Even though the 34th America’s Cup yachting race this summer cost San Francisco millions and created far less financial impact than first anticipated, it generated significant economic activity for The City, according to preliminary findings from the Bay Area Council Economic Institute.
The race and its public activities generated $550 million in economic activity and contributed roughly $6.6 million in tax revenue, according to the group.
That’s still far from the more than $1 billion in economic activity projected before the race, won by defending champion Oracle Team USA.
And The City is still in the red.
San Francisco, which spent $20.7 million on the event, has thus far only recouped about $8.6 million, said Michael Martin, America’s Cup project director for The City.
“The initial report had a lot of uncertainties in it and had a lot of things happening that did not happen,” said Ted Egan, chief economist in the City Controller’s Office, who pointed out that any such study must take into account a lot of variables.
Nonetheless, Mayor Ed Lee’s office says the event was a success.
“That is a substantial impact we would not have seen had we not hosted the America’s Cup here,” said the mayor’s spokeswoman, Christine Falvey.
The event brought in tax revenue for The City and created jobs, she said, and the mayor plans to apply by the end of the month to host the next competition.