TAMPA, Fla., Jan. 21, 2009 (GLOBE NEWSWIRE) -- According to PricewaterhouseCoopers LLP (PwC), the economic effects of this year's Super Bowl on the Tampa Bay area will be impacted, relative to prior years, as a result of a scaling back of household and corporate spending. PwC predicts that personal and business spending cutbacks will result in fewer visitors and media, a shorter average length-of-stay per visitor, and less spending in the hospitality and related industries throughout the Tampa Bay area.
PwC estimates that spending by the NFL, businesses, visitors, and the media on lodging, transportation, food and beverage, entertainment, business services, and other hospitality and tourism activities related to Super Bowl XLIII will generate approximately $150 million in direct spending primarily in Hillsborough and Pinellas counties. This estimate is based on a proprietary analysis that takes into consideration characteristics that are unique to this year's event and influence the level of direct spending taking place including the participating teams, host community, economic conditions, and other factors. Excluded from this analysis is the so-called "multiplier-effect," which accounts for successive rounds of "indirect" impacts such as a concession company's purchase of goods from local producers and manufacturers; "induced" impacts, which occur when the income levels of residents rise as a result of increased economic activity and a portion of that increased income is re-spent within the local economy; and leakages, which represent dollars that are withdrawn from the local economy in successive rounds.
The following graphic illustrates the direct spending associated with the event, dating back to the 1998 Super Bowl XXXII in San Diego. This year's event is estimated to generate a level of spending significantly lower than the past two years in South Florida and Glendale and only slightly higher than when the game was last held in Tampa in 2001.
The Super Bowl Direct Visitor Spending graph is available at http://media.primezone.com/cache/8105/file/6484.pdf
"While national economic concerns were prevalent at this time last year, visitor spending in the Greater Phoenix area was bolstered by the participation of two large market teams, unprecedented fan and media interest, and corporate spending which was committed months prior," said Robert Canton, a director in PricewaterhouseCoopers' Hospitality and Leisure practice, focused on the sports and tourism industries.
Canton continued, "Super Bowl plans are typically made six to 12 months or more in advance, so this year is unique in that sponsors and others set their spending budgets during a turbulent economy with an uncertain future. Based on the number of this year's Super Bowl-related events which have either been cancelled or where cutbacks have been announced, it is clear that businesses have found it difficult to ignore their more immediate operating uncertainties and investor demands -- even at the expense of one of America's most popular events."
Under normal market conditions, PwC estimates that the Tampa Bay area could have expected this year's event to generate as much as $180 million in direct visitor spending.
"While spending is down 20 percent from where it would have otherwise been, the ability of the local community to pull off such a major event and still generate $150 million in direct spending, in light of the global economy, is a testament not only to the event but also to the efforts of the Tampa Bay Super Bowl Host Committee, the region's visitor industry, and businesses and volunteers that have come together to create a successful event," said Canton.
About PricewaterhouseCoopers
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 155,000 people in 153 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. The Firm's Sports and Tourism Practice provides strategic, market, and economic analysis & planning for tourism products & destinations.
"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.