- Denver continues to benefit from three unique sectors: cannabis, sports, and unique attractions like Red Rocks Amphitheater, generating billions of dollars in revenue and attracting tourists.
- Denver alone generates more than $500 million in taxes and license fees from marijuana sales.
- Analysts predict that the city's Major League team, which already brings in significant revenue, will see revenue jump more than 37% by 2030.
- And the Red Rocks Amphitheater venue generates $717 million in annual regional economic output and attracts out-of-state visitors who spend more than $300 million in the region.
Concert venue built into a natural rock formation outside of Denver, Colorado
Amy Sparwasser | iStock Editorial | Getty Images
This story is part of CNBC's quarterly “Cities of Success” series, which examines cities that have transformed into business hubs through an entrepreneurial spirit that attracts capital, companies and employees.
Two Colorado cities are experiencing technology-powered economic booms, with Denver's skyline changing and Boulder's gross domestic product soaring. As reported on CNBC's prime-time special “Cities of Success: Denver and Boulder,” this growth is fueled by a strong military presence, top universities, a focus on high-tech industries such as aerospace and quantum technology, and more. , driven by a variety of factors. It will air on April 11th at 10pm ET.
However, the influx of people and businesses has created challenges such as a growing homeless population, affordability issues and strained infrastructure.
While the tech boom has brought economic benefits to both cities, Denver stands out because of its continued growth in other areas, including professional sports, popular outdoor recreation venues, and a cannabis industry expected to see double-digit growth in the future. There is.
Marijuana plants at a cultivation facility in Denver.
Matthew Staver | Bloomberg | Getty Images
Over the past decade, legal marijuana sales have added a staggering $15 billion to Colorado's economy, with nearly $3 billion of that coming from taxes.
“Cannabis is a powerful sector. [It represents] “Colorado has tens of thousands of jobs and billions of dollars in economic activity generated,” Colorado Governor Jared Polis told CNBC in a recent interview.
The city of Denver has benefited greatly, with marijuana sales exceeding $6 billion since 2014. The city's marijuana tax revenue exceeded $500 million last year, reaching $501.5 million in August 2023, according to data from the Denver Department of Excise and Licenses. .
The Centennial State's cannabis industry has experienced a significant decline following the pandemic, despite being a pioneer in the country since 2014, when it became the first state to legalize recreational marijuana.
A recent report shows Denver cannabis revenue is down 24% compared to 2021. Despite this drop, Polis told CNBC he remains optimistic about the future of marijuana.
Industry experts predict a return to growth. The Governor's Office of Planning and Budget projects that statewide revenue will increase by 16% in 2024, highlighting the industry's long-term potential.
“We still see healthy growth. I think this is just a post-COVID adjustment,” Denver Mayor Mike Johnston said.
Cameron Fleming, number 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 franchises, the Broncos, Nuggets, Rockies and Avalanche, generated a whopping $1.159 billion in combined revenue in 2022.
That amount puts Denver in the top eight in professional sports revenue nationally, competing with cities traditionally recognized as sports powerhouses such as Chicago, New York and Los Angeles.
Analysts predict that total revenue for Denver's major franchises will increase by more than 37% by 2030, according to sports betting guide website OLBG.
Beyond the professional team, the University of Colorado Boulder football program made headlines for hiring legendary NFL star Deion Sanders as its head coach. This strategic move had major economic implications. According to the University of Colorado Boulder, ticket sales soared by more than $20 million, double his number from the previous year.
Coach Prime's influence extends beyond the stadium, with Visit Boulder estimating his economic impact on the region at $113.2 million.
Concert at Red Rocks Park and Amphitheater outside of Denver.
John P. Kerry | Unreleased Image Bank | Getty Images
Denver's famous Red Rocks Amphitheater is not only a legendary music venue, but also a major economic force.
Many famous artists have graced the stage, from the Beatles to Billie Eilish, and artists such as U2 and Stevie Nicks have filmed concerts there. According to Billboard magazine, the all-outdoor venue broke records in 2021, becoming the world's most-attended concert venue, despite challenging times due to the coronavirus pandemic.
A recent study sponsored by Denver revealed that the 9,500-seat venue generates a massive $717 million in local economic output annually.
According to Billboard, Red Rocks ranked as 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 and location at 6,450 feet above sea level, creating unparalleled acoustics. During the 2022 concert season, Red Rocks hosted concerts 9 out of 10 days, allowing smaller venues to compete with spaces that can accommodate larger crowds.
Events at the venue support an estimated 7,300 jobs and generate approximately $216 million in annual payroll. Out-of-state visitors attending the 2023 concerts injected more than $300 million into the region, benefiting the hotel, restaurant, transportation, and retail industries.
Tune in: The “Cities of Success” special featuring Denver and Boulder will air April 11 at 10pm ET on CNBC.
