The elephant that comes loping into the Twin Cities next week -- bringing with it an estimated 35,000 visitors -- is going to enrich the pockets of many a Minnesota business.
That's the message from boosters of the Republican National Convention, who cite a report from the state's Department of Employment and Economic Development predicting a $162.4 million boost to the state's economy from the convention.
But other economists suggest that this is an elephant-size exaggeration, as this GOP confab displaces as much business as it brings in or simply fills the coffers of chain-run hotels, restaurants or other companies whose headquarters are elsewhere.
Still, roughly 16,000 hotel rooms are said to be booked, hundreds of parties will be held and a slew of waiters and waitresses will be serving up booze to woozy delegates and lobbyists (and, dare we say, journalists?) into the early morning hours. And some major companies, such as utility Xcel Energy Inc. and telecommunications firm Qwest Communications, have their hands deep in both conventions.
We examine some of the expected winners and losers at next week's extravaganza.
ON THE PLUS SIDE ...
Irish pubs Call it the luck of the Irish. While some restaurants and bars quietly grumble about a lack of business from all those conventiongoers, Patrick McGovern's Pub on W. 7th Street in St. Paul and Brit's Pub and Eating Establishment in downtown Minneapolis are both booked for private parties and events throughout the week. Brit's didn't just get several state delegation parties, it got the biggies: California, Ohio and Texas. Ironically, Anheuser-Busch, brewer of Budweiser and Michelob -- but no Irish draughts -- has booked McGovern's for the late-night parties.
That's according to a party list from the Hill, but the owners aren't worried about being overwhelmed. "This is nothing for us," a co-owner said. "We're used to the [Minnesota] Wild. This is easy."
Xcel Energy Here's some math only a marketer could love: The Minneapolis-based power company is spending $3 million -- in special preparations and operations, and a nice contribution to the Republican Party -- for a likely bump in energy consumption of about $50,000, according to Kent Larson, transmission vice president. On the other hand, national and international media are sending out dispatches on the "green" convention, because Xcel has pledged to generate enough wind power to cover the electricity for the event. And then there's the name of the convention venue, brightly lit atop the giant hall: the Xcel Energy Center. This event will be old hat to the bipartisan utility, which is the power source for the Democrats' gathering this week in Denver.