Originally published in the 2024 issue of the School of Liberal Arts Magazine
When asked about the start of the Mardi Gras season, most people might say it begins 10 days before Fat Tuesday or with the early parades like Krewe du Vieux or Chewbacchus. Some might pinpoint January 6, Twelfth Night, as the day the city begins to transform itself into the official colors of purple, green, and gold. However, those deeply rooted in Mardi Gras traditions understand that while public displays of Carnival don’t happen until early January, the preparations for the next season start almost immediately after Fat Tuesday has passed. Krewes begin to develop themes, royalty is chosen, and artisans begin sketching out designs.
In early March 2022, just days after Fat Tuesday, I received a call from Ben Dupuy, a representative of the Mayor’s Mardi Gras Advisory Council. He proposed a meeting to discuss a potential collaboration. They, along with New Orleans & Company, wanted me to conduct an Economic Impact Analysis for the 2023 Mardi Gras season, with a comprehensive report due by January 6, 2024.
There are 4 main phases of a project such as this
Planning: forming the questions being asked; figuring out what data is needed and where that data can be found
- What economic activities in New Orleans are directly linked to Mardi Gras, and should we, for example, include tourists who visit during, but not because of, Mardi Gras in our analysis?
- How do these direct effects multiply into indirect effects, such as the economic impact of money earned by a float builder?
- Does this economic activity displace other potential activities, such as a household throwing a Mardi Gras party instead of another type of party?
- What local and state tax revenues are generated from these activities?
Once the questions were clearly defined, the next step was to formulate a data collection plan, mindful of the potential for double counting. For instance, if a krewe spends money at a local restaurant, this economic activity must be included in the report. However, including both the krewe’s expenditure and the restaurant’s Mardi Gras-related revenue would overstate the economic impact. Additionally, some data would be unavailable, requiring the use of proxies. For example, without extensive surveys, it was challenging to determine household spending on Mardi Gras parties along the parade route. Fortunately, to attempt to solve this particular problem, I obtained revenue figures from local grocers, which allowed me to make informed predictions and extrapolate the necessary data.
Data Acquisition: sending out surveys, talking to people, interviewing participants along the route, scouring websites
This phase is the most time-consuming and requires considerable patience. I created multiple surveys targeting different economic sectors, distributing them to thousands of individuals, resulting in participants detailing their Mardi Gras-related expenditures on costumes, beads, decorations, etc. I also spent countless hours on the phone with local business CEOs and scoured public and private websites and databases for additional data.
Each new piece of information prompted critical questions: Is this expenditure directly linked to Mardi Gras? Can I make accurate estimates with the data I have? For example, comparing hotel occupancy rates to a baseline is crucial for identifying the portion attributable to Mardi Gras. Conversely, Airbnb data, lacking sufficient granularity, required more conservative estimates.
Analysis: crunching the data to ensure results are academically sound
This part of the project requires a unique perspective, as Mardi Gras is unlike any other major event. When a Super Bowl comes to town, it brings millions of dollars in economic activity, which is relatively easy to calculate since it doesn’t occur annually. The New Orleans Jazz & Heritage Festival also contributes millions to the local economy and attracts thousands of tourists, but it doesn’t define New Orleans in the same way.
Walk through the French Quarter or ride a streetcar any time of year, and you’ll see visitors wearing Mardi Gras beads. Even during a large medical conference, you might encounter a mini parade through the Central Business District to the convention center. Bakeries make king cakes to ship nationwide to give people a little taste of America’s most famous party. And New Orleans-themed restaurants across the country are often decorated in purple, green, and gold, reinforcing the connection between the city and Mardi Gras.
People visit and spend money in New Orleans year-round for various reasons, but the spirit and essence of Mardi Gras are always present. This “brand value” that Mardi Gras brings to the city must be included in the analysis, as it represents a significant portion of the year-round economic activity.
Writing: presenting the data and results to a wider audience
The most straightforward component of the project was getting everything down in writing for the final audience — including the mayor and other government officials, businesses, media, and the general public.
The economic impact of Mardi Gras extends far beyond the immediate festivities, deeply influencing New Orleans’ economy year-round. The comprehensive approach I followed allowed me to accurately and conservatively capture the direct and indirect economic effects, tax revenues, and the unique brand value Mardi Gras brings to the city. While I provided a thorough assessment, demonstrating the intricate and ongoing economic contributions of this cultural tradition, it is also important to remember that not everything is quantifiable. The joy of Mardi Gras, the thrill of the marching bands, the colors of the parades — some things we just can’t put a dollar value on.
Economic Impact ECONOMIC IMPACT & NET FISCAL BENEFIT 2023 MARDI GRAS SEASON
- Total direct & indirect impact of Mardi Gras on New Orleans economy: $891,202,780
- Net fiscal benefit accrued to the City of New Orleans as a result of staging Mardi Gras including franchise value: $28,028,543
- Increase in State tax revenues as a result of Mardi Gras within the City of New Orleans: $14,300,000
- New Orleans Gross Domestic Product: 3.07%
- City’s return on investment from each $1.00 of City expenditure on Mardi Gras: $2.64
