DNC's impact on Chicago economy was $371 million, new convention report says

WASHINGTON — The Democratic National Convention in Chicago generated $371 million in economic impact for the city and $28.7 million in state and local tax revenue, according to an economic study released Thursday.

The study, released by Choose Chicago, said the convention “generated significant economic impacts” for the city, including $221.2 million in direct spending and $150.2 million in indirect spending. Choose Chicago is the sales and marketing organization in charge of promoting the city.

“In addition, visitors who traveled to attend the convention spent money at off-site establishments during their stay in Chicago, including at local restaurants, hotels, retailers, and recreation/entertainment venues," the report stated.

Direct spending during the convention included $58.7 million in off-site visitor spending and $162.5 million in operational spending, according to the report.

The study focused mainly on the direct spending from the two committees responsible for the convention, the Democratic National Convention Committee and the Chicago host committee, officially named Development Now for Chicago, and the indirect money generated by jobs, hotel and food and other related business and sales taxes.

Choose Chicago hired Oxford Economics to conduct the study. The direct spending numbers are based on reports from the two committees. The indirect cash generated by the convention was calculated, Oxford Economics said in the report, “by combining quantitative methods with industry knowledge.”

In April, 2023, when the Democratic National Committee named Chicago the 2024 convention host, DNC Chair Jaime Harrison said he wanted the entire city to benefit from the event. The convention was Aug. 19-22 at the United Center, with related official events at the McCormick Place complex. Hundreds of unofficial events — parties, panels, receptions, symposiums, concerts and fundraisers — were held at a variety of venues across the city.

A lasting impact for generations to come were the more than 2,000 trees planted by various agencies across the city before the convention, the study noted.

Among the key findings:

Local spending

The DNCC and host committee spent 70% of the operational expenditures — that’s $84 million out of the $120 million combined budgets — within Illinois.

That includes $75.5 million in Chicago, an additional $7.7 million in suburban Cook County, and $832,000 in Illinois, excluding Cook County. The federal government sent a $75 million grant to the city help cover extra security costs.

The $75.5 million, “went to city of Chicago vendors, the highest local spend ever for a political convention,” the host committee noted in a news release, adding that 47% of host committee discretionary spending within the city “supported minority- and women-owned and operated venues, contractors and vendors.”
 

Why some businesses were disappointed

The study noted there was a downside to some in the food, entertainment and transportation businesses who never saw a convention-related boom in sales.

“The analysis considers that the host organization held events that provided food, entertainment and local transportation, which reduced the amount of spending by delegates and other visitors in these categories.”

Job impact

Combined direct and indirect spending “supported” 3,211 part- and full-time jobs and created $28.7 million in state and local tax revenue.

Of those 3,211 jobs, 2,001 part- and full-time jobs were created directly, and 1,210 workers were estimated to have been hired in positions indirectly related to the convention.

The study found that the business services industry benefited the most, with 924 total jobs, including 639 direct jobs, 217 indirect jobs, and 68 induced jobs. The food and beverage industry followed, with 465 total jobs.

Tax revenue generated

The convention generated $34.9 million federal tax revenue and $28.7 million in state and local taxes.

Breaking it down, the study found that “state and local tax revenues included $8.5 million in sales tax revenue, $5.9 million in bed tax revenue, $2.8 million in personal income tax revenue, $5.0 million in corporate taxes, $1.0 million in excise and fees, and $5.5 million in property tax revenues.”

Choose Chicago interim President and CEO Rich Gamble said in a statement: “While this direct impact is profound, I believe the long-term benefits of hosting the DNC will be even greater. We showed off Chicago’s expertise in hosting events of every size and profile — and the world took notice."