The FIFA World Cup delivered a welcome lift to bars and restaurants in host cities, though the wider economic impact fell short of expectations, the Federal Reserve has found.
The Federal Reserve’s Beige Book, released Wednesday, offered a mixed picture of the tournament’s economic footprint across the United States, which co-hosted the competition.
Median admissions prices for the tournament topped $900, according to TicketData, reflecting the enormous appetite among soccer fans to attend matches in person.
Hotels in Boston initially recorded softer-than-expected bookings tied to the World Cup, though stay levels eventually met forecasts after properties reduced room prices.
Bars in the Massachusetts city reported higher beer sales connected to the tournament, with some Boston venues reportedly running out of beer when Scottish fans descended on the city.
The Boston Fed’s coverage region attracted more visitors from Canada than it did during the previous summer, though those levels remained far below historical averages, particularly in coastal Maine and northern Vermont.
Some restaurants and bars in New York City said sales were “strong” as a result of match-viewing events, though other eateries reported fewer international visitors, with Canadian foot traffic specifically down.
The Canadian government has reported fewer citizens crossing the U.S. border following President Donald Trump’s tariff policy rollout and sovereignty threats, as residents increasingly opted to spend money on domestic services and products.
New York City hotels reported higher occupancy and room prices from the tournament, but mid-tier attractions showed softness, and one department store noted that increased foot traffic did not translate into higher sales.
In cities hosting World Cup matches tracked by the San Francisco Fed, tourist volumes came in high, yet in other markets, locals pulled back spending on restaurants, hotels, and entertainment.
The San Francisco Fed reported that demand for consumer and business services “slowed somewhat on net,” underscoring the uneven nature of the tournament’s economic ripple effects.
Rising oil prices compelled consumers across multiple regions to cut back on other spending, with several Fed districts observing shoppers seeking cheaper alternatives or reducing discretionary purchases altogether.