Each year, in early April, comes a very special event for golf fans and those PGA Tour Professionals lucky enough to get invited. That being The Masters Tournament, the biggest weekend in golf, played each year at arguably the most iconic course in the world, Augusta National in Augusta, Georgia.
(The beautiful and historic 12th Hole)
Now, with such an incredible tournament comes an incredible boost to the economy in the Augusta area. The tournament, as a whole, is estimated to have an economic impact of $117.5 million. An estimated 250,000 people are projected to travel to Augusta from around the world. This skyrocket in visitors strongly effects Augusta’s GDP. Looking at the equation, Y=C+I+G+NX, these patrons positively impact Consumption (C). With hotels selling out years in advance, fans flock to local restaurants and stores in search of food and Augusta merchandise and memorabilia. In past years, the hotel industry has generated $9.75 million on tax collections alone, 203% more than the average month. In addition to hotel and merchandize sales, the tournament provides more growth to Augusta’s capital, for example, consumption of transportation and other entertainment.
Also, important to note, due to the massive increase in demand for goods and services, the local companies and institutions spike their prices. Higher-star hotels, such as the Augusta Marriott at the Convention Center and the Partridge Inn, advertise rates on their websites of $660 and from $999 to $1,209, respectively. These hotels typically range from $92 to $160 on a normal weekend night in April.
Along with this large impact on the local economy, The Masters plays a crucial role in economic growth for companies on an international scale due to advertisements, broadcasting and ticket sales. The Masters is the most-watched golf event in the nation, with an estimated 5 million viewers on opening day and more than 30 million viewers during the final round. With such great ratings comes a total cost of $25 million for international broadcasting rights. Some advertisers will pay between $6 and $8 million for ad time during the telecast. In addition, The Masters brings in over $35 million in ticket revenues.
To some it up, this incredible tournament does not only provide utility for golf fans and professionals around the world, but also substantially impacts the economies of Augusta, the United States and beyond. And for good reason: