Tucson Citizen Morgue, Part 1 (2006-2009)

Experts say bad economy could hurt Tucson’s prime tourism events

by Carli Brosseau on Jan. 15, 2009, under Calendar, Edge, Local

But gem show sees increase in vendors

Gem show tents are rising in the parking lot of Tucson Electric Park. Monday there were about 12 large tents going up in the area.

At the cusp of Tucson’s prime tourism season, the vision is changing: Hordes of defrosting Midwesterners and other visitors are no longer expected. Neither are their dollars.

Hotels are reporting as much as a 25 percent drop from last year in reservations, many linked to the city’s crowd-drawing events.

“We’re probably down about 20 percent,” said Gayle Venner, director of sales for The Hotel Arizona, 181 W. Broadway, of winter reservations.

This weekend launches what many call the “golden month,” when the area plays host to a 300-team soccer tournament followed by the Tucson Gem, Mineral & Fossil Showcase, which is the world’s largest gem and mineral event; baseball spring training; a rodeo; and a major golf tournament.

Together, the events usually have an economic impact of about $250 million, money spent largely on hotel stays and restaurant meals, according to the Metropolitan Tucson Convention and Visitors Bureau.

Less money being poured into the economy here means less sales tax revenue for the city.

And since sales tax accounts for about half of the money city government uses to pay for police, firefighters and parks operation, for example, a drop could have a major effect on services.

Deputy Director of Finance Silvia Amparano said the city has no budget plan in place that accounts for a tarnished golden month.

“We won’t know (the effect) until the numbers come in,” Amparano said.

Since July 1, when the fiscal year began, sales tax revenues have fallen by about 8 percent from last year.

The worst-case scenario is a further drop-off could lead to a fourth round of savings measures this fiscal year. The City Council has already approved more than $50 million in projected cuts and savings.

While show promoters are optimistic, University of Arizona economist Marshall Vest said they shouldn’t hold their breath.

“You can’t expect to see any improvement here in the next few months,” Vest said. “Fear is still a factor, so people are keeping their wallets closed and sticking close to home.”

On the upside, less expensive hotels along Interstate 10 seem to be doing better, at least for the gem shows.

The Riverpark Inn, 350 S. Freeway Road, is seeing gem shows reservations matching last year’s. InnSuites Hotel Tucson City Center, 475 N. Granada Ave., reported more gem show-related reservations than last year.

Bill Petrella, president of the Southern Arizona Lodging and Resort Association and general manager of Westin La Paloma, said most resorts and hotels are offering promotions.

Rick Trapp, chairman of the Tucson Gem and Mineral Show at the Tucson Convention Center, offered some good news.

He said 254 dealers plan to set up this year, a handful more than last.

“We’re not discounting a change in attendance,” Trapp said. “But we haven’t had any dealers drop out.”

Others, perhaps, are a bit more guarded.

Mayor Bob Walkup, a tireless promoter of city events, told a similar story. “The gem and mineral show is still our No. 1 hot item,” he said. “This year could be down a little bit.”

But Kimberley Schmitz of the visitors’ bureau downplayed the possibility of an attendance drop, saying expectations for the event’s 45 separately organized shows are similar to last year’s.

“This is a show people save up to go to because it is the largest of its kind in the world,” she said. “In previous economic downturns, the numbers stayed relatively flat.”

And a poor economy doesn’t always mean slower gem shows.

“Generally when the economy is in a recession, our shows generally are better because buyers aren’t going to the regional shows. Dealers are desperate to sell, and buyers are desperate to buy,” said Tanna Wyatt, president of the Gem and Lapidary Dealers Association.

Other event coordinators in addition to the gems shows:

• La Fiesta de los Vaqueros, the Tucson Rodeo, is poised to cash in. Ticket sales are up about 1 percent from this time last year, said chairman of the rodeo board Greg Jamieson.

He attributed the sales to many people having less cash for traveling, but enough to pay the $12 ticket price. “We’re expecting more locals this year,” he said.

• The Tucson Association of Realtors Shootout, a tournament organized by the Fort Lowell Soccer Club, will have 18 fewer teams than last year for a total of 290, its publicist, Gina Brandt, said.

The tournament also lost its sponsor, Coldwell Banker, a real estate firm, because of concerns about the economy, Brandt said.

The Tucson Association of Realtors, however, quickly stepped in, offering more financial support that its predecessor, Brandt said.

• The executive director of the Accenture World Match Play Championship – which Tiger Woods may attend – said ticket prices had been lowered this year to increase demand.

Sales are still down about $100,000 from last year, said Judy McDermott, executive director of the Tucson Conquistadores, a charitable group that donates the ticket proceeds. McDermott is expecting sales to pick up.

The news is perhaps most dramatic for the Arizona Cactus League’s spring training.

The news has has more to do with the Chicago White Sox announcing they are leaving for Glendale, rather than the bad economy.

The White Sox’s move from their spring training home at Tucson Electric Park was finalized last month by the Pima County Board of Supervisors.

The White Sox agreed to pay a $5 million penalty to the county for breaking a lease that bound the team to TEP through 2012.

The supervisors voted 5-0 to allow the Major League Baseball team to move in spring 2009 to a new stadium and training facility in Glendale, which the Sox will share with the Los Angeles Dodgers.

The L.A. team is moving to Arizona from its longtime training facility in Vero Beach, Fla.

That leaves Pima County host to the Colorado Rockies and the Arizona Diamondbacks.

Both of the remaining teams have expressed interest in moving when their contracts expire. That’s something the Pima County Sports Authority hopes to prevent, in part by attracting a Japanese team and setting up a year-round training base.

• And Saturday is the first day in the final year of horse racing at Rillito Park Race Track, 4502 N. First Ave. Racing is on Saturdays and Sundays through Feb. 22, except for Super Bowl Sunday on Feb. 1.