Final answer:
The concept refers to the economic impact of attracting external funds to a community, often through tourism and events like professional sports. While new money can aid local economies, it's argued that such spending may simply replace other local expenditures, leading to overestimated economic benefits.
Step-by-step explanation:
The concept that refers to new money brought into a community to pay for hotel rooms, restaurant meals, and other aspects of leisure is often associated with the economic impact of tourism, events, or attractions such as professional sports. When attendees come from outside the area, their expenditures represent new funds entering the local economy. This can be contrasted with local spending that might occur whether the event or attraction existed or not. For example, professional athletes may spend money in the city where they play, but if they do not reside there year-round, a significant portion of their earnings can leave the local economy, analogous to the purchase of imported goods in a national context.
Luxury vacation resorts, as seen in Jamaica, attract external funds through clientele from wealthier nations, thereby injecting new money into the local economy despite potential surrounding poverty. This reflects the dual nature of such developments in terms of economic benefit and social context. Moreover, Siegfried and Zimbalist's research suggests that within household budgets, there is a fixed amount designated for entertainment; hence, the economic impact of professional sports could be overestimated if it simply reallocates spending from other local entertainment options, potentially leading to a smaller multiplier effect and less overall economic growth.