Within the post-pandemic period, the U.S. has seen a surge in dwell occasions and leisure. PwC predicts that 2024 will herald $68.7 billion in income from dwell occasions, together with sports activities — this is a rise from 2019’s pre-pandemic $66.6 billion.
Financial institution of America surveyed greater than 2,000 folks aged 18 or older and located that “stadium occasions” resembling star-studded concert events, sports activities and festivals have proven materials native financial influence.
Whereas cities achieve income by way of ticket gross sales, in addition they obtain a lift in spending at native eating places and bars for pre-show and post-event. Foot site visitors again to native cities may also be pushed once more by reminiscences of memorable main occasions.
The Tremendous Bowl LVII in Phoenix and Taylor Swift’s Pittsburgh live performance yielded spikes in shopper spending for every metropolis and vital boosts per lively family spending in the course of the respective weekends. The report discovered that Phoenix-area eating places and bars noticed a rise of greater than 25 p.c in guests and Pittsburgh noticed a 13 p.c enhance from residents in 2023.
Notably, the Arizona Tremendous Bowl Host Committee estimated the Tremendous Bowl LVII generated revenues of “$1.3 billion in whole financial exercise or gross output for Arizona.” Utilizing the 2022 Arizona GDP as a benchmark, the committee additionally discovered $726.1 million in whole contribution to Arizona’s GDP (roughly 0.15 p.c of total GDP).
Brick-and-mortar in-person retail spending amongst native and non-local lively households in Phoenix elevated over the 2023 Tremendous Bowl weekend. Non-locals spent 7.5 p.c year-over-year — with guests’ whole common retail spend totaling $236 over the weekend, a ten p.c enhance versus the common February weekend month-to-month spending.
In the meantime, Swift’s record-breaking “The Eras” tour had on common 54,000 followers attend every live performance on the primary leg of her American tour. Northwestern College estimates mentioned that shopper spending might generate as much as $4.6 billion for the entire U.S. economic system. Moreover, the Federal Reserve Financial institution of Philadelphia famous that Swift’s tour helped stimulate journey and tourism within the area and made Could the strongest month for lodge income within the metropolis for the reason that pandemic.
Another main dwell occasions such because the Chicago Marathon and South by Southwest in Austin additionally drew in massive crowds. The survey discovered a correlation between elevated spending on native leisure actions resembling museums and theaters.
The report’s authors counsel that with a continued rebound in dwell occasions and no scarcity of demand, shopper spending at dwell occasions will proceed to influence native communities shifting ahead. They proceed within the report that the previous two years have seen spending on providers showcase clear proof of shopper resilience.
Moreover, surges in out-of-home leisure bolstered spending all through 2023. The Bureau of Financial Evaluation confirmed spending (after adjustment for inflation) on classes resembling leisure has continued to achieve over the common shopper spending all through 2023.
One potential motive for this surge in spending is the “revenge spending” phenomenon — customers wish to make up for misplaced time in the course of the pandemic by spending on experiences and leisure, with dwell occasions benefiting probably the most.
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