Mary Scott NabersRecently released data shows that travel and tourism contributed approximately $2.6 trillion to the U.S. economy last year. It also created millions of jobs. While that fact may not be surprising, it is less known that tourism also accounts for billions annually in tax revenue and accounts for almost 7% of all government income. Those numbers are often even higher when tourism draws a strong international visitor base.
Visionary planners and public sector leaders throughout the U.S. will launch all types of events this year to increase tax revenue, create jobs, boost tourism and stimulate local economies. Private sector support is always needed, and few opportunities offer a better way for government contractors to build meaningful relationships with city and county leaders than to support these types of initiatives.
Many cities have gained national recognition by hosting annual events that attract millions of visitors and generate significant economic activity. These annual city-wide events have become a staple of local economic development efforts and almost every city in America has something planned for 2025. Often organized in partnership between cities and counties, these events rely heavily on private sector support. While these events vary greatly in scale, they all offer valuable insights for public officials interested in launching similar events to stimulate local economies. They also present strong opportunities for contractors to position themselves as trusted partners to local public officials by getting involved early and visibly supporting these efforts.
The city, county and citizens of Monroe, Wisconsin host a Cheese Days Fest that draws approximately 100,000 visitors to the city each year. This effort is a significant initiative for a small city of approximately 11,000 residents, but the economic impact is significant as it stimulates the local economy by $3 million to $4 million through lodging, dining, retail sales, tourism-related services and activities. The event was first launched in 1914, and it is well known for its homage to the county’s rich cheesemaking heritage.
Organizers, along with leaders from public works and emergency services, begin planning a year in advance for the next event because there is much to be done. Streets are reconfigured to create a walkable festival footprint, and temporary infrastructure is installed to include cell towers, various transportation options, portable restrooms, etc. The Monroe Police Department partners with other regional agencies to ensure crowd safety, while local nonprofits and service clubs contribute hundreds of volunteers for all types of work. A mobile festival app has been created, GPS-enabled shuttle buses are available, and bilingual signage for international tourists is installed. Entertainment venues are abundant and other unique attractions such as cheese carving stations, yodeling contests, and Swiss music performances offer cultural immersion.
A larger event that delivers an economic boost of somewhere between $200 and $250 million each year is hosted each year in Las Vegas, Nevada. The Consumer Electronics Show (CES) was first held in 1967 and now it is one of the largest conventions in the United States, drawing innovators, investors, industry leaders, and tens of thousands of attendees annually. The event is designed to showcase the latest advancements in consumer technology and covers everything from smart home devices to autonomous vehicles. The event attracts more than 170,000 visitors each year and provides a huge boost to the local economy.
Preparing for CES is a massive undertaking involving coordination between government agencies, private sector firms, hotels, transportation authorities, and citizens. The Las Vegas Convention and Visitors Authority plays a central role, working with local law enforcement, hotels, hospitality providers, casinos and other businesses to ensure a seamless experience. The city of Las Vegas also launches unique marketing efforts and provides immersive tech-themed city tours and exclusive networking events which are designed to extend visitors’ stays and add to their experience. The economic boost is great, but organizers also point to the benefit that results from successful collaborations between the city of Las Vegas, private sector entities, and citizen volunteers.
Some event launches generate revenue and good will throughout the entire year. For instance, when people attend a Dallas Cowboys game in Texas, almost all visitors also spend time in the Arlington Entertainment District, a remarkable and unique public entertainment venue that city leaders designed. The district is a walkable area surrounding AT&T Stadium, Globe Life Field, and Six Flags Over Texas. It has become a popular destination that now attracts 15 million visitors annually.
City leaders were responsible for planning the development, with the objective of increasing tourism, and it was delivered through a public-private partnership. The entire area is now filled with entertainment establishments, retail, and spaces for visitors to enjoy Arlington. The total development costs totaled approximately $4 billion. While that is a large sum, it created a “must visit area” that now includes residential housing, dining, a growing hotel district, stadiums, retail and museums. The effort spurred not only tourism but also notable economic growth in North Texas. Large national and global events including the INDYCAR Grand Prix of Arlington are now hosted nearby, and the district will serve as a primary venue for the FIFA World Cup in 2026. Events hosted in the area are now estimated to generate between $50-100 million and conceivably up to $2 billion in ROI each year.
Another large event that is expected to bring 15 million visitors to Los Angeles is the 2028 Summer Olympics and the whole state has been involved in preparations for the event for several years. The planning costs were projected to be approximately $6.9 billion and funding support has come from both public coffers and private sector investments. The economic stimulus and the visibility will be significant for the city because the projected revenue is approximately $18 billion from the event and another $1 billion from visitor spending. However, many host cities in the past have lost money because of associated costs. The 2028 Games will involve 15,000 athletes and there will be 800 official events.
Millions of spectators and participants from throughout the world are expected to travel to the region. Organizers will oversee 28 major transportation projects before the events begin. This includes multiple bus and rail expansions to ease congestion and reduce reliance on automobiles, as well as a new Automated People Mover at LAX airport. The LAX Automated People Mover is a 2.25-mile elevated, zero-emission train system set to connect terminals with an Intermodal Transportation Facility and Mass Transit Center. Featuring six stations and 24/7 operations with two-minute headways during peak hours, it’s expected to carry 30 million passengers annually and eliminate 117,000 daily vehicle miles. Additionally, city leaders in Los Angeles are engaging in public-private partnerships to help revitalize public spaces and enhance transit availability before the tourists arrive. Programs like Shine LA are mobilizing local neighborhoods, while city officials are studying lessons from Paris 2024 to guide their preparations.
The Telluride Film Festival, first launched in 1974, is an internationally renowned film festival held annually over the four-day Labor Day weekend in Telluride, Colorado, a remote mountain town with a population of only 2,500. The event is known for its prestigious and carefully curated program that attracts major filmmakers, critics, industry insiders, and people who love movies. Despite its remote location and small size, the event attracts approximately 7,000 people each year, including attendees, staff and press. The festival supports off-season tourism and generates an estimated $7 million in revenue for the local economy. Organizers transform multiple spaces into temporary theaters – a middle school gym, private clubs, and an open-air cinema – and the venues are upgraded with quality audio-visual equipment to meet festival standards and provide an enhanced viewing experience. The town is currently undertaking a $31 million capital project to renovate an existing historic building into a year-round arts center with a permanent theater. City officials are responsible for traffic control measures and a free gondola service between the towns of Mountain Village and Telluride operates as a shuttle service from regional airports. City streets are closed for walkability and law enforcement resources are expanded to ensure public safety. The festival’s prestige has helped brand the city as a luxury destination, boosting tourism throughout the year.
Other cities host art festivals, fourth of July parades, sporting events, marathons, and musical concerts. The events are well attended, and almost all return a positive ROI while boosting local economic vitality and providing memorable activities for residents. Private sector support and involvement is always a vital part of the overall success for any regional event and can pave the way for long term relationships.
