Sports tourism has become the fastest-growing tourism sector, according to the United Nations World Tourism Organization (UNWTO), as more cities see bolstered economic growth from being home to professional sports teams and accommodating major sporting events. Paris, France will host the 2024 Summer Olympics while North America — the United States, Canada, and Mexico — are set to host the FIFA World Cup in 2026.
On Location and IMG Events — whose parent company is the Endeavor Group (EDR) — President Paul Caine joins Yahoo Finance's Akiko Fujita to talk about major sporting events' incentives to encourage people to travel, across the country or even across the globe.
"Any one of these opportunities around the globe gives a fan an opportunity to do something they've never... done before. So we like to create those... once-in-a-lifetime moments for people, and that's where the experience comes in," Caine explains. "People are willing to spend more and more to get that experience. Of course, the first layer is, what are they willing to pay for the ticket? Then it goes from there, is what do they want to do with the ticket? And that comes with a whole lot, like in the Super Bowl that we just had..."
AKIKO FUJITA: Well, sports tourism is making waves across the globe becoming one of the fastest growing sectors, in tourism according to the United Nations World Tourism Organization. Well, think traveling for big events like the Super Bowl, or the Olympics this requires tickets, flights, lodging, and usually reservations at local restaurants.
The United Nations estimates sports tourism has a growth rate of 17.5% through 2030, as part of "Yahoo Finance's" travel guide 2024 we are digging into what the growing business will become. For more on this let's bring in Paul Caine, he's president of On Location and IMG Events. Paul it's good to talk to you today.
Let's start by talking about where you are right now in terms of this sports tourism boom that we've talked about, On Location, IMG you're right at the heart of that intersection between sports viewing, and experiences that come with that.
PAUL CAINE: Yeah I mean, look the portfolio is really interesting because with IMG we're an owner and an operator. So we are the-- we create and build the events around the globe under the IMG umbrella, On Location piece of our business is we work with not only IMG, but with global sports rights holders to develop the true experiences that you were just talking about.
Because if people want to go to a big event, or they want to experience a game, it's more than just sitting in a seat it's not just the ticket, it's about what they're going to do around it, how they're going to get there? What's their transportation like? What is their experience like? And that's where On Location works across the globe.
AKIKO FUJITA: So let's talk about that a bit more. I mean, sports as you say it's always been a big draw. I'm one of those fans that's willing to shell out a lot of money, to see a game or you know, actually go out and be in the stadium, to view this but it feels like we have seen this shift on? How fans think about the experience that comes along with that? What are you seeing about how much they're willing to shell out?
PAUL CAINE: Yeah, look I mean, there's a huge demand for global sports right now, and for global entertainment. I mean, people don't want to just travel, they want to travel with a purpose, and what better thing to do than to go see something you absolutely love, and people are willing to step up and do it.
So we're seeing everything from in a way-- passion concept to like going to the Super Bowl or a bucket list like, I want to go to an NCAA final, or even just a dream trip like, I want to go to Paris for the Summer Olympics. Any one of these opportunities around the globe gives a fan, an opportunity to do something they've never been done before.
So we like to create those, like once in a lifetime moments for people, and that's where the experience comes in. So people are willing to spend more and more to get that experience. Of course, the first layer is what are they willing to pay for the ticket? And then it goes from there is what do they want to do with the ticket?
And that comes with a whole lot like in the Super Bowl that we just had, we had people after the game on the field during, the celebration with the confetti coming down their head. We had people pre game where they were going to experience not only great live music of Billy Idol, but also meeting a lot of the Hall of Famers that were there with us.
And we just had the new Hall of Fame class introduced a couple of days prior, and they were at the pre game celebration with-- with the fans. And these are the unique things that we bring to bear, now with the Olympics same thing we're going to bring you, and get you to see Olympians from previous games, and you're going to be seeing and hobnobbing with all of the key people around the games.
You're going to get to see a sight of the games that you wouldn't have had before, whether it's through transportation, special egress unique hospitality centers, and-- and meet and greet opportunities. That's why you go with someone like an On Location versus just buying a ticket.
AKIKO FUJITA: And to that point you already have partnerships in place with major leagues like the NFL, you're a partner with the IOC as well for the Olympics. You just pointed to some additional experiences that fans can expect. What does that mean for, additional revenue for your company?
PAUL CAINE: Yeah, So it's more than just what we do for our company, it's what we do for the cities, the hosts, and our partners. There's certainly who as fans want to spend more and do more, then it becomes a great economic opportunity for the host cities, for the rights holding partners, for all of the people around the games.
I mean, in the years previously you would go you would buy a ticket, and then that ticket once the venue was sold out, a lot of what came into bear was what was called the secondary, where people go and exchange those tickets at a premium.
You know, I've heard terms like scalping and things like that in the past that is all moving away because companies like-- like us when we partner with someone like, any of the 150 rights partners that we have around the globe, some of those you've mentioned but some of those you didn't mention like Major League Baseball, or the PGA, NASCAR.
Then we help them create more value from every one of those tickets, but more importantly more value for the buyer of those tickets. So that they have-- so they're not just buying an increased price to that secondary, they're getting a higher value opportunity for that premium. So there is more value to a city, more value to a rights holder, but ultimately it's more value to the fan.
