Major events and sports play a significant role in shaping the economy, vitality, and community spirit of a city. Whether it’s a global sporting event like the Olympics, a national college football championship or a local cultural festival, these gatherings generate far-reaching effects that transcend the moments on the field or stage. Their impact can be measured in dollars and cents but also in the long-term vibrancy and cohesion of urban life and the promotional value to a community.
Economic impact
One of the most immediate and visible benefits of hosting a major event is the economic boost it can bring to a city. Large-scale events attract local community members and are a significant driver to attract tourism. When a major event is a sporting event, there are athletes, families, supporting personnel, media and fans added to the mix, all of whom contribute to the local economy. Hotels fill up, restaurants are bustling, and local transportation sees a higher demand for service. These spending activities inject substantial capital into businesses, many of which are small or locally owned. Sporting events often draw repeat visitors, helping to establish a consistent revenue stream for local economies.
In addition to tourism dollars, cities that host major events often see increased job creation. Event planning, security, logistics and hospitality services require additional staffing, sometimes months or even years in advance. Moreover, large events can trigger infrastructure development — such as road improvements, transit expansions, and public space renovations — that continue to benefit the region long after the event concludes. Among Arizona’s thriving sports culture, made up of professional and collegiate teams, the Vrbo Fiesta Bowl and Rate Bowl are power players in college football and to the Valley of the Sun, generating an annual economic impact of more than $200 million. Much like the Vrbo Fiesta Bowl is more than a game, this economic impact is more than just a number. It represents opportunity for local businesses, community groups and statewide leaders from across Arizona.
Urban vitality and branding
Major events enhance the vitality and global profile of our cities. Hosting internationally recognized events places a city on the world stage, opening new avenues for trade, tourism, business, and investment. The successful staging of a global event serves as a power tool, branding the city as capable, modern and vibrant. Done right, this recognition means attracting future events, conferences and business ventures, reinforcing a positive cycle of economic and cultural activity. Companies have placed regional and national headquarters in Arizona following major events.
It doesn’t have to be a national or international event to create a sense of place. Pop-up markets, street performances and community gatherings surrounding events bring vibrancy to neighborhoods that might otherwise be overlooked. This renewed energy can lead to urban revitalization, increased property values and a more appealing atmosphere for both residents and newcomers.
Social and community benefits
The communal value of major events and sports is profound. By fostering social cohesion, bringing people together across cultural, economic and demographic lines and sharing experiences such as cheering for your favorite team, attending a citywide celebration or volunteering at an event, events strengthen the social fabric of our communities. These events provide a platform for civic pride and identity, which can be particularly valuable in cities with diverse or fragmented populations.
Furthermore, events and sports often serve as catalysts for community initiatives. Youth engagement programs tied to sports teams, cultural celebrations that promote inclusivity and fundraising efforts connected to major events all contribute to stronger, more resilient communities. These activities promote health, education and social awareness in ways that are both impactful and sustainable.
Long-term considerations
While the benefits are many, it is important to acknowledge that events don’t automatically yield positive outcomes. Poor planning, overinvestment in temporary infrastructure and displacement of communities can lead to controversy and backlash. For a city to truly benefit from major events and sports, it must prioritize inclusive, sustainable planning and ensure that local residents are engaged and considered throughout the process.
Major events and sports are much more than temporary entertainment. They are powerful engines of economic activity, instruments of urban vitality and foundations for community identity and cohesion. When managed thoughtfully, they leave lasting legacies that enhance the prosperity and spirit of a city, a state, and its people.
Erik Moses
Erik Moses is the executive director and chief executive officer of the Fiesta Sports Foundation, which works year-round to create and host live events, experiences and charitable initiatives on and off the field, generating more than $3.5 billion in impact on the Arizona economy since 2011. The Fiesta Sports Foundation reinvests in each of Arizona’s 15 counties and 22 Tribal nations through initiatives, partnerships and charitable giving that support nonprofits that align with its core pillars of youth, sports and education. For more information, visit fiestasportsfoundation.org.