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

A Federal Reserve report released Wednesday said the FIFA World Cup boosted tourism in host cities, but that positive impact was mitigated by the economic downturn seen elsewhere.

The median admission price for the U.S.-co-hosted soccer tournament was more than $900, according to ticket data. But the latest edition of the Fed’s Beige Book, a regional overview published eight times a year, showed that this event does not necessarily promote broad-based economic growth.

The Boston Fed reported that World Cup-related city hotel bookings were weaker than initially expected. However, these hotels achieved their forecasts by lowering room rates and increasing occupancy standards.

Massachusetts bars reported an increase in beer sales related to the convention. Some drinking holes in Boston reportedly ran out of beer when Scotland fans arrived in town.

The Boston Fed region saw more visitors from Canada than last summer. Still, these levels are much lower than historical averages, especially in coastal Maine and northern Vermont towns, the report said.

The New York Fed said sales at some New York City restaurants and bars were “strong” due to game-watching events. But other eateries said they’ve seen a decline in foot traffic, particularly Canadians, and fewer international visitors.

The Canadian government has reported fewer people crossing the U.S. border following President Donald Trump’s tariff policies and threats to its sovereignty. It’s part of a larger movement among Great White North residents to spend money on domestic services and products.

In New York City, some hotels reported increases in occupancy and price per room due to the tournament, according to the New York Fed. However, the bank reported weakness in some mid-tier attractions, while department stores said increased footfall from the tournament did not translate into higher sales.

Cities hosting World Cup games tracked by the San Francisco Fed have seen a surge in tourist numbers. But in other markets, locals cut back on spending on restaurants, hotels and entertainment.

Overall, the San Francisco Fed said demand for consumer and business services “slumped slightly on the net.”

The Fed said consumer spending growth was generally subdued as higher oil prices led to spending cuts in other areas. The report said that in some regions, consumers were observed looking for cheaper product alternatives or reducing discretionary spending to save money.