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FOR IMMEDIATE RELEASE
CONTACT: Kristen Jarnagin
VP of Communications AZHLA
E-mail: Kjarnagin@azhla.com
Phone: 602-723-5370
$100 MILLION IN LOST REVENUES FROM "DESTINATION DISCRIMINATION"
CRIPPLES ARIZONA'S LODGING INDUSTRY
PHOENIX (July 29, 2009) - Arizona's tourism industry is reeling from a stream of negative local and national media stories that have had catastrophic effects on the projected revenues of hoteliers as well as state and city coffers. The Arizona Hotel & Lodging Association (AzHLA) conducted a poll of select members in the Phoenix/Scottsdale area and determined that cancelled or downsized meetings have resulted in lost revenue easily topping $100 million equating to a minimum of $11 million in tax revenues not funneling to city and state budgets or critical public programs such as education.
The tourism industry is one of the state's largest revenue generators. In 2008, visitor spending in Arizona contributed $2.6 billion in local, state and federal tax revenues according to the Arizona Office of Tourism (AOT) and attributed to $44 million in education funding.
"Meetings account for more than 70 percent of most resort revenues," said Arizona Hotel & Lodging Association President/CEO, Debbie Johnson. "When we lose those revenues ALL Arizona taxpayers suffer; our pools are closing early, we're losing our precious teachers and we'll likely face a tax increase on the next ballot election. Many of those issues could have been avoided with the tax revenues from those lost visitors."
A recently circulated document from the federal government advises agencies to avoid "locations or destinations that give the appearance of being lavish or resort destinations." While Phoenix didn't make the initial blacklist of cities to avoid, meeting planners who are calling the convention and visitors bureaus are confirming fears our destination's perception.
Since October 2008, four national news stories have featured TARP recipients or federally funded organizations holding meetings at resorts. Three out the four meetings scrutinized on the national stage were held at Phoenix-Scottsdale properties. As a result, planners charged with staging legitimate, privately-funded meetings are fearful to do so in Arizona and they're canceling and downsizing programs. In fact, some planners are willing to spend more to host their meetings in alternate destinations that aren't receiving negative media scrutiny and aren't perceived to be leisure markets.
"Our meeting planners are telling us they're hard pressed to ‘sell' our destination up the chain of command since there is a perception that the Valley is a hotbed of negative media activity as well as a desirable leisure destination," said Brent DeRaad, executive vice president of the Scottsdale Convention & Visitors Bureau. "Regardless of our state-of-the-art meetings facilities, easy air accessibility and the great values our resorts are extending, we're losing business to destinations facing less scrutiny."
The perception crisis is not exclusive to Arizona and is a nationwide challenge in the tourism industry. To better educate Arizona residents on the importance of meetings and tourism for keeping personal and property taxes low, as well as funding critical city and state programs, the AzHLA, AOT and local CVB's will be conducting grassroots efforts to share the economic impacts of these meetings and will also continue to promote Arizona as a value-conscious and friendly meetings destination.
The Arizona Hotel & Lodging Association (AzHLA) is the leading public policy advocate for the Arizona Lodging Industry. Representing more than 34,000 rooms statewide and 400+ members, including hotels, resorts, B&B's and related Industry partners, AzHLA's mission is to unify, protect, enhance and promote the interests of the Arizona Lodging Industry. For more information, visit http://www.azhla.com/.
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