Quantifying Regional Film Tourism: Impacts of The Hangover on Las Vegas

Abstract

The use of incentives to attract movie and TV show production to stimulate economic development has gained popularity in local development bodies and state legislatures even though gains from such activities remain unclear at the regional level. One such argument advanced by proponents of the film industry is that exposure of a place used as a film location will result in increases in tourism. Film – a term encompassing both movies and TV shows – has been shown to positively impact tourism in very small communities and at a national level, but not for anything in between. This paper begins to fill this gap by analyzing how The Hangover influenced tourism and gambling revenues in Las Vegas, Nevada. Overall tourism is found to have increased following the film even though convention attendance declined. Gross gaming revenues were not statistically impacted. These results imply that regional and state policy makers should exercise caution when using film as a development strategy.