Introduction
The influence towards the state of economic activity within a region or area is referred to as economic impact. It is affected by the outputs of business proceedings, wealth, wage, and jobs status within that particular region. The net impact is understood as an expanding or contracting economy due to changing activities within the region. The impacts may be measured for organizations as the changes in jobs, income, and sales linked to the company. In a bid to measure the economic impact of an event, an evaluator must evaluate the changes in the total employment, addition values, individual’s total income, business output, and property value. However, accessing the information for these changes usually demand extra attention from other diverse strategies such as the study of public information, environmental economics, benefit evaluations, and retrospective researches (Xia, Gardner, & Liu, 2009). The information from these measurement tactics relay the eventual level of impact exalted by an event within an area. They are motivated by direct economic effects inclusive of investments, spending decisions, shifts in cost, and location competitiveness. The other indirect effects include the traffic in sales and outburst of trade within an area, as well as shifts from certain business products to others in the area. This essay pays a particulate attention to the economic impacts attributed to the Super Bowl events.
Definitions and Measurements
The study of the economic impacts of Super Bowl can be performed in Indianapolis. The location will allow the analysis to null the information down to one area. The table 1 shows the baseline figure on economic within Indianapolis before the Super Bowl XLVI. It shows the bottom line figures of expenditure, contributions, and tourism offsets. The table presents figures before the February 5th, 2012 event. Essentially, the arrangements regarding this event commenced around 27th of January where more than 116000 people from other areas visited (Vorvoreanu, Boisvenue, Wojtalewicz, & Dietz, 2013). They used money to purchase food, accommodation, transport, artifacts, and leisure among others. These individual personal requirements and government funding for infrastructure are the main sources of changing economic impacts attributed to the Super Bowl matches. Essentially, the economic omits other unreachable aspects of economics inclusive of marketing, promotions, and local operation costs.
Initial, Upfront, and Direct Changes in Investment and Associated Short Term Impact
This 46th Super Bowl used over 384 million dollars in respect to event hosting where about 69% of this amount was returned by the people who attended the match. The other remaining portion of event funds were contributed by the municipal, broadcasts, airport, and infrastructure costs. The external expenditures from other places apart from Indianapolis amounted to 342 million dollars as tallied from the operations, events, and promotions.
The external attendances to Indianapolis accounted to 116000 individual who comprised of 58% individuals with tickets including players and staff as well as non-residents and patriots among other groups. Alongside this population, the people of Indianapolis also visited the sites accounting for more than a million people. Most of these residents were from the metro area from the 11 counties available. A population of 265000 peoples visiting the area was from other non-town area of Indianapolis. However, the committee analysis the economic impacts could not include the data in the calculations since they could not verify the residents and non-residents.
The total overnight stay was approximately 361000 from the total number of non-residents of Indianapolis counting at 472000. In this respect, the event cultivated 224000 room stay at 1.6 visitors each room within the region of Indianapolis. The hotel occupancy rates were estimated at about 93% within the 4 operational days including a ninety-nine percent count for the downtown Indianapolis. This aspect dictates that the demand of hotels was high leading to almost a full capacity. In this regard, the room rates elevates to an average of 290 dollars each day for the 96 hours of games. The rates started reducing on the fifth day where they became 280 dollars and eventually to $100 as the usual rating for the previous year dictate. The net expenditure for the visiting games attendees and non-residents accounted to 264 million dollars within the local region averaging to 571 dollar per person residing in the region. About 43% of this money was left with the hotels and restaurants whereas the retailing shops took sixty-four million dollars. The remaining amounts were attributed to transport and entertainment cost at 44 and 26 million dollars respectively.
The eventual gross expenditure economic impact attributed to the Super Bowl 46 amounted to approximately 324 million dollars attributed to addition of products and service values and elevation of the local GDP. The amount accounts for the metro economic improvement due to Super Bowl hosting. It comprises of a hundred and seventy-six million dollars for direct event impact, $67 million attributed to the indirect improvements, and 81 million dollars from induced impacts. In this respect, it is possible to conclude that 84 percent of the money from other regions from the total event expenditure was left within the region.
Outputs, Earnings and Employments
The Super Bowl event affected many regions within Indianapolis. It manipulated its economy and changed its outcomes during the 4 days by impacting different sectors. It influences economic changes through the business that had direct contact with the visitors and game attendees. These individuals managed to leave the money to the hotels, entertainers, transporters, and vendors. This direct contact lend to the retention of $176 million directly attained from the event itself (Lee & Krohn, 2013). These people were collected and attracted by the event leading to their visit and purchases within the region. The money comes from other regions of the United States or other countries implying that it was a direct economic advantage.
In essence, the event also led to the creation of jobs since the man power required handling people in hotel, restaurants, and retail shops had to be increased to cater for the expected number of people. Furthermore, retail venders also took advantage of this situation by providing supplies for products within the regions surrounding the game venue. However, the business and companies chosen to supply the visitors had approximately 3600 jobs for direct involvement. This amount was supported by other 850 jobs to facilitate the supply chain with the region as well as the job from induced impacts account for over 1100 jobs. In this respect, the jobs attributed to the event amounted to 5500 full-time equivalents. The salaries for these individuals were approximated to about 203 million dollars comprising of 119 million dollars from the top most business in the event involvement and eighty-four million for both induces and indirect jobs. The amount is equal to the yearly salaries of 36900 dollars.
