The America's Cup: Economic Impacts of a Match - Bay Area Council

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when not watching the races or shopping and sightseeing in San Francisco, can be expected to enjoy nearby sites such as Sausalito, Muir Woods, and the Napa and Sonoma valleys. Some smaller number of visitors are also likely to visit destinations that are nearby but require an overnight stay, such as Monterey/Carmel, Lake Tahoe, and Yosemite. California Travel & Tourism Commission data shows that 30% of visitors to San Francisco visit other destinations in the region. As an example, the Bay Area's Wine Region, primarily Napa and Sonoma counties, stands to benefit significantly from the America's Cup. Over the 3 to 4 month period during the challenger series, a Defender Series, and the defense, it is plausible that this region could see a net increase in local expenditures on the order of $68 million. This is based on figures of daily spending of $314 per day for those staying overnight and $187 for those visiting for the day. 5 Spectators included in this estimate include roughly 50% of the local visitors discussed below and all of the non-local visitors. It is assumed that 20% will visit wine country, and that 20% of those will choose to spend the night. These percentages are likely low, as it is estimated that 20 to 25% of visitors to San Francisco from out of the Bay Area customarily visit Napa County, while a slightly lower percent also visit Sonoma County. All told, this spending could create as many as 814 jobs and generate in excess of $8 million in state and local tax revenues. Twenty to twenty-five percent of visitors to San Francisco also visit Marin County. Those visiting for a day spend $135 to $150 per person in the local economy, while those staying overnight spend $320 to $400 per person per day. If the annual Oracle convention in San Francisco is an indication, Marin can be expected to particularly benefit from the America's Cup. Oracle World each year draws 40,000 attendees, many of whom can’t be accommodated in San Francisco. 35 to 40% stay elsewhere in the region, with Marin County being a primary beneficiary due to its proximity, as well as parking, rates, and overall setting. While the primary economic benefit to the region outside of San Francisco would come through visitor spending, it is also possible that not all syndicates will choose to locate their facilities in San Francisco. This might particularly be the case in the Cup's early stages, when syndicates might seek a more secluded location where their evolving technology would be less visible to competitors. While this would apply to a handful of syndicates at 5 This is an average of figures obtained for Napa and Sonoma counties individually. 13
most, a number of locations around the Bay could offer attractive venues, including Alameda (adjacent to the aircraft carrier Hornet) or Richmond. In Richmond's case, the Craneway Pavilion, a 1931 Ford plant recently renovated as a 525,000 square-foot structure housing offices and large public spaces, fronts 600 feet of dock capacity facing toward San Francisco. Port of San Francisco Bringing the Cup to San Francisco presents a major opportunity for the Port. At the front end, the Port will incur up-front costs. On balance, however, the net gains to the Port promise to be substantial. This could take two primary forms: visitor revenue and infrastructure. Revenue. Approximately 80% of all visitors to the city utilize facilities on Port-owned property (e.g., the Ferry Building, Fisherman's Wharf, boat charters, water taxis, and parking), from which the Port earns tenant revenue. Infrastructure. As with all America's Cups, facilities will have to be developed to house the racing syndicates in the period leading up to and during the race. They are likely to be housed on rehabilitated pier structures along The Embarcadero. Rehabilitation of the specific pier or piers selected for the site (most likely Piers 30-32 and 50) may help address a specific challenge faced by the Port of San Francisco − a $2 billion capital expenditure requirement to address accumulated deferred maintenance, prevent the further deterioration of the structures, and enable the constructive reuse of some of its aging piers. The estimated cost to bring Piers 30-32 up to code is between $40 million and $60 million. The estimated cost of bringing Pier 50 up to code is also in the $40 million to $60 million range. From an investment standpoint, the Cup could present the Port with a unique opportunity to engage private capital, through the organizing committee, in the redevelopment of one or more piers, along the lines of the model used to develop AT&T Park. Securing private investment to preserve and renovate the piers used for the Cup could alleviate the pressure on the Port’s capital budget, thereby freeing resources for other priorities. Given the economic benefits at stake, some level of public financing may be appropriate as well. Whatever financing method is ultimately chosen, the America's Cup would fast forward the renovation and development of the piers in question. 14
Page 1 and 2: THE AMERICA’S CUP: Economic Impac
Page 3 and 4: Contents Executive Summary 1 Introd
Page 5 and 6: which would be unique to the venue
Page 7 and 8: What is the America's Cup? The Amer
Page 9 and 10: Height of the mast: 35 meters Weigh
Page 11 and 12: It seems likely that if chosen as t
Page 13 and 14: San Francisco The benefits to San F
Page 15: Harbor Cruises. Spectators will boo
Page 19 and 20: Proximity to major West Coast citie
Page 21 and 22: This analysis assumes that three ad
Page 23 and 24: For San Francisco, this analysis as
Page 25 and 26: Although the discounting is taken f
Page 27 and 28: Table 6: Summary of Impacts by Indu
Page 29 and 30: In its 2008-09 budget, the city of
Page 31 and 32: In order to better account for this
Page 33 and 34: Table 12: California Summary of Imp
Page 35 and 36: When these adjustments are made, th
Page 37 and 38: The possibility of and size of a de
Page 39: Summary This report has shown that
Page 42 and 43: Table 16a: Summary of Occupational
Page 46 and 47: Spectators: Spectators collectively
Page 54 and 55: Table 25: Detailed Impacts by Exten
Page 56 and 57: Appendix B: IMPLAN Input-Output Met
Page 58 and 59: Appendix C: Acknowledgements The Ba
Page 60 and 61: About BACEI and Beacon Economics Ab

The America's Cup: Economic Impacts of a Match - Bay Area Council

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