Survey adds up return on Pro Bowl

By Sean Hao
Advertiser Staff Writer

The AFC may have trounced the NFC, but it was the state that won big when this year's Pro Bowl activities wrapped up, according to a survey released yesterday.

But those visitors reported staying less time than expected — 8.6 days rather than 10.1 — so the amount of money pumped into the state economy came to about $23.84 million, or $1.16 million less than projected. That translates to a $2.32 million boost to state tax revenues.

The survey results are meant to bolster the case for the more than $5 million the state pays the NFL for rights to host the event. The payment represents nearly 9 percent of the state's $56 million tourism budget.

The tourism authority's payments to the NFL increase each year, topping out at $5.8 million when the current contract expires in 2005. The authority has been in talks with the NFL to reduce the amount paid in the final two years of the contract.

About 260 Pro Bowl visitors were surveyed, at a cost of $6,000. No margin of error was provided.

In addition to $23.84 million in visitor spending is an estimated $8 million spent by the NFL to hold the event, plus the unknown marketing value of TV exposure for the state when the Pro Bowl aired on ABC.

Unlike last year, when the game competed with the Olympics, ratings for this year's broadcast rose. An estimated 5.9 percent of U.S. television households — 6.3 million homes — tuned in, compared with 4.5 percent, or 5 million homes, last year.

It is difficult to gauge the value of such exposure in a season when much of the Mainland is mired in winter weather.

"The good news is, just on the basis of visitor spending, it creates a positive impact on the state," said Frank Haas, vice president of marketing for the Hawaii Tourism Authority.

Still, some wonder whether the money spent on the Pro Bowl is appropriate, and if some of it would not be better used attracting or promoting other sporting events, such as the Honolulu Marathon.

"There's no question there's benefits," said David Carey, president and chief executive for Outrigger Enterprises Inc. "We didn't realize how very important it was until after 9/11 and we saw the enormous bump" in occupancy.

Carey said the Pro Bowl adds up to about a 20 percent increase in Waikiki hotel occupancy over a one-week period.

"The issue the state is going to continue to wrestle with is, is $5 million the right amount of money to spend, or should it be $2 million or $8 million?" Carey said. "With $5 million being a substantial piece of the budget, is this the very best expense with the best return?"

That is among the questions the Hawai'i Tourism Authority hopes to answer with its survey.

Among other results:

• Visitors stayed an estimated average of 8.6 days in Hawai'i and spent $154 a day on goods and services such as food, hotel, transportation and gifts. It was previously estimated that Pro Bowl visitors spent 10.1 days, a figure Haas noted as congruent with the average stay of all Hawai'i visitors. If that figure is accurate, the Pro Bowl generated $28.07 million in visitor spending and $2.72 million in state tax revenues.

• Nearly 75 percent of survey respondents said the Pro Bowl's location was the sole or very important reason for attending. That could give the Hawai'i Tourism Authority greater leverage when negotiating with the NFL on reducing its payments.

"It's clearly nice to know that those folks seem to prefer coming to Hawai'i," Haas said.

• Nearly three-quarters of visitors surveyed took in local attractions such as the Polynesian Cultural Center, Sea Life Park and Waimea Falls Park.

As to whether the state gets the best value for its Pro bowl investment, "That's a real tough call," said Wayne Nielsen, general manager for Sea Life Park. "If we did nothing to try to attract people to Hawai'i, there are too many other attractions to go to. So you have to do something to get your name out there."

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.