March Madness in April

The NCAA Men’s Basketball Final Four championship game takes place in Glendale on Monday night. The game signifies the apex of a dynamic four-day series of events across Metro Phoenix. A recent report from the Common Sense Institute Arizona estimates that the Final Four and surrounding events will generate a positive economic impact ranging between $250 million and $300 million.

Common Sense Institute via Chamber Business News:

This is the second NCAA Men’s Final Four held in Arizona, solidifying the state’s place as a major destination for sports tourism and events like the Super Bowl, the Waste Management Open, and various golf, fencing, and other major championships. Thanks to the Diamondbacks, Phoenix has also hosted World Series games.

“Hosting the NCAA Men’s Final Four is a monumental task that requires the cooperation of countless stakeholders, from local businesses to government agencies,” Arizona Lodging & Tourism Association President and CEO Kim Sabow said. “This year’s tournament is not only showcasing Arizona’s world-class facilities and hospitality but is also reinforcing the state’s reputation as a premier destination for major sporting events.”

Key findings from the report include:

$250-$300M: Estimated combined economic impact of activity at Arizona’s four days of Final Four events.

$20 billion: Contribution of the combined Sports and Tourism sector to Arizona’s Real Gross Domestic Product in 2024 (+8.6% year-over-year).

$12.7 billion: Estimated direct sales by Arizona’s hotels, casinos, sports and other professional performance venues, and other components of the state’s Sports and Tourism sector in 2024.

320,000: Number of people directly and indirectly employed by Arizona’s Sports and Tourism sector, or 10% of the state’s total workforce.

3.5%: Projected average annual growth rate of the sector over the next decade

Big Visitor Numbers

The average attendance at the Final Four games between 2010 and 2019 is 72,733. Attendance has been recovering slowly since 2020. In 2022, average attendance per-game was 69,800, and in 2023 attendance was 72,400.

The average attendance for a concert at State Farm Stadium over the same period has been about 52,000, which means basketball over these last few days will have delivered an additional 20,000 more fans to Glendale to eat and drink at restaurants, shop, and spend money on recreational activities before and after the main event.

CSI estimates that 150,000 people will attend the Men’s Final Four and surrounding events in Phoenix over three-and-a-half days beginning April 6th, with 58,500 (39%) of those attendees visiting from out of state.

Given historical average expenditure data, these visitors spend:

$73 million on hotels and lodging in Phoenix

$12.9 million on meals

$2.4 million on drinks

$29.6 million on transportation and airfare

$43.7 million on game tickets over the course of the event weekend

“The NCAA Final Four is a catalyst for economic opportunity,” said Kamryn Brunner, research analyst at CSI Arizona. “Our findings are once again showing the vital role that sports and tourism play in Arizona’s economy, contributing billions in GDP and supporting thousands of jobs across the state.”

CSI estimates that this new spending will result in approximately $15 million in new sales tax revenue for state and local jurisdictions.

About Common Sense Institute Arizona

Common Sense Institute Arizona (CSI) is a non-partisan research organization dedicated to the protection and promotion of Arizona’s economy. CSI Arizona is at the forefront of important discussions concerning the future of free enterprise in the state. The organization aims to have an impact on the issues that matter most to Arizonans.

CSI Arizona’s mission is to examine policies, initiatives, and proposed laws and inform Arizonans on issues impacting their lives. CSI Arizona employs rigorous research techniques and dynamic modeling to evaluate the potential impact of these measures on the Arizona economy and individual opportunity.