Sunday, February 7, 2010
Super Impact?
Read the article titled: Super Bowl's Economic Impact May be Super Inflated
We watch the commercials. We are amazed at how much someone pays for 30 secs of air time. However, for the cities that host them, what benefits are they receiving? Be ready to discuss in class or share your thoughts on the article here.
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I think that there are benefits to hosting events such as the Superbowl. But like the article said, there are also disadvantages to hosting such a prestigious event. I agree with a statement in the article; those who attend the event are possibly spending less in other areas of the economy. They may choose to pass on a purchase they normally would have made because they are saving up to attend an event.
ReplyDeleteThe major incentive for hosting the Super Bowl is the potential impact on the local economy. This money could be coming from local residents and people coming from out of town to see the game that would not have been spent otherwise such as hotels, restuarants, shopping, taxis, etc. Also the police and fire service that are employed in the city are probably being payed overtime for being at the game and during the week leading up to it while they are getting everything ready, so they are also gaining ecomomic benefits.
ReplyDeleteI do believe that these big events can help out the economy in the hosting city, but there is a comment from the article that I think kind of overrides that idea: "While it's true that hotels jack up their room rates for the big games, the profits they make flow back to their out-of-town owners and not to the economy in the Miami area." Just because people stay at these hotels doesn't exactly mean that the profits are then spent in the area.
ReplyDeleteI think there is always going to be benefits and disadvantages to hosting such a big event. The cost to put a production like this on is HUGE. Everyone wants the biggest and the best event, so they put a lot of money into it. Unfortunately, they a lot of times they don't get back what they put it. However, I have to believe this year was a little different with the Pro-bowl being in the same town. Miami had to have brought in more money from that. People could get tickets to both games and stay the whole week, which would have an impact on not only the "jacked up hotel prices" but the Miami economy as well.
ReplyDeleteI think that overall the host city benefits from putting on an event such as the Super Bowl. People come from all over the world and they are willing to pay a lot of money to have a great experience. I also think that the local residents who buy tickets for the game will still spend what they usually do on other goods and services in the community. Whether the city host of the Super Bowl makes $400 million or $90 million I still think they are benefiting not only with money but exposure as well.
ReplyDeleteI think cities that host big events do benefit from it. People are going to these places not only for the sporting event but, the experiences outside of it. They are willing to spend money as a vacation, especially if they attend both the pro bowl and the super bowl. Cities do put a lot on money in hosting these events, but they are still making some profit out of it.
ReplyDeleteThis year Miami got a hugh boost in revenue because not only did they have the Superbowl, but they were host to the Pro-Bowl a week earlier. The excitement surrounding the superbowl for the two weeks after the Championship rounds is extremely high. Lots of tourist make the trip to interact with NFL superstars, and to watch all the fun and games they put on. Miami got thousands, upon thousands of tourist to come to their city and spend x-amount of money to be a part of history in a matter of speaking.
ReplyDeleteThe benefits that a host city for the Super Bowl recieve are an increase of people who are spending their money within the local businesses. The article argues that much of that money doesn't actually go to the cities economy but instead "the profits flow back to their out-of-town owners." It is very tough to say exactly how much revenue was made because of the Super Bowl in Miami, but regardless we know it had some sort of economic impact to the city.
ReplyDeleteWith an event such as the super bowl there has be benefits because of the magnitude of the event. I aree with what the article said about how it would be a better idea to host the super bowl in a city that isnt sucha tourist attraction. However when people choose to go to events like this they are willing to spend the necessary money to have the most enjoyable experience possible. I think that Miami benefited because, as others have stated, they had two major events in the a two week span.
ReplyDeleteThe benefits of holding a large sport event in any city should be easy to see. Cities and surrounding communities gain a lot from the influx of tourist, camera crews; influential celebrates, and added hype by the media. People and cities want to be associated with what’s going on right now, especially if it attracts a positive light on the city. Super Bowls, Final Fours, and World Series can pump millions more into the small business of cities and that ripple effect can have an impact on an entire region.
ReplyDeleteEric Mareck
I do think that hosting the Superbowl benefits the city hosting it. A big event like that can bring in thousands of tourists especially if the two teams playing are not from the city the Superbowl is being hosted in. Yes people are going to buy tickets to the game, but they are also going to spend money on hotels which I am sure the local economy gets some money from in taxes. They will also spend money on food and drinks while they are there. If someone is going to go all the way to Miami to watch the Superbowl I am sure they will be going for more then just one day and in those extra days they will spend money at local businesses. I don't know if the local economy will benefit by $400 million as the article claims but I am sure it is not a small amount.
