World Cup watch parties gave bars and restaurants a needed boost, Fed says

While the FIFA World Cup generated a boost in tourism in host cities, its positive impact was diminished by economic weakness elsewhere, according to a Federal Reserve report released Wednesday.

The average entry price for the football tournament, also hosted by the USA, exceeded $900. TicketData. But the latest edition of the Fed’s Beige Book, a compendium of regional conditions published eight times a year, showed that the event did not necessarily catalyze broader economic growth.

The Boston Fed reported that World Cup-related city hotel bookings were softer than initially expected. However, after reducing room rates, these hotels saw accommodation levels increase to meet forecasts.

Bars in the Massachusetts city reported higher beer sales in connection with the tournament. Some bars in Boston have reportedly run out of beer as Scottish fans flock to the city of 670,000.

The Boston Fed’s coverage area saw more visitors from Canada than last summer. Still, these levels are much lower than historical averages, and this trend is particularly affecting towns along the Maine coast and northern Vermont.

The New York Fed said some restaurants and bars in New York City reported “strong” sales as a result of game viewing events. But other restaurants said they had fewer international visitors, and foot traffic in Canada was particularly down.

The Canadian government reported a decrease in citizens crossing the US border following President Donald Trump’s implementation of tariff policy and threats to sovereignty. This is part of a larger effort by residents of the Great White North to spend money on services and products in their country.

According to the New York Fed, there were hotels in New York City reporting higher occupancy and prices per room than the tournament. But the bank reported that some mid-level events saw softness, while one store said the increase in foot traffic from the tournament did not result in higher sales.

Tourist volumes were high in cities hosting World Cup matches followed by the San Francisco Fed. But in other markets, locals pulled back on spending on restaurants, hotels and entertainment.

Overall, the San Francisco Fed said demand for consumer and business services “has clearly slowed somewhat.”

The Fed has said growth in consumer spending overall has been constrained by rising oil prices, prompting them to cut elsewhere. According to the report, many regions observed that consumers were looking for cheaper alternatives to products or reducing discretionary spending to save money.