Pre-Event Estimate of the

Economic Impact of Super

Bowl LI on Greater Houston

Net Contribution to Jobs, GDP, Wages, & Tax Receipts

Kenneth McGill
Jon Gray
Prepared for:

Rockport Analytics

Houston Super Bowl Host Committee

August 2016

Ken.mcgill@rockportanalytics.com
+1 (610) 213-2558

Super Bowl LI February 5, 2017

How Will SBLI Benefit

the GH Economy?

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

Preliminary Economic Impact of SB LI:

Executive Summary
Super Bowl LI will bring an estimated $450 million in new
spending to Greater Houston. This windfall will originate
Super Bowl LI Bottom Line*
from the local travel spending of about 138,000 expected
For the Greater
visitors and an estimated $126 million of local
SB LI Gross
SB LI Net**
Houston MSA:
game/broadcast/event operations expenditures. About
Incremental Incremental
in millions of $ unless
$78 million in regular tourism activity will be displaced by
Contribution Contribution
otherwise noted
SBLI, however, resulting in net incremental spending of
SBLI-initiated
$450.4
$372.1
$372 million.
Spending
Economic Impact:
Adding together the direct, upstream, and downstream
Contribution to
impacts, Greater Houston will receive an estimated
GDP
economic boost of about $419 million, during which over
Jobs Supported
5,840 full and part time jobs will be supported paying
Wages Paid
wages of nearly $264 million.
Total Tax Receipts

SBLI-initiated state & local tax receipts will result in an

estimated windfall of over $57 million for the Texas state
and Greater Houston municipal governments. Even after
netting the value of regular tourism displaced by SBLI, the
gain to Texas and Greater Houston tax receipts will total
nearly $45 million.

Federal
State
Local
State & Local

$418.7

$349.9

5,840
$263.7
$130.2
$62.5
$23.6
$33.7
$57.3

4,770
$220.1
$107.5
$52.4
$18.5
$26.3
$44.8

Source: Rockport Analytics

* w/o sales taxes on game tickets

** After subtracting the value of tourism displaced by SBLI

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

SBLI Will Attract About 138,000 Visitors to

Greater Houston
Composition of Estimated SBLI Visitors
to Greater Houston
Tickets

76,500

55%

Non-game Visitors

19,100

14%

400

0.2%

30,000

22%

3,600
8,400
138,000

3%
6%
100%

Team Personnel
Non-Local Credentialed
Support Staff
Non-Local Media
Other
Total Non-Local Visitors

SBLI will bring over 138,000 visitors to Greater

Houston over a 10-day period even though only
76,500 will have tickets

Over 550,000 visitor-days will be generated by SBLI

comprised of 422,000 overnight stays and 128,000
daytrips*

SBLI visitors will generate an estimated 262,000

room nights over the 10-day Super Bowl period
with an average daily room rate of just over $300
per night. For all of 2015, Smith Travel Research
estimates over 20 million room nights for the
Houston MSA.

Houston possesses just over 51,000 hotel rooms.

Expand the geography to the Houston-BaytownSugarland MSA and another 32,000 rooms are
available for the Super Bowl. While not every room
will be occupied by a SBLI visitor, past experience
suggests that the overwhelming majority will be
called into use.

* A daytrip includes visitors who do not stay overnight but travel at least 50 miles one way
Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

Super Bowl-Initiated Spending Will Exceed

$450 Million
Super Bowl LI Will Bring Substantial
New Spending to Greater Houston
Game Attendee/Visitor*
Events Operations
Game, Broadcast Operations
and Promotion
Other
Total SB LI-Initiated Spending

An estimated 138,000 non-resident visitors will come to Houston for

SBLI and spend nearly $324 million

About 48% will stay overnight for an average of 4.1 nights generating
over 262,000 room nights across Greater Houston

in millions of $

$323.9

72%

Greater Houstons approximately 51,000 rooms will see occupancy rates

soar and average daily rates breach the $300 level

$26.9

6%

$68.6

15%

SBLI visitors will spend an average of $600 per day in the Greater
Houston area. Typical Texas tourism spending averages about
$130/day*

$30.9
$450.4

7%
100%

Game Attendee /
Non-Resident Visitor Spending

* Excludes the value of SBLI ticket purchases. Those expenditures are

assumed to leave Greater Houston and Texas.

