Economic Impacts of Summer Festivals on Greater Cincinnati
U.S. Bureau of Labor Statistics Consumer Expenditure Survey data from 1993-98 indicates that Greater Cincinnati residents spent 15 percent more dining out than the national average, spending $2,078 per consumer per year versus the national average of $1,807. Cincinnati consumers on average spent almost 9 percent more on alcoholic beverages and more than 30 percent more on tobacco products per consumer than did the nation as a whole. Compared to the larger mid-west cities of Chicago and Cleveland, Cincinnati consumers during this period also spent more per consumer on entertainment, alcoholic beverages, and tobacco, spending only slightly less than Chicago consumers on food away from home.
Cincinnati summer festivals will generate an impact of $189 million on the regional economy. This economic impact is based on an additional 540,300 out of town visitors traveling to the region because of the festivals.
These out of town visitors will spend as estimated $89 million in Greater Cincinnati businesses, including $19 million in Hotels, $19 million in area restaurants and clubs, $13 million in retail establishments, $16 million for transportation, and $22 million for miscellaneous entertainment. Some of this spending, especially for food, entertainment and shopping, will occur at the festivals.
The money spent by the additional tourists circulates throughout the regional economy and is multiplied by successive rounds of spending by area businesses and residents, resulting in the total impact on regional output of $183 million. Included in this impact is an increase in household earnings for the region of $58 million and 3,359 new jobs.
The industries most effected by visitor spending in terms of revenue and employment are hotel/lodging, recreation services, and eating and drinking establishments.