Study forecasts $154.2 million economic impact from conventionBOSTON -- A new economic impact report estimates the city and the surrounding area will reap $154.2 million from the Democratic National Convention.
The study, prepared by Mayor Thomas Menino's budget staff and other local economists, predicts delegates will spend $30 million at restaurants and stores, $27.3 million on hotel rooms and $4.3 million on transportation. It estimates total direct spending from an estimated 35,000 convention-goers at $126.1 million, including wages for local workers and dollars spent at shops in Boston and the four surrounding counties. It also assumes a 22-cent "multiplier effect" for every dollar spent, accounting for the $154.2 million figure. Menino said the July 26-29 convention, should be viewed as an economic generator for the region and not just the city. He said outlying areas will likely see a greater ripple effect than Boston, because hotels and restaurants outside the city will see a greater increase in business than in the city, which already sees greater tourist dollars in the summer. The study does not take into account potential losses from the proposed closings of the new Interstate 93 tunnel through the city and North Station. Economists said they could not quantify the potential economic damage of the closures, announced earlier this week as party of the convention security plan, without first conducting a detailed study of the issue.
Earlier this week, Beacon Hill Institute, the public policy think tank at Suffolk University, released a study with a lower estimated economic impact. The institute estimated that delegates and other visitors will spend approximately $122 million in the city during the convention. © Copyright 2004 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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