Each year Mardi Gras begins and Mobile is immersed in parties, cocktails and lots of beads. The event is presumably Mobile’s largest economy booster. According to the website wallethub.com, $408.6 million dollars is accumulated from Mardi Gras each year for the city. Also, there are 12,811 jobs created in relation to the festivities.
With those numbers in mind it is still hard to deduce how this impacts the city year round and what the effects may be on the real estate business. Although the city brings in money there are still some obstacles to consider in regards to the economy being stimulated. For instance, there is the need for street cleanup after each parade as well as police and firefighters that are employed to keep the public safe. Regardless, Mardi Gras has a large impact on the city and tourism.
Increased foot traffic in the downtown sub-market most directly impacts the service and entertainment industries, which can be seen in the number of new restaurants that have been opening each year in February. For example, Mo’Bay Beignet Company and las Floriditas opened their doors right in time to welcome the thousands of visitors who come to participate in Mardi Gras festivities.
Also, commercial spaces on parade routs will tend to trade for higher prices per square foot than comparable spaces that are not. This is do to the increased revenue during parade hours and during the Mardi Gras season because of the general desire of consumers to be close to the festivities.
The fact that there is an influx of consumers allows the businesses in the downtown area to flourish, thus keeping the desirability of the spaces consistent and the prices competitive.