Convention: Millions for some businesses, not much for most

Hosting the 2016 Democratic Convention will be a boon to Philadelphia's hotels and restaurants, but what about small businesses?

It will likely depend on proximity.

For example, Center City stores and tourist attractions are sure to see more traffic but businesses on the fringes an other parts of the city should not bank on it.

At Dave's Salon and Barbershop on Fourth Street in Old City, Thursday's announcement wasn't exactly thrilling to owner Merle Glass and manager/stylist Analisa Taylor.

"It really won't affect our business because people aren't interested in haircuts whenever they have big conventions," Taylor said. "It has been suggested that we close when the pope is here [in September] because the public transportation will be impossible and our local customers are leaving town and putting their apartments on Airbnb."

"Unless it is on Fourth Street, we may not even know what is going on," said Taylor. "Once there were four presidents at Independence Hall and we had no idea. It never trickles over here."

Philadelphia 2016, the nonprofit promoting the city as convention host, pointed to the 2000 Republican convention as indicator of economic benefits.

The group said that gathering, which chose George W. Bush for its candidate, combined direct and indirect impact of $345 million on the area's economy.

The Philadelphia Convention and Visitors Bureau said 2016 will generate between $170 million and $250 million in economic benefits in the city alone. Rep. Robert Brady, a chief organizer of the city's effort, however pegged the benefit at between $250 million and $300 million in the city.

Hoteliers are among those chiefly looking to cash in as delegates, lobbyists and assorted hangers-on along with members of the news media flock to the city for the quadrennial event.

"I'm sure the city will be sold out," said a thrilled Dan McGowan, owner/manager of Philadelphia Bella Vista Bed & Breakfast on South 10th Street.

In business 10 years, this will be McGowan's first political convention, but his facility of furnished apartments comprising 16 rooms gets plenty of other convention and graduation business.

He's already planning to readjust terms during the period of the convention for minimum-night stays. And he'll get moving on reaching out right away to the Democratic National Committee, members of Congress and their staffs.

"I'm happy they're coming," McGowan said. "They couldn't find a better place to hold a convention with all the history here."

After the announcement, Bob Dmuchowski, director of sales and marketing at the 268-room Hotel Monaco, which opened near Independence Mall in October 2012 and hosted the DNC selection committee when it was in town, said he was "having a great day."

"We've all been kind of anxiously awaiting the decision," he said. "We committed a significant amount of our inventory to help bring the convention in."

"With the papal visit coming, the new management team coming in at the Convention Center, things are just looking so great for Philadelphia," he said.

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There is work ahead for the catering industry, said Barry Gutin, who, with business partner Larry Cohen, owns GuestCounts Hospitality, which includes Cuba Libre restaurant and Brulee Catering, provider of exclusive service to a vast list of places around Philadelphia likely to host events related to the Democratic National Convention.  Those include the National Constitution Center, Independence Visitor Center and Dilworth Park.

"The challenge is to have the labor resources and the logistical resources to do all the events at the same time," Gutin said.

He anticipates his company of 1,000 employees will have to recruit skilled labor from out of town to help during convention week.

The trickle-down effect of all those parties is vast, he said: Tables. Generators. Refrigerated trucks. Tents. Food.

"It's going to be a tremendous economic impact," Gutin said. "We're going to be employing every resource in the Delaware Valley. You're going to find companies that provide these things will purchase more equipment in expectation of that. They're going to be stocking up. They're going to need more drivers and more vehicles to get the equipment to us."

Not that anyone in the industry is complaining, Gutin said.

"Everyone is looking forward to that challenge. Those are good challenges."