2004 Ad

Real Estate Weekly, Jan 15, 2003 by Elaine Misonzhnik

With the 2004 Republican convention all but set to take place in New York, the city's government is anticipating a hearty increase in business. According to Mayor Michael R. Bloomberg's office, the convention will bring more than $150 million in new business and 50,000 visitors to New York.

But according to those in the real estate industry, the event won't have much bearing on the city's long-term economic health, even if it will be a nice boost to the ego.

"It could be very good for New York's psychology, but the economic side of it is not great," noted Kenneth Patton, dean of New York University's Real Estate Institute. "I remember that when the city was trying to attract previous conventions, with all the discounts, we actually lost money compared with other events."

For the Republicans, part of the attraction of holding the convention in New York is the promise of $53 million in private contributions.

According to Richard Selig, principal of Hunter Realty, "The convention will be very welcome for everyone to see New York as capital of the world, but the economic benefit, though nice, will be only temporary. It's important, however, that people see that New York is still a place to come visit."

On the other hand, some people view the convention as an additional incentive for tourism.

"It can only be a boost to our economy," said Warren Wechsler, a spokesman for the Real Estate Board of New York. "The city has a very favorable fiscal experience with the Democratic conventions and we are similarly optimistic about the Republican event."

"I think it will highlight the vibrancy of New York and endorse the city as the center of political life in the country," noted Neil Bender, principal of Bellmarc Realty. "All conventions are useful for New York City--they create business, people eat at our restaurants, they fill our hotel rooms."

The 2004 convention will be the first Republican convention to be held in New York.

"The Republican National Committee will make history by coming to New York for its 2004 national convention," said Bloomberg. "The is an incredible boost to New York City."