An Econometric Analysis of the Effects of Tourism Growth on Municipal Revenues and Expenditures

Abstract

The major source of change in the tourism industry of New London County, Connecticut, over the past one and a half decades has been the dramatic influx of visitors to the county's two American Indian casinos: Foxwoods, opened in 1992, and Mohegan Sun, opened in 1996. This study seeks reasonable estimates of municipal-level revenues and expenditures related to tourism growth during 1993–2002, for each of the 21 municipalities in the county. The authors conduct an econometric analysis to separate three factors with different spatial impacts on revenues and expenditures: those due to the residential locations of new tourism employees, those due to the business location of new tourism enterprises and those due to the pattern of increased traffic caused by new visitor travel.

Keywords

fiscal impacts municipal costs casino impacts New London County

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