The 2024 Republican National Convention in Milwaukee had a total economic impact of $321.5 million on the city and the state of Wisconsin, according to a report conducted by Philadelphia-based market research firm Tourism Economics for the convention’s nonprofit-nonpartisan MKE 2024 Host Committee and Visit Milwaukee.
The 2024 RNC was held July 15-18 at Fiserv Forum in downtown Milwaukee.
Far surpassing original economic impact estimates for the four-day major political event, the $321.5 million figure was generated by $216.3 million in total direct spending, including $162.2 million in operational spending and $54.1 million in off-site visitor spending, according to the report. Additionally, the convention supported 3,441 total part-time and full-time jobs locally and generated $16.8 million in state and local tax revenues.
Organizers leading up to the convention had repeatedly advertised an estimated economic impact of $200 million and stuck to that prediction in the weeks following. That was despite slower-than-expected business at many downtown bars and restaurants — particularly those outside of the secure perimeter surrounding the Baird Center, UW-Milwaukee Panther Arena and Fiserv Forum — during convention week.
“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,” Ted Kellner, CEO of the MKE 2024 Host Committee, said in a statement.
Direct spending
The RNC drew approximately 50,000 visitors from across the U.S. and some from other countries. Looking closer at the dollars those visitors spent at businesses outside of the convention complex, hotels and lodging benefitted the most, bringing in $36.6 million. Meanwhile, visitors spent $7.7 million at off-site food and beverage establishments, $4.5 million at retailers, $3.1 million on recreation and entertainment and $2.2 million on local transportation, according to the report.
Those totals don’t account for the money that third-party groups, such as state delegations and conservative interest groups, spent to put on smaller events during convention week. Those events usually included food, entertainment and local transportation, which took away from individual spending in those categories. The report estimates that spending on those third-party events totaled $11.2 million, including $5.1 million on food and beverage purchases, $2.1 million on recreation and entertainment and $3.9 million on venue rentals.
As for other operational spending, the host committee, GOP and contractors spent $76.4 million to put on the convention, including payroll, event operations, security, insurance, housing, and professional services. The City of Milwaukee spent $74.7 million on security and other convention-related expenses, the majority of which was funded through a federal grant. Taxpayer dollars are not used for the production of either major political convention. It’s the job of the local host committee to raise funds to cover the cost.
To arrive at the $321.5 million total, Tourism Economics used a regional input-output model based on a customized IMPLAN model for the Milwaukee economy. The total includes direct, indirect and induced business sales.
“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 said.
Breaking down the total economic impact by industry, the five sectors that financially benefitted most were business services; finance, insurance and real estate; government; lodging; and food and beverage.
Media exposure
Of the RNC’s approximately 50,000 visitors, 15,000 were members of the news media representing outlets from across the country and from other parts of the world. Their coverage contributed to what was largely positive media exposure for the city of Milwaukee through traditional and social media channels.
There were more than 651,000 mentions of the RNC in the media which, according to Cision, generated $2 billion in ad equivalency through online news and licensed content as well as television. Most of the coverage of the RNC was in the United States, but it also reached the United Kingdom, Canada, Australia, India, Germany, Vietnam, France,
Nigeria and Ireland.
The reported noted the immediate impact of the RNC’s media coverage on tourism. According to Adara, 3,270 passenger flights and 5,049 rooms were booked as a result of the convention, which generated 6,942 room nights and $1.2 million in lodging revenue.
“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, chairman of the MKE 2024 Host Committee, 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.”
Business anecdotes
The report touted the convention’s “ripple effect on small businesses” while not quite reflecting the overall sentiment many downtown bars and restaurants expressed during convention week that business was slow. It instead highlighted “success stories” of several local establishments that were among those that benefitted from the influx of convention activity. A handful of business owners were quoted, including:
“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 of Sydra Group, operator of Buckhead Back Bar Saloon and Lucky Clover Irish Pub.
“In those five days, I did six months of revenue. I think it was great for my business,” said Andy Fish of State Street Pizza Pub.
“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 Omar Shaikh of 3rd Street Market Hall.
Charitable impact
The MKE 2024 Host Committee reported a few days prior to the convention that it had raised $85 million, surpassing its initial goal of $68 million, to produce the convention. In a later Federal Election Commission filing, the group reported a fundraising total of $92 million.
As already mentioned, the host committee and Republican National Committee spent $76.4 million to operate and produce the four-day event.
In the months following the convention, the host committee has donated some of the leftover funding to local organizations, including $10,000 each to Notre Dame School of Milwaukee, Kingdom Prep Lutheran High School, Veterans Community Project and Fisher House WI. In the coming months, the group plans to give “millions” of additional dollars to other organizations, primarily those focused on education and youth services; veterans, active military support and first responders; and addiction treatment.
The host committee also donated 850 pieces of home furniture and 215 pieces of office
furniture to local nonprofits. Those items were donated to the host committee by a Wisconsin furniture manufacturer prior to the convention.
More articles about the 2024 RNC:
- Milwaukee County hotels had 200% increase in revenues during RNC week
- Mitchell International passenger traffic up 6% in July
- Milwaukee-area hotel occupancy, room rates surged during RNC
- Many restaurants outside the RNC security perimeter struggling with lack of business
- Milwaukee mayor encourages greater support for downtown businesses during RNC
- RNC visitors arriving in Milwaukee boost airport traffic
