2022 WM PHOENIX OPEN INJECTS MORE THAN $450 MILLION INTO ARIZONA’S ECONOMY
An economic impact study conducted by Arizona State University found the 2022 WM Phoenix Open generated nearly a half billion dollars ($453.7 million) into the state of Arizona’s economy. As part of the total economic impact, the study, commissioned by The Thunderbirds – hosts of the WM Phoenix Open – also reported a total State of Arizona GDP contribution of nearly $280 million ($276.8 million) and an annual employment impact of 4,290 jobs.
The study used an IMPLAN model to estimate economic impacts for the State of Arizona which is a commercially licensed input-output model developed and maintained by the Minnesota IMPLAN Group, Inc. (MIG) and widely used by professional economists to assess impacts of economic activities on a local economy.
““We’re proud to see our once small golf tournament in the middle of the desert grow into a crucial source for economic development and growth not only in the Phoenix area, but everywhere in Arizona,” said Michael Golding, 2022 WM Phoenix Open Tournament Chairman and current President of Thunderbirds Charities. “We take great pride in the positive experiences we provide our fans, and together with our corporate partners, we will continue to draw all types of visitors and businesses to the Valley.”
The study defined and estimated economic impact as the increase in spending and therefore economic vitality in a community as a result of the existence of an event or organization. For the WM Phoenix Open and surrounding events, this included the expenditures of visitors who identified the WM Phoenix Open as the key factor in visiting Arizona, media from outside Arizona who cover the event, the “organizational spending” by The Thunderbirds, media and event production companies, diverse organizations and businesses involved in operations, event production and activation of sponsorships, plus the indirect and induced multiplier effects.
The study focused on estimating the total gross economic impact (gross output) of the 2022 tournament, which includes the total amount of direct spending by out-of-town visitors and organizations in metro Phoenix, and indirect and induced impacts of those expenditures. For the purpose of the study, a visitor was defined as any individual who does not live in the metro Phoenix area for any portion of the year. As a result, no resident expenditure was used to generate the economic impact estimates. Dual-state residents were excluded from the study.
“The economic impact results reveal the power of professional sports and how a single event can have such a positive impact on a region,” said WM President and CEO Jim Fish. “WM is very proud of what we continue to accomplish together with The Thunderbirds through the WM Phoenix Open for the benefit of the community and the environment. Helping communities thrive and empowering people to live more sustainably is a key priority for WM.”
The Thunderbirds, the PGA TOUR and others associated with the tournament injected an additional $55.4 million in direct expenditures from staging and attending the tournament. These expenses are numerous and include tents and equipment, food and beverage, administration, signage, parking and security, hotel rooms leading up to and during the event for the players, caddies, PGA TOUR employees and out-of-town media, to name a few.
Economic activity of more than $220 million was induced by visitors’ and organizations’ expenditures – up from $195 million in 2017. The total gross output associated with visiting media, PGA participants and all other organizational expenditures is up 68.8% from the previous study. This figure was calculated using the IMPLAN economic assessment software with Arizona specific multipliers. This number is additional impact due to what is referred to as the multiplier effect, or the spending and re-spending of money through the local economy. When the indirect impact is combined with the direct impact, out-of-town media expenditure ($1.7 million) and total organizational expenditure, the total economic impact becomes $453.7 million.
In addition, the economic activity spurred by the event created incremental state and local sales tax revenues. The direct sales tax revenue generated from out-of-state visitors, media, and PGA participants at the 2022 WM Phoenix Open is estimated at $17.6 million. Direct sales tax revenue was estimated to be $13 million, through combined direct fiscal impacts in the City of Scottsdale ($2.9 million), Maricopa County ($1.9 million) and the State of Arizona ($9.3 million).