Non-Resident Visitor Spending

Retail & Shopping
Hotel
Food & Beverage
Rental Car & Commercial Vehicle
Entertainment
Other Ground Transportation
Other e.g. travel arrangement,
laundry, other personal services

Total Attendee/Visitor Spending

Super Bowl LI
Spending
(in thousands)
$78,383
$78,986
$78,226
$24,035
$29,858
$18,560

Ground
Transportation
(ex Rental Car)
6%
Entertainment
9%

Rental Car)
6%

$323.9 million
Other
5%

Food &
Beverage
24%

Retail &
Shopping
24%

Hotel
25%

$15,900
$323,947

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

* The Office of the Governor, Economic Development & Tourism Office 2014

SB LIs Economic Impact

Total Super
Bowl LI
Spending

Total Expenditures

$450 million

Value to
Houston
Economy
Impact on
Houston
Businesses

Economic
Impact

$419 million
Direct Impact

$243 million

Industries directly providing

goods and services to Houston
visitors
e.g. Restaurants
Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

Import
Leakages

$31 million

Goods and Services

from outside Greater
Houston
e.g. SB souvenirs

Indirect &
Induced Impact

$176 million
Industries providing goods and
services to front-line businesses
e.g Food Distribution
6

SB LI Will Make a Substantial Contribution to the

Houston and Texas Economies
2017 SB LI Gross* Economic Impact Summary
Super Bowl LI Economic Impact
Metric
Total Incremental Spending (in thous $)
Value-Added (GDP) (in thous $)
Wages (in thous $)
Jobs (Full Time and Part Time)
Tax Receipts (in thous $)
Federal Taxes
State Taxes
Local Taxes

Indirect

Induced

(Supply Chain)

(Income)

$450,443

$243,263
$158,482
4,020

$88,451
$55,075
870

$86,941
$50,131
950

$418,655
$263,688
5,840
$119,842
$62,538
$23,583
$33,721

Direct

Total

* Includes all gross incremental and non-resident spending associated with SBLI. Taxes have not been reduced for any granted
exemptions. Source: Rockport Analytics, IMPLAN, Houston SB Host Committee, NFL, Minneapolis SB Host Committee

Direct Impact accrues to those Houston businesses that directly serve SB LI game
attendees, visitors, and out-of-town staff; plus businesses directly involved with hosting
the game and its many related events.

Indirect Impact benefit to the many local upstream firms that populate the supply
chain of SB LI direct businesses

Induced Impact both direct and supply chain businesses pay wages to their workers.
Much of these local wages will be spent in Greater Houston at business that provide a
broad range of consumer goods and services.

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

Even After Netting Out Displaced Tourism

SBLIS Contribution Remains Impressive
Super Bowl LI Bottom Line
For the Greater Houston
Area:
in millions of $ unless otherwise
noted

Total Gross Spending

Super Bowl LI Displaced

Gross
Tourism
Contribution
Offset

Super Bowl LI
Net
Incremental
Contribution

$450.4

($78.4)

$372.1

$418.7
$243.3
$88.5
$86.9

($68.7)
($40.4)
($14.7)
($13.6)

$349.9
$202.9
$73.7
$73.4

Displaced tourism is projected using GHCVB

and Texas Tourism Division estimates of
annual visitor spending adjusted for typical SB
week tourism across Greater Houston.
All regular tourism in Harris County is
assumed to be displaced by SBLI while
tourism in the remaining parts of Greater
Houston was assumed to be 65% displaced.

Total Economic Impact:

Contribution to GDP
Direct Impact
Indirect Impact
Induced Impact
Jobs Supported (# FTEs)

5,840

Contribution to Area Payrolls

$263.7

Total Tax Receipts

Federal
State
Local
Net State & Local

$119.8
$62.5
$23.6
$33.7
$57.3

(1,070)
($43.6)
($22.8)
($10.1)
($5.1)
($7.4)

4,770
$220.1
$97.2
$52.4
$18.5
$26.3
$44.8

Includes both full and part-time

workers

Total estimated gross state & local taxes

initiated by SB LI are reduced to account
for tax receipts from typical tourism
activity for late Jan-early Feb assumed to
be displaced by the game and its events
(middle column)

