Blue Jays’ Playoff Run May Not Drive Major Economic Boost for Toronto

The Toronto Blue Jays are entering the American League Championship Series against the Seattle Mariners, igniting excitement among fans. However, economists warn that the anticipated economic boost for Toronto may be limited. According to Moshe Lander, a sports economist at Concordia University, the economic impact of large sporting events is often exaggerated.

The best-of-seven series commenced on Sunday night in Toronto. Lander explains that the Blue Jays’ playoff run mirrors previous playoff experiences of other local teams, such as the Maple Leafs. He notes that while ticket sales and local bar patronage may create the appearance of economic activity, the reality is more complex.

“Large events often shift spending rather than create new economic growth,” Lander stated. He emphasizes that fans may spend money during the games, but their overall financial situation remains unchanged. As a result, their spending at the games could mean spending less elsewhere in the city.

While immediate benefits may be minimal, certain sectors could see a temporary increase in activity. The hospitality industry, for instance, might experience a surge as visitors book hotels and dine out. Sara Anghel, CEO of the Greater Toronto Hotel Association, highlighted that events like the Blue Jays’ playoff games can significantly impact hotel demand.

She referenced the NHL All-Star Weekend last year, which saw downtown hotel demand rise by 35 percent compared to previous years. Kelly Higginson, CEO of Restaurants Canada, echoed this sentiment, noting that the Blue Jays’ playoff run is crucial, especially in light of the ongoing affordability crisis affecting many Canadians.

Despite these potential benefits, Higginson cautioned that the economic impact may not be sufficient to alleviate the financial pressures many are facing. “Seventy-five percent of Canadians indicate they are cutting back on basic outings, like a Sunday lunch with friends, due to rising living costs,” she said.

Daimin Bodnar, owner of Hemingway’s Restaurant and Bar, remains optimistic about the playoffs’ effect on his business. He anticipates welcoming an additional 200 customers each day during the Jays’ playoff games. Bodnar recalls how the Toronto Raptors’ championship run in 2019 led to packed crowds in his restaurant and hopes the same energy will resonate with Jays fans.

The playoffs could also alter consumer behavior if the Blue Jays advance further. Lander suggests that a deeper playoff run may encourage fans to spend more on merchandise and dining out. “The psychological impact on the economy is significant,” he said, noting that fans might justify spending more on the team as a form of support.

Nonetheless, Lander warns that increased spending could lead to negative long-term financial consequences. “If fans spend on team merchandise instead of traditional holiday gifts, it could create budgetary strains down the line,” he cautioned.

As the Blue Jays embark on their playoff journey, the economic implications for Toronto remain a topic of discussion. While there may be short-term benefits, the overall impact on the city’s economy will likely be nuanced and complex.