The two cities in Colorado, Denver and Boulder, have been experiencing significant economic growth, primarily fueled by the tech industry. This growth is attributed to a variety of factors such as a strong military presence, leading universities, and a focus on high-tech industries like aerospace and quantum tech. While this growth has been beneficial for the cities in terms of attracting capital, companies, and employees, it has also brought along challenges such as a growing homeless population, affordability issues, and infrastructure strain.
The city of Denver, in particular, has seen remarkable growth in various sectors outside of the tech industry. Professional sports, outdoor recreational activities, and the cannabis industry have also contributed to the city’s economic prosperity. The legalization of marijuana in Colorado has led to a significant boost in the economy, with legal marijuana sales contributing billions of dollars to the state’s GDP. Denver alone has surpassed $6 billion in marijuana sales since 2014, with tax revenues exceeding half a billion dollars in 2023.
Challenges in the Cannabis Industry
Despite the initial success of the cannabis industry in Colorado, there has been a recent decline in revenue following the COVID-19 pandemic. Denver saw a 24% drop in cannabis revenue compared to the previous year. However, state officials remain optimistic about the industry’s future growth potential. Industry experts predict a return to growth, with a forecasted 16% revenue increase for the state overall in 2024. This shows that despite temporary setbacks, the cannabis industry in Colorado continues to hold long-term promise.
Denver’s Professional Sports and Entertainment Industry
In addition to the tech and cannabis sectors, Denver’s professional sports teams and entertainment venues have also played a significant role in the city’s economic success. The city is home to four major league franchises, including the Broncos, Nuggets, Rockies, and Avalanche, which collectively generated over a billion dollars in revenue in 2022. By 2030, analysts predict a surge of more than 37% in revenue for Denver’s major sports franchises.
Red Rocks Amphitheatre, a famous music venue located in Denver, has also made a substantial economic impact on the region. Hosting renowned artists and breaking attendance records, the outdoor venue generates a massive $717 million in regional economic output annually. Its unique geography and location at 6,450 feet above sea level contribute to its success, making it the fourth-busiest entertainment venue globally in 2023. The venue supports thousands of jobs and injects millions of dollars into the region from out-of-state visitors attending concerts.
The economic boom of Denver and Boulder in Colorado is a result of various factors that have contributed to the growth of these cities. While challenges like a growing homeless population and affordability issues persist, the cities continue to attract businesses and residents due to their entrepreneurial spirit and focus on high-tech industries. With the continued growth of sectors like tech, cannabis, professional sports, and entertainment, Denver and Boulder are poised to maintain their status as thriving business hubs in the region.