Study: Mardi Gras injects $300M into N.O. economy in 2011

It’s no wonder that gold is one of carnival season’s primary colors. Mardi Gras contributed more than $300 million to the New Orleans economy last year, and netted the Crescent City a nearly $8.50 return in tax revenue for every dollar it spent on overtime for police, fire and sanitation workers, according to a new study by Tulane economics professor Toni Weiss. Mardi Gras 2011 represented slightly more than 1.5% of the city’s gross domestic product when direct expenditures and a “brand value” were added to the calculations, says Weiss, who conducted the study on behalf of the Carnival Krewe Civic Foundation. The study examines Mardi Gras spending in New Orleans exclusively, limiting calculations to actual expenditures made by out-of-town visitors, local citizens, carnival krewe officials, krewe members and city government. An earlier study of the 2009 Mardi Gras season revealed that year’s carnival had a slightly higher economic impact than last year’s. Weiss says recession-related factors contributed to the decrease, noting hotel revenue was down about 5% from 2009 due to a 7% decrease in average room rates. “Once tourist dollars rebound,” Weiss says, “there is every reason to believe that future Mardi Gras seasons will be stronger than ever.” You can see the full 24-page study here. Or, if you’re looking for a little lighter Mardi Gras–related reading, check out the GoNOLA.com guide to the New Orleans king cake season here.