RNC Report Says Convention Had $321 Million Economic Impact

The New Fashioned, 1122 N. Vel R. Phillips Ave. Photo taken July 16, 2024 by Sophie Bolich.

A newly-released report says the local economic impact of the 2024 Republican National Convention was even bigger than boosters had said it would be.

The report, prepared by U.K.-based Tourism Economics, says the convention had a $321.5 million economic impact on Milwaukee, including generating $216.3 million in direct spending and $16.8 million in state and local taxes.

In the lead up to the convention, convention boosters said it would deliver a $200 million economic impact to the region. After the convention, the hosts said it was a success, while acknowledging that many businesses outside of the security perimeter did see far less business than expected.

“Milwaukee embraced the convention with open arms. Tens of thousands of Republican delegates and members of the media who traveled here from around the country were raving about our city after July’s convention,” said Reince Priebus, MKE 2024 Host Committee chairman, in a statement. “We’re hopeful that putting Wisconsin on a major international stage will lead to more opportunities for the city in the future.”

The economic impact report was sponsored by the host committee and Visit Milwaukee.

“From start to finish, the convention week allowed us to showcase the best Milwaukee has to offer,” said host committee CEO Ted Kellner. “We hope that this report serves as a valuable resource for understanding the positive and lasting effects of the convention on Milwaukee and its residents. The report is an important milestone in highlighting that when Milwaukee works together, we can shine on an international stage.”

A total of $162.2 million was directly spent by parties involved with the convention, including  $74.7 million expended by the city of Milwaukee (backed by a federal security grant), $53 million by the host committee raised from donors, $23.4 million by the Republican National Committee and $11.2 million in third-party spending. An additional $54.1 million in off-site visitor spending was estimated by Tourism Economics to generate the total direct spending impact.

The off-site figure includes spending at hotels, restaurants, retailers and on transportation. “The analysis considers that the host organization and third-party organizers held events that provided food, entertainment, and local transportation, which reduced the spending by delegates and other visitors in these categories,” says the report. From the $54.1 million, $36.6 million was estimated to be spent on lodging.

After measuring the direct spending, Tourism Economics “calculated the economic impacts of the 2024 Republican National Convention’s direct spending using regional Input-Output (I-O) model based on a customized IMPLAN (www.implan.com) model for the Milwaukee economy,” says the report. “An I-O model represents a profile of an economy by measuring the relationships among industries and consumers to track the flow of industry revenue to wages, profits, capital, taxes and suppliers. The supply chain is traced as dollars flow through the economy, representing indirect impacts. The model also calculates the induced impacts of spending. Induced impacts represent benefits to the economy as incomes earned as a result of direct spending are spent in the local economy, generating additional sales, jobs, taxes, and income.”

The report’s model, often the most controversial part of any economic report, includes $65.1 million in indirect business sales and $40.1 million in induced business sales.

“From filling the Baird Center to a made-for-TV production in Fiserv Forum, Milwaukee proved itself to be a world-class convention destination. Our entire goal with this convention was to help put Milwaukee on the map for future events, and it already has,” said Peggy Williams-Smith, Visit Milwaukee President and CEO. “Meeting planners from around the country have cited the convention as the reason they want to bring their meetings here. We’re excited for what the future holds because of our success in 2024.”

The host committee, as of last fall, reported raising $92 million from private donors and sponsors to host the convention. It had $3.9 million in cash remaining at the time of the report.

“Our local partners played an integral role in helping pull off the best convention in Republican Party history,” said Alison Prange, MKE 2024 President and COO. “Thanks to Visit Milwaukee, the Metropolitan Milwaukee Association of Commerce and everyone who made this convention possible. In the coming weeks, we plan to announce our intentions to give back millions of dollars in leftover funds directly to the community.”

The report includes glowing praise from business owners with bars and restaurants that were in or near the security perimeter.

“We had a really solid week; RNC events generated about 30% more than we do in a normal week, Plus, I met hundreds and hundreds of delegates talking about how much they loved Milwaukee,” said 3rd Street Market Hall owner Omar Shaikh.

“For the same five days during the last two years, my businesses on the street had minimal regular revenue from that Sunday to Thursday. The RNC brought over a month of sales in just five days to my businesses. Our location [near the Deer District] was definitely a plus, but we put in the work to land as many private parties as possible with the help of Visit Milwaukee, the RNC committee, and reaching out. It was a very successful week for my staff and businesses,” said Jake Dehne, co-owner of Sydra Group, which includes Buckhead Saloon, The Lucky Clover and 90s2K Cafe.

But when the Common Council discussed the RNC in September, it wasn’t as favorable.

“It didn’t trickle into the neighborhoods,” said Ald. Marina Dimitrijevic of the economic impact.

In an email to Dimitrijevic, LuLu Cafe & Bar owner Cameryne Roberts said the RNC didn’t result in a business boom. “For what it’s worth, the RNC was a complete bust for us and most of the other Bay View business owners I spoke with, not to mention those in other parts of town,” wrote Roberts, before calling Republicans “chicken sh!t snowflakes.”

Alderwoman Milele A. Coggs asked for the final report to include a geographic breakdown and diversity data. “I just want us, as a council, in case we’re asked again to sign on to anything like this, to be aware of its impact. And where things might not have been how we wanted it to be, or we might not have achieved the goals we were going to achieve, that we recognize that and that we work differently in the future to better achieve those goals,” said Coggs. The final report does not include the breakdown requested.

Reports during the convention highlighted how many businesses outside of the hard security perimeter were seeing lackluster business. Across the month of July, sales tax revenue in Milwaukee was actually down year over year. But the state, which collects the revenue, does not collect data by week.

The direct economic impact of the $75 million federal security grant becomes difficult to quantify. Most of it went to pay the salaries of officers, many of whom were not from Milwaukee, and associated costs to house and feed them. Mayor Cavalier Johnson‘s chief of staff Nick DeSiato previously said $6.8 million in grant-funded equipment was left for the city. That included 250 Kevlar helmets, 60 police bicycles, 11 vans, three fire engines, other medical equipment, a new mobile command post and a remotely operated vehicle. The mayor, who had backed the convention, was not quoted in the release of the report.

Tourism Economics also studied the 2024 Democratic National Convention in Chicago and concluded there was a $371 million economic impact.

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