Understanding the Economic Impact of Hospitality Projects
An economic impact quantifies the broader value a development brings to a community. H&LA’s economic impact studies provide the data municipalities need to evaluate incentive packages and the analysis developers need to effectively communicate their vision to local officials and stakeholders.
Whether supporting a request for public-private partnership funding, tax incentives, or community approvals, our studies translate projected performance into measurable economic benefits at the city, county, and state levels.
Measuring Short-Term and Long-Term Economic Benefits
We analyze both the temporary and permanent economic effects generated by the construction and operation of hotels, resorts, waterparks, attractions, festivals, and other leisure developments.
Temporary impacts include:
- Construction-related jobs
- Construction spending
- Associated tax revenues
Permanent impacts include:
- Ongoing employment created by the project
- Visitor spending within the community
- Revenues generated for local businesses and service providers
- Recurring local and state tax revenues
What Our Economic Impact Studies Analyze
- Construction impact
- Operational and visitor spending impact
- Employment impact
- Tax revenue impact
- Additional community and regional benefits
A Comprehensive Economic Modeling Approach
Our analysis evaluates three distinct categories of economic impact:
- Direct Impact – Jobs, wages, and spending directly generated by the construction and operation of the proposed development.
- Indirect and Induced Impact – Economic activity created in supporting industries and local businesses as a result of the project’s direct spending and employment.
- Total (Final) Impact – The overall change in output, earnings, and employment across the regional economy attributable to the proposed development.
By clearly quantifying these impacts, H&LA equips developers and municipalities with credible, data-driven support for incentive negotiations and provides public entities with objective analysis to guide responsible economic development decisions.
Ideal for: Incentive negotiations, public-private partnerships, municipal approvals, and community engagement.
Economic Impact Studies
Frequently Asked Questions
- What is an economic impact study for hotels, resorts, waterparks, or attractions projects?
An economic impact study evaluates how a proposed or existing project affects a local or regional economy. This includes impacts on employment, tax revenues, visitor spending, and overall economic activity generated by hotels, resorts, waterparks, and attractions.
- How do economic impact studies support public funding or incentives?
Municipalities and economic development agencies use economic impact studies to assess the public benefits of a project. These studies often support decisions related to incentives, infrastructure investment, public-private partnerships, and tourism funding.
- Who uses economic impact studies?
Economic impact studies are used by developers, municipalities, tourism authorities, and state agencies to evaluate the broader benefits of hospitality and leisure developments.