Super Bowl 56 In LA May Generate Hundreds Of Millions Of Dollars
INGLEWOOD, CA — It's no secret that economists and city officials love the Super Bowl. Sure, the game might be exciting, but they're more in it for the economic benefit to the region, as the big game often generates hundreds of millions of dollars in economic activity, as fans and big companies pack flights, book hotel rooms and dine at local eateries.
When it comes to Los Angeles, economists at the economic research and consulting firm Micronomics in September published a report that estimated Super Bowl 56 at SoFi Stadium in Inglewood would produce between $234 million and $477 million in economic benefit. That includes tax dollars for the Los Angeles region ranging between $12 million and $22 million, and millions more for the state.
"With the new, state of the art SoFi Stadium and YouTube Theater — which are developing into a mega sports and entertainment hub — Inglewood will benefit financially each time an event takes place," the report said.
But even that estimate — drafted before anyone knew the Los Angeles Rams would play in the big game against the Cincinnati Bengals — might be on the low end.
Other recent Super Bowls have generated more money, and warm, clear weather is expected, allowing enthusiasm to build.
A report released by the Super Bowl Host Committee said the Super Bowl and surrounding events brought about 4,600 jobs to South Florida in 2020. It also generated $572 million in economic activity. That number included job wages, "value-added GDP and output revenues."
“Super Bowl LIV,” the report said, “generated $34.1 million in state and local taxes and $50.4 million in federal taxes.”
Roy Weinstein, managing director of Micronomics, based in Long Beach, told Patch in an email Wednesday night that his firm's estimate of the economic impact might have been too low.
"My sense is that if anything, my study ... is conservative," he said.
Weinstein said excitement has been building as the game approaches, with current temperature forecasts in the 80s. That means the country will see, in his words, "iconic scenes of a beautiful Southern California day in the middle of sub-freezing temperatures back east."
"In the past, this has encouraged additional visits throughout the year," Weinstein said.
Savvy Los Angeles-area residents have also figured out creative ways to make money on the game, too. This includes renting expensive parking spaces in back yards and driveways more than a mile away from the stadium. Eateries are also seeing more business every day from out-of-towners.
To boot, falling coronavirus cases led the state to ease mask mandates, and most pre-game NFL activities were proceeding as planned.
"Each day, increased time is spent by radio and television networks as enthusiasm continues to build," Weinstein said.
The initial report said the Super Bowl was expected to create between 2,200 and 4,700 new jobs in the region, many in the event production and hospitality industries, as well as contracts for regional businesses.
Five industries — transient and ground passenger transportation; hotels and motels; personal care services; full-service restaurants; and limited-service restaurants — were expected to account for more than half of those expected gains.
Below are estimated ranges for visitors, hotel room rates, daytime spending and duration.
Out-of-town visitors: 100,000-150,000
Average nightly hotel room rate: $318.24-$348.75
Average daytime spending per person, per day: $200-$300
Average duration of stay (days/nights): four days, three nights
This article originally appeared on the Los Angeles Patch
