Sports‐Led Tourism, Spatial Displacement, and Hotel Demand

20 Pages Posted: 14 May 2020

See all articles by Yulia Chikish

Yulia Chikish

West Virginia University - Department of Economics

Brad R. Humphreys

West Virginia University - Department of Economics

Crocker Herbert Liu

Cornell University - School of Hotel Administration

Adam Nowak

West Virginia University

Date Written: October 2019

Abstract

We analyze the relationship between professional sports events and concerts held in LA's Staples Center and nearby hotel performance. Government‐led economic redevelopment projects often envision sports facilities as tourist magnets. Little evidence exists supporting links between sporting events and hotel demand. An empirical analysis exploiting exogenous daily variation in the timing of games and concerts from 2002 to 2017 shows a small positive impact on room revenue at hotels within one mile and larger room revenue decrease at hotels located one to 4 miles away. The overall impact on hotel room revenue and rooms rented was not positive. Nearby hotel room rates increased during NBA and NHL work stoppages. The city granted four new hotels built very near the arena exemptions from occupancy taxes for 20–25 years; these exemptions reduced hotel tax revenues by a minimum of $4.5 million annually and may not have been needed to spur new hotel development.

JEL Classification: H26, H71, Z28

Suggested Citation

Chikish, Yulia and Humphreys, Brad R. and Liu, Crocker Herbert and Nowak, Adam, Sports‐Led Tourism, Spatial Displacement, and Hotel Demand (October 2019). Economic Inquiry, Vol. 57, Issue 4, pp. 1859-1878, 2019, Available at SSRN: https://ssrn.com/abstract=3596417 or http://dx.doi.org/10.1111/ecin.12820

Yulia Chikish (Contact Author)

West Virginia University - Department of Economics ( email )

Morgantown, WV 26506
United States

Brad R. Humphreys

West Virginia University - Department of Economics ( email )

Morgantown, WV 26506
United States

Crocker Herbert Liu

Cornell University - School of Hotel Administration ( email )

435B Statler Hall
Ithaca, NY 14853-6902
United States

Adam Nowak

West Virginia University ( email )

PO Box 6025
Morgantown, WV 26506
United States

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