Final answer:
The multiplier effect refers to the impact of spending on local economies, such as on restaurant sales and hotel check-ins during NHL game days. The research of Siegfried and Zimbalist suggests that the effect may be less significant for professional sports compared to other entertainment spending. Specific data from cities with NHL teams is essential to conclusively measure the economic impact.
Step-by-step explanation:
The concept of the multiplier effect refers to the extent to which an initial economic input, such as spending on a hockey game, circulates through a local economy, impacting areas such as restaurant sales and hotel check-ins. Researchers like Siegfried and Zimbalist argue that within a household's entertainment budget, there is a fixed amount allocated for such expenses. Consequently, if consumers choose to spend on NHL game days, they may not spend as much on other entertainment offerings.
According to their research, the economic multipliers for professional sports are often lower than those for other local entertainment options. Therefore, introducing professional sports to an area might reallocate spending in a way that could potentially cause the local economy to see lesser growth than anticipated. This concept is supported by studies that suggest money spent on sports does not necessarily have a greater economic impact, compared to other forms of entertainment spending.
For a city with an NHL team, the direct and indirect effects of this spending may vary greatly and are influenced by a number of factors, including the city's size, the success and popularity of the team, and the percentage of attendees traveling from outside the city. Data from different cities with NHL teams would be needed to measure the specific impact of game days on local economies conclusively. However, these findings challenge the notion that spending on professional sports always leads to greater economic prosperity for a city.