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Hotel association says Arizona conferences, conventions down due to SB 1070

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Posted: Tuesday, August 3, 2010 4:07 pm | Updated: 2:00 pm, Thu Aug 5, 2010.

First they were cancelling in protest of the state's new immigration law.

But now the reason organizations are avoiding Arizona for their conferences and conventions may be strictly business.

That's the assessment Tuesday of Kristen Jarnigan, spokeswoman for the Arizona Hotel and Lodging Association.

"They're just worried about their attendance," she said. "It's because of the controversy. They don't want to book in a destination that's going to cause them any risk."

Specifically, she said the fear of some groups is that their individual members may decide they'd rather not come to - and spend their money in - Arizona.

The latest figures put direct losses to hotels at $15 million.

Jarnigan called that figure very conservative. She said the Sheraton in downtown Phoenix recently reported it has lost $9 million alone in business because of fallout from the legislation.

"In all reality, that number is probably quadrupled," she said.

And that number covers only what the hotels would have collected directly from guests for rooms. None of that, she said, covers what conventioneers would have spent in food, clothing or entertainment while in Arizona.

In each case, Jarnigan said, the bottom line is SB 1070. But less clear, she said, is how the law figures into the decision.

At first, Jarnigan said, the cancellations were a direct response to the Legislature approving and the governor signing the law. That was driven, in part, by calls to boycott the state, including a now-abandoned push by Congressman Raul Grijalva.

Now it's different.

Some of it, she said, is the negative publicity about the effects of illegal immigration. That includes safety fears, fueled in part by comments by Gov. Jan Brewer on national TV about headless bodies found in the desert.

"It certainly doesn't help us attract more visitors," Jarnigan said.

But the bigger issue, she said, appears to be that organization members just don't want to be hassled because of the new law.

Jarnigan said she got a call Tuesday from a boy scout leader from Houston who is bringing his troop to the Grand Canyon.

"He is concerned because nine of them are Hispanic," she said. "He didn't know if he needed to carry their birth certificates. He was worried for his kids."

And that is nearly a week after a federal judge barred the state from enforcing key provisions of the law.

Jarnigan said meeting planners, who make money based on convention attendance, have a tendency to be averse to risk. She said they would much rather relocate a conference than jeopardize the event.

"People just want to wait until the whole controversy dies down," Jarnigan explained. She said it's just easier for them to book the conferences elsewhere.

Questions have been raised about various claims of losses.

Byron Schlomach, an economist at the Goldwater Institute, said he does not doubt that SB 1070 has had an effect on tourism and conferences. But he cited the overall national and state economy, saying that also has to be factored in.

Jarnigan, however, said that $15 million figure is based on direct reports from member hotels and resorts whose employees have been told by meeting planners and others that the reason they are pulling out of Arizona is directly related to SB 1070.

In fact, she said, some groups actually have given up their deposits to be able to move their meetings elsewhere.

She acknowledged that only a portion of that estimate of lost dollars - she can't say exactly how much - is attributable to "firm bookings," where the groups already had signed contracts to come. The balance, said Jarnigan are what the industry calls "strong tentatives," where an Arizona site either had a verbal commitment or, at least was in the top three final choices where the talks had gotten down to specific numbers of people and money.

"What that number doesn't track are all the people that are not even considering us right now," she said.

The problem, according to Jarnigan, is not confined to the Phoenix area.

"We've had some significant cancellations in Tucson and in Sedona as well," Jarnigan said. One Sedona resort, she said, told her association that a single conference that moved elsewhere lost the facility $800,000.

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14 comments:

  • VivaSB1070 posted at 5:52 pm on Tue, Aug 3, 2010.

    VivaSB1070 Posts: 33

    You can thank Raul Grijalva and his racist La Raza friends for asking people and organizations to boycott Arizona.

    The traitor Grijalva needs to be removed from office.

     
  • DrunkenMonkey posted at 6:30 pm on Tue, Aug 3, 2010.

    DrunkenMonkey Posts: 149

    Don't believe it's that high... that's just the industry setting up a "waaa-waaa, we're losing money, so we need a government bailout". Wait and see...

    Why not? Everybody else does it. I don't suppose the recession has anything to do with it, huh?

     
  • Masterrogue666 posted at 7:31 pm on Tue, Aug 3, 2010.

    Masterrogue666 Posts: 1797

    Short term, we'll be hurt. Long term will make our economy much stronger than before....

     
  • ArizonaLawyer posted at 7:22 am on Wed, Aug 4, 2010.

