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WWL>Topics>>8-7-14 11:10am Garland: on how beneficial Super Bowls in NOLA really are

8-7-14 11:10am Garland: on how beneficial Super Bowls in NOLA really are

Aug 7, 2014|

Garland talks with Dr. Walter "Dub" Lane of UNO and author Neil DeMause about whether a Super Bowl is truly beneficial to the host city or more trouble than their worth.

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Automatically Generated Transcript (may not be 100% accurate)

I've read some articles. Spotlighted balloons. The news news organization here in -- war -- As having restive city of New Orleans for their records -- there of fuel. For the year 2018. Super Bowl and -- -- of read something that. -- just missed it but. Businesses. In June Mary Mitchell and drew complain that this city and dead show launched. 500000. Dollars from hosting the 2013. Super Bowl. And he should quote here's the truth most of the benefits. Went to others and to lose. From -- well. This cohort of people that knows the benefit of the Super Bowl win and probably words sum -- money goes that's the been buried. President CO annual visitors and convention bureau Stephen appreciate it's I'm Angel. -- I'm surprised 500000 dollars no one is that wrecked the number two it's a little. Well the problem is not correct that your. Typical overall total net economic impact is 480. Million dollars this is the one we just posted a couple of years ago. 480. 262. Million of that is in direct spending that we're expanding here in the city. And 217. Million in the secondary end. That created around 5600. -- on part time jobs and area. Important when you think what you what you hear government. Talk about well we did make money -- you know everything doesn't exist only government. The reality is -- 54 million dollars an additional earnings came to New Orleans. Citizens. A 150. -- -- So well Super Bowl 47 generated 34 point nine million dollars in tax revenues. For state and local government. 21 million for the state of Louisiana thirteen point nine million local governments. In our area. It is bit -- in -- in the Super Bowl what in the. Pure melt like that where this city were there. Or enterprises hospitality and tourism. The value of having this gains on national television scene about more than a billion viewers. And being seen about people 234. Countries. It was billions of dollars at about view of him correction about you'd. So the interesting thing you think about the super ball you're talking about max's new income for New Orleans citizens. Which actually -- then -- And the economy and restaurants and retail it. -- kids clothes for school. You know all those kind of things so Super Bowl. You know what for all the work it is and all the things going -- Garland it is worth a fortune to. It took so only true and assume when the when the mirror was quoted. -- Here's the truth most of the benefit went to others and to the state that that's not correct. Like yet if the others are the citizens and businesses of New Orleans that would be correct. Result -- -- it. And we thought that was the point. You know the point is to benefit citizens then. And I are thousands and thousands of employees -- did earn money on -- -- And wages that are industry -- 154 million in additional earnings for New Orleans area residents. That that -- just powerful and in and that helps them do everything from. Pay their apartments and other mortgage notes buying cars in rebels in their report of retail and so. You know. It it it was a little hard for us to understand why. This setback but it that's the truth is Super Bowl eligible meant to value of the businesses in the citizens arrested. Albania I'm not very good with numbers on the fifth through more of a 154000034. Point 93 point nine. That doesn't mean we god. Three point line right. Well. -- local governments most of it was shortly but in the related. Areas the estimate is as these employees spend the money. As the business to business standing cars sales taxes all of these at around thirteen point nine million dollars. Was realized about local governments in the New Orleans area including primarily Orleans parish. So that pretty significant now. But you know it is like when will we talk about. All of the visitors that millions of visitors come here we talk about the business travel here in the convention. The special. We don't think in terms -- does it make money for City Hall. Mean it -- is make money for city hall and edit page for nearly over the course of the year at 30% of of the city budget so. You know someone what their engine failure in New Orleans east -- up 10 hours central city they're benefiting from. The monies that are outraged by. The hospitality in the special events industry. Causing. To make sure that we got police and fire protection and all of those things so. You know it it it I think you're going to be here a lot more from muscle -- -- next year about. In a city where 2000 people. More than half of residents of the city about. 48%. Maybe -- live outside his cell or Jefferson our part of the West Bank it may come in the war. They spend so much of that money in the war and gosh. You know our city our city just to benefit. So from. At least from hospitality from special event be it. -- jazz -- or whether indeed the French Quarter festival. The great music makes money into something more thing -- -- is it -- money to our citizens. Who then have to -- but also -- -- in the spend money on the things that matter. Are relentlessly -- -- when it come back. Looked up in is an inappropriate -- and I think of that Detroit being the proclaimed Super Bowl averages in. Is about 600 million. And end you were talking about. 