Eventually, the New York Giants won the game leading to other taxation benefits for the Indianapolis governance since 89 million dollar were levied for federal tax comprising of 21 and 25 million dollars attributed to Indiana local and state receipts. The taxations were associated to sales car rentals, transport tax, food and beverages, and property taxes among many other forms. Furthermore, the event also led to the closure of other main activities of tourism associated with other organizations outside the region that was estimated at an expenditure of 47 million dollars. Considering that about 6 million dollars are taxed by the Indiana local and state governance, then the economy retained 40 million dollars within the disposition. After deducting the 46 (40+6) million dollars from the Super Bowl value additions, the net increase in contributions within the GDP of the regions amounts to 278 million dollars.
The outside expenditure analysis would also reveal more issues to the economical impact of the Super Bowl Event in Indianapolis. While conducting a different model of analysis from the initial Super Bowl participation of the GDP of Indianapolis, it was noted that the $294 million resulted where 161 million dollars were attributed to direct contact with the visitors of Indianapolis. The study found that there were 5100 jobs of full-time equivalent. Finally, the tax was estimated at 39 and 44 million dollars for the federal and state taxations respectively.
Figure 2: External attendance expenditures (Dedman, McGill, & Boyce, 2012)
Figure 3: Super Bowl expenditure (Dedman, McGill, & Boyce, 2012)
Figure 4: Economic impact from outsiders (Dedman, McGill, & Boyce, 2012)
Figure 5: Super Bowl Value added (Dedman, McGill, & Boyce, 2012)
Figure 6: New employments (Dedman, McGill, & Boyce, 2012)
Figure 7: Initiated employments from leading beneficiaries (Dedman, McGill, & Boyce, 2012)
Figure 8: Tax collections (Dedman, McGill, & Boyce, 2012)
Figure 9: Tax recepts (Dedman, McGill, & Boyce, 2012)
Figure 1: Long term benefits (Dedman, McGill, & Boyce, 2012)
Long Term Impacts
The measurement of economic contribution of the Indianapolis event within the long term span requires the evaluation of how people’s employment, salaries, and taxes were modified after the event. Since the analysis has shed more light on the short or exact effects to the Indianapolis economy, this section will address the changes influence by the Super Bowl within the long term period. In a bid to measure these aspects, an investigation of the sectors influence by direct, indirect, and induced impacts must be assessed within the long course. It involved understanding how the developed after taking advantage of the event. Essentially, the growth of one sector within the market leads to the eventual elevation of all other sectors relating to it. It is a practice where development sprouts together since when a hotel industry grows by infrastructure, the supplies of cements and stones also benefits leading to regional development. Furthermore, the direct facilitation of GDP growth leads to a direct funding process of infrastructures and amenities vital within the regions after a period of 2 years. This assumption can be attributed to the setup of infrastructure by time of their minimal development schedule. The tourism sector and popularity of this region also became a reality in the long run. Media and promotional firms announced that event to the world where the visitors noticed the facilities and tourism destinations they would visit in the future (Santos & Oliveira, 2014). This form of marketing may have future income to the state. For instance, the state rehabilitated the Georgia Street and improved curbs as well as the sidewalks. Furthermore, security cameras have been installed to facilitate intelligence functions to protect residents against cruelty. The state also established community programs reaching 200000 learners within the region. 400 homes were refurbished and airport in order to enhance better residential areas and transport capabilities within the region. It is a decisive way facilitating reliable development plans for people (Matheson & Baade, 2006). It has been describe that the Super Bowl economic impacts will run long after the actual events in respect to these factors of development within Indianapolis.
Conclusion
The Indianapolis Super Bowl XLVI led to diverse changes in the development of the economic state of the region. Resources and infrastructures emanating from the forces mediated by these events were high. They had short and long term effects to the development and wealth of the region. In essence, such sporting events should be constructed to facilitate economic prevalence where businesses attain money to facilitate growth, increased employment, government infrastructures and personal development. It cannot be disputed that sports has positive economic impact to regional development where fiscal benefits arise leading to a general growth of an area. In this respect, most states fight to attain this position in order to enhance this regional development when the games are held in their area. However, attaining this position is an issue of regional dedication to provide teams and competitive reasons on why they should by selected to host such event. This attribute is one that keeps all the state in a fight to be the best team with the National Football League within the United States.
References
Dedman, J., McGill, K., & Boyce, D. (2012). The Economic Impact of Super Bowl XLVI: Accounting the Full Economic Benefits to the Indianapolis Metropolitan Area, Rockport Analytics, 1-31
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Santos, F. B., & Oliveira, J. (2014). More than Just a Game: The Power of Social Media on Super Bowl XLVI. Social Networking SN, 03(02), 142-145.
Vorvoreanu, M., Boisvenue, G. A., Wojtalewicz, C. J., & Dietz, E. J. (2013). Social media marketing analytics: A case study of the public's perception of Indianapolis as Super Bowl XLVI host city. J Direct Data Digit Mark Pract Journal of Direct, Data and Digital Marketing Practice, 14(4), 321-328.
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