Super Bowl LIX in New Orleans : Economic Impact Analysis

Introduction

Super Bowl LIX, which took place in 2025 at the Caesars Superdome in New Orleans, had a considerable economic impact on the city. This report examined the effects of the event by analyzing job creation, revenue generation, and sector-specific impacts. The analysis focused on direct spending by visitors, the resulting indirect spending through supply chains, and induced spending from increased income. Historical precedents, including economic outcomes from previous Super Bowl events in New Orleans, formed an integral part of the framework used for these projections.

The projections indicated substantial public and private investments in local infrastructure and services, potentially driving economic growth for years to come. Specifically, Super Bowl LIX was anticipated to create approximately 4,500 jobs and generate around $450 million in direct spending for the host city. For comparison, Super Bowl XLVII in 2013 generated approximately $480 million in direct spending. However, while the overall benefits appeared promising, some stakeholders suggested that short-term gains did not necessarily translate into long-term economic stability, given historical data and the observed tendency for the economic boost from such events to diminish over time without sustained investment and strategic planning.

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Venue and Preparations

The Caesars Superdome, the venue for Super Bowl LIX, had recently undergone a $560 million renovation, with $90 million contributed by government subsidies. This investment aimed at modernizing the facility and enhancing the overall fan experience. Key improvements included updated concourses, new club lounges, enhanced suites, upgraded technology, and improved accessibility features. Technological enhancements encompassed improved Wi-Fi connectivity, LED lighting systems, upgraded video boards, and advanced sound systems, aligning the Superdome with other recently renovated facilities. Although the renovation reduced the seating capacity from 73,208 to 70,000, it was expected to significantly enhance visitor experience and drive increased attendance.

Additionally, the project created approximately 2,300 construction jobs and was projected to generate $10 million in new tax revenue annually. Over the following 15 years, these enhancements were anticipated to contribute approximately $400 million in economic impact. Comparative case studies of similar large-scale stadium renovations underscored the long-term benefits: the Mercedes-Benz Stadium in Atlanta, Georgia, with a renovation cost of $1.6 billion estimated to generate $4 billion over 30 years, and SoFi Stadium in Inglewood, California, costing $5 billion and projected to have an economic impact of $6 billion over 20 years. These cases highlighted the potential for job creation, increased revenue, local economic boosts, property value enhancements, and growth in tourism.

Economic Projections

Overall Impact

Initial estimates suggested that Super Bowl LIX provided a local economic boost of at least $500 million to New Orleans. This projection was derived from increased spending on accommodations, food, drink, and entertainment. The methodology for estimating the economic boost encapsulated:

1. Direct Spending: Expenditures made by visitors on hotels, restaurants, transportation, and entertainment.
2. Indirect Spending: Subsequent rounds of spending by businesses that benefited from the initial direct spending.
3. Induced Spending: Additional economic activity generated by the increased income of local workers who benefited from both direct and indirect spending.

The total economic impact was determined by summing these three components. Opportunity costs and leakages — factors contributing to money exiting the local market — were also taken into account. Opportunity costs included the potential revenue lost from regular tourists who might avoid the city due to the event, while leakages referred to the portion of spending that went to non-local businesses or suppliers. Comparative analysis with other major events further supported these projections.

In terms of contributions to the total $500 million economic boost, direct spending was the largest component, accounting for approximately 60% of the total. Indirect spending contributed around 25%, while induced spending made up the remaining 15%. These figures were derived using a combination of surveys, data from local businesses, and economic models such as input-output models and computable general equilibrium models.

The methodologies used to estimate the economic impact of Super Bowl LIX were consistent with those used for other major events. These included data collection from local businesses, hotels, and event organizers, as well as the use of economic multipliers to estimate the total impact from re-spending within the local economy. Visitor estimates and average spending patterns were also key components of the analysis.

Long-term economic impacts observed in New Orleans following Super Bowl LIX included sustained job creation and growth in local businesses. The influx of visitors and media attention helped to boost the city’s profile as a tourist destination, leading to increased tourism in the years following the event. Additionally, the improvements made to local infrastructure in preparation for the Super Bowl had lasting benefits for the community.

When compared to other recent Super Bowls, the economic impact of Super Bowl LIX in New Orleans was significant. For example, Super Bowl LIII in Atlanta generated an estimated $350 million, while Super Bowl LIV in Miami had an estimated impact of $572 million. The economic impact of Super Bowl LIX was influenced by factors such as the city’s location, local infrastructure, and the overall appeal of New Orleans as a tourist destination.

Visitor Spending

The event attracted approximately 125,000 visitors, projected to spend around $200 million over a two-day period, with each visitor estimated to have spent an average of about $300 on food and drink alone. Historical data from previous Super Bowls, such as the $480 million economic impact from Super Bowl XLVII in 2013 and the $292 million impact of Super Bowl XXXVI in 2002, reinforced these projections. However, actual post-event data reported visitor spending of $450 million, which is lower than the projected spending of $500 million.

Job Creation

Super Bowl LIX was estimated to have created over 5,000 jobs in New Orleans. The employment boost spanned multiple sectors — including hospitality, transportation, security, retail, and media — due to the increased demand for staffing during the event’s buildup. These positions ranged from temporary roles related to the event to more permanent job opportunities, contributing significantly to local economic stability. Unfortunately, specific data regarding job creation by sector, opportunity costs, or leakages associated with Super Bowl LIX was not available.

