The addition of a sports facility to any community, whether privately or publicly funded and developed, launches a number of positive outcomes for the surrounding city, county and region. The economic impact of sports tourism events for travel team tournaments and club competitions are significant revenue generators for area hotels, restaurants, retail stores and more.  The Pinnacle consulting team uses data-driven tools to assess and report on your new recreation/sports facility’s sports tourism impact on the local economy. 

Equally important, a new sports facility enhances local quality of life offerings.  A properly developed sports and recreation facility provides opportunities for youth and adult recreational programming.  Depending on the scope of amenities, it can also provide exercise, leisure and entertainment options for local users of all ages and backgrounds. And, sports facility collaborations open up important partnerships with local schools and other non-profits. 

Economic impact in sporting events can be defined as the net change in an economy resulting from a sport event. The change is caused by activity involving the acquisition, operation, development, and use of sport facilities and services (Lieber & Alton, 1983). These in turn generate visitors’ spending, public spending, employment opportunities, and tax revenue. Specifically, the economic impacts of expenditure are composed of direct, indirect, and induced effects. Direct effects are the purchases needed to meet the increased demand of visitors for goods and services. Indirect effects are the ripple effect of additional rounds of re-circulating the initial spectators’ dollars. Induced effects are the increase in employment and household income that result from the economic activity fueled by the direct and indirect effects (Dawson, Blahna, & Keith, 1993; Howard & Crompton, 1995). 

In the most recent Sports ETA’s 2021 State of the Industry report on sports tourism, the direct spending impact was $39.7 billion broken down between $3.7 billion on spent tournament operations and $36 billion on sports traveler business.  The $39.7 billion of direct spending generated a total economic impact $91.8 billion in the local economy, which supported 635,000 full-time and part-time jobs and generated $12.9 billion in taxes.  

With over 85 years of experience, the Pinnacle teams helps your community determine the economic impact of a new or proposed indoor or outdoor sport complex to quantify the long-term financial value.  Reports and data provided are specific to your project and community, not cookie cutter. Pinnacle works with leaders to understand that local economic impact is more than just the intrinsic sport and recreation value to the immediate sport user groups.   

A sports tourism/economic impact assessment is just one piece of the many components the Pinnacle team can provide for your project from concept to completion.  Understand that it can be a powerful tool when lobbying for, and justifying building a new indoor or outdoor sports complex, or recreational facility.  Ask us how!