New Study: Louisiana Economic Impact of NBA All-Star Game
BATON ROUGE – The 2017 NBA All-Star Game brought an estimated $44.9 million in spending to the state of Louisiana, according to a new study released today by the LSU Economics & Policy Research Group, or EPRG, at the E. J. Ourso College of Business. The study, “The Economic Impact of the NBA All-Star 2017 Weekend on the Louisiana Economy,” assesses the economic impact of the event, which was held in New Orleans in mid-February 2017. The study was commissioned by Louisiana Economic Development, or LED, and conducted with support from the National Basketball Association and the Greater New Orleans Sports Foundation.
The research team conducted on-site surveys at the event to estimate total visitor spending during the weekend. Many of the event’s attendees had pre-paid packages that covered tickets and in some cases, hotels. However, the surveyors found that visitors spent an average of $1,440 in addition to these packages. EPRG also found that visitors attending events other than the game spent an additional $798 on average during the weekend. The research also indicated that visitors to the NBA All-Star Game had much higher income than the population at large, which also contributed to an elevated level of spending by the event’s attendees. In total, the researchers estimate that attendees spent $23.7 million in addition to spending by the NBA.
“A major event like this draws visitors from across the country as well as a significant number of international visitors, who stay in the area and spend money at local hotels, restaurants, bars and attractions in addition to the spending we see at the event,” said LSU EPRG Director and Department of Economics Associate Professor Stephen Barnes, who is one of the study’s authors.
The researchers compiled spending totals related to the event from outside organizations as the results of spending by major source are as follows:
Visitors: $23.7 million
National Basketball Association (NBA): $18.7 million
Media Outlets: $1.4 million
Sponsors: $3.9 million
The study goes further and evaluates the indirect economic impact of the spending related to the 2017 NBA All-Star Weekend. Accounting for those indirect benefits, the researchers estimate that the event led to a total of $82.7 million of additional sales, or output, in the state. Furthermore, the research concluded that the event generated a total of $24.7 million of additional earnings for Louisiana workers. Finally, the researchers estimate that the direct and indirect economic impact of the event led to $2.5 million of new Louisiana sales and excise taxes.
“This study shows the economic benefits of attracting a major event like NBA All Star Weekend,” said LSU EPRG Executive Director and Department of Economics Professor Dek Terrell, who is also one of the study’s authors. “An event like this offers Louisiana an opportunity to showcase the state’s tourism and hospitality assets, but also creates immediate economic benefits in terms of supporting jobs, creating wages and generating new tax revenues for the state.”
About the LSU Economics & Policy Research Group
Based in the E. J. Ourso College of Business at LSU, the Economics & Policy Research
Group, or EPRG, is an applied economics research unit of the Department of Economics
focused on primary research relevant to Louisiana’s economy. LSU EPRG aims to contribute
advances to the general body of economics research, inform public decision making,
support economic development and promote a strong, resilient Louisiana economy accessible
to all Louisiana residents. Visit: business.lsu.edu/eprg.
“The Economic Impact of the NBA All-Star 2017 Weekend on the Louisiana Economy” study: https://business.lsu.edu/Economics-and-Policy-Research-Group/Documents/2017-NBA-All-Star-Impact-Study.pdf
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