IMPLAN Blog

Each year, March Madness transforms host cities into short-term economic hubs, drawing hundreds of thousands of visitors and generating concentrated spending across local economies. While national attention focuses on the Final Four, the early rounds of the tournament generate substantial, measurable economic impacts.

This analysis employs IMPLAN modeling and an average visitor spending estimate of $361.75 per person to assess the economic contributions of early-round games in two major host regions: the men’s tournament in the Indianapolis metropolitan area and the women’s tournament in the Phoenix metropolitan area.

Even without accounting for team expenditures, athlete spending, or games hosted in other cities, the results indicate that early tournament play alone generates significant economic activity, employment, and tax revenue.

Local events that bring communities together for holidays or regional celebrations often become annual traditions deeply intertwined with an area’s identity. In recent years, however, some localities have halted events like holiday parades, block parties, and July Fourth fireworks due to increasing regulations and rising costs. The immediate savings are beneficial. However, the significant, positive effects these events have on local economies are being lost in the process. While few studies exist regarding the impact of non-tourist, community events on economies, the framework exists to reliably analyze their effects. Before jumping into the event analysis methodology however, there are several factors to assess.

This year, fans of the Philadelphia Eagles, the Kansas City Chiefs, and the NFL at large will pour into New Orleans, Louisiana for Super Bowl LIX at Caesars Superdome. While in New Orleans, they will stay in hotels, feast on beer and wings at local bars and restaurants, and shop for souvenirs to take home to their families. Some will pass time on the Bourbon Street before the game while others will visit grocery stores to stock up on tailgating essentials. 

This year, fans of the San Francisco 49ers, the Kansas City Chiefs, and the NFL at large will pour into Las Vegas, Nevada for Super Bowl LVIII at Allegiant Stadium. While in Las Vegas, they will stay in hotels, feast on beer and wings at local bars and restaurants, and shop for souvenirs to take home to their families. Some will pass time on the Las Vegas Strip before the game while others will visit grocery stores to stock up on tailgating essentials. 

This weekend, fans of the Philadelphia Eagles, the Kansas City Chiefs, and the NFL at large will pour into Glendale, Arizona for Super Bowl LVII at State Farm Stadium. While in Glendale, they will stay in hotels, feast on beer and wings at local bars and restaurants, and shop for souvenirs to take home to their families. Some will pass time in the Westgate Entertainment District before the game while others will visit grocery stores to stock up on tailgating essentials. 

I’m sure you’ve heard the cliche “it’s too good to be true?” Well, hosting the FIFA World Cup is too good to be true.