34 boards and and in thirteen or nine million. I think -- a lot of people say. Look and and nobody x.s and let's not get through troubled to try and figure out what the benefits or removed were. They've seen this move into Dalton and coach service cause Biggs to serve was a lot. That we can afford. He is the bottom line benefit of -- -- -- worldwide advertisement. For -- A deliberate well all right we'll come right back. Guys your issues are -- in the live I think general but in front of me that day. Requested does -- the administration to give them they're pitted for the year 2018. Super Bowl and and within that report. They have a quote from bear Mitchell and -- saying. Here's -- -- most of the benefit went to others and to say. We have Stephen Curry with the presidency -- new -- in visitor's convention bureaus even. I understand you correctly you basically said well it's not exactly who wrecked and and we end up getting. 154 million overall 34 point nine into the state thirteen point nine to the -- -- My figures wrong. No it it if we look at -- at that -- forties. Having an economic impact of 480. Million. I'll -- 480 million impact. 454. Million. Went into additional earnings for residents of new war. And 34 point nine million women tax revenues for state local and that thirty. Four point nine let's call it 35. 21 may into the state fourteen may in the local government. Here is the truth anymore and the things that may drives today. It's expensive when we post special look at their a lot of caustic come from the city there's a lot of overtime. And a lot of extra expenses. It also be one of the cool. Business in this city you know it the same thing from Marty. You know at the same thing port jazz festival any we have. Big events in the city and that's what world -- It does call in week you know it's great that the city. Provide these services because that's what they do justice businesses as citizens. But the great thing is that in Super Bowl. This that he actually made a profit on having Super Bowl what was most important. It. And it. Many huge amounts of money that capped the economy of the -- for change and that's what makes -- so great after. Right to -- -- it's it took a look at studies Rome. University of Florida were zero new voters who view holy cross University of Maryland. Here's what to two noted that the roots. At a proclaimed 600 million dollar impact for Super Bowl so modern Super Bowl it's. And they UC last year and would choose to have that this Super Bowl -- New Orleans forward 2013. It was estimated the general -- 480 million and local spending. Generating 34 point nine million in New Orleans tax revenues. But to arrive at that figure researchers simply surveyed Super Bowl with Indies. And then applied a multiplier. To account. Or how and spending then got -- spent in the local economy. It is that correct and if so is is that really -- valid way to come to the benefits. Well back that one way to do it means one thing was obviously Garland you can't. Reaching out to or even though every individual example all of their credit cards and all understand. We know all amounts that span but as we note the -- currency. In the restaurant community. In the hotel community. They paid very fine taxes that are submitted to the stated submitted the local government. Soviet economists are able to bootstrap Malaysians where but doing that samplings. They understand. Now it is injected into the local economy that we see it in year over year analysis. So that you can see them about -- and it is that values in two ways. Sound economic values from that pure -- outstanding. -- that occurs during the Super Bowl but we also benefited a couple of other ways. It gives. Citizens. The ability to have an extreme in com. Those that work in this city's largest industry hospitality that they. -- channel back into the economy is they expanded on things -- in their family needs. And I -- that the best way to look at is that when you think about what we do all year long. Four you know we we've known each year at a minimum. We have we -- tracked over six billion new dollars being spent about people from outside. They get converted some massive revenues for the city. You know 8000 jobs and he has the genes that make this economy years ago. And so it's been extremely extremely successful -- nine years. The city is not the ones that come up with some money to make it. The vast majority of it is privately raised the -- audience but those who want the entertainment of being here. Anybody in the in -- narrowest of examinations. City Hall itself actually make a profit. On the 500000 that your little low but would that -- estate. Take the mayor's work on the 500 -- -- -- -- actually may have property with the party made the most important thing for the city. What the profits may all of its businesses and all of its economy and all the and so that the way to that we look at it. Paula -- for dared to a lot of people listening right now. Saying to the pseudo OK you got to give one point three. Broken. Water drinking water pipes -- do those who fight for drinking water them Kim report. Police improvements. Consent decree we can report. Prison improvements consent degree we can report. Maintenance of these. Fourteen billion dollar wall that's been built around. -- protected from the loss of wetlands. That's gonna cause some minimum bid to go in now they're talking about a hundred and and I think they that they look at Mark Ingram and -- look at Super Bowl and they look at -- us. And they loved him. And they and they think he is -- -- beneficial goods it's a great thing to have. But there there's still kind -- amazed. That out of the Super Bowl. A 154 million here and in salaries and benefits is what comes out of the McCain sense. -- pretty amazing now 150 million port in the pockets of the citizens and short period but respect. In the end and that's primarily. Salaries. Of people working the Super Bowl. And and chip program remember how many people. In the hospitality industry. From virtually every neighborhood in this city in. You know problem. They earns significant pieces of there and come from their tips as well when you have these great corporate visitors. It's times where they make extra money which is rarely rarely. You that you're