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Economic Power of Endurance & Sporting Events

04 November 2024

I recently wrote a column on biking's impact on local tourism. This week I would like to expand upon that to how events can impact local communities in a huge way.  When 45,000 runners crossed the starting line of the 2023 Chicago Marathon, they weren't just beginning a 26.2-mile journey – they were powering an economic engine that would generate $386 million for the city's economy. This single event created thousands of jobs, filled hotels to capacity, and packed restaurants across the Windy City. More importantly, it showcased Chicago's vitality and brand to a global audience.

 

The Chicago Marathon isn't an outlier. Across America, endurance sports events have emerged as powerful catalysts for economic development, community engagement, and tourism growth. These events create a virtuous cycle: they attract visitors, generate immediate economic impact, and build a community's reputation as an active, attractive destination for both tourists and potential residents.

 

The numbers tell a compelling story. The Boston Marathon typically generates over $200 million in direct spending during race weekend alone. The New York City Marathon's economic impact exceeds $400 million annually. Even smaller events punch above their weight: the Mount Desert Island Marathon in Maine, with just 2,000 participants, generates approximately $2.2 million in direct spending across the small coastal community.

 

These figures stem from multiple revenue streams. Participant spending on accommodations (average 2.5 nights per event)  You have food and beverage consumption, retail purchases, transportation, registration fees, equipment and apparel, and tourist activities before and after events  Participants rarely travel alone. Studies show that marathon runners, on average bring 1.6 supporters with them, nearly doubling the economic impact per registered participant.

 

Beyond direct spending, endurance events create cascading benefits throughout local economies. Take the Sea Otter Classic, North America's largest cycling festival, held annually in Monterey, California. The four-day event attracts over 74,000 visitors and generates $45 million in economic impact. Local bike shops report 30-40% increases in sales during the month surrounding the event, while restaurants and coffee shops have expanded their operations to accommodate the influx of health-conscious customers.

 

Successful endurance events often catalyze infrastructure improvements that benefit residents year-round. Cities hosting major cycling events typically invest in bike lanes, trail systems, and road improvements. These infrastructure upgrades enhance quality of life for residents, Increase property values, attract health-conscious professionals and families, reduce transportation costs, and improve public health outcomes

 

Perhaps the most significant long-term benefit is the tourism multiplier effect. Research shows that 87% of first-time visitors for sporting events express interest in returning to the destination for leisure travel. Events showcase a community's best features to an engaged, affluent audience: The average marathon participant has a household income of $125,000 and spends significantly more than typical tourists.

 

Destinations like Boulder, Colorado, and Portland, Oregon, have leveraged their reputations as endurance sports hubs to build year-round tourism economies. Boulder's extensive trail system and cycling infrastructure, initially developed for events, now attracts over 3 million visitors annually for outdoor recreation.

 

The intangible benefits may be even more valuable than the direct economic impact. Endurance events build social capital by creating volunteer opportunities, fostering community pride, encouraging healthy lifestyles, building cross-sector partnerships, attracting media coverage that shapes positive community narratives

 

For communities considering investing in endurance events, the data suggests several best practices.  One could start small and grow organically, invest in permanent infrastructure that serves both events and residents, build partnerships between tourism agencies, local businesses, and event organizers, focus on shoulder season dates to extend the tourism calendar, develop a portfolio of events that appeal to different audiences.

 

The evidence is clear: endurance events offer communities a powerful tool for economic development, tourism growth, and community building. While requiring initial investment and coordination, these events deliver returns that extend far beyond race day, creating lasting benefits for residents and visitors alike. In an era where communities compete globally for talent and investment, fostering an active, vibrant environment through endurance sports isn't just good health policy – it's smart economic strategy.

 

John Newby is a nationally recognized Columnist, Speaker, & Publisher. He consults with Chambers, Communities, Business & Media. His “Building Main Street, not Wall Street,” column appears in 60+ newspapers and media outlets. As founder of Truly-Local, he assists chambers, communities, media, and businesses in creating synergies that build vibrant communities. He can be reached at: John@Truly-Local.org