Super Bowl LI will have a net economic impact on Houston of $69 million, which is a small fraction of the city’s economic output but still a welcome boost to its bottom line and, most importantly, its image, BBVA Compass economists say in a new report.
BBVA Compass Chief Economist Nathaniel Karp and his team examine a number of factors they say will have a big influence on the game’s ultimate economic impact, including local residents’ spending and the “crowding out” effect, where some residents may opt to leave town to avoid crowds and congestion. Karp and team say Houston’s lower relative prices, lower population density and lack of zoning restrictions will help increase the positive economic impact on the city, but the biggest benefits may be the intangible ones that bear out over the long term.
The growing diversity of (Houston’s) population and businesses, Southern hospitality, and abundant choices for entertainment, restaurants and shopping will leave fans wanting overtime.
“In terms of the intangibles, the biggest short-term upside is the opportunity to showcase a modern, vibrant and cosmopolitan city, which would dramatically alter the perception for many visitors that think of Houston as a hot, humid and heavily congested concrete jungle,” the economists write. “The growing diversity of its population and businesses, Southern hospitality, and abundant choices for entertainment, restaurants and shopping will leave fans wanting overtime.”
To read the full report, including which teams have the highest probably of winning on Feb. 5, go here: bbva.info/2gwqcCg
Led by Karp, the bank’s research team analyzes the U.S. economy and Federal Reserve monetary policy. For its analyses, the economists create models and forecasts for growth, inflation, monetary policy and industries. The Economic Research team also follows a variety of issues that affect the Sunbelt states where BBVA Compass operates. Follow their work on Twitter @BBVAResearchUSA and @BBVACompassNews.