Economic Impact Report shows World Games brought in $165 million dollars; lower than original projections

BIRMINGHAM, Ala. (WBRC) – A new study showed that The World Games did not bring in as much money to Birmingham’s economy as event organizers planned. Originally expected to generate more than $250 million in revenue, the study showed the economic impact was actually around 30% less.

The study was released by the International World Games Association. It reports that this summer’s event brought in $165 million in economic impact. But, one Birmingham city councilor said while it may not be as much as they wanted, that’s still a lot of money spent in Birmingham.

Birmingham City Councilor Darrell O’Quinn said because of early World Games numbers, he’s not shocked that the economic impact report is coming up shorter than expected.

“If we didn’t have the ticket sales and the number of people attend that were originally anticipated, it just makes sense the economic impact was also less,” O’Quinn said.

While the games did not bring in what they planned, O’Quinn said the cost was only $65 million to put the games on. The study shows there was a total ticketed attendance of 140,217.

“I think that is a pretty healthy return on investment,” he said.

The economic impact is calculated off money spent on hotels and restaurants and businesses. The study showed that more than 13,000 people came to Birmingham from out-of-town and spent money. According to the report, the event created 99,039 hotel bed nights. The event also got a satisfaction rate of 91% for spectators and 86% for athletes.

“If you think about the conventions we host here, not many achieve that scale,” O’Quinn said.

Data showed the TV stream reached an audience of 268 million globally.

“There are benefits of hosting the World Games that wont be realized for years in the future,” O’Quinn said. “It was really like ten days of intensive advertising for the city of Birmingham, globally. If we would have had to go out and pay for that with some marketing agency, I’m sure it would have cost us many times more than the investment we made.”

Because of the pandemic, the Games were delayed one year and the report showed that delay caused organizers a operating deficit of $14 million. It also said many fans chose not to come anymore, out of health concerns.

“The fact that we were able to achieve that in the midst of so many challenges is pretty incredible,” O’Quinn said.

World Games organizers are still working to pay back parts of a $14 million debt. It is expected to be paid to the BJCC next year.

WBRC reached out to the Birmingham Convention & Visitors Bureau and The World Games CEO for comment, but did not hear back.

Click here to read the entire study.

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