Hosting the America’s Cup could mean hundreds of millions in economic activity for Hawaii and priceless exposure for the islands’ tourism industry.

When word spread Monday that billionaire Larry Ellison, the owner of 98 percent of Lanai, has set his eyes on the islands to hold the 2017 America’s Cup yacht race, the reaction in Hawaii was quick and mostly positive.

The prestigious regatta generated between $364 million and $550 million in economic impact for the Bay Area last year but cost taxpayers an estimated $5.5 million and fell far below the $902 million in economic benefit projected months before the summer races.

By comparison, the Hono­lulu Marathon resulted in more than $101 million in visitor spending in 2013, while the Pro Bowl contributed $26 million to the state’s economy last year.

In addition to spending, the worldwide exposure would be invaluable for Hawaii, said Gov. Neil Abercrombie.

"You can’t put a price on it," Abercrombie said. "The America’s Cup in Hawaii would be marvelous for us; however, that decision is up to Mr. Ellison."

Honolulu Mayor Kirk Caldwell’s office contacted Ellison’s representatives Monday but hasn’t had formal discussions about hosting the international sporting event.

"We look forward to working with Mr. Ellison and America’s Cup officials and the state to see what we can do to make this vision a reality," Caldwell said. "We are excited about the idea of holding the America’s Cup in Hono­lulu because we have some of the most challenging and varied sailing conditions in the world, and there’s no more beautiful backdrop than sailing off Hono­lulu, Wai­kiki and Diamond Head."

It is unclear how much taxpayers would have to pay if the state needs to upgrade its harbors or build pavilions or stands for spectators near the ocean, said Jerry Agrusa, chairman and professor of hospitality and tourism management at Hawaii Pacific University’s College of Business. Agrusa estimates the race could generate $43 million in economic impact and $1.95 million in taxes, based on the number of additional visitors it would take to fill Oahu hotels, which are already at near capacity, and the average daily spending of tourists last summer.

"The big challenge was the America’s Cup made the people pay (last year)," Agrusa said. "The taxpayers paid to fix the harbors, then they expected all these people were coming to watch the race … but not all these people showed up. Our harbors aren’t set for these types of boats."

He added, "We don’t need to build infrastructure for yachts that will stay here for three months and then go away. We shouldn’t use Hawaii tax dollars at a time when our infrastructure in Hawaii is crumbling."

Agrusa had a suggestion for who could pay for any needed harbor improvements: "I think the guy that buys islands should pay for that."

Ellison bought most of the island of Lanai in 2012 for a reported $300 million.

The San Francisco Chronicle reported Monday that Ellison wants the next America’s Cup to involve regattas all over the world "leading up to the Louis Vuitton Cup, and the main event, the America’s Cup, likely taking place in Hono­lulu."

Last summer, Ellison’s Oracle Team USA won the 34th America’s Cup in San Francisco in one of the greatest comebacks in sports history.

The America’s Cup, generally held every four years, is named after the yacht America and not the country. It began in 1851 under another name but became known as the America’s Cup when a schooner named America defeated several British boats in a race.

Only four nations — the U.S., Australia, New Zealand and Switzerland — have won the oldest trophy in international sport.

Three challengers compete in the Louis Vuitton Cup to determine who gets to face the defending America’s Cup champion. The last two America’s Cups were won in 2010 and 2013 by Ellison’s Oracle Team USA. The winner gets to choose the next venue, boats, format and date.

"Holding the Louis Vuitton Cup and the America’s Cup in Hawaii has been one of Ellison’s long-standing dreams," the Chronicle said.

"That’s the plan anyway," Ellison was quoted as saying. "We have a lot of work to do. We have to make deals with all the cities where we want to hold races. It’s not going to be easy to pull this off."

The Chronicle said the article was based on excerpts from a new paperback edition of Chronicle staff writer Julian Guthrie’s book "The Billionaire and the Mechanic: How Larry Ellison and a Car Mechanic Teamed Up to Win Sailing’s Greatest Race, the America’s Cup, Twice."

Ellison spoke to Guthrie in a series of exclusive interviews over several months, the newspaper said.