| Abstract: |
Hosting mega-sports events generates optimistic projections of economic
benefits, yet empirical evidence on actual local returns remains mixed.
Focusing on the UEFA EURO 2024 in Germany, this paper provides causal evidence
on the short-term local consumption effects of hosting mega-events. We
leverage anonymized daily card spending data at the postcode level to measure
changes in consumer spending. Using a difference-in-differences and a local
projection framework, we document a statistically significant and economically
meaningful 3% increase in consumer spending in host cities during the
tournament. This effect is driven entirely by international visitors, whose
spending increases by more than 6%, and is concentrated in the group stage and
on match days. Domestic spending does not change on aggregate, but exhibits
spatial displacement. The gains are highly concentrated in city centers and
tourist-facing sectors. Overall, our findings provide policymakers with highly
granular evidence on the localized economic effects of mega-sports events,
highlighting how temporary demand shocks reshape intra-urban consumption
patterns and concentrate gains in central, tourism-oriented areas. |