There’s more than one way to judge a region’s financial health, and in Alberta, local events can reveal more than you might think. Alberta’s abundance of natural resources and professional NHL team (the Edmonton Oilers) alone are enough to give you valuable insights into the province’s financial health and potential for growth. In particular, think of the Stanley Cup playoffs – during this event, the Edmonton Oilers generated $280 million for the Edmonton economy. This is a classic example of how signature events drive substantial economic activity in Alberta, turning financial boosts into financial leaps. In this article, we’ll explore how signature events such as the Calgary Stampede and the Chuckwagon Tarp Auction help shape Alberta’s financial landscape.
Economic Champions: The Edmonton Oilers
As you know, the Edmonton Oiler’s Stanley Cup playoff run generated $280 million. Interestingly, the first three rounds accounted for $179 million of that grand total, which reflects a significant financial leap from other Edmonton-hosted events like The Grey Cup game in 2018 ($81 million). What’s even more intriguing is that it was the fourth round alone that brought about the additional $100 million for the city’s economy.
That’s the magic of sporting events – they are more than entertainment; they are lucrative opportunities that can revitalize local economies. But how can sporting events rejuvenate such economies? Think tourism and employment opportunities.
The impact that sporting events have on tourism is substantial, especially in Canada, where the sports tourism industry is valued at approximately $7.4 billion. With masses upon masses of tourists comes an influx of profits, especially for industries like food, transportation, and accommodation. This, in turn, leads to an increase in job vacancies and opportunities for a business’s growth. What’s more, sporting events and global exposure often go hand-in-hand, and with this exposure, any region in the world can become a desirable destination for even more tourists and investors alike. Best of all, according to Statista, the number of consumers in the Canadian sports events industry is predicted to reach 4.6 million by 2028. In other words, this industry will only enrich the Canadian economic landscape even more.
Financial-Boosting Festivals: The Calgary Stampede
Another notable event in Alberta is the annual Calgary Stampede festival – and this year’s exhibition has proven to be the most gainful yet. The 2024 Calgary Stampede attracted 1,477,953 visitors from around the globe, breaking a 12-year-long attendance record of 1,409,371 visitors set in 2012. The Calgary Stampede generates $540 million for Alberta and approximately $227 million for Calgary’s economy directly on an annual basis. Calgary Stampede CEO Joel Cowley states that visitors spend their money on hotels, restaurants, entertainment, and of course, taxis and Uber rides, demonstrating how the 10-day festival can significantly benefit multiple industries.
Economically, the significance of the Calgary Stampede is monumental, especially when you take into account that approximately 3,500 are hired seasonally during the 10-day festival. This contributes to lower employment rates and ensures that a diverse range of local inhabitants are financially supported. Another benefit of the Calgary Stampede is its impact on real estate, which can be heavily impacted by the crowds that descend on the city for the event.
The Calgary Stampede: Migration Trends & Lucrative Real Estate
When you consider Calgary’s steady population growth, it’s not surprising that 2024’s Calgary Stampede broke attendance records. According to Macrotrends, Calgary’s population in 2024 comprises 1,665,000 inhabitants, a 1.52% increase from 2023. What’s more, 2024 is predicted to be the year of strong net migration in Calgary, meaning that Calgary’s population is still estimated to increase by 4.9% from 2023. As you can imagine, an increase in migration and tourism has a major effect on real estate, contributing to increases in house prices and demand for both residential and commercial space. In relation to the Calgary Stampede specifically, the need for short-term rental properties can pose many benefits for Calgary’s real estate market.
As homeowners rent out their properties to tourists, they can simultaneously reap the benefits of higher property valuations. In addition, the business opportunities and income that the Calgary Stampede provides can help local homeowners with hefty mortgage costs. As tourist activity increases across Calgary during the Stampede, there is also a need for available housing that must be met. This means that it’s necessary to convert existing properties or build new ones, which not only creates more employment opportunities but can also attract long-term homebuyers. Ultimately, the significant economic impact that the Calgary Stampede has is indicative of Calgary’s robust financial health, which is supported by comfortable disposable income levels and consumer confidence.
Going Once, Going Twice: The Chuckwagon Canvas Auction
Calgary’s Chuckwagon Canvas auction drives excitement, serving as a countdown for the Calgary Stampede. It also acts as an economic indicator that can reveal insights into the oil and gas industry. Every year, companies bid for the advertising rights to the canvas the Chuckwagon teams auction off, and for decades, companies from Alberta’s gas and oil sectors have been among the highest bidders. Of course, given that the oil and gas industry is deeply embedded in Alberta’s economy, high bids from this sector translate to economic optimism. Essentially, the higher the bids from such companies, the clearer it is that Alberta’s oil and gas sectors are financially thriving. Subsequently, this also indicates the stability of Alberta’s financial health overall.
What’s more, the Chuckwagon Canvas Auction of 2024 saw that average bids overleaped $115,000 across 27 drivers. According to the World Professional Chuckwagon Association, this is the highest bid average the event has ever seen, even throughout its 44-year-long history. By nearly $4,000, this average broke the previous highest bid average record that was set in 2012.
Alberta’s Economy: The Bigger Picture
Overall, it is extremely important to use popular events like the Calgary Stampede and the Edmonton Oilers’ playoff run as economic indicators. These events provide real-time and valuable insights into the performance of local economies, tourism and migration trends, and consumer confidence via high attendance records. All of these insights demonstrate Alberta’s reliable financial health across many sectors, including tourism, retail, real estate, transportation, and food. Just as these signature events help businesses identify profitable economic opportunities, Essex is here to help businesses seize them. From finding the right equipment financing structure, rental assets, working capital lines, or business insurance, Essex offers the services you need to maximize your business’s potential.
Stay on top of commercial trends and get in contact with Essex today!