New Report Bills Downtown Louisville as Leader of Economic Impact in Region

Downtown Louisville leads the region in economic impact, per a new report. Photo by Kevin Gibson

A new report from Louisville Downtown Partnership says the city’s central business district is credited with generating high revenues, more jobs and providing attractions that outpace other locations in the region. 

The report, released this week, focuses on Downtown Louisville’s Central Business District (CBD), which is defined as the area bounded by Broadway to the south, 10th Street to the west, the river on the north, and Hancock to the east.  It also includes the Greater Downtown area – which expands just outside the CBD.

Per a news release, this report examined key areas of economic impact, including residential growth, business impact, employment density, downtown workers, industries such as healthcare, hospitality and entertainment and upcoming housing, commercial and attraction investments.

The report’s major findings point to a vibrant downtown that greatly affects the rest of the region: Downtown represents just 0.34% of Jefferson County’s land area, yet its output includes 13.2% of all workers, 63% of all visitors, 60% of museums, 43% of leasable office and 36% of hotel rooms. Annual wages and salaries of CBD workers generate $4.5 billion in income. 

A major draw in the area is culture and entertainment, which generated 10.2 million annual visits to the area in 2019, pre-pandemic. The 6,586 hotel rooms Downtown support the 738,627 convention and events attendees who visit annually.

“I think the take-away for us is, if downtown does well, Louisville does well,” Rebecca Fleischaker, executive director of Louisville Downtown Partnership, said in the announcement. “Through this report, we were able to see that people from every corner of the city and beyond either work in the Downtown area or visit the area’s attractions, go to restaurants and attend festivals and events. Simply put, downtown is essential to the economy and vibrance of our city.”

With 61,047 workers, the CBD is identified as the Louisville region’s largest employment hub, because there are 1,300 business establishments downtown with an estimated $8.5 billion in gross domestic product. Additionally, wages are higher in the CBD, at an average annual salary of $71,600 compared to $53,600 county-wide.

The report also highlights Downtown Louisville attractions – noting downtown is Louisville’s cultural center. With attractions like KFC Yum! Center, Slugger Field, The Kentucky Center, Waterfront Park, Main Street museums, and distillery experiences, the city draws millions of visitors every year. 

The report also took a close look at the impact of the healthcare industry – noting its impact in terms of combined annual payroll – at anchor institutions being a solid $1 billion.

While the pandemic did have an impact on downtown, the Downtown Louisville Partnership reports, momentum increased in 2021 as Louisville continued to receive national buzz. Projects such as Derby City Gaming Downtown, several hotels, the extension of River Road, investments in corporate offices and commitments to staying in downtown all point to a rebound for the area going forward.

The full report can be found here.