talking about. That -- to the city. -- and there's no question we join with mayor. He had shared vision we want us cities -- -- And we want city that has great city services are great city infrastructure. So that is that what we got. -- -- -- And right now we have three or four ways to do that in new war one is the largest industry which is hospitality. We've got to grow it and make it better. The other is medical sciences and healthcare that huge -- The next. -- In all the things that are happening related to support international trade and commerce in America. Industry. And the other happens to be in the areas of science and digital media. And -- union things that bring in large -- that's what constitutes. The largest pieces that our economy so. What we're focused on is how we create bigger economic hi how we create more jobs. And root growth creates revenue for this city. To allow it to do the things that we wanted to. But that includes public safety that includes infrastructure and so. You know World War I of the things that a -- the city is looking at may twenty million or more. In collections over expenditures this year you know that but the thing topping one of the reasons for that is that hospitality is doing so well. -- -- Even were important were and are run out of time as always but is it's amazing. Wolf -- when we hear both sides of the story. I appreciate -- called her and probably -- bankruptcy. All right well contend that whose conversation covered up next of mobile brigade 7 AM. -- -- -- -- -- We're feeling good about a statement attributed to a Maryland -- Where there have been asked about the ghosts are durable. I think about Super Bowl 2013. Incentives that lead netted netted just 500000. From hosting the 2013. Through possible. His direct quote was here's true most of the benefits went to others and the state. So what it's doing to bring about this and a -- an article by knew about who -- year. Lucky enough to have on the true for a few minutes -- -- appreciated call. And -- retirement talk economics turned to my professor doctor. Walter Dublin professor of economics finance did you -- -- -- welcomes. Clinton and star review I just two. Presidency you know -- a convention bureau. And he said Abdul those figures or not quite right trees at the Super Bowl we -- thirteen. Two and sixty million in direct money to and seventeen in secondary spending. A 154. Million in additional earnings. Or New Orleans workers. Almost forty million local tax revenues. Thirteen almost fourteen billion in local products. When read your article there there's a number of economists mean and self Lawrence's. Holy -- few numbers to the girl and overseas don't really agree with -- Yet there are a number of economists who really tried to figure out what the actual global impact it is. And they've found nothing like what the NFL claim -- now I mean even if you go in and look at. What are the economic figures in sales taxes these things like that in years when the city hosts the Super Bowl. -- -- when it doesn't and they did build the significance ball. You know you might get something on the order. Maybe. Sixty million -- hundred million in new economic activity. But. You know that that brought down -- A lot. You know that the economic activity that the money is changing hands in the city. And when you're talking about the actual benefit in terms. Tax receipts. Than it really does come down to you know look very very thin trickle a few million or let. Doctor -- and where and when we hear the other side of this story human in particular. For -- morally and I think Stephen -- you were getting somewhere in the neighborhood of six billion when it comes to tourism. This Super Bowl regardless of whether -- profit for us or no -- It -- worldwide publicity. And our leading industry. Is tourism so it's well worth it knew your thoughts -- in the column. Well yeah I mean I think that it's hard to put out a number on those the value of those things clearly tourism is a big deal if you go any place in the world. And you -- the name. By the American cities New Orleans is always on that list and so things like the Super Bowl lots of other things -- culture music and food. Go to Canada but exposure or think like it's a double play into that and and I and and I we've never try to measure. You know what that downstream impact of tourism resulting from that last. The studies that was done on economic impact was that you're you know by now myself of my colleagues downstairs in the division that economic resurgence. And I was just talking to him you know part of this call you know the and I don't I know what the work they're doing and I'd seen people economists who do economic impact that these. As the state basically you completed a Buick did not figure out away giving it to UN. Not -- York folks don't do that they were very conscientious about. You know exclude being. You know merchandise. That was bought here in New Orleans. That we it was brought -- an outside the money went outside it really will try to careful only to try to bigger things like hotels and restaurants that deals that were actually -- here. And they went to people's. That are in the community. W the longer term impacts are much you know much harder estimate we we have tried to do that. Got to take a break but it is for a around the bush introduce that. Because on the show I mean more and more mobile and country currently when it -- law enforcement. When it comes politics we have those who do you trust in in these hoops article. -- It's into problem with the debate over economic impact is that clients routinely. As people act in the column this. To come up with the methodology. That would -- supplied the desired results. In Dresser that looked like it's good and clear plastic binder. Hybrid tegra can come -- includes find out what. The economist you know found when they studied this and talk more to. You'll miles -- the author of the Hillary introducing articles or whether it's Super Bowl zoomed in a fellow brother or proves that even leading. What -- found with the Olympics as to whether or not they grew the or off. Governor of video and think about whether or not Super Bowl or world. While ago and it. Got a -- -- TV it was a bit of Maryland. Was quoted as soon should you have to have 500000. Dollars from 2000 through super. -- in new Google bought with the -- Brought up a number of national reports and should say university studies. That suggest. It's not very economic -- we have Stephen Perry. At the convention drew give us some pretty impressive numbers somewhere round. 