Economic Impacts of Spillover Effects of Terrorism Countermeasures at Public Assembly Sites

Abstract

Abstract In recent years, there have been many high-profile attacks on large, relatively unprotected venues, including entertainment and shopping complexes in the U.S. and around the world. Public and private decision-makers can choose from a wide array of terrorism countermeasures. A question arises as to whether patrons’ complaints about delays, inconvenience and invasion of privacy actually translate into decisions to attend fewer such events. This paper presents the bottom-line economic impacts of terrorism countermeasures on business revenue at three public assembly venues and on their surrounding regional economic activity. These venues include an MLB Stadium, an NBA/NHL Arena, and a Convention Center. The analysis is based primarily on survey responses relating to changes in attendance that stem from public perception of the implementation of four major types of countermeasures. The surveys indicated that the majority of patrons were not affected either way by the presence of the countermeasures, but nearly all of the remainder felt more secure in the presence of the countermeasures to both terrorism and ordinary crime, which resulted in an increased likelihood of attendance. The economic impact estimates yield a small but notable positive impact on business revenues, though this outcome varies significantly across venue types.