CHICAGO – Higher education institutions in Chicago’s Loop area generate more than $4 billion in regional economic activity annually, including at least $60 million in student retail purchases, according to the 2009 Higher Education Economic Impact Report and Student Survey Update released today by Chicago Loop Alliance (CLA).  

“This report shows that the Loop’s higher education sector is a vital economic engine for the city of Chicago and beyond,” said Ty Tabing, executive director of CLA. “The Loop area is a world-class destination for business and tourism and is also considered Illinois’ largest college town.”

The report measured the economic impact of employees, students and school expenditures at 24 Loop higher education institutions. The boundaries of the Loop area are the Chicago River to the north, Wacker Drive to the west, Roosevelt Road to the south and the lakefront to the east. 

CLA’s Economic Impact Report, conducted by the Real Economic Applications Laboratory (REAL) of the University of Illinois, found that there are more than 65,000 students enrolled at Loop higher education institutions. Based on information collected from the 24 schools, REAL determined these students spend about $266 million on goods and services, resulting in a total of $580 million per year more spending in the regional economy.

These Loop institutions employ more than 15,000 higher education employees, making the higher educational community one of the Chicago region’s top 25 employers. According to the report, the total economic output of these employees in the Chicago area is $1.4 billion.

The report also concluded:

• The total direct and indirect impact of higher education institutions’ purchase of goods and services is valued at $2.1 billion for the Chicago region.
• Several Loop higher education institutions have conducted major renovation and new construction projects in recent years. The combined total impact on economic output was more than $1 billion, which translates to about $200 million per year on construction in the past five years.
• Events and programs offered by the schools generate $40 million more economic activity per year through the spending of those attending events.

DePaul University researchers also surveyed nearly 3,000 students in May 2009 to hear about how they spend their time and money in the Loop. The student survey conservatively estimated that students spend $60 million annually at a variety of store types in the Loop. The most frequented establishments included fast food restaurants, bars and cafes, and drug stores.

Students told researchers they would like more affordable restaurants to open in the Loop. They also hoped a cross-college student center could be built, wanted retailers to stay open later and would like a grocery store to open in the area.

“The students have told us what they want. Now, it’s up to the business and higher education communities to respond,” said Tabing. “An economically healthy and prosperous downtown Chicago depends upon the students and employees of two dozen higher educational institutions in the Loop and South Loop.”

To see the full economic impact report and student survey update, please visit www.chicagoloopalliance.com or contact lunderwood@ksapr.com for copies.  

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About Chicago Loop Alliance
The mission of Chicago Loop Alliance (CLA) is to strengthen the Loop’s competitive position as a mixed-use destination and contribute to Chicago’s standing as a world-class city and tourist attraction. CLA supports and advances the interests of its members through advocacy, networking, partnerships and promotions. For more information, visit www.chicagoloopalliance.com.