/us/sports
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SOURCE PwC US