Six months after instituting new work rules for union
labor at the Convention Center, the facility's managers say there has been a
dramatic increase in groups looking to gather in Philadelphia.
Despite the continuing presence of some protesting union
members outside the center, bookings are up, with numerous trade and business
associations agreeing to return to Philadelphia after noticeable absences, or
rebooking after a recent show.
There has been a 20 percent increase in
convention-related hotel bookings over last year, according to Julie Coker
Graham, executive vice president of the Philadelphia Convention and Visitors
Bureau (PHLCVB), the center's marketing arm. The percentage of conventions
returning to the city has increased from 17 percent in recent years to 38
percent. And by the end of the year, the PHLCVB expects to have booked 13 major
new shows for coming years, with an estimated $535 million in economic impact.
This comes after several years of declining interest in Philadelphia by
convention planners.
Those trends are indicative of a positive shift in
performance and perception at the Convention Center, which had been dogged for
years by a reputation as a difficult and costly place, largely because of its
Byzantine labor rules.
The center's management said the shift is the direct
result of the new rules, which give more latitude to exhibitors in setting up
their own booths, and the hiring of SMG, a West Conshohocken company with
national experience operating convention centers, to manage the facility last
December.
"It has been like night and day," said Gregory
J. Fox, chairman of the center's board of directors. "Obviously, we were
hoping for change and that things would turn around, but the speed by which
they have turned around is terrific."
Ed Grose, executive director of the Greater Philadelphia
Hotel Association, said his group has been delighted by what it has seen.
"We are extremely pleased with the changes at the
Convention Center," he said. "We are especially excited about the
booking base since the changes have taken place. We are on pace not just to be
competitive, but to outperform our competing cities."
The recent successes are to be touted Wednesday