Experts are expecting the Republican National Convention to net the city of Cleveland about $180 million in direct spending.
According to a report by the U.S. Travel Association, host cities for the conventions, Democratic in Philadelphia and Republican in Cleveland, will see about $360 million in direct spending. When indirect and induced impact is factored in, $600 million in economic output is expected.
The study took into account the number of attendees expected and their average daily trip spending during the Convention.
Combined numbers for the two conventions are:
- 100,000 - 120,000 attendees
- 10,000 - 12,000 delegates
- 30,000 - 36,000 media members
- 60,000 - 72,000 other visitors
- 148,000 hotel/other lodgings
- $33 million in total lodging revenues
Each attendee is expected to spend about $300 per day on average.
In addition to the direct spending by visitors, the Conventions are expected to be a good source of job growth. The total for induced and indirect impact, $600 million between the two cities, could support 1,800 jobs in each place.
"You're going to hear a lot from the candidates about their plans to create jobs," said U.S. Travel Association President and CEO Roger Dow. "It might give some people pause, but one of the easiest ways to do that is to hold more conventions. The economic activity associated with these kinds of events is extremely compelling, and we aim to make sure our policymakers understand that."
A U.S. Travel analysis of the New Hampshire primary showed that for every $80,700 tallied by visitor spending one job was created. Most importantly, said Jonathan Grella, Executive Vice President for Public Affairs at U.S. Travel Association, the money brought to cities during conventions and major travel events doesn't wash out when the fun ends.
Grella said that the shot in the arm these cities receive turns into ongoing employment. The jobs created in Cleveland during the RNC can be expected to be around next July. He said there is a correlation between infusing these local markets with money and the economic impacts of supported jobs.
In total, conventions, like the ones capturing the national attention through July, are a boon for their host cities. Places like Cleveland and Philadelphia can potentially capture a windfall of money and benefits for their coffers and local businesses.