May 29, 2018 06:42 PM
Super Bowl LII generated $450 million in local economic activity over the 10-day period leading up to the game, according to figures provided by the Minnesota Super Bowl Host Committee Tuesday morning.
The committee shared results of an economic impact study during an event at the Governor's Reception Room at the State Capitol Building.
The final tally by Pennsylvania-based Rockport Analytics came in $50 million over the company's pre-Super Bowl projections. The study also says the 10 days leading up to the game brought in $32 million in new tax revenue for state and local government.
The firm also based its findings on interviews during Super Bowl week with nearly 1,000 visitors.
"We literally intercepted visitors and asked them questions about where they were from, how much they spent on an array of categories and whether or not they'd come back again," Kenneth McGill of Rockport Analytics said.
MN Super Bowl Host Committee reports Super Bowl 52 generated $450 million in local economic activity over 10-day period. They say it's $50 million more than initial estimate. pic.twitter.com/IOTVjhbwfG— Tom Hauser (@thauserkstp) May 29, 2018
Super Bowl LII was played on Feb. 4 at U.S. Bank Stadium.
According to committee figures and CEO Maureen Bausch, even adjusting for "displaced tourism" during Super Bowl week estimated at $80 million, there was $370 million in "net new spending" in Minnesota. When you factor in an "economic ripple effect" of that $370 million the report pegs the "total economic impact" at $400 million.
She says the Super Bowl will also continue to pay dividends.
"83 percent of people who were visiting Minnesota for the first time intend to come back," Bausch said during a news conference in Gov. Mark Dayton's Reception Room. "83 percent. That's huge."
Economic experts are often skeptical about "economic impact" reports regarding sporting events. University of Minnesota economics expert Dr. Paul Vaaler of the Carlson School of Management says after reviewing the Rockport Analytics report he estimates the actual economic impact to be closer to $50 million to $100 million.
Vaaler uses spending figures regarding hotel rooms as an example. The report says the average Super Bowl visitor spends $608 per day, with an average hotel room cost of $330 per night, about triple the usual rate. He says the hotel profits off those higher rates won't likely stay in Minnesota.
"[The profits] didn't go to the clerks, they didn't go to the cleaners, and they didn't go to the bartenders at those places," Vaaler told 5 Eyewitness News. "They didn't get a 300 to 400 percent increase in wages, instead that went to the shareholders of Hilton, Hyatt and Marriott. And that's great for them, but it's not necessarily something that would enrich the Twin Cities area."
Dayton was on hand for Tuesday's event in which Bausch and Ken McGill of Rockport Analytics provided insights from the study's findings.
U.S. Bank Stadium will host the NCAA men's basketball Final Four next April 6-8. Rockport predicts the tournament will bring $124 million in net spending to the region and $23 million in tax revenue.
KSTP's Tom Hauser is following this story for 5 EYEWITNESS NEWS
The Associated Press contributed to this story
Recent Super Bowl Economic Impact
2018 (Twin Cities)
Pre-event estimate: $407 million
Post-event estimate: $450 million
Pre-event estimate: $450 million
Post-event: $428 million (gross)
Net: $347 million
2016 (Santa Clara) (not Rockport Analytics)
Post-event net: $240 million
2015 (Phoenix) (not Rockport Analytics)
Post-event gross: $720 million
Frank Rajkowski and Tom Hauser
Updated: May 29, 2018 06:42 PM
Created: May 29, 2018 10:58 AM
Copyright 2018 - KSTP-TV, LLC A Hubbard Broadcasting Company