It’s been happening every four years since 1832 and, although the locations and activities have shifted, the results have always been the same. I’m referring, of course, to the conventions at which political parties officially select their presidential and vice-presidential candidates. But more specifically, I’m referring to that “something else” that political conventions provide—an economic boost to the host cities and surrounding areas.
In the past, conventions were heated affairs and were vital to the selection of a presidential candidate. Nowadays, most of that drama has been spent long before the delegates even convene. Indeed, for the past two decades, conventions have basically become carefully staged campaign events designed to favor a specific candidate. In addition, the conventions of the two major political parties have become made-for-media events, infomercials for platforms, and window dressings to showcase the contributions of particular individuals.
This year, the main beneficiaries of the conventions will be Barack Obama and John McCain, but the convention delegates will have little to do with that other than rubber stamping what has already been decided in caucuses and primary contests across the country.
What the delegates will have is an enormous impact on the economies of Denver and Minneapolis-St. Paul, as well as their neighboring areas. The 2004 national conventions drew a combined total of 9,800 delegates and alternates; that amount will likely be surpassed for 2008. The number of delegates and alternates will be dwarfed in size by the vast legions of non-delegate party officials, as well as guests, companions, and observers, plus the hordes of volunteers and a plethora of news media. Even the protestors will need places to stay and eat. When all the people associated with the two conventions are counted, the total number could reach beyond 90,000.
In other words, each convention is bringing a small city into the particular metro area where it is being held. All of these people will require accommodations, food, transportation, and myriad routine incidentals, not to mention the hundreds of private parties that will be a boon to local caterers, and the thousands of balloons, signage, and politically-oriented trinkets.
Providing such services, as well as the physical convention facilities, could boost the Denver and the Minneapolis-St. Paul economies by up to nearly $400 million. Moreover, the major television networks are spending some $6 million each to cover the conventions, with other media outlets pouring in still more cash.
To put on a national convention of this caliber typically requires the host city to raise approximately $40 million, though the operational budget usually exceeds that amount. Most of this money comes from national fundraising endeavors, but local businesses also often contribute. In addition, the federal government chips in $50 million or so to help provide for security.
A report by the Minnesota Department of Employment and Economic Development indicates that about 2,800 new jobs have been created to ensure the Republican convention operations run smoothly. A similar number was probably required for the successful functioning of the Democratic gathering.
During the two four-day conventions, Americans (and even the world) will have the opportunity to learn more about the candidates and their hopes and aspirations for the future of the country. Moreover, those who attend the events, or tune in or read about them, will come to know much more about Colorado and Minnesota through personal or media exposure. Tourism officials will be working to capitalize on this publicity by attempting to spread the word and encourage folks to return and take advantage of various opportunities available in their areas. If successful, their efforts could significantly enrich the two state’s tourism and hospitality industries for quite some time.
Not only will the cities and states become more widely known and appreciated, but area colleges and universities are likely to also reap rewards. As faculty members of the local higher educational institutions serve as resources for media analysis, a greater knowledge and appreciation of their schools can result and lead to increasing new student interest, which could eventually positively contribute to the economy.
With the economic benefits expected from these two key conventions, it is no wonder that approximately 40 cities across North America are building new or expanding existing facilities in efforts to compete for various major conventions and trade shows. Since organizers of such gatherings prefer to meet in different cities each year, the cost for these facilities could eventually be well worth it and be a boon to the local economies.