Economics is called “the dismal science” for many reasons, but the tendency of economists to pour cold water on claims that sporting events boost local economies should be near the top of the list.

We get it: calculating the impact of an event like the Olympics on a city’s economy is a complex affair and spending by locals is not necessarily “new money” flowing into the city. Economists often talk about the recycling of existing dollars in the economy (e.g., attending a sporting event, but forgoing the theatre) and spending money not being “incremental” to what would have happened anyway.

But here’s the thing: the Oilers playoff run is different.

First, like most major sporting events, an NHL playoff game is not as complex or risky as hosting the Olympics so we don’t have to get fussed about things like the future cost of facility maintenance or the pros and cons of massive public spending.

Second, while spending by locals on things like going to a bar to watch the game may not be injecting new money into the economy, it does guarantee that the spending is happening locally rather than on stuff from Amazon or any number of non-local options.

Third, and this is most important, there are the intangible benefits that often come along with exciting events like an NHL playoff game. These include building a sense of community, increasing civic pride, showcasing the city to fans in other places, downtown revitalization, and creating a buzz—all of which can have positive economic effects.

Simply put, how do you measure the benefits of having a Canadian team in the Stanley Cup finals, especially at a moment like this with all the geopolitical strife going on?

So keep the above in mind as we turn to the economic benefits of the recent Oilers playoff games.

Using data kindly shared by Moneris Data Services and the Edmonton Chamber of Commerce on restaurant spending in Edmonton on game days versus non-game days, the economic impact is clear.

During round one, an Oilers home game on April 27 boosted local restaurant spending by 24% city-wide and by 89% in the arena area.

This was surpassed on May 27 when a home-game sent city-wide restaurant spending up by 27% and arena-area spending by 143%.

The increase is not always that high and is much lower during away games, but even a few percent higher spending can make a real difference to restaurants with tight margins.

As noted above, we know a Gloomy Gus will point out that the portion of that extra restaurant spending that comes from locals is not new money flowing into the Edmonton economy (though the portion spent by visitors certainly is).

But, as also noted above, what these Oilers games are doing is making sure locals are actually spending that money in Edmonton. If the Oilers didn’t make the playoffs, some of that game-night restaurant spending might, for example, be spent at a local grocery store or to go see a movie, but some of it might also be spent to buy concert tickets in another city or on a new couch online. While there is nothing wrong with the latter examples per se, they don’t do much to boost Edmonton’s economy.

This, plus the less tangible benefits, are why local events matter to local economies. The "technical notes” are important because we don’t want to overestimate impacts, but they shouldn’t obscure the fact that things like hockey games and festivals and natural amenities are not just fun, but are fundamental to a strong local economy.

Answer to the previous trivia question: Alberta is home to the largest cattle herd at 43% of the Canadian total.

Today’s trivia question: How many times have the Edmonton Oilers competed in the Stanley Cup playoffs?