S.F.
Hotels Suffer More Cancellations
Economic Impact: 'The conventions we lose today are just the
tip of the iceberg'
San Francisco Business Times - March 25, 2005
By Ryan Tate
The
union-led boycott against 14 large San Francisco hotels has
sapped another 1,500 room nights from the city, with an additional
potential cancellation threatening hundreds more.
Groups
relocating their events now include the California Applicant
Attorneys Association, which will move its 800-person annual
conference from San Francisco, where it was booked for a six-day
event at the Hyatt Regency, to an undetermined location. The
association, which represents worker's compensation lawyers,
said the move was prompted by the union boycott.
"We
cannot go to any place that has a dispute," said Executive
Director Karen Locke, citing the group's bylaws.
The
impact on San Francisco will be significant. The event was
to consume 450 rooms on its peak night, close to half the
capacity of the 805-room Hyatt Regency. All told, it consumes
close to 1,500 room nights
Locke
added that moving the event to Moscone West is not a realistic
option due to the cost. Also, the group is uncertain whether
there is enough room in hotels not targeted by the boycott.
The
attorneys group is exploring other locations, mostly in the
Los Angeles area.
Another
group says it is thinking about moving its event. The Independent
Television Service said in a statement on its web site it
is in an "untenable situation" with its planned
May 1-6 International Public Television Conference at Hilton
San Francisco, expected to draw close to 2,000 people and
consume 800 hotel rooms on its busiest night.
"We've
spent 15 years committed to television that values economic
and social justice," CEO Sally Jo Fifer wrote in the
statement. "Now, we find ourselves in a position where
we support employee health benefits; and yet, we must host
this important conference."
Fifer
also said the group stands to forfeit at least $663,000 if
it backs out of the Hilton contract. Close to half of that
money was raised from outside sources.
Fifer
said the group is exploring its options with both Hilton and
the hotel workers' union, Local 2 of Unite Here. A spokesman
for the group said earlier this week that the web statement
represents the group's most current thinking.
Hotel
industry sources say the losses are painful for properties
throughout the city because, after a cancellation, an individual
hotel will typically have to use steep discounting to fill
a large and suddenly vacant block of rooms. This, in turn,
puts pressure on other hotels to cut prices.
No
talks are scheduled between the hotel union and the hotels
at this time.
Parties
outside the talks are urging the two sides to meet, with some
asking Mayor Gavin Newsom to play a larger role in bringing
the two sides together. The San Francisco Chamber of Commerce,
Union Square Association and other business groups have convened
meetings to discuss the situation.
"We'd
like to see him just put a little more pressure to lock the
people in a room," said Ryan Chamberlain, field director
to advocacy group SFSOS and a party to the talks. "It's
pretty much all he can do at this point."
Linda
Mjellem, executive director of the Union Square Association,
said the continuing cancellations will hurt the city for years
to come.
"The
conventions we lose today are the tip of the iceberg,"
Mjellem said. "It's not just the conventions we know
about, it's the ones that book far ahead who probably aren't
making those booking decisions.
"It
has a ripple effect on businesses throughout the city."
Ryan
Tate covers hospitality for the San Francisco Business Times.
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