Abstract
Daily hotel data are employed, along with information on prices, revenue, demand and hotel occupancy, to analyze part of the local economic impact of the annual New York City (NYC) Marathon. As the largest competitive race in the world, the marathon attracts domestic and international competitors and spectators. The cancellation of the 2012 marathon due to Hurricane Sandy was estimated to lead to an increase of 4000 hotel nights as well as a 10% increase in the average daily room rate. Taken together, this is associated with a USD 3 million increase in hotel revenue. The results suggest a significantly lower local economic impact of the race than previously thought.
Highlights
The economic impact of large events can often be overstated if resident and visitor activity cannot be identified (Crompton et al 2001). Hodur et al (2006) and Baade and Matheson (2001)state that the local economic impact of events depend strongly on the event’s ability to attract those from outside the area as local spending for regional events is likely to capture a substitution effect rather than fiscal gains to the area
The role that the exogenous shock to public finances resulting from Hurricane Sandy played in unexpectedly canceling the 2012 New York City (NYC) Marathon is exploited in the study
This means that the dependent variables of interest are average daily room rates (ADR), total revenue, demand, and occupancy for hotels in NYC
Summary
The economic impact of large events can often be overstated if resident and visitor activity cannot be identified (Crompton et al 2001). Hodur et al (2006) and Baade and Matheson (2001). State that the local economic impact of events depend strongly on the event’s ability to attract those from outside the area as local spending for regional events is likely to capture a substitution effect rather than fiscal gains to the area. This can be acute in the case of large sporting events where many attendees live close enough to drive in for the event and drive home.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
