The Beacon Hill Institute for
Public Policy Research

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Boston, Massachusetts 02108-2770

phone: 617.573.8750
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For Immediate Release
Friday , May 28 , 2004
12:00 noon

Frank Conte, Communications
617-573-8050; 8750

Less than advertised: Republican National
Convention to generate $184 million in economic
activity for New York City, region

BOSTON – An economic analysis by the Beacon Hill Institute at Suffolk
University finds that the Republican National Convention in New York City
will generate only $184 million in economic activity, rather than the $260
million claimed by the city’s administration.

Civic leaders are touting the economic and symbolic benefits of the
convention for demonstrating the resiliency of New York City in its
recovery from 9/11 and the economic benefits to stem from the new
spending that the convention will bring to the city. Mayor Michael
Bloomberg said that the RNC “will create thousands of jobs in the months
and weeks leading up to and during the event and generate as much as $260 million in economic activity.”

Convention organizers will spend money on salaries, office space,
construction, security and other production costs. The 48,000 visitors will
buy food, lodging, shopping and entertainment. The average delegate will
spend about $350 each day.

BHI determined that the benefits to New York City as a result of the
convention spending will be $184 million. BHI measured the economic
effects by using the U.S. Bureau of Economic Analysis’ Regional Input
Output Modeling System (RIMS II), which translates new spending into
“value added” to the local economy.

In its study, BHI recognizes that its estimate does not take into account the effect that so-far unannounced security measures would have on the city. Any plan that would call for the closing of Pennsylvania Station and of
roads in the vicinity of Madison Square Garden would require a further
downward revision of the estimate.

BHI found that the Democratic National Convention, scheduled to take
place July, 26-29 in Boston, will inflict an economic loss of $34 million on
that city, largely because of lost productivity resulting from recently
announced security measures. The Boston convention will require the
closing of major roadways and transportation hubs.

The study, entitled, “Lifting the Veil of Secrecy: The Republican National
Convention,” is available at