Will the Oilers and F1 boost Canada’s economy? Where the impacts could be felt

The Stanley Cup playoff run of the Edmonton Oilers and the Formula One Montreal Grand Prix are not expected to have any significant economic impacts on Canada, according to economist Moshe Lander. However, some business groups and local restaurant owners are hopeful for an increase in business during these events.

Lander argues that neither event will create new permanent jobs and that any increase in spending during these events will likely result in reduced spending in other areas later on, leading to no overall economic benefit.

He cautions that excessive spending during these events could lead to financial strain for individuals when they receive their credit card bills with high interest rates.

Lander points out that while some reports suggest a boost in spending during playoff nights and post-season contests, the overall impact may not be as positive as it seems. He emphasizes that such events can have varying effects on different businesses, with some benefiting while others may struggle.

Despite some positive reports from business associations and restaurant owners, Lander maintains that the economic impact of these events may not be as significant as perceived.

He suggests that any economic boost from these events may be limited to specific sectors like the restaurant industry, and any temporary increase in hiring may simply shift workers from other similar jobs.

Regarding the F1 race, Lander acknowledges that it may attract foreign tourists who spend money in Montreal, but he argues that the overall impact may not be substantial, as the city’s hotels would have been occupied regardless of the event.

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Contrary to some views, Lander argues that the economic impact of the F1 race may not be significantly different from other events held in Montreal, as the city’s tourist season is typically busy with various festivals and activities.

He suggests that “tourist tourists” who visit multiple Canadian cities may bring in more money than F1 fans who are likely to leave after the event.

Two chamber of commerce presidents have challenged Lander’s analysis, with one emphasizing the positive impact of events like the F1 race on Montreal’s economy through increased spending by tourists.

“This is the type of tourists that you dream to have,” said Michel Leblanc, president of the Chamber of Commerce of Metropolitan Montreal, highlighting the financial benefits brought in by tourists who visit Montreal during such events.

He noted that the Grand Prix has a significant impact on the city’s economy, bringing in millions of dollars from tourists, which he believes outweighs the potential negative effects suggested by Lander.

Meanwhile, Patrick Sullivan, president and CEO of the Halifax Chamber of Commerce, suggested that events like SailGP can have a positive impact by attracting visitors from around the world, contributing to the local economy.

While opinions differ on the economic impact of local hockey fans supporting the Oilers, both Leblanc and Lander agree that sports events can boost civic pride and optimism, potentially leading to increased spending in the community.

Lander emphasizes the importance of creating new jobs for lasting economic benefits, rather than relying on temporary boosts from events like the Stanley Cup playoffs and the F1 race.

— with files from Global News’ Caley Gibson, Tomasia DaSilva, Simon Little and Cassidy Mosconi

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