Source: Rockport Analytics, Houston Super Bowl Host Committee

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

SB LI Fiscal Contribution is Impressive

Greater Houston Super Bowl LI Tax Overview
in thousands of dollars
Gross
Contributions

Federal Taxes Collected Total

Impact
State Taxes Collected Total Impact
Hotel
Sales
Rental Car Gross Receipts
Mixed Beverage Gross Receipts
Other State Taxes & Fees

Local Taxes Collected Total Impact

City/County Hotel
Harris County Sports Authority
Local Sales Taxes
Rental Car Airport Concession Fee
Property Tax Allocation
Other Local Taxes & Fees

Total Gross Super Bowl LI-Initiated Taxes

Displaced
Tourism

Net
Contribution

$62,538

-$10,124

$52,413

$23,583

-$5,104

$18,479

$4,815

-$1,146

$3,669

$13,374

-$2,854

$10,520

$2,090

-$506

$1,585

$387

-$92

$295

$2,916

-$450

$2,410

$33,721

-$7,419

$26,302

$7,223

-$1,719

$5,504

$2,803

-$635

$2,168

$4,280

-$1,143

$3,137

$1,459

-$353

$1,106

$17,176

-$3,444

$13,732

$780

-$124

$655

$119,842

-$22,647

$97,194

$57,304

-$12,523

$44,781

State and Local Taxes Analysis:

Incremental Super Bowl LI-Initiated State &

Local Taxes

State & Local tax totals also include other

tax types such as corporate income (state)
and property (local). These are derived by
the IMPLAN economic model of Greater
Houston
Transaction taxes are estimated using
spending by category and appropriate
tax rates less any exemptions (i.e. sales
tax on certain grocery store food
purchases). Note: sales tax on game
tickets has been omitted.
Property taxes represent a prorated portion
of total annual collections* from business
and households across GH. They are
estimated using SB-initiated revenue
(commercial) and wages (residential).
Property taxes are estimated within the
IMPLAN model.
Normal tourism-initiated taxes for a typical
10-day period in late January-early February.
These receipts are assumed to be displaced
by Super Bowl LI.

* As reported in the Annual Survey of State and Local Government Finances, U.S. Census Bureau

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

SBLI-initiated State & Local Taxes by Source

Super Bowl LI Texas Net State Tax
Receipts
Total = $18.5 million

Corporate
Income
0%

Social
Insurance
Taxes
1%

Super Bowl LI
Net Local* Tax Receipts by Source
Total = $26.3 million
Rental Car
Airport Local Sales Tax
Concession
12%
Fees
4%

Other Business
Taxes
8%

Other
Licenses, Fines
& Fees
2%

City/County
Hotel Tax
21%
Harris County
Sports
Authority
8%

Texas Hotel
Tax
20%
Sales Taxes
56%

Other HH
Taxes & Fees
5%
Mixed
Beverage Gross
Receipts Tax
2%

Rental Car
Gross Receipts
Tax
8%

Source: Rockport Analytics, IMPLAN, Texas Comptroller of Public Accounts

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

Property Taxes
53%

* HoustonSugar LandBaytown Metropolitam Statistical Area

Source: Rockport Analytics, IMPLAN, Texas Comptroller of Public Accounts

10

What Does GH Get to Keep and How Will Local

Sectors & Businesses Benefit?
Net SBLI-Initiated ValueAdded by Sector
(in thousands of current $)

Total Net GDP Contribution

11 Ag, Forestry, Fish & Hunting
21 Mining
22 Utilities
23 Construction
31-33 Manufacturing
42 Wholesale Trade
44-45 Retail Trade
48-49 Transpo & Warehousing
51 Information
52 Finance & Insurance
53 Real estate & Rental
54 Professional- Services
55 Management of Companies
56 Administrative Services
61 Educational Services
62 Health & Social Services
71 Arts,Entertainment & Recreation
72 Accommodation & Food Services
81 Personal Services
92 Government

