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

Although the discounting is taken from the analysis of Valencia, the spending patterns of spectators
in San Francisco are assumed to more closely reflect the usual spending patterns of local
(ground) versus non-local (air) arriving spectators.
Additional Visitor Spending. In addition to visitors simply coming to San Francisco to watch the
matches, spectators will come for other reasons and extend their visits. They will also make side
trips to other regional destinations around the Bay Area. These expenditures are relatively minimal
and are incorporated at exactly the same rate of increase in spending as was experienced in
Valencia.
Local Governments. The estimated economic impact of the America's Cup in Valencia '07 was on the order of
5.77 billion euros, or $8.6 billion in today's currency. 7 The bulk of this impact was generated by public expenditures.
The holding of the America's Cup was seen as an opportunity and a justification to build up Valencia's port
area to be a more significant tourist destination. To that end, the local, regional, and federal governments made
infrastructure investments amounting to more than 2 billion euros, or $3.2 billion in today's currency. These expenditures
accounted for nearly 80% of the total impact. The absence of such enormous government spending in
San Francisco implies a much smaller overall impact − and cost − of the event.
Such expenditures are neither needed nor anticipated in San Francisco. The vast majority of the required infrastructure
is already present. Where investments are likely to be made is in shoring up piers at the San Francisco
Port to provide boat storage and maintenance facilities for the syndicates. Such expenditures are likely to be on
the order of $100 million.
Additional Spending. An additional category is added here to incorporate spending that could occur during the
events related to the America's Cup, but is not included in the other categories listed above. This primarily involves
the spending of the owners of vessels actively participating in the spectator fleet, including local privately
owned sailboats and powerboats as well as the Hornblower and other ferries and vessels that will be plying the
waters carrying passengers as they watch the matches. It is estimated that during the three months of sailing,
some $20 million in spending in the marine services sector could accrue.
7 This is an adjustment of approximately 150%, incorporating differences in the prevailing exchange rate and inflation between 2007
and 2010.
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