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4th November
2008
written by clothcutter

The above picture (with some modifications) is from a major puffpiece from the November Tucson Lifestyle(the king of puffpieces).  The timing of this article is just fantastic.  It comes out the same week as a new article about how Tucson’s hotel and resorts are hurting.  The trends are pointing to some hard times ahead.

As some may have noticed in today’s AZ Star-Business Section, the local hotel business is not going very well.

Tucson resorts offer fall deals

‘No vacancy’ sign nowhere in sight as slowdown in travel gets slower
By Dale Quinn
ARIZONA DAILY STAR
Bargains
Local resorts are offering deep discounts and special packages on other amenities. Here are some of the lowest rates at some local resorts (restrictions may apply).
• Hilton Tucson El Conquistador Golf and Tennis Resort, $119 per night
• Loews Ventana Canyon Resort, $149 per night
• Westward Look Resort, $139 per night
• The Westin La Paloma Resort & Spa, 50 percent off the cost of a room on the fourth night.
Resorts in the Tucson area are working hard to fill empty rooms, slashing prices and offering special packages as the peak travel season approaches.
The sputtering economy has cautious consumers tightening their belts and spending less on travel, according to those in the industry, and that means more vacancies at local resorts.
In September, Tucson resorts saw a 12 percent decline in occupancy and room demand when compared with the same month last year, according to figures from Tennessee-based Smith Travel Research. Those resorts also saw an 8 percent decrease in revenue per available room.
Occupancy and room demand have been lower every month this year when compared with the same month in 2007. It may be a while before the trend swings in the other direction, resort officials said.
“I don’t see a speedy turnaround, I think we’re going to see a fairly tepid environment going into 2009,” said Lynn Ericksen, the general manager of Hilton Tucson El Conquistador Golf and Tennis Resort.
The resort at 10000 N. Oracle Road is offering a bed-and-breakfast package — starting at $119 per night — that includes a room and a meal in the morning, Ericksen said. There’s also a golf package for two that starts at $189 per night, he said.
Such discounts are unusual for the time of year when Tucson becomes a desirable travel destination, said Mark Lindsey, a spokesman for the Westin La Paloma Resort & Spa.
The Westin La Paloma, at 3800 E. Sunrise Drive, is offering guests 50 percent off the cost of a room starting on the fourth night of a stay, Lindsey said. It also has a family package with a $50 resort credit, he said.
Resorts rely heavily on business conventions, and a decline in that travel is also pushing the occupancy rate down, said Michael Dominguez, a spokesman for Loews Ventana Canyon Resort. Many businesses, already struggling with the economic situation, are waiting for conditions to improve before planning a big conference, he said.
More than half of a large hotel’s business can come from conventions and group meetings, resort officials said. When the businesses cut back on those expenses, the resort industry takes a hit, they said.
“These are the times that you see our economy is so tied together,” Dominguez said.
Loews Ventana Canyon, at 7000 N. Resort Drive, near North Kolb Road and East Sunset Drive, is offering a corporate benefits package that gives business travelers a food and beverage credit. The longer a traveler stays, the larger the credit.
Among other specials, the resort is offering rooms that start at $149 per night — usually in-season rooms start at $279 a night, said spokeswoman Jennifer Duffy.
Also a factor is the declining number of flights at Tucson International Airport, said Alan Klein, the general manager of the Westward Look Resort, 245 E. Ina Road.
Westward Look, which has nearly finished renovating its rooms at a cost of $10 million, is also offering discounts. Rooms are starting at $139 that would normally go for $179 to $209, Klein said.
Resort officials said this is the worst slowdown they’ve seen in the industry since the Sept. 11 terrorist attacks. Klein the discounts, in part, are to attract Tucsonans to think about staying at a resort in their hometown.
The idea is to entice people who wouldn’t typically stay in their own backyard, he said. “But now they’re thinking twice because it’s cheaper to stay in town sometimes,” he said.
The Metropolitan Convention and Vistors Bureau is a $9 million plus non-profit agency that is funded by City of Tucson, Pima County and the town of Oro Valley.  By far they are the highest funded economic development agency in the County.  They are also the most non-accountable agency in the County.  They have a board that listens to a “dog and pony show” each month and then goes home.  No real input or criticism.  They have a marketing committee that meets quarterly that is not actually involved in the marketing plan.  They listen to a mini “dog and pony show”, then go home.  So with such useless internal processes, surely our funding municipalities are watching out for the average taxpayer.  If you believe that, I have bridge to offer you in Brooklyn.
Both the city council and the Pima County Board of Supervisors rubberstamp their deal every 4-5 years.  I think they do it because they don’t understand tourism and its seems so clean and glamorous, so why mess with it.  Only Oro Valley has had the gonads to cut their funding based on not being too thrilled with their performance.  For that, they have been threatened with the MTCVB withdrawing their support of the Hilton El Conquistador.  I don’t believe that would happen because the last 2 general managers of the resort have some of the their greatest enablers.
According to the above article, the slowdown that is to come is the worst since the 9/11 attacks.  So the question is:  What is the emergency plan to help their member businesses?  Why hasn’t any or our “impressive” elected and non-elected officials raised a stink about a lack of a plan?  The bed tax collection is going to be mighty low this first quarter(supposedly our best quarter!) and this going to help beat up already-pummeled revenue streams.
Until there is true accountability demanded of  this organization, we will continue to see more and more business slip away.  People and/or organizations with no true accountability are sure to underperform. Baseball is already on its way out.  The Gem Show is next.  And these people will keep collecting their very healthy salaries.  Looking at the above picture, I would be happy too if I was that guy.  $9 million dollars a year and not care in the world.  And no one to bother me with their nosy accountability.  AAAAHH, the life!