ReplyDeleteI think the cities that host the superbowl are receiving benifits from it, however the article indicated that maybe these cities are not benefiting as much as one would think. The article made a good point when it stated that the extra money earned from the superbowl does not go back to the local economy, but to out of town owners. I think it is interesting that no one seems to know how much cities actually benefit. All in all the cities hosting the superbowl benefit, not only with the sales of tickets, but also food, drinks, hotels, and other entertainment, its just a question of how much the actually benefit.
ReplyDeleteI think that the superbowl and other big events may help the economy of host cities but it really depends on where the city is located. Tourists are visiting Miami during this time of the year anyways so it may not have had a huge impact this year. I thought it was interesting that the money gathered from the superbowl might eventually flow back to the out-of-towners, when most people think the money would have a giant impact on the economy of the host city. The hotel and food industries you would think would gain great benefits from an event like the superbowl.
ReplyDeleteIts really hard to judge what an event like this is really going to do for the economy. You know that people are going to be coming into town and spending money. But, are people coming just to watch the super bowl, maybe stay at hotel a night or two, but are they really going to go out and do all the tourist stuff and spend money that way. I found it interesting how in the article it talked about how the money flows back out of town becuase the owners of the hotels live out of town.You almost have to assume that having an event like this that it would have some economic impact on the host city. But who really knows how much it really helps?
ReplyDeleteI do believe that the city that hosts the Super Bowl is in a great situation to make some money. The people that come out have to spend money in the city for the event such as paying for meals, hotels and the local stores. It may be someone’s first experience attending the Super Bowl and they are willing to spend their money in the city because they might not come back. It says in the article that people would come to Miami even if the Super Bowl wasn’t there but if you think about it there are now more people going to Miami for vacation and because of the Super Bowl.
ReplyDeleteEach city that decides to host a huge event is choosing to do so because it benefits them in the long haul if it didn't noone would want to have events of this size held at there facility and city. Yes some big chains and companies are owned by people outside of the city where located so the revenue doesn't always stay in the city but there are a lot of local owners and small bussiness owners that benefit, as well in Miami's case its a tourist destination as well so people view it as not only and event but as a vacation for them and their families so they spend money on things that aren't related to the event like possibly jetskiing, snorkeling or fishing. Oh and of course the venue and facility tends to do alright with the cost of tickets and demand of the event such as the superbowl tends not to have many open seats.
ReplyDeleteI also believe that a city that hosts a Super Bowl is going to generate some revenue. People are going to be willing to spend money for the experience of being there. It is a once in a lifetime opportunity for some people so money will not be an issue. But i do also agree with the acticle when they talk about how it is hard to determine exactly how much because even if the Super Bowl wasnt there, there would still be out of towners there in february.
ReplyDeleteAn event deffinately brings in revenue because of tourism. It helps out a lot of private businesses. I believe that there might not be a showing of positive of the event helping the public sector because it could be that Florida spends a lot of money to advertise their state to tourist. For the residents they might not get to benefit from the event because of where the money is being decided to be spent on.
ReplyDeleteThe Super Bowl, whether intended to produce revenue for the city hosting it or not, it is still a very big event that needs a host city and a host facility. So what if it only produces 90 mil instead of 400 mil. That is still a hell of a fundraiser. I am of the opinion that even if hosting the Super Bowl produces less revenue than predicted it is still well worth the hassle for a city to host the event.
ReplyDeleteTheir product gets a national awareness boost. If over 100 million people watch the super bowl then a lot of times they are spending less than a dollar for each person viewing their ad. Most times that is a pretty good investment. We also saw political issues come in to play this year with Tim Tebow's commercial. This may start a trend for ads that are not products in the future. On top of all of this a lot of people watch it for just the commercials and not the other way around like most times
ReplyDeleteI guess I pretty much agree with what most students are saying...that the host city definately benefits from hosting such a huge event. Again people plan on this event a year ahead of schedule and save up for these moments and they expect them to be GREAT! But even after cost I believe these cities come out with revenue. Definately beneficial for the hosting city...especially with soft taxes!
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