A concert hall 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 explores cities that have transformed into business hubs with an entrepreneurial spirit that has attracted capital, companies and employees.
Two Colorado cities are experiencing a technology-fueled economic boom, with Denver’s skyline transforming and Boulder’s gross domestic product increasing. This growth is fueled by a combination of factors, including a strong military presence, leading universities and a focus on high-tech industries such as aerospace and quantum technology, as reported in the CNBC special primetime “Cities of Success: Denver & Boulder.” which will air on April 11 at 10 p.m. EDT.
However, the influx of people and businesses has led to challenges such as a growing homeless population, affordability issues and strain on infrastructure.
Although the tech boom benefits both cities economically, Denver stands out as it continues to experience growth in other areas: professional sports, a popular outdoor recreation spot, and a cannabis industry that is expected to see double-digit growth in the future.
Cannabis correction, not retreat
Marijuana plants at a grow facility in Denver.
Matthew Staver | Bloomberg | Getty Images
Over the past decade, legal marijuana sales have added $15 billion to Colorado’s economy, with nearly $3 billion coming from taxes.
“Cannabis is a strong sector. (It represents) tens of thousands of jobs in Colorado – billions of dollars of economic activity,” Colorado Gov. Jared Polis told CNBC in a recent interview.
The city of Denver has benefited significantly, with marijuana sales surpassing $6 billion since 2014. According to data from the Denver Department of Excise and Licensing, the city’s marijuana tax revenue has crossed the half-mark. -billion last year, reaching $501.5 million in August 2023.
Despite being a national pioneer since 2014 – when it was the first state to legalize recreational marijuana – the Centennial State’s cannabis industry has seen a significant decline as a result of the pandemic .
A recent report shows a 24% drop in cannabis revenue in Denver compared to 2021. Despite the drop, Polis told CNBC he remains optimistic about the future of marijuana.
Industry experts predict a return to growth. The Governor’s Office of State Planning and Budget projects a 16% revenue increase statewide 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 Makers
Cameron Fleming #73 of the Denver Broncos runs on the field before a 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 – collectively raked in a whopping $1.159 billion in 2022.
That sum places Denver among the top eight professional sports earners nationally, competing with cities traditionally recognized as sports powerhouses like Chicago, New York and Los Angeles.
Analysts predict a combined revenue increase of more than 37% through 2030 for Denver’s top franchises, according to sports betting guide website OLBG.
Beyond the professional teams, the University of Colorado Boulder football program made headlines with the hiring of legendary NFL star Deion Sanders as head coach. This strategic decision had a significant financial impact: ticket sales soared by more than $20 million, according to the University of Colorado Boulder, doubling the previous year’s figures.
Coach Prime’s influence extends beyond the stadium, with Visit Boulder estimating its economic impact on the region at $113.2 million.
A step towards economic success
A concert at Red Rocks Park and Amphitheater outside of Denver.
John P. Kelly | The Unpublished Image Bank | Getty Images
Denver’s famous Red Rocks Amphitheater isn’t just a legendary concert venue: it’s a major economic force.
A long list of famous artists have graced its stage, from the Beatles to Billie Eilish, while others like U2 and Stevie Nicks have filmed concerts there. Even during the trying times of the Covid-19 pandemic, the all-outdoor venue broke records in 2021, becoming the busiest concert venue in the world, according to Billboard magazine.
A recent Denver-sponsored study found that the 9,500-seat venue generates a whopping $717 million in regional economic output each year.
Red Rocks ranked as the fourth busiest entertainment venue in the world in 2023, according to Billboard, just behind New York’s Madison Square Garden.
Experts attribute this success in part to the venue’s unique geography and its location 6,450 feet above sea level, creating unprecedented acoustics. The fact that during the 2022 concert season, Red Rocks has a concert nine days out of ten helps the small venue compete with spaces that can accommodate larger crowds.
On-site events support approximately 7,300 jobs and generate payroll of approximately $216 million annually. Foreign visitors attending concerts in 2023 injected more than $300 million into the region, benefiting the hotel, restaurant, transportation and retail sectors.
TUNED IN: The “Cities of Success” special featuring Denver and Boulder will air on CNBC on April 11 at 10 p.m. ET.
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