SF Mayor Newsom & Bay Area Council Economic Institute Announce Release of America’s Cup Economic Impact Report
[Source: San Francisco Mayor Office] Mayor Gavin Newsom today announced the release of a report commissioned by the City describing the economic impacts if San Francisco is named host of the 34th America’s Cup match. The America’s Cup is the world’s third-largest sporting competition, after the Olympics and soccer’s World Cup.
“Securing hosting rights to the America’s Cup is a prestigious and economically significant prize for any community,” said Mayor Newsom. “I am committed to the defense of the America’s Cup in San Francisco.”
The report, titled The America’s Cup: Economic Impacts of a Match on San Francisco Bay, was prepared by The Bay Area Council Economic Institute (BACEI) and Beacon Economics. It provides estimates of the economic impact of an America’s Cup match on the San Francisco Bay. The analysis of economic impacts is based on prior America’s Cups, specifically Valencia, Spain, which hosted the 32 nd and 33 rd America’s Cup regattas in 2007 and 2010, and evaluates direct quantifiable benefits which are unique to the venue of San Francisco Bay.
The report found that the increase in overall economic activity in San Francisco hosting the 34 th America’s Cup could be on the order of $1.4 billion, almost three times the estimated impact of hosting the Super Bowl ($300-$500 million). Additional taxes alone to the City’s General Fund are expected to net more than $13 million, based on more than $24 million in revenue, and an estimated $11 million in tourism related costs. The potential increase in employment surrounding the event could be on the order of 8,840 jobs.
“Bringing the 34 th America’s Cup to San Francisco Bay would be a huge boon for the Bay Area economy,” said Bay Area Council Economic Institute President & CEO Sean Randolph. “The America’s Cup could easily help jumpstart the economy by generating over a billion dollars in revenue and thousands of jobs for the Bay Area. The spillover effect for the region could be substantial.”
Oracle CEO Larry Ellison and his BMW ORACLE Racing won the 33 rd America’s Cup on February 14, 2010, on behalf of the Golden Gate Yacht Club. The club and team are working closely to select the next racing location. They recently announced that San Francisco will be the sole U.S. city under consideration for the next match, scheduled for either 2013 or 2014.
Additional highlights from The America’s Cup: Economic Impacts of a Match on San Francisco Bay include:
- The economic benefits of bringing the America’s Cup to San Francisco would come primarily through expenditures by racing syndicates, and through spending on hotels, restaurants, and retail and other services by both domestic and overseas visitors and Bay Area residents.
- The economic benefits of the race will extend to the greater Bay Area, particularly the neighboring counties of Napa, Sonoma, Marin, and Alameda through related visitor and maritime activity.
- This increase in output and employment would likely yield a benefit to the state and local government coffers of nearly $85 million.
- Looking beyond the Bay Area, California’s economy would see increased economic activity of $1.4 billion and the U.S. economy as a whole would see increased economic activity of $1.9 billion and support an increased creation of 11,978 jobs.
- A local successful defense of the America’s Cup will likely lead to additional such events in the future. San Diego, for example, was the host to three successive America’s Cups in 1988, 1992, and 1995.
San Francisco’s America’s Cup effort has enjoyed generous donations of expertise and resources. The same is true for the report as it was funded by donations from Catholic Healthcare West, Clear Channel Outdoor, Hathaway Dinwiddie Construction, Port of San Francisco, Recology, San Francisco International Airport/San Francisco Convention & Visitors Bureau, San Francisco Chamber of Commerce, United Airlines, and URS Corporation.