Discuss Detroit Archives - Beginning January 2006 Auto show expected to bring area $600 million Previous Next
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Itsjeff
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Username: Itsjeff

Post Number: 5207
Registered: 10-2003
Posted From: 68.42.168.211
Posted on Sunday, December 18, 2005 - 5:34 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Just like Christmas, the North American International Auto Show seems to arrive with a rush, and this time around will be no exception.

Executives responsible for the show, however, are checking their lists once again, even as construction of the show exhibits picks up momentum inside Cobo Center.

http://www.theoaklandpress.com /stories/121805/loc_2005121802 .shtml
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Gistok
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Username: Gistok

Post Number: 1624
Registered: 08-2004
Posted From: 4.229.129.170
Posted on Sunday, December 18, 2005 - 6:23 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Is it just me, or does that $600 million sound inflated. I'm not saying I don't believe it, but it's sorta like saying 1 million people spent $600 each in Detroit. And we all know that that is not the case.

It's easy to just come out with a big number, but has anyone ever seen an itemized list of where the huge amount goes to?

Maybe those exhorbitant Cobo costs are a big factor? :-)
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Sharmaal
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Username: Sharmaal

Post Number: 477
Registered: 09-2004
Posted From: 136.2.1.153
Posted on Sunday, December 18, 2005 - 6:34 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Imagine being a member of the media. You're in town for a whole week. A hotel for the week is around $1000 alone. Then a rental car $500. Eating out 3 meals a day (or getting invited to a catered event) all adds to the total. And corporate events can easily hit $100 a head.

A regular family of 4 will spend at least $150 on a trip to the auto show between tickets and parking alone. Let alone if they decide to have dinner somewhere.

I'm not an analyst so I'm not verifying the $600 million dollar amount, it prolly is inflated. But I wouldn't doubt that the impact isn't far off that amount.
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Gistok
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Username: Gistok

Post Number: 1626
Registered: 08-2004
Posted From: 4.229.129.170
Posted on Sunday, December 18, 2005 - 6:49 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Sharmaal, I agree that a lot of money gets spent by those 6,000 visiting journalists. But if you take 6,000 journalists, and say each spent $5,000 dollars in that week, that only comes to $30 million, about 5% of the $600 million total.

And say you take the 800,000 visitors, and say each spends on average $50 each, that comes to another $40 million.

And say the automakers spent $100 million on the the exhibits at Cobo.

That makes only $170 million so far, less than 1/3 of the total. Where's the rest of the money?

Ya see therein lies part of the problem, statistics being thrown out. Different people interpreting statistics differently.... it causes trouble all the time....

What the "financial" people probably mean is that that $170 million spent, causes a trickle down effect. The people who buy the food for the auto show pay caterers, and caterers pay for extra help... blah blah blah.... eventually that $170 million (guess) generates $600 million in "effect" on the economy.

But reporters are often not sophisticated enough to explain it that way to the public.
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Livernoisyard
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Username: Livernoisyard

Post Number: 19
Registered: 10-2004
Posted From: 69.242.223.42
Posted on Sunday, December 18, 2005 - 6:57 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

The economic term is the "multiplier effect" of the imported funds. This is usually 2 to 5, depending on the categories of the expenditures. If only people around Detroit showed up, the multiplier would be much less.
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Motorcitymayor2026
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Username: Motorcitymayor2026

Post Number: 271
Registered: 10-2005
Posted From: 71.10.63.140
Posted on Sunday, December 18, 2005 - 7:03 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

plus i imagine that the avg is more than $50 per person....
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Ray1936
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Username: Ray1936

Post Number: 141
Registered: 01-2005
Posted From: 207.200.116.134
Posted on Sunday, December 18, 2005 - 7:17 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

It's kind of like people asking how we estimated crowd size at, say, the fireworks show. It's quite easy....you just count legs and divide by two............
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Futurecity
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Username: Futurecity

Post Number: 197
Registered: 05-2005
Posted From: 70.227.206.170
Posted on Sunday, December 18, 2005 - 10:02 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I agree that the $600 million number is way over inflated. And the multiplyer effect is meaningless.

$30 million sounds more like it.
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Motorcitymayor2026
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Username: Motorcitymayor2026

Post Number: 275
Registered: 10-2005
Posted From: 71.10.63.140
Posted on Sunday, December 18, 2005 - 10:14 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

oh no, it is way more than $30 million..

800,000 ppl at $12 a piece is nearly $10 million dollars. Plus, the cab,shuttle,people mover, and PARKING for these ppl brings in a few million. Not to mention, the many that will stay in downtown hotels (especially the thousands of press members, and the ppl that GM bring in to the Ren Cen Marriott).

All of these people have to eat, and many of them stop into Detroit bars and resturants. If each person only spent $10 on these that would amount to $8 million. However, that may only buy a drink at some of the upscale restuarants.

All of the parties and celebrations surrounding the events cost money to rent facilities and cater the events.

All of these millions only include the people that attend the event....The actual setup/takedown of the exhibits and the money put into the show by all of the automakers leads to millions more.

While the total number may not equal $600 million, it sure is well over $30 million

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