Direct Visitor
& Game
Operations
$ 202,856.3
$
$
$
933.2
$ 1,575.9
$
569.2
$
223.9
$ 14,442.7
$ 9,439.9
$ 5,524.3
$
378.1
$ 12,555.8
$ 12,189.6
$ 16,253.8
$ 26,014.1
$
$
$ 18,462.2
$ 72,248.9
$ 9,623.2
$ 2,421.5

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

Indirect
(Supply
Chain)
$73,703.6
$
58.5
$ 1,725.8
$ 3,975.9
$ 1,925.7
$ 2,717.2
$ 3,480.1
$ 2,250.5
$ 3,733.9
$ 3,834.5
$ 5,120.7
$12,872.0
$11,625.6
$ 3,964.6
$ 7,240.5
$ 157.2
$
8.3
$ 4,362.0
$ 1,440.5
$ 2,967.7
$ 242.4

Induced
(Income)
$73,364.6
$
81.8
$ 1,059.4
$ 2,085.2
$ 873.7
$ 1,850.5
$ 4,476.8
$ 6,982.0
$ 2,146.7
$ 2,358.4
$ 5,963.2
$16,041.7
$ 4,005.3
$ 1,001.0
$ 2,627.2
$ 1,559.2
$10,836.6
$ 1,087.0
$ 4,003.3
$ 4,019.2
$ 306.4

Total
$349,924.5
$
140.4
$ 2,785.2
$ 6,994.3
$ 4,375.3
$ 5,136.9
$ 8,180.8
$ 23,675.1
$ 15,320.5
$ 11,717.1
$ 11,462.0
$ 41,469.5
$ 27,820.5
$ 21,219.4
$ 35,881.8
$ 1,716.4
$ 10,845.0
$ 23,911.3
$ 77,692.8
$ 16,610.1
$ 2,970.2

Value-Added essentially
describes SBLI-initiated
revenue that will be
retained in Greater
Houston
The Direct amount (2nd
column) will accrue to
businesses that will
either serve visitors or
participate in hosting
SBLI
Indirect (3rd column)
describes revenue that
will accrue to GH supply
chain businesses.
The Induced (4th
column) measures
revenue that will accrue
to businesses from the
spending of wages paid
to SB workers

11

SBLI Estimated Impact In Range With Past

Results
Super Bowl Economic Impact Estimates
1989-2018

in millions of $ of Total Economic Impact (GDP)

$750

Why the Broad Range?

Phoenix

$650
New York

$550
New Orleans
Miami

Miami

Miami

$450

Different authors, methodologies, data integrity -some

more conservative than others

Estimates vs. Hard Data: Level of cooperation from NFL,

Fox, ESPN, corporate sponsors, municipal authorities, etc.

Time: inflation naturally lifts the value of all visitor &

operations spending

Relative Cost of Living -GHs cost of living is higher than

some other host cities (e.g. Detroit, Indianapolis)

Houston previously hosted Super Bowl XXXVIII in 2005

economic impact estimated @ $317 million ($385 million
in todays dollars)

Houston SBLI

New Orleans
San Diego
San Diego
Tempe
New Orleans

$350

Atlanta
Miami

Pasadena

New

Phoenix
Miami

$250

Detroit
Dallas

Jacksonville

Tampa

Indianapolis

Houston

Tampa

Minneapolis

Atlanta
$150

Minneapolis
1988
1993

1998

2003

2008

2013

2018

Source: University of New Orleans, Coates and Humphreys, UCLA/LA Sports Council, Price waterhouse Coopers,
Depken and Wilson, Rishe, Greater Miami Convention and Visitors Bureau, San Diego Citizens Task Force, Rockport Analytics
Houston SBLI and Minneapolis SBLII are pre-event estimates. Source: Rockport Analytics

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

Year
2010
2011
2012
2013
2014
2015
2016
2017
2018

Super
Bowl
XLIV
XLV
XLVI
XLVII
XLVIII
XLIX
50
LII
LII

Host City

Economic
Impact
(in millions $)

Miami
Dallas
Indianapolis
New Orleans
New York
Phoenix
San Francisco
Houston*
Minneapolis*

$
$
$
$
$
$
$
$

333
200
324
480
600
719
n/a
419
404
12

SBLI Economic Impact Approach

1.
2.
3.
4.
5.
6.

