The Economic and Social Benefits of
Adding a Sports Facility
Positive Outcomes for Communities
The addition of a sports facility to any community, whether privately or publicly funded, can lead to numerous positive outcomes for the surrounding area. The economic impact of sports tourism events, such as travel team tournaments and club competitions, generates significant revenue for local hotels, restaurants, retail stores, and more. Our consulting team uses data-driven tools to assess and report on your new recreation or sports facility’s impact on the local economy.
Improving Quality of Life
A new sports facility also improves local quality of life by providing opportunities for youth and adult recreational programming. Depending on the amenities, it can offer exercise, leisure, and entertainment options for people of all ages and backgrounds. Moreover, sports facility collaborations can foster important partnerships with local schools and other non-profits.
Understanding Economic Impact
Economic impact in sporting events is defined as the net change in an economy resulting from a sports event. This change is caused by activities involving the acquisition, operation, development, and use of sports facilities and services. These activities generate visitor spending, public spending, employment opportunities, and tax revenue. Specifically, the economic impacts of expenditure are composed of direct, indirect, and induced effects:
Direct Effects:
Purchases needed to meet the increased demand of visitors for goods and services.
Indirect Effects:
The ripple effect of additional rounds of re-circulating the initial spectators’ dollars.
Induced Effects:
The increase in employment and household income resulting from the economic activity fueled by the direct and indirect effects.
In the most recent Sports ETA’s 2021 State of the Industry report on sports tourism, the direct spending impact was $39.7 billion. This includes $3.7 billion spent on tournament operations and $36 billion on sports traveler business. The $39.7 billion of direct spending generated a total economic impact of $91.8 billion in local economies, supported 635,000 jobs, and generated $12.9 billion in taxes.
Our Experience and Expertise
With over 85 years of experience, we help communities determine the economic impact of new or proposed indoor or outdoor sports complexes to quantify their long-term financial value. Our reports and data are tailored to your specific project and community. We work with leaders to understand that local economic impact goes beyond the intrinsic value to immediate sport user groups.
Powerful Tools for Your Project
An economic impact and sports tourism assessment is a powerful tool when lobbying for and justifying the construction of a new indoor or outdoor sports complex or recreational facility. Our team provides comprehensive support from concept to completion.
Consulting Services
- Sports Tourism Assessment
- Sports Facility Needs Analysis
- Municipal Needs Assessment
- Market Feasibility Study
- Indoor Sports Facility Business Plan
- Expert Consulting
Contact Us
For more information on how our sports consultants can help determine your community’s needs and the economic impact of your project, call us at 502-632-6799