3 Comments

  1. [...] Resort Drive, near North Kolb Road and East Sunset Drive, is offering a corporate benefits package that gives business travelers a food and beverage credit . The longer a traveler stays, the larger the credit More [...]

  2. Michelle
    04/11/2008

    The only thing we can hope is that with tax collection down the government starts asking the tough questions, starts looking under the hood.

    In good times it’s easy to just chug along, when the budget cutting knife comes out I hope they start at the head!

  3. sebastiansmom
    05/11/2008

    I travel throughout the country hosting a variety of special events from 40 to 400 people approximately once a month. It has taken me decades to build a reliable clientele and for many years I made far less then minimum wage if you divided the hours spent working vs. my final annual income. Of course I recognize that with Obama’s new plan the one thing I can count on is that I will have less annual income at the end of the year. Having “Jimmy Carter the II” brought in during a time of terrorism, overseas hostilities and what is/will continue to be a long lasting and far reaching depression fills me with angst but then so does our own Metropolitan Tucson Convention & Visitors Bureau (MTCVB).

    In an average year I work with a minimum of six other visitor’s bureaus. The majority of them were privatized many years ago because government bureaucracy’s, like the MTCVB, continue to grow and grow WITHOUT accountability! Some of the best bureaus in the country from what I see are run like true entrepreneurial enterprises i.e. if you/the sales person, sell a conference in their city then you get paid a commission. There is a very low base salary paid, probably on the par with minimum wage, the rest is EARNED income. There is a main office that everyone contributes part of their commission to keep the rent paid and the lights turned on. Marketing pieces are done on a fairly limited scale because the customers want everything on the web, with very limited hard copy printed material being printed or mailed.

    In at least two of the cities where I have utilized visitor bureaus their collection of resorts, golf courses, and hotels is greater then what is available in Tucson, while their population is approximately the same size as Tucson. So I am comparing “apples to apples” and the Tucson bureau (MTCVB) has gone from an apple to a watermelon that is way past its prime! My personal opinion is that it is time to throw the current MTCVB in the compost pile along with the Tucson City Council and the Pima County Board of Supervisors. At least in the instance of the MTCVB start fresh with a privatized (and therefore downsized) accumulation of sales professionals. In this economy there are many of them available and the ones I’ve experienced in other cities work much harder and much smarter to make money for themselves and for their cities

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