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 OUTLOOK ON TOURISM
A Message from Tom Norwalk, President & CEO,
Seattle's Convention and Visitors Bureau
Dear Tourism Supporter,
At the close of 2008, we wish you a happy and prosperous holiday season, and we toast the culmination of another successful year for Seattle’s tourism industry.
As we look toward 2009, we must heed the stormy economic forecasts. But collectively, we’ll get through the storm. We always do. We have momentum on our side, thanks to significant infrastructure investment and strong, sustained marketing programs. We have an amazing "partnership" which has always rallied. When the skies clear – and they will clear - Seattle, King County and the region will be positioned for yet greater tourism growth.
2008 was a strong convention year in Seattle. We kicked it off by hosting the convention and meetings industry’s most prestigious and sought-after professional association – the Professional Convention Management Association (PCMA). PCMA’s first-ever Pacific Northwest convention attracted record attendance and has generated some $57 million in definite convention business to date. Total economic impact is projected to be more than $90 million.
Convention business in the first half of 2009 is on par with our record first and second quarters of 2007. Currently, the first half of 2009 is on pace to be 23 percent stronger than first half of 2008. However, the second half is expected to be 40 percent lower than that of 2008. Latter 2009 will be a challenge and most of our opportunity will be in finding short-lead hotel direct business for the city. Many other cities are already experiencing the same challenges, and you’ll read about some of them in this newsletter.
U.S. leisure and business travel volumes will also be down in 2009, according to the most recently released forecast from the Travel Industry Association of America (TIA):
- Domestic leisure travel: down -1.4 to -3.4 percent
- Business travel: down -3.5 to -5.6 percent
- Overseas travel: down -1.6 to -3.1 percent
- Overal travel expenditures: down -2.9 to -6.3 percent
And, not surprisingly, air seat capacity is down at major U.S. airports, according to this month’s Conde Nast Traveler magazine. However, Seattle’s Q1 reduction of 2.9 percent is surprisingly small by comparison:
- Los Angeles: 13.7 percent
- San Francisco: 11.1 percent
- Boston: 5.3 percent
- Seattle: 2.9 percent
In 2008, Seattle surpassed Vancouver, B.C. in cruise passenger volumes for the first time. Our port is positioned well to maintain its stance as a premier home port for Alaskan cruises with the inauguration of Terminal 91 next year and, as you’ll read in this newsletter, a ten-year agreement with key tenants.
As travel consumers seek value in 2009, SCVB will continue to work with member businesses to promote packages and promotions. We’ve reinvigorated marketing efforts for the long-running Seattle Super Saver program and Seattle Value Season and will continue to develop new ways to stimulating incremental tourism visits that offsets the economic downturn.
And finally, in 2009 we’ll continue to promote our Why Tourism Matters public education campaign, expanding participation to include destination marketing organizations across the state. Together, we’ll jointly work to build respect for our industry and the economic impact it delivers.
Tourism matters, in spite of the serious economic challenges that face us. In fact, tourism can be part of the solution to these challenges if we work together to sustain industry success. I hope you’ll join us in the year ahead.
Best Regards,
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