Estimate SBLI-initiated game attendee/visitor spending

Gather/estimate SBLI GH game, event & broadcast operations spending
Translate incremental spending into economic impact for GH & TX
Calculate SBLI-initiated state & local taxes
Estimate displaced tourism impact & subtract it from gross SBLI impact
Derive and monetize softer benefits of SBLI value of media,
convention/meetings lift, return visitation, etc.

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

13

Objective: Estimate Expected Economic

Impact of SB LI
Task

Methodology/Approach

Data Sources

Indianapolis, Dallas, New Orleans, and San

Diego studies
Smith Travel Research
GHCVB, Texas Economic Development &
Tourism Division
D.K. Shifflet & Associates (DKSA)
US Census Bureau, BLS
Past NFL, Media, & Corporate expenses

Estimate SBinitiated Visitor

Spending

Past studies of game attendee/visitor spending were used to derive likely SB

LI outlays on hotel, F&B, rental car, shopping, etc. Estimates of total expected
SB visitor volume was derived using stadium capacity, past surveys of game
attendee-to-total visitor ratios, and Greater Houston hotel room inventory.
Spending per diems were adjusted for: (a) cost-of-living differential between
Houston and other host cities and (b) overall inflation by category to 2017.

Estimate SBinitiated Greater

Houston Game &
Event Operations
Spending

Each major operations entity was estimated using two approaches: (1)
imputing Houston using past SB data covering individual line item expenses
and (2) direct input from the Houston Host Committee budget. Organizations
include NFL, ESPN, various corporate sponsors, municipal authorities, CBS,
local airport authorities, and local DMOs.

Translate
spending into
economic impact
on Greater
Houston

Spending streams for visitors and operations by detailed category are

inputted into the latest (2014) IMPLAN economic model of the Greater
Houston metropolitan statistical area. Contributions to GDP, jobs, wages, and
taxes are estimated by the model. IMPLAN is a non-proprietary model of the
regional economy that is widely used by to assess the economic impact of
public and private investments.

Calculate Texas &

Greater Houston
taxes

Taxes directly applicable to visitor & operational transactions are calculated

using the categorical spending described above against appropriate current
tax rates less any exemptions (e.g. sales tax on many grocery items)

Texas Office of the Comptroller

Collection of key tourism taxes and rates

Estimate
displaced tourism
& calculate net SB
LI impact

SB LI will displace regularly occurring tourism during Jan-Feb 2017. This

tourism impact was estimated and subtracted from the gross SB LI impact
calculations mentioned above towards a net contribution. Displaced tourism
was estimated by prorating regular annual tourism spending for the winter
season using past studies and Houston hotel data to derive the 10-day late
Jan-early Feb proportion of average spending.

Texas tourism visitor profile and tourism

spending estimates
DKSA Houston trip budget averages
STR daily hotel activity during Jan-Feb
IMPLAN model of Greater Houston
GHCVB estimates of typical group meeting
business during late Jan-early Feb

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

Indianapolis, Dallas, New Orleans studies

Indianapolis, Dallas, Arizona Host
Committee reported expenses
Minneapolis Host Committee Budget
Houston Host Committee budget

IMPLAN (www.implan.com)

14

About Rockport Analytics

Rockport Analytics is a research and analytical consulting
firm providing high quality quantitative and qualitative
research solutions to business, government, and non-profit
organization clients across the globe. We provide fast,
nimble service in a completely transparent environment.
Capabilities include:
Market Analysis and Forecasting
Economic Impact Assessment, Tourism Satellite
Accounting, and Economic Development
Market Modeling and Decision Support Tools
Project Feasibility Assessment
Primary and Secondary Research Synthesis
Stakeholder Surveys internal & external
Recent client examples include: Minneapolis Super Bowl
Host Committee, the Orange Bowl Committee, U.S. Travel
Association, Global Business Travel Association, MPI,
Indianapolis Super Bowl Host Committee, Delaware Tourism
Office, Indiana Office of Tourism Development, Boeing, Visa,
American Express, Carson Wagonlit, IHG, Annapolis CVB

Copyright 2016 Rockport Analytics, LLC. All Rights Reserved.

Rockport Analytics LLC

West Chester, PA
web: rockportanalytics.com
email: info@rockportanalytics.oom
phone: (866) 481-9877

15