GBR Pro | Augusta Masters Economics: How a Golf Tournament Fuels a City of 200,000 & Essential Viewing Guide
From Tickets to Tourism: The Masters' Economic Boom & Your Essential Viewing Guide
This week, Augusta, Georgia, a city with an approximate population of 202,000, is experiencing a substantial economic surge. This is due to the influx of golf enthusiasts from all over the globe who are coming to witness the Masters, a major event in the golfing calendar.
Augusta, typically a tranquil city, undergoes a transformation during the Masters week. The city’s economy sees a surge as approximately another 200,000 visitors contribute around $160 million.
The 2023 Masters event marked a significant milestone as it generated an estimated total revenue of $142 million, returning to the levels seen before the COVID-19 pandemic.
📌 THE PATRONS
The event is expected to be conducted at full capacity, accommodating 50,000 spectators each day.
📌 THE LODGING
The city of Augusta is well-equipped to accommodate the influx of visitors, with 7,500 hotel rooms and over 4,500 home rental listings available. These accommodations are subject to a lodging tax of 6%, along with additional local and state fees charged per night.
The hospitality sector in Augusta/Richmond County saw a substantial increase in revenue in 2023 compared to the previous year. The revenue from hotels and motels alone was just under $18.5 million, an increase of 11.5%. The average daily rate for a room was close to $480.
Short-term rentals also saw a 38% increase in revenue during the tournament week, with the average daily rate being $820.
With the city’s hotels expected to be fully booked during the week, the average cost of a hotel room will be around $650 per night. This resulted in approximately $2.3 million in hotel tax revenue for the city and state.
The prices for hotel rooms and home rentals see a dramatic increase, nearly 800% higher than usual, which results in a substantial revenue of $36 million.
For instance, The Partridge Inn Augusta (Curio Collection by Hilton) charges $1,905 per night (2 people) during this period, compared to $272 per night a month later.
An interesting aspect of the Masters week is its timing with the spring break of the Richmond County School System. This allows homeowners to rent out their homes while they are away. A home valued at $450,000 could potentially bring in more than $15,000 in rental income during the week.
📌 THE AIRPORT
The Augusta Regional Airport also sees a significant increase in traffic during the Masters. The frequency of takeoffs and landings increases from every 30 minutes to every five minutes. The airport even has to close a runway to accommodate parked jets.
📌 OTHER EVENTS
The economic impact of the Masters is comparable to other major golf events. For instance, the 2023 Ryder Cup in Rome had an impact of almost $400 million. The 150th Open at St Andrews in 2022 generated over £300 million for Scotland, while the Open Championship the following year brought an overall economic benefit of £187 million to the Wirral and Liverpool region. The 2023 PGA Championship at Oak Hill Country Club is estimated to result in $190 million in economic activity.