The Hog Effect on NWA's Economy

If you've ever lived in the natural state even for a short period of time you know the hogs mean a lot to Arkansans.  In Northwest Arkansas when the razorbacks are good business is great.

"For the Catfish Hole, a successful football program will mean 400 to 500 more coming into my restaurant Friday, Saturday and Sunday," says owner Pat Gazzola.

But what happens when the hogs struggle like they did this past season?

"Our hotel was down about 20 % when you just look at razorback weekends," says David Lang, Embassy Suites General Manager.

"If you go to a football game and you win, you want to go out and talk about it," explains Gazzola.  "If you lose? Let's just get home."

The Catfish Hole is the site of University of Arkansas's weekly coach's show and has become synonymous with Razorback football over the years.  So for Gazzola when the hogs stink, his profits shrink 15 to 20% during the season.

"After the Alabama game "The Coach's Show' on Wednesday night went from having 190 people at the show to about 70," says Gazzola.

Up the road in Rogers Embassy Suites General Manager David Lang saw a similar situation.

"Coming off of the season with Petrino and then going into John L. Smith there was initially some excitement as to what they might be," says Lang.  "And when it didn't come to fruition, the team struggled, people started canceling reservations."

It's true the 2012 season hampered the bottomline for some local businesses.  But how big of a blow did this past season have on Northwest Arkansas's overall economy?

According to economist Kathy Deck is the answer is none.

"Northwest Arkansas was in full economic recovery mode in 2012," explains Deck.  "And you just don't get any sense at all that the subpar season that the razorbacks had had any negative economic impact  when you look at the data."

In fact, if you look at what they call the "hmr" numbers or hotel-motel-and restaurant tax for the big four every city is up slightly from 2011.

So what gives? 

Even though he saw less fans come through his doors this season Lang says the ones that did stayed longer.

The reason?

"Crystal Bridges has been a huge impact," explains Lang.  "All the retail, all the restaurants, all the things in the area are really driving weekend business in  big way overcomes that Razorback weekend effect."

So there's your answer.

Northwest Arkansas is a lot more than just the Razorbacks nowadays.  And with a unemployment rate of 5.1% --  well under the state and national rate -- the area's economic growth overshadows any dip an 8 loss season may have."

And although Deck is the first to admit that a strong football program isn't a bad thing, she says the hogs continue to have a positive economic impact regardless of the wins and losses.

"We have restaurants, and we have hotels that we would not have if the Razorbacks did not exist," says Deck.  "And that didn't change just because the scores weren't the way we wanted them to be."