BNP Paribas Open Economic Impact Tops $289 Million

2011 Getty Images

The 2011 BNP Paribas Open, the ATP World Tour Masters 1000 and WTA Premier tennis tournament held at the Indian Wells Tennis Garden this past March, generated an estimated total gross economic impact on the Coachella Valley regional economy of $289,287,532, it was announced today by Steve Simon, tournament director. This represents an increase of $69,487,629 since 2006 when the last BNP Paribas Open economic impact study was conducted and the estimated total gross economic impact was $219,799,903. The first study was conducted in 2001, and over the past ten years there has been an increase of more than $188 million.

Total gross economic impact is derived by calculating the direct ($189,076,818) and indirect and induced ($100,210,714) economic impacts and then adding them together to show the incremental spending above and beyond what would have been expected had the BNP Paribas Open not been held in the area.  Direct spending includes money spent by out-of-town visitors, vendors, sponsors, and the tournament organization to a business in the region. Indirect and induced impact is the re-spending of this money by the regional businesses in the regional economy. In 2006 the direct impact was calculated to be $139,113,863 and the indirect and induced economic impact of the event was estimated at $80,686,041.

“To surpass $289 million in economic impact clearly displays the consistently expanding importance that the BNP Paribas Open brings to the City of Indian Wells and the Coachella Valley”, said Simon.  “We are thrilled that the statistical evidence within this study confirms the economic significance of this international sporting event to the area. With tens of thousands of fans from outside the market attending the event for multiple days each year, we are helping to provide direct business to the local hotel properties, restaurants, and other businesses.”

A total of 350,086 people attended the tournament over the two week period earlier this year. On average each person attended the tournament 3.08 days resulting in 113,664 unique spectators. An impressive 84% of these spectators traveled from outside the region equating to 95,478 out-of-town visitors from which the economic impact is calculated. In 2006, 270,453 people attended the tournament and 73,693 unique spectators attended the tournament with 79% traveling from outside the region equating to 58,365 out-of-town visitors.

The study, conducted by The George Washington University, uses estimates for direct and indirect impact that are based on carefully selected methodology, visitor survey results, and the data provided by the organizers and sponsors.

Read more about the local impact in The Desert Sun.