Will the Oilers and F1 boost Canada’s economy? Where the impacts could be felt
The Edmonton Oilers’ Stanley Cup playoff run and the Formula One Montreal Grand Prix will bring zero net economic impacts to Canada, one economist says, but some business groups and local restaurant owners are expecting a spike in business.
Neither event creates new permanent jobs, Concordia University’s Moshe Lander said. He also argued if people are spending more to celebrate these events now, it just means they will likely spend less on other things later on, resulting in no net benefit for the economy.
“If we’re getting caught up in the moment (watching the Oilers), the way that people did when the Raptors went to the (NBA) championship and you had watch parties across Canada, you’re going to get a credit card bill next month,” he said, “and that credit card bill is going to come with a generationally high interest rate attached to it.”
“If our income hasn’t changed, then for every person that you’re going to find who says, ‘this is fantastic! A deep Oilers run is going to be magic for my business.’ I’m going to find you another business (owner) who says, ‘where did everybody go? Our place is empty.’”
It’s an insight that seems to contradict some reports.
An Edmonton business association told Global News the city sees “a 25 per cent to 150 per cent spike in spending” on playoff nights. The president of a B.C. restaurant group said each post-season contest added about $2 million to the bottom line of restaurants across the province. Even bars in Calgary, home of the Oilers’ fierce rivals, say they’re seeing a huge boost.
“Any Canadian team, we’re getting people in to watch,” Saskatoon bar owner Gary Baba told Global.
Baba runs Wendel Clark’s Classic Grill and Bar, named after a former Toronto Maple Leafs captain.
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