Sunday, March 11, 2007

Will The DMC Convention Hurt?

The Sports Economist points out some recent questioning of the benefits and costs of hosting the Democratic National Convention. They point out that the 2005 NBA All-Star game didn't have the impact it was touted to bring with many people who would normally come downtown staying away while it was occuring.

Worse, other recent political conventions have fallen fall short of their original projections such as with Boston.

City officials estimated a net gain of $163.3 million in both direct and indirect benefits as a result of the convention. But the Beacon Hill Institute at Suffolk University in Boston, a public policy think tank, calculated a much lower gain -- $14.8 million.

The difference stems from a disagreement over costs associated with events canceled because of the convention, such as a parade of tall sailing ships.
Taking into account all the costs many are saying the benefits for the city will be closer to $20 million. This seems much more likely than the committee's claims of $200 million. And when taking into consideration that the city is busy raising $80 million dollars to pay for this event, it hardly seems worth it.