How SoFi Super Bowl ‘Revenge Spending’ Will Generate Millions For LA – Daily News
Football fans eager to weather the miserable Super Bowl pandemic last winter are expected to spend millions of dollars when the big game hits town in February, a phenomenon a Southland official calls “revenge spending.”
Amid the lingering COVID-19 restrictions and with the Delta variant still in play, it’s difficult to accurately predict a winning entry for Super Bowl LVI.
Study Predicts Los Angeles County To Earn Up To $ 477.5 Million In Economic Benefits, According To Economic research and advice in micronomics. Local coffers could collect up to $ 22 million in tax revenue during the Feb. 13 game at SoFi Stadium in Inglewood.
The company based its estimates on potential visitor participation in the area, average hotel rates, and per-person per day per day spending. He also estimates that the thousands of visitors who will converge on hotels and restaurants in the region could generate 2,200 to 4,700 jobs annually.
Micronomics has recognized that part of the additional tax revenue will be offset by increased costs for municipal services, logistics, transportation, community engagement and other obligations.
The LA County hospitality industry also has everything to gain. The report predicts that 150,000 to 225,000 total room nights will be set aside for the Super Bowl, which is LA’s eighth, with the last taking place in 1993 at the Rose Bowl.
“The short and long term benefits of previous Super Bowls are well documented,” the study says. “These include lasting recognition that comes with unprecedented exposure, community service events before and during Super Bowl week and a significant boost to the regional economy. “
A wait-and-see approach
Inglewood Mayor James Butts is optimistic but cautious about the forecast.
“This is an economic study and projection,” he said. “Cities do the same thing every year. Income and expenses always turn out to be somewhat different in reality and are normally below expectations. “
Butts, who loosely describes SoFi as “the most magnificent stadium in the world,” acknowledged that the economic activity surrounding the Super Bowl will be significant. Yet he takes a wait-and-see approach.
“It will certainly be positive for the county and the region, although it will be necessary to determine who gets what in terms of jobs and tax revenues,” he said. “It should be spread pretty evenly… but we think the proof is in the pudding.”
The report predicts that Inglewood will have a positive economic impact of $ 23-52 million, with $ 900,000 to $ 1.8 million in additional tax revenue and an annual job gain of 350 to 800 jobs.
Super Bowl LVI is expected to draw 100,000 to 150,000 out-of-town visitors to the area, and those staying in hotels, Airbnb units and other accommodations will spend between $ 318.24 and $ 348.75 per night, with average stays of four days and three nights, the analysis says.
Of that number, approximately 9,000 to 10,000 visitors are expected to stay in Inglewood, spending an average of $ 190 per day.
Impacts of COVID-19
Kathryn Schloessman, President of the Los Angeles Super Bowl Host Committee, believes the region will see massive turnout, in part because of this year’s poor performance at Super Bowl LV in Tampa, which was heavily toned down due to restrictions and pandemic mandates.
“About a month and a half before the game, everyone was nervous about going out in public,” she said. “The businesses started to shut down and the big sponsors started to pull out. Basically, all of the events that were supposed to happen before the Super Bowl didn’t happen. “
Schloessman said all the momentum that was supposed to happen in Tampa has shifted to LA
“We call it revenge spending,” she said. “The Super Bowl hasn’t been in LA for a long time and we’ve got this brand new stadium. The sponsors said, “We send our money to Los Angeles. “
Still, the report notes that some fans may be hesitant to travel due to the lingering effects of the COVID-19 pandemic. That, combined with city, state and county guidelines and mandates, could impact the projections, according to the report.
Micronomics also examined the benefits of media exposure, as well as the impacts of philanthropic and community service.
The event’s global stage will inspire thousands of viewers to book future vacations to the region, the report says, and communities will benefit from Super Bowl-related support from the NFL and its regional partners – impacts that have already begun. to take shape in recent months. .