Tourism Impact

Tourism, which constituted 40% of the city’s tax revenues, benefited considerably during the Super Bowl period. Key hospitality metrics were projected to improve:

• Revenue per Available Room (RevPAR) was forecasted to rise by 5.9%.
• Average Daily Rate (ADR) was expected to increase by 5.6%.

Historical trends from similar-sized cities hosting major events suggested that these increases would further boost hotel occupancy rates, enhance overall city branding and media exposure, and stimulate local business revenues. However, actual data on these metrics from Super Bowl LIX remains unreported. Further research is needed to ascertain the precise changes in RevPAR and ADR, the impact on hotel occupancy rates, and the identification of local businesses that experienced significant revenue boosts. Additionally, the long-term effects on tourism tax revenues, city branding, and media exposure require comprehensive analysis to assess the sustainability of these benefits.

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Sector-Specific Impacts

Hospitality and Food Service

Local hotels and restaurants experienced considerable benefits from the event. Hotel occupancy rates ranged between 90% and 95%, potentially driving hotel-motel tax revenues to an estimated $200 million, supported by historical data from previous Super Bowl events in other cities. For instance, Atlanta collected approximately $26 million in hotel-motel tax revenue during Super Bowl LIII, and Houston saw an increase to around $28 million during Super Bowl LI. Similarly, bars and restaurants experienced about a 20% increase in sales compared to previous years, bolstered by the influx of visitors and various event-driven promotions. These increases were consistent with trends observed during other major events in the city, where sales boosts typically ranged from 20% to 50%.

Retail

Despite potential short-term challenges — such as a 5.71% decline in retail sales during previous Super Bowl weeks owing to economic downturns, shifts in consumer spending habits, competition from online retailers, and recent supply chain issues — the overall impact on retail was anticipated to be positive because of the expected increase in tourist activity. Mitigation strategies, including targeted marketing campaigns, special promotions, and collaborations with local businesses, were planned to counteract any negative trends. These approaches had proven effective in past events, stabilizing sales and enhancing customer engagement.

Small Businesses

The impact on small businesses was predicted to be varied. Establishments in highly frequented areas like the French Quarter and Uptown experienced record sales and increased customer traffic, while those in less frequented locations faced challenges. To level the playing field, strategic measures such as enhanced local advertising, involvement in event-based promotions, and partnerships with larger enterprises were expected to provide additional visibility and benefit small businesses. Specific measures included leveraging social media, offering exclusive promotions, and improving online shopping experiences, which were identified as successful strategies to boost visibility and sales.

Economic Impact of Renovation

The $560 million renovation of the Caesars Superdome was estimated to have an additional economic impact of around $450 million on the local economy. Focusing on modernizing the venue and enhancing the fan experience, the renovation was expected to create approximately 1,500 construction jobs and contribute to sustained revenue generation in the region. Long-term projections indicated that these improvements could generate about $10 million annually in new tax revenue, further boosting the local economy and attracting more events to the city.

Challenges and Considerations

Despite the optimistic projections, some experts argued that the financial benefits of hosting the Super Bowl might have been overstated. They contended that while sectors such as hospitality and retail experienced short-term revenue increases, the long-term economic impact remained uncertain due to factors like the displacement of regular tourism and the high associated hosting costs. Empirical data suggested that although the event generated immediate increases in spending and employment, sustained growth was not guaranteed. For instance, studies indicated that the influx of Super Bowl attendees might displace regular tourists, leading to a net economic impact that could be less than anticipated. Moreover, the detailed cost components associated with hosting the Super Bowl — such as stadium preparation, security measures, transportation improvements, and marketing — often outweighed the short-term revenue increases in sectors like hospitality and retail.

Efforts were also directed towards ensuring that underrepresented businesses benefited from the event. Programs such as the Supplier Diversity initiative aimed to provide minority-owned, women-owned, veteran-owned, LGBTQ-owned, and disabled-owned businesses with greater access to event-based procurement opportunities. Key outcomes from this program included the participation of over 200 diverse businesses and more than $5 million spent with diverse suppliers, promoting broader economic inclusion in sectors such as construction, catering, and event services. Specific metrics used to measure the success of the Supplier Diversity initiative included the total spend with diverse suppliers, the percentage of contracts awarded to minority-owned and women-owned businesses, and the overall engagement of diverse suppliers. For example, 50% of contracts were awarded to minority-owned businesses and 25% to women-owned businesses, highlighting the initiative’s impact on promoting economic inclusion.

Conclusion and Future Research

Conclusion

Super Bowl LIX was poised to deliver a significant economic boost to New Orleans in 2025, driven by job creation, increased spending, and benefits to local businesses. However, while the event presented considerable opportunities, the long-term benefits — especially in terms of tax revenue and sustained economic growth — remained subjects of debate. Success largely depended on the ability of local businesses to capitalize on these opportunities, the effectiveness of marketing strategies, and the inclusion of underrepresented groups in economic programs. Moreover, the methodologies used to assess the impact — ranging from input-output models to economic multipliers — played an essential role in providing a comprehensive understanding of the Super Bowl’s economic significance.

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