The FIFA World Cup provided a short-lived lift to bars and hotels in host cities, but broader consumer weakness and rising oil prices muted the tournament's economic impact, according to the Federal Reserve's latest Beige Book report released Wednesday.
The report, which summarizes regional economic conditions across the U.S., painted a mixed picture. In Boston, hotel bookings tied to the World Cup were initially softer than expected, though occupancy improved after room rates were cut. Bars in the city reported a surge in beer sales, with some running out of stock as Scottish fans visited the 670,000-person city. However, the Boston Fed noted that overall Canadian visitor numbers, while higher than last summer, remained far below historical averages, particularly hurting coastal Maine and northern Vermont.
Patchy performance across regions
In New York City, some restaurants and bars described sales as "strong" thanks to match-viewing events, according to the New York Fed. Yet other eateries reported fewer international visitors, with Canadian foot traffic specifically down. The Canadian government has recorded a decline in cross-border travel following President Donald Trump's tariff policies and sovereignty threats, part of a broader trend of Canadians spending more at home. Hotels in New York saw higher occupancy and room rates from the tournament, but a department store noted that increased foot traffic did not translate into higher sales, and mid-tier attractions reported softness.
Broader consumer caution
Cities hosting World Cup matches tracked by the San Francisco Fed saw high tourist volumes, but in other markets, locals cut back spending on restaurants, hotels, and entertainment. Overall, the San Francisco Fed said demand for consumer and business services "slowed somewhat on net." Across the board, the Fed reported that consumer spending growth was capped as rising oil prices forced households to cut back elsewhere. Several regions observed consumers seeking cheaper alternatives or reducing discretionary spending to save money. The tournament, which the U.S. co-hosted, fetched median admission prices above $900, according to TicketData, but the Beige Book suggested the event did not catalyze broader economic growth amid persistent headwinds.