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

When these adjustments are made, the expected expenditures for San Francisco are comparable to those of Valencia.
They remain significantly higher than occurred in Auckland. This is primarily because of greater expected
spectator attendance and significantly higher expenditures by the organizing committee.
America's Cup Economics: Costs and Caveats
Although the economic benefits of hosting an America's Cup in San Francisco are without question substantial,
it is important to keep in mind that hosting such a significant event is not without its impact on local residents
and other visitors to the city. In addition to the jobs, tax revenues, and increased economic activity, a significant
influx of visitors, local, domestic, or foreign, brings with it:
added congestion on the streets of San Francisco
higher hotel rates
longer lines at local restaurants (though locals know the best places that visitors will never find)
higher airfares to and from San Francisco may result as increased demand crowds the limited capacity
of SFO
a tug of war over employees (some of the jobs created could come at the expense of other businesses
in the city)
providing tourism related services is not without cost to the city
In particular, waterfront restaurants and retail may have to contend at peak race times with congestion, street
closures, and loss of parking that will disrupt normal business patterns and customer activity. 17 This disruption is
but a fraction of the change in activity that can result from hosting such a spectator-intensive event. In particular,
some local residents may find it in their own best interests to be away during the event. Because of the significant
increase in visitor volumes to the area, other potential visitors could avoid San Francisco as airfares and hotel
rates would likely be elevated. In sum, it is extremely difficult to gauge the net effect of major events on tourism.
There is always a certain amount of crowding out of non-event related tourism.
Even though there is some potential for disruption, San Francisco's economy has long focused on and benefited
significantly from tourism, including large-scale events. The city's residents have tussled with the effects
of tourism for a very long time, and most sincerely hope to for a very long time yet to come.
17 To minimize the negative effects, the city should evaluate specific congestion mitigation measures.
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