Concert venue in natural rock formations outside of Denver, Colorado
Amy Spavorcer | iStock Editorial | Getty Images
This story is part of CNBC’s quarterly Cities That Succeed series, which explores cities that have transformed into business hubs that are entrepreneurial and attract capital, companies and employees.
Two Colorado cities are experiencing a tech-fueled economic boom, and Denver’s skyline is changing, Boulder’s gross domestic product soars. As reported in the CNBC primetime special “Successful Cities: Denver and Boulder,” this growth is driven by a variety of factors, including a strong military presence, leading universities, and an interest in aerospace and quantum technologies, among others. High-tech industry concerns. Airing April 11 at 10pm ET.
However, the influx of people and businesses also brings challenges, e.g. The homeless population continues to grow, affordability issues and Infrastructure is tight.
While the tech boom has benefited both cities economically, Denver stands out because it continues to grow in other areas: professional sports, popular outdoor recreation and a cannabis industry that is expected to see double-digit growth in the future.
Cannabis Correction, Not Retreat
Marijuana is grown at a cultivation facility in Denver.
Matthew Staver | Bloomberg | Getty Images
Legal marijuana sales have increased by staggering amounts over the past decade $15 billion Colorado’s economy, nearly $3 billion of which comes from tax revenue.
“Cannabis is a powerful industry. (It represents) tens of thousands of jobs — billions of dollars of economic activity in Colorado,” Colorado Gov. Jared Polis said at a recent told CNBC in an interview.
Denver benefits greatly from marijuana sales Over $6 billion Since 2014.According to the Denver Department of Excise Tax and Licensing, the city’s marijuana tax revenue topped the half-billion mark last year, reaching $501.5 million August 2023.
Although the Centennial State has been a national pioneer since becoming the first state to legalize recreational marijuana in 2014, the state’s cannabis industry has been experiencing a significant decline in the wake of the pandemic.
A Recent reports show Compared to 2021, Denver’s cannabis revenue is down 24%. Despite this decline, Polis told CNBC he remains optimistic about the future of cannabis.
Industry experts predict a return to economic growth. The Governor’s Office of State Planning and Budget predicts overall state revenue growth of 16% in 2024, highlighting the industry’s long-term potential.
“There’s still healthy growth there. I think it’s just a post-COVID correction,” Denver Mayor Mike Johnston said.
major league money maker
Cameron Fleming #73 of the Denver Broncos runs onto the field before the game against the Kansas City Chiefs at Empower Field at Mile High on January 8, 2022 in Denver, Colorado.
Dustin Bradford | Getty Images
Denver’s professional sports scene is also a major source of revenue.The city’s four major league teams—the Broncos, Nuggets, Rockies and Avalanche—combined a staggering amount of revenue US$1.159 billion in 2022.
That number puts Denver among the top eight nationally in professional sports revenue, competing with cities like Chicago, New York and Los Angeles that are traditionally considered sports powerhouses.
Analysts predict consolidated revenue surge More than 37% According to sports betting guide website OLBG, Denver’s major franchise will achieve that goal by 2030.
In addition to its professional teams, the University of Colorado Boulder football program made headlines with the hiring of NFL legend Deion Sanders as head coach. The strategic move had a huge financial impact: Ticket sales jumped by more than $20 million, double last year’s level, according to the University of Colorado Boulder.
Coach Prime’s influence extends beyond the stadium, with Visit Boulder estimating his economic impact on the region at $113.2 million.
stage for economic success
Concerts at Red Rocks Park and Amphitheater outside Denver.
John P. Kelly | Image Gallery Unpublished | Getty Images
Denver’s famous Red Rocks Amphitheater is not only a legendary music venue, but also a major economic force.
A long list of famous artists from The Beatles to Billie Eilish have performed here, while other artists such as U2 and Stevie Nicks have filmed concerts here. Even during the trying times of the Covid-19 pandemic, the completely outdoor venue broke records in 2021 to become the world’s most visited concert venue, according to Billboard Magazine.
A recent Denver-sponsored study showed the 9,500-seat venue generated a whopping $717 million in revenue. Regional economy annual output.
According to Billboard, Red Rocks became the fourth busiest entertainment venue in the world in 2023, behind New York City’s Madison Square Garden.
Experts attribute this success in part to the venue’s unique geography Located at 6,450 feet above sea level, it creates unparalleled acoustics. Red Rocks hosts one concert during the 2022 concert season, helping smaller venues compete with spaces that can accommodate larger crowds 9 out of 10 days.
Events hosted at the venue support an estimated 7,300 jobs and generate approximately $216 million in annual wages. Out-of-state visitors to the concert in 2023 will inject more than $300 million into the region, benefiting hotels, restaurants, transportation and retail.
WATCH: The “Successful City” special featuring Denver and Boulder will air on CNBC on April 11 at 10 p.m. ET.
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