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The study shows Super Bowl's economic impact in Atlanta a matter of guesswork

Independent sports economists say the Atlanta Super Bowl Host Committee’s economic impact projection of $185 million for the game and its surrounding festivities is realistic. If so, that would be on the low end of Super Bowls going back to 2010, according to a study released ahead of last year’s game in Minneapolis by Maryland-based Rockport Analytics. The Rockport study found a huge disparity in the economic impact of Super Bowls from city to city, all the way from $719 million in 2015, when the game was held in Phoenix, to $200 million for the Dallas Super Bowl in 2011. But rather than putting Atlanta in a negative light, that wide range of numbers calls Rockport’s findings into question, said Victor Matheson, a professor and sports economist at College of the Holy Cross in Worcester, Mass. “If projections are all over the place, that means there’s likely a huge amount of guesswork going on,” said Matheson, who is scheduled to appear at a Jan. 25 symposia on the economic impact of Super Bowls at Kennesaw State University. Matheson said such studies tend to include every dollar likely to be spent in a city hosting a Super Bowl without accounting for factors likely to limit the economic impact. Those mitigating elements include the “crowding out” of spending on normal business activity that won’t take place because the big game is in town or spending on tickets, hotel rooms and restaurant meals that goes into the pockets of out-of-town companies, he said. “The reported numbers came from a variety of different sources and firms conducting economic impact work,” he wrote in an e-mail to Atlanta Business Chronicle. “This is perhaps the biggest reason for the discrepancy.” But Gray said there are cost differences from one region to another that show up in economic impact projections. “Hotel rates tend to be higher in markets with lower hotel supply,” he wrote. “Restaurant meals tend to be higher in a New York City or San Francisco than in Indianapolis.”

Matheson said cities that draw a lot of tourists during the season the Super Bowl comes to town – including New Orleans at Mardi Gras and semi-tropical Miami in winter – tend to experience less economic impact from the game because they’re already hot spots that would be packed with visitors anyway. The same is true of the smaller Super Bowl host cities because they simply run out of room for visitors. The best example of that came in 2005, when host Jacksonville, Fla., had to bring in cruise ships to meet the demand for hotel rooms. Georgia State University economist Bruce Seaman, who prepared the Atlanta economic impact projection, said one advantage the Super Bowl has compared to other major sporting events is the number of days dedicated to the event. “The buildup period is longer, and there are many more events leading up to it,” he said. “[But] a lot of those people are from the local metro area.” While Falcons fans would have loved to see their team in the Super Bowl, that would have dampened the economic impact because it would have meant fewer out-of-town fans traveling to Atlanta to stay in hotels and eat in restaurants. Seaman said he originally projected an economic impact of $85 million for last year’s college football championship game at Mercedes-Benz Stadium but revised it to $65 million when The University of Georgia made the final against the University of Alabama. “Huge numbers of Georgia and Alabama fans are already in the Atlanta area,” he said. “The college market … is really dependent on the teams.”

Answer 1

The whole article is basically an analyses on the super bowl's economic impact in Atlanta.

Atlanta has been planning a sport event consisting of gamesand associated festivities called Super Bowl for which the Atlanta's super bowl committee ha estimated a economic projection of about $185 million. A

As per a research conducted by Rockport analytics , their study revealed a lot of disparities in the economic impact of super bowl , and thus concluded that it depends clearly on the state in which the game festival is to be conducted.

As such clear by the difference in projections of about $719 million in 2015 when the game was to be held in Phoenix, to that of about $200 million when the game in 2011 took place in the Dallas Super Bowl festival.

This clearly reflects that it depends on the conditions of economy of that region ir country in which the festival is to be conducted.

While the famous economist and professor , Victor Matheson attributed to all these projections in different countries as a mere guesswork , supporting this fact that these projections take into account evey other thing on which the money is going to be spent in conducting the overall festival but they do not take into consideration the economic impact.

Explanation with an example:

The money spent on a particular item say labour in Dallas will be more costly then the money spent on identical amount of labour in Phoenix , because of the economic conditions .

To this Gray added that these cost difference are to be taken into focus while really finding out the projections.

Gray believes that there are cost differences from one region to another that show up in economic impact projections.

Gray explains the demand and supply factors determine the cost which eventually tend to put a financial impact on these projections.

Example :

E.g the rates of hotels are high where the supply of them will be low such as in countries that are economically less developed. similarly the hotel meals will be mostly preferred more in certain countries than the other.

Further Mathew aims to define how the economic impact vary as per the situations and tourist crowd.

He explains that cities that tend to draw a lot of tourists attention during the season of super Bowl comes such as New Orleans tend to experience less economic impact from the game because they’re already hot spots that would be packed with visitors anyway.

Finally he concluded that super bowl has a benefit that the number of days dedicated to the event are more than any other sporting event due to which it has a benefit of bringing a lot of crowd and tourists through attraction.

Dear student i tried best to keep the explanation as simple as possible.

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