Kreamer breaks down operational, indirect, and induced spending

The second part of the equation is operational spending.

And so that is money that the host committee spent to actually execute on the World Cup happening here in the region.

And so that is money that went in from the federal government, money that went in from the state, money came in from various municipalities, donors that were part of fundraising efforts that the host committee made.

And so that collective amount is the amount of operational spending.

So you take both the visitor spending, you take the...

Operational spending.

And that's where you get the, for New York City specifically, the $1.2 billion in direct spending.

Now, the economic impact of those dollars and those visitors don't stop with direct spending.

There are some knock-on effects as well, specifically.

Indirect spending and also induced spending.

So to give an example of indirect spending, if I own a restaurant in Brooklyn and I need to buy more fish, let's say,

to serve the additional customers who are coming in because of the World Cup, that's the indirect spending as a result of the visitor spending coming into the city, if that makes sense.

So that is indirect spending.

And then the induced spending is sticking with the analogy of the restaurant.

If a waiter, let's say, works at the restaurant and they've picked up an extra shift or they get additional tips or whatever it may be, that extra money gets recycled into the city's economy as well.

So they're going to go back to their neighborhood and they're going to spend that money at their local bodega.

They're going to spend it maybe on the rent.

They're going to spend it on other things.

So there is an analysis that's done that calculates roughly how much that is, both for indirect and for induced.