154. Million in additional earnings for workers in this area. We'll we'll also have doctor Walter doubling since the professor of economics of the -- to -- though. And doctor your people started this what did they bond. Well again we can report. It is division of the research. It is I would target -- spyware on -- she's retired she could tell you the numbers better. But in you know in the report they did do it partly by certain. As Mr. Bush says and -- course there's always some. Issues involving serving people and I can't speak to accuracy of that but that the best we can. We look at the survey and in looking at how many people in the and they were very careful that just. The measure things that we -- at a local economic impact. The multiplier they used. Which again about doubles without you visit the notion that we and when men waiters earn more money they go out and he's pretty much spent locally and that has an added impact the -- small supplier. And -- some some people have like multiple before we really believe that. You know we -- -- we we usable like closer to -- -- the report was was you know. But certainly -- you know that was. Was trying to be accurate as we could be. Through the bottom line news. Well I guess I figured it was a total economic impact of about forty million. -- -- A ballot does this say about but the note. The mayor was talking about. -- -- -- and this city well of that only fourteen million ended up being revenue tax revenue. And that that this specific delegates one point 5% of the sales tax the state it's 4%. That because that other people now the -- the -- VA I -- 1% and and and in this school portal to another. I mean I 2.5 percent the city's school board is one half percent so. Of of all revenue it may only be about you know a third of -- 25% goes to the city. So that the net effect of the city's new war and whatnot you. A new enjoyable and -- in your article. Do you editor columnist good defensive most of the money from search branded items would people buy yours goes right back out of town -- Super Bowl leaves. And your quick edited by seeing a manager in an airplane landing at an airport. Everyone gives up gets out to give preacher over a million bucks then get back on the plane. That's 200 million in economic activity. But it's not in the benefit to local cone did yes -- public got those figures are how big -- came to that conclusion. I mean there's two big problems that the most economists point to it and I think you're not that I think it's you know -- in terms of methodology -- a good good we're trying to do. Figure out how much would end in war one -- to provoke the visitors. Com the cubic from the economic point you are called leakage -- substitution. Leakage is exactly what you were talking about that. Money that is spent at a Super Bowl is not necessarily is likely to stick around. In the world that money's spent day -- restaurant because so much of that money goes directly -- now. Are meant to the players into the team that the other cities that are outside of you know of the local economy. Back at the money's changing hands within the -- Does not necessarily help the local economy as much as it would otherwise. The -- is the problem that -- you know one of the things supporters want economists decided talked about is that. Typical -- especially problematic for southern cities because it. Whereas you know you securities but buy what. Well a lot of people flocking to new agers in February you know as everybody knows there are other reasons to go to -- in February. And you know if you are displacing people who might have gone. Two you know on it won't -- visiting -- it is possible that we -- that would steer clear he goes somewhere else. Then it's not as much of a net gain. -- the one of the things that the summit can point to is that. Super -- visitors not dollars spending more money that then you know get (%expletive) -- economy because it goes the NFL but you know they made. Have to book hotel for an entire week but not go to staid -- the entire week's expanding your restaurant every day. And that is the -- the and it now has its own demands and it requires that a bunch of sales taxes for bomb. You know for Little League itself. Get -- back as a condition of hosting the game. You know again is it here impact absolutely not there's something there. But if you're talking about what the best bang for the buck in terms of future economy in terms of promoting yourself to be greater world. They're probably better things that you can do the opposite. Middle and professor we probably could have done a couple hours on this so I appreciated that time you've given news have a great day all right you are right. This is double bill -- every area moral part of the -- Do we go to Roland immigration diverge hours have called -- have found explain it but -- that caller. Look up some big goal earning suspense. File. What happens is illegal immigrant bio of fault Social Security number. Goteborg for somebody that can tell they're not illegal because they have that number. Then those illegals pay their soaps and security. Tax. It goes from what's couldn earning suspense by. And as 2010. That file contained. Seven point three billion dollars from -- number reading. Says if we didn't have that. In the earnings of -- -- of which we'd take interest. Are -- security payments would be greatly increase. Not a simple prof -- right.