Tourism spending dipped during month of Republican National Convention in Milwaukee 

Like many other business owners, Milwaukee chef Gregory León was told to prepare for an uptick in business when the Republican National Convention came to town last July.

León, the owner of Amilinda in downtown Milwaukee, decided to open his restaurant early and stay open late during the week of the convention.

Instead, he said the event was a “complete bust” for his business — he estimated a loss of sales of around 50 percent during the week of the event.

“We not only didn’t get any new business from the convention but lost the regular business that we would have on those days,” León said. 

He wasn’t alone — other business owners in Milwaukee also complained about slow business during the convention, which took place July 15-18.

Boosters for the Republican National Convention promised the event would create an economic boom for the area. They cited $200 million as the economic impact.

But sales data from the Wisconsin Department of Revenue shows spending on tourism-related industries — including restaurants and bars — was down in Milwaukee County during the month the event was in town.

Spending on those categories was also down in the city of Milwaukee during the month of the event compared to the month before the event. Spending for restaurants and bars was down $12.5 million in July 2024 compared to June 2024 in the city, according to the sales data.

Hotels did see a double-digit increase in sales in both the city and county in July. Victor Matheson, an economics professor at the College of the Holy Cross in Massachusetts who authored a 2017 study on the economic impact of political conventions, said the numbers weren’t surprising to him.

“We do see bumps in hotels, but we typically don’t see bumps in other types of economic activity,” Matheson said.

What the data shows

The state data shows monthly sales subject to tax for tourism and travel-related industries for the city and county of Milwaukee. There is no week-by-week sales data available.

For sales subject to tax for tourism- and travel-related industries in July 2023 compared to July 2024 in Milwaukee County: 

• Restaurants and bars experienced a 1 percent decline in sales, a $1.8 million decline.

• Performing arts and spectator sports experienced a 24.6 percent decline in sales, a $5.9 million decline.
• Amusement and gambling experienced a 14.5 percent decline in sales, a $3.7 million decline.
• Museums and historical sites experienced a 38.1 percent decline in sales, a $275,664 decline.
• Accommodation, or hotels, experienced a 41.5 percent increase in sales, an increase of $17.9 million.

The Wisconsin Department of Revenue does not have 2023 sales data available for taxable sales in the city of Milwaukee because Milwaukee’s new city sales tax only went into effect at the start of 2024. 

But a comparison of sales subject to tax for tourism- and travel-related industries between June 2024 and July 2024 in the city of Milwaukee showed:

• Restaurants and bars experienced a 9.7  percent decline in sales, a decline of $12.5 million.
• Performing arts and spectator sports experienced a 28.4 percent decline in sales, a decline of $6.1 million.
• Amusement and gambling experienced a 14.3 percent decline in sales, a decline of $2.3 million.
• Museums and historical sites experienced a 4.1 percent decline in sales, a decline of $18,703.
• Accommodation experienced a 53.8 percent increase in sales, an increase of $16.8 million.

For sales subject to tax for tourism- and travel-related industries in June 2024 compared to July 2024 in Milwaukee County:

• Restaurants and bars experienced a 9.9 percent decline in sales, a decline of $21.3 million.
• Performing arts and spectator sports experienced a 37.4 percent decline in sales, a decline of $10.8 million.
• Amusement and gambling experienced a 18.9 percent decline in sales, a decline of $5.2 million.
• Museums and historical sites experienced a 17 percent decline in sales, a decline of $92,420.
• Accommodation experienced a 52.5 percent increase in sales, an increase of $21 million.

There were also other larger events that were held in Milwaukee in July, including Summerfest, Harley-Davidson Homecoming Festival and the Northwestern Mutual annual meeting.

Hotels saw a big boost

A Visit Milwaukee report examining the total economic impact of the RNC has not yet been released. But a September presentation to a Milwaukee committee by Peggy Williams-Smith, president and CEO of Visit Milwaukee, did shed some light on hotel revenue during the week of the event. 

Hotel occupancy rates were at 86.1 percent in downtown Milwaukee from July 14-20, 2024, according to a Visit Milwaukee report. That’s an increase of 27.8 percent from one year prior. 

According to Visit Milwaukee, hotels in Milwaukee County brought in $30.5 million from July 14-20, 2024, compared to $10.4 million during that same seven-day period in 2023.

Visitors for the convention also stayed at hotels across Southeast Wisconsin, as an estimated 50,000 visitors were in Milwaukee for the convention.

Many visitors remained close to convention

Most of the delegates, politicians and media who were in town for the event remained close to the convention or inside the security perimeter of the event. Many of the delegates also had events scheduled throughout the day, meaning they weren’t able to check out the city or region.

Matheson said other visitors to the city typically tend to stay away from the area near large political conventions. He has also said the economic impact estimate doesn’t account for the normal business that would have gone on regardless of the convention.

“The activity going on at the RNC is the sort of thing that crowds out other sort of economic activity that would normally be happening in the area,” Matheson said.

Matheson said conventions like the RNC do have “winners or losers.” 

“But the fact that there were a bunch of losers does suggest that, you know, this is not this unambiguous benefit for the local economy,” Matheson said. 

3rd Street Market Hall in downtown Milwaukee is a large food hall that was near the security perimeter for the event. Omar Shaikh, co-owner of the space and a supporter of the event coming to the city, said some of the event space at 3rd Street Market Hall was rented out for parties and events during the convention.

But generally, he said, “(foot) traffic was down,” inside the food hall during the convention.

“We did OK, because we had some parties,” Shaikh said.” And so that really saved us.” 

Williams-Smith has said the city is poised to host other larger events because Milwaukee won the bid to host the RNC. She also told Milwaukee alders she believes the event led to favorable impressions for the city.

Shaikh said he met a lot of delegates who he believes will come back to the city in the future.

“I met a lot of delegates and a lot of people, and they really, really, really enjoyed Milwaukee, and they were very vocal about it,” Shaikh said.

But León isn’t buying that.

“Honestly, I don’t think these people are coming back,” he said.