What’s the Economic Impact of the Solar Eclipse?

Monday’s total solar eclipse is possibly a once-in-a-lifetime event for the 30 million people who live in its path, and the millions more who are traveling to see it. It’s also a chance to spend money, and a lot of it.

The total economic impact, including secondary downstream effects, could be as much as a $6 billion boost to the U.S. economy, according to an analysis by The Perryman Group. The economics consulting firm says the eclipse is likely to generate more interest than North America’s previous total eclipse in 2017 because its duration is longer and the next opportunity to view a similar event in North America won’t come until 2044. 

Indeed, visitors from all over the world are flocking to the 115-mile-wide band of the U.S., stretching from Texas to Maine. They’ll be spending on everything from accommodations to food, fuel and memorabilia, providing a burst of economic activity for cities and towns across the country.

Philip Powell, a professor of economics at Indiana University in Bloomington, which is in the so-called ‘path of totality’, said that truly unique events like the eclipse attract visitors who have discretionary income that they are ready to spend over the course of several days.

“Multiply the impact of a typical big concert or sporting event by ten to understand the potential economic impact,” he wrote in a commentary, noting that there are also longer-term benefits. “A hard-to-repeat influx of visitors from far away is an important marketing opportunity for any region.”

For hotels and short-term rental hosts along that strip, the effect is like a Taylor Swift concert taking place simultaneously in every city and town, said Jamie Lane, chief economist at AirDNA, a company that provides data about AirBnBs (ABNB) and other short-term rentals.

The occupancy rate for rentals along the total eclipse path Sunday night is 92%, compared to 30% in the same places during a typical week, Lane said.

With demand surging, hotels and rentals can charge astronomical prices, with short-term rentals going anywhere from 10% to 50% more than their usual rates, Lane said.

Paducah, Kentucky Gets Another Cosmic Boost

There’s a small patch of the country being treated to the second total eclipse in seven years. Paducah, Kentucky, is one of the towns in the path of totality on Monday that also experienced that similar event in 2017.

Vick Patel, who owns two hotels in Paducah, said all 150 of his rooms were fully booked, with visitors from as far away as China snapping up rooms starting last September. He was charging $300 for rooms that normally go for $150, though throwing in some extras like eclipse glasses and donuts.

Paducah’s region is bracing for 150,000 visitors, said Liz Hammonds, director of the Paducah Convention and Visitors Bureau. 

“That is a huge influx of visitation here in a part of the state that doesn’t always get as much love as some of the rest of the state,” she said.

Like many cities and towns along the path of the total eclipse, Paducah is hosting special events for the occasion. In this case, merchants and vendors are throwing a two-day “X-marks-the-spot” festival to commemorate the town’s lucky location where the paths of two different total eclipses crossed. 

Festival organizer Susan Edwards, owner of the Wildhair Studios crystal shop, said merchants are hoping for an influx of business from eclipse tourists, and are catering to all sorts of demands. Her shop will have psychic readers on hand for visitors seeking new-age insights along with the cosmic event. 

“There’s all kinds of esoteric and astrological importance to this,” she said. “So it’s a wide range of interest in different types of people that will be here.”

The economic impact will go beyond hotels and restaurants.

“People stopping to buy fuel here in Paducah, that will be a big thing,” Hammonds said. “People will get some groceries or snacks on their way back home even if they’re just here for the day. That money is going to be injected into our economy and we’re really grateful for that.”