    ArizonaLawyer Posts: 14

    Apparently the Governor's truth-telling task force that she set up in May using a quarter million dollars of tax money has had no effect at all. It was supposed to spread "the truth" about SB1070 and convince businesses that Arizona really is a welcoming place. But it seems it was just another politically expedient boondoggle, courtesy of us taxpayers.

    While I am glad to see people across the nation taking a stand against Arizona's RACISM, I am also saddened that we continue to suffer at the hands of right-wing extremist politicians who care more about their political careers than doing the right thing.

    Thank you for yet another enlightening article, Mr. Fischer.

    -- Paul E. Knost

     
  • forkedlift1 posted at 7:36 am on Wed, Aug 4, 2010.

    forkedlift1 Posts: 447

    As noted in the article, not booking conferences and conventions in Arizona may be strictly business. They're booked somewhere else because of the prospect of low attendance at their functions if held in Arizona. And those that have been cancelled gave SB 1070 as their reason for doing so.

    I think it will be a long, long time before any Latino, or even anybody that could pass for Latino would not be very reluctant to visit Arizona.
    Arpaio, Russell Pearce and Gov. Brewer are also still getting a lot of national media attention. Not exactly good ambassadors for Arizona tourism.

    I foresee that without new leadership or an out-and-out repeal of 1070 (not likely to happen) this stigma on Arizona will remain for many years to come.

     
  • hillstreet posted at 10:19 am on Wed, Aug 4, 2010.

    hillstreet Posts: 207

    Look at the bright side; they will probably make up for loss revenue by an increase in conventions by the KKK, Nazi Party, and Aryan Nation. Every (white) cloud has a silver lining. :-)

     
  • teek64 posted at 12:43 pm on Wed, Aug 4, 2010.

    teek64 Posts: 3

    I'm sure the border violence has alot to do with the cancellations. I'm sure the rest of the country had no idea how close it really is. I would not visit a state that borders Mexico right now. Thanks again Mexico...for nothing!

     
  • wellreadone posted at 1:54 am on Thu, Aug 5, 2010.

    wellreadone Posts: 38

    Could part of this equation include:
    1. Over priced rates.
    2. It is way too hot.
    3. Why take a degrading plane flight to endure #1 and #2 ?

     
  • Poorman posted at 5:20 am on Thu, Aug 5, 2010.

    Poorman Posts: 415

    Racism? wonder why its racism all of a sudden,i wonder what the race is of the majority of people is the cross our border ilegally is? Probably not to many Greeks,or Italians or Irish. The bottom line is its about all races who enter our country and especially our state ilegally.

     
  • Masterrogue666 posted at 12:57 pm on Thu, Aug 5, 2010.

    Masterrogue666 Posts: 1797

    Interesting how ArizonaLawyer, forkedlift, and Rich cite racism as the reason behind SB 1070. I wonder, since over 70% of the USA condones/agrees with the law, then is 70% also racist as well?

    That assumption would be wrong, just as their arguments are wrong.

    I'd love to play poker with them, they just can't bluff...

     
  • Masterrogue666 posted at 12:59 pm on Thu, Aug 5, 2010.

    Masterrogue666 Posts: 1797

    My mistake, change "Rich" to "hillstreet".

    Apologies Rich...

     
  • rrjenn posted at 3:47 pm on Thu, Aug 5, 2010.

    rrjenn Posts: 418

    None of this really matters in the long run. More and more states are going to pass laws against illegal aliens invading their states that Arizona will be just another so called racist state due to it no longing wanting to foot the bill for these people anymore. We gave and gave when times were good, but now it is time for them to go mooch off of someone one else.

     
  • sandib posted at 8:34 pm on Thu, Aug 5, 2010.

    sandib Posts: 12

    Funny I read an article a few weeks ago that the hotel business was up 10%. More lies from the media. I guess the hotel business will have to do alittle extra work in getting more visitors. Lets take a look at it when the cooler temps arrive. That will be a better test.

    The blame falls completely on people like ACLU, La Raza, Raul Grijalva, Phil Gordon, liberal politicians that called for boycotts and all the rest of the progressive liberals that lied and made false claims about this law. The media tops the list as to exaggerating and showing the protestors adnaseam. The support rallies have gotten little attention.

    Thank you liberals for being the jerks you are.

     
  • hillstreet posted at 1:19 pm on Fri, Aug 6, 2010.

    hillstreet Posts: 207

    The "majority" rule is not synonymous with what is right. The "majority" of Germans supported Hitler's war of aggression and the "final solution." The "majority" of Southern states had no problem with slavery and racism well into the '60s, when the feds stepped in and said that's enough. So what if something is supported by a majority? It does not necessarily make it right.

     

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