Comparing Democratic National Convention coming to Charlotte to the Super Bowl going to almost any city is not a very difficult task. Both require the local government to make certain changes to accommodate for the event, but also bring in many people who cover at least most of the costs. Learning that Charlotte, who always seems to be needing money for many reasons (education particularly), was going to lose more money was frustrating. As the events of the DNC began to unfold, I watched coverage on tv, since I was away at school. It was cool seeing the places that I knew very well on national television. That was when I realized that I was actually quite happy that the DNC came to Charlotte.
Short-term economic loss for Charlotte was inevitable, but long-term returns were more than likely. Getting my city exposed to the world showed many people the better parts of the city; making it appeal to movers, tourists and businesses. People around the nation learning more about Charlotte and how it is home to some of America's biggest companies, such as Bank of America, began to see the opportunity Charlotte had to offer. Finally, seeing President Obama accept his party's nomination for a second term gave viewers an image of patriotism when they think of Charlotte. These are all aspects that eventually pan out to an increase in Charlotte economic prosperity as well as put Charlotte on the national map.
These results are very similar to the cities that host the Super Bowl. While New Orleans likely lost money off of hosting the Super Bowl this year, it gave the networks a chance to remind America that parts of the city still hadn't totally recovered from Hurricane Katrina. This tactic was aimed at getting America to rally around New Orleans and continue to help our fellow countrymen. The city brought in many tourists and exposed the benefits to viewers at home. These are all aspects that, even if they don't lead to immediate economic success, may lead to long-term payoffs and at least put a city on the map. I saw the images of the parties on Bourbon Street after the game and I know I want to go spend my tourist dollars there.
This is why a city may be excited about a Super Bowl even if their team isn't playing, much like a kid who became excited for a National Convention even though it was for his Party.
I have to completely agree with you that these are beneficial to each area that hosts something major like the Super Bowl or RNC/DNC. I don't agree that it leads to any economic losses, but I do agree that in the long run it will have an amazing and great effect on the city and surrounding area. I never really thought that the reason they went to New Orleans this year was to show that the hurricane recovery isn't over, because while it's true it isn't, New Orleans is one of the greatest cultural cities and a common location for the Super Bowl. Not to mention it holds a large capacity so that way the city can make more money as well as the NFL. These tourist tactics you describe I think his the nail on the head. These do help to draw out more people and everyone wants to go to a Super Bowl sometime in their life. This continuous cycle of desire to go will keep the traditionalism going.
ReplyDeleteI think you both make good arguments about the thinking that leads cities to want to host these big events. A simple response to the negative view of such events is, if they are not worth it, why do people keep wanting to host?
ReplyDeleteOne explanation is that those planning these events have different incentives than the population at large. Politicians may receive accolades for winning a major event, even if it in the long run has no net benefit.
I think seeing hosting such an event as more of an advertisement for the city puts a more positive spin. That said, I don't think the economist we read and listened to doesn't take that into account. I think he just thinks that it very rarely is a successful form of advertising. More often than not it doesn't have benefits. The exceptions like Barcelona really prove the rule. But just because it does cost money ultimately does not mean it is not worth it in other ways.