Super Bowl Economic Impact on Las Vegas
The Super Bowl, one of the year’s most popular U.S. sporting events creates a surge in tourism for the host city. This year, Las Vegas, NV will host the “biggest event in American sports,” marking the city’s first time hosting the game and one of the largest events in its history. Las Vegas hotels are set to generate more revenue from the Super Bowl than they did from the Vegas Grand Prix in November 2023, which generated about $220 million.
Las Vegas Overall Economy
The leisure and hospitality sector usually constitutes nearly 30% of nonfarm employment in the market. While the workforce in hospitality and leisure has continued to expand, there is a demand for additional staffing in this sector due to the opening of more large hotels. For instance, the Fontainebleau, with 3,664 rooms, opened in December 2023 and expressed its intention to hire 6,500 employees through listed job fairs.
As one of the nation’s favored destinations, the metro received nearly 41 million visitors in 2023. Ongoing major music and sporting events and the thriving gaming industry fuel the consistent popularity. Nevada has consistently recorded monthly gaming revenue surpassing $1 billion since March 2021, establishing a consecutive record for over 30 months.
Las Vegas continues to expand its tourism-driven projects. The $2 billion Sphere, which opened in September 2023, has the capacity to accommodate up to 18,000 people for music and sports events. Additionally, the metro has broadened its sports presence by welcoming the NHL franchise Vegas Golden Knights in 2017, the WNBA franchise Las Vegas Aces in 2018, and the NFL franchise Las Vegas Raiders in 2020. In 2028, the Major League Baseball owners approved the relocation of the Oakland A’s to Las Vegas, with plans to construct a $1.5 billion baseball stadium on the Las Vegas Strip after acquiring a designated site.
Conventions play a significant role in driving travel to Las Vegas, with the Las Vegas Convention Center (LVCC) ranking among North America’s top trade show destinations. In 2023, attendance for the LVCC reached over six million. Over the past two and a half years, investors have poured a total of $1.4 billion into the convention center. A multi-year, $600 million renovation project began in April, with an expected completion date in 2025. In 2021, the LVCC concluded a $980 million expansion, adding 1.4 million square feet to the West Hall and expanding the facility’s overall footprint to 4.6 million square feet. Additionally, the convention center campus introduced a $52.5 million underground transportation system to connect the various buildings.
Super Bowl Economic Impact
Hosting the Super Bowl isn’t just a celebration of sports; it’s an economic jackpot for the host city. The influx of visitors translates into a surge in revenue for local businesses, hotels, restaurants, and various sectors, providing a significant economic boost.
According to ABC News, the Chiefs vs. 49ers game in Las Vegas is expected to be the most expensive Super Bowl ever. Tickets are averaging several thousand dollars, with the lowest being around $6,563. As for Las Vegas, the city is preparing for over 330,000 visitors to book about 350,000 hotel rooms for Super Bowl weekend, with an estimated economic impact of over $600 million. According to STR, Vegas hotels are expected to earn $504 RevPAR during the big game, outpacing the $390 earned by the Vegas Grand Prix.
Can Las Vegas Handle Another Major Sporting Event?
Organizing an event as extensive and intricate as the Formula 1 race for the first time presented a significant challenge for Las Vegas. The scale of construction, road closures, and the temporary bridge installation for the Las Vegas Strip Circuit created disruptions for locals lasting at least six months. A Las Vegas Convention and Visitors Authority survey revealed that approximately two-thirds of locals felt the closures had a notable impact on their daily commutes.
The construction work was not without consequences for businesses, as some reported a decline in tourists and locals frequenting their establishments due to increased congestion. On January 2, 2024, a group of businesses sent a letter to the Las Vegas Convention and Visitors Authority, Formula 1, and the Clark County Commission, requesting reimbursement for millions in losses attributed to the racing event or threatening a potential class-action lawsuit.
With this in mind, the city must take adequate actions to prepare for the even more extensive event to come.
Taylor Swift’s Appearance Set to Impact Las Vegas Economy & NFL
According to Bank of America, Taylor Swift is nearly as big a deal, economically, to a city as hosting the Super Bowl, and this year, Las Vegas is set to have both.
The connection between Swift and Kelce and her presence at Chiefs games has resulted in a calculated brand value of $331.5 million for the Chiefs and the NFL, as reported in a Quartz analysis.
With this in mind, Swift’s appearance in Las Vegas will likely drive up the high ticket prices on the secondary market, local hotel costs, and merchandise sales. While Taylor Swift’s fans are not the sole factor driving the sales, loyal fans unable to get a ticket may still travel to Sin City in hopes of getting a glimpse of the famous pop star, ultimately benefiting Las Vegas’s economy.
Takeaways
The upcoming Super Bowl will ultimately positively impact Las Vegas and the surrounding area for years to come as visitors promote recent and upcoming developments and attractions. Although hosting football’s biggest Sunday incurs costs, the total revenue generated outweighs the city’s investments. While often temporary, the stimulus of the local economy will create thousands of jobs, and both small and large businesses will benefit from the influx of consumers willing and able to spend.
