Amid Coronavirus Crunch, Charlotte Faces $200M RNC Loss

CHARLOTTE, NC — The Republican National Convention began in Charlotte Friday, however by the time the first GOP business meeting began, the event's presence in the Queen City was already a shadow of what it once was meant to be.

The health reality, along with political fallout, of the ongoing coronavirus pandemic whittled away the event two years in the making that was meant to lure up to 50,000 people to the region and create a $200 million windfall. Limits on crowds have reduced the convention's presence to 336 delegates conducting business meeting under strict protocols and eating boxed lunches.

It was a financial loss mirrored in Wisconsin. The Democratic National Convention's decision to pivot to a virtual convention in Milwaukee last week cost that city an estimated $200 million as well, according to the American Hotel & Lodging Association.

Charlotte and Milwaukee are not alone. Cities across the U.S. are in for significant revenue declines in 2021, according to a research paper by three university professors. Charlotte is expected to see a revenue loss from between 8 percent to 12 percent in 2021, the study by Howard Chernick from the City University of New York, David Copeland from Georgia State University and Andrew Reschovky from the University of Wisconsin shows.

SEE ALSO: Charlotte Losing Money Due To Coronavirus: Here's How Much

As of Friday, North Carolina's tally of lab-confirmed cases of COVID-19 had grown to 152,000, and after nearly two months under a statewide mask mandate, the positivity rate remained around 8 percent. On the first day of the RNC meetings in Charlotte, coronavirus had claimed nearly 2,500 lives in the state, and more than 1,000 residents were receiving treatment for coronavirus-related illness. On a national level, more than 175,000 lives had been lost.

The state's attempt to control the viral spread of COVID-19, however, has been blamed for costing it even more.

President Donald Trump abruptly announced this summer he would pull the RNC from North Carolina over a dispute about coronavirus restrictions. In June, existing contracts kept the RNC business meetings tethered to Charlotte, but the party said showcase events, such as an arena event planned for the moment Trump accepts his renomination, would move to Florida. Those plans, however, were later canceled due to coronavirus concerns, as well. Late last month, Trump said he would accept the presidential nomination in North Carolina after all, but within days of that announcement, that too seemed uncertain.

As of Tuesday, Trump's formal acceptance of the Republican nomination is planned to take place remotely from the South Lawn at the White House, USA Today reported.

“The cancellation of the Republican and Democratic National Conventions is just a small example of the negative impact that COVID-19 has had on the travel and hospitality industries," Chip Rogers, president and CEO of AHLA, said in a statement. "Not only has the dramatic drop in travel impacted the ability of hotels to reopen their doors and rehire employees, it’s also been devastating to local economies. Hotels are a major economic driver, and convention host cities benefit greatly from the uptick in visitors and activity, generating significant tax revenue."
Throughout the U.S., state and local governments are forecasted to lose nearly $17 billion from the drop in travel, according to the hotel and lodging organization.

While financial boons from large-scale conferences and events are primarily beneficial for restaurants, taxi drivers and hotels, the impact is less so for other businesses, UNC Charlotte political science professor Eric Heberlig told the Charlotte Observer.

“This time around, even those industries that typically get the bulk of the spending aren’t going to see much of it,” Heberlig said. “So, economically speaking, it’ll be a normal weekend in Charlotte.”

Charlotte hotelier Vinay Patel, who is principal with SREE Hotels, said the RNC cancellation meant a direct loss of about $3 million between the cancellation of the contracted room reservations at a dozen hotels, along with the loss in food and drink sales. The RNC event was meant to be the "light at the end of the tunnel," he told the Observer. "If this and the DNC, if they went off without a hitch, it would signal to this country and the globe that there is some sense of normalcy coming back in all of this," Patel said.

The RNC meetings in Charlotte run from Friday, Aug. 21 through Monday, Aug. 24, when Trump will be formally renominated at an event at the Charlotte Convention Center, according to event organizers.

SEE ALSO

• 2020 RNC In Charlotte: How To Watch Trump's Renomination
• Aerial Radiation Measurements Planned For Charlotte Ahead Of RNC
• RNC Set To Begin In Uptown Charlotte: What You Need To Know
• Trump Pulls RNC Out Of NC Citing COVID-19 Restrictions
• Trump Vs NC: Part Of GOP Convention To Be In Charlotte After All
• Trump Says He Will Accept RNC Nomination In NC After All