As a complement to the feasibility study, the economic impact study focuses on the data that attracts municipal incentives for a project or helps a developer sell his vision to local officials. A governmental entity may also use the economic impact study to determine incentives offers available to a developer.
An economic impact study analyzes temporary and permanent effects on the local economy generated by the development and operation of a new hotel, resort, waterpark, attraction, festival, and/or leisure property. Temporary impact includes jobs and revenues created during construction and future tax revenues. Permanent economic impact is generated by permanent jobs created, ongoing revenues realized by service providers, and tax revenues once the hotel or leisure property is operational.
The economic impact study report will analyze the following impacts:
- Construction Impact
- Operation and Visitor Impact
- Employment Impact
- Tax Revenue Impact
- Other Impact
Our study evaluates three types of economic impacts from a project on the city, county, and state. These include:
- Direct-Effect Impact: jobs and spending directly created by the construction and operations of the proposed property
- Indirect or Induced Impact: production changes in downstream industries associated with the initial direct spending and employment at the facility
- Final Impact: overall economic impact of a change in final demand on output, earnings, and employment on a region’s economy. The final impact calculations represent the increased output, earnings, and employment that occur in an economy because of spending caused by the proposed development.