Experts Predict Toronto Economy Unlikely to Benefit from Blue Jays’ Playoff Run

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Experts Predict Toronto Economy Unlikely to Benefit from Blue Jays’ Playoff Run

The Toronto Blue Jays are currently engaged in the American League Championship Series, facing the Seattle Mariners in a best-of-seven playoff. However, economists opine that the expected economic boost for Toronto may not be as significant as anticipated.

Expert Opinions on Economic Impact

According to Moshe Lander, a sports economist at Concordia University, the economic benefits of large sporting events like the ALCS are often overstated. Lander explains that while local bars and vendors may see a temporary spike in business, this can merely shift economic activity from one area of the city to another rather than create new revenue.

Shifting Economic Activity

Many fans may adjust their spending, affecting disposable income.
Jobs at concession stands may require employees to miss shifts at their regular jobs.
The net economic impact could be closer to zero, according to Lander.

While recognizing potential short-term gains, Lander stresses that overall financial changes for fans remain minimal. Although expenditure on tickets increases, it could lead to cuts elsewhere in their budgets.

Potential Sector Benefits

Despite concerns, some sectors may experience benefits from the Blue Jays’ playoff run. Hotel and hospitality sectors often see increased business during major sporting events.

Hospitality Industry Insights

Sara Anghel, CEO of the Greater Toronto Hotel Association, noted that past events have resulted in significant boosts in hotel demand. For instance, the NHL All-Star Weekend last year increased downtown hotel bookings by 35% compared to the same period in 2023.

Kelly Higginson, CEO of Restaurants Canada, highlighted that the impact of the playoff run could be vital amid the affordability crisis facing Canadians. However, she warned that the expected boost might not be substantial enough, given that 75% of Canadians are cutting back on simple outings due to rising living costs.

Business Sentiments

Daimin Bodnar, owner of Hemingway’s Restaurant and Bar, remains optimistic about the Blue Jays’ playoff run. He anticipates around 200 extra customers daily during the playoffs, recalling the energized atmosphere during the Toronto Raptors’ championship run in 2019.

Psychological Influence on Spending

If the Blue Jays advance further in the playoffs, Lander predicts a potential shift in consumer behavior. He suggests that fans may increase their spending on merchandise and dining as a psychological response to the team’s success.

However, he cautions that this could lead to unintended financial consequences. As fans justify their expenditures on team merchandise, they may find they have less for essential purchases during the holiday season.

In summary, although the Blue Jays’ playoff journey has the potential to energize certain sectors, the overall economic benefit to Toronto may be limited. Analysts advise caution when interpreting the long-term effects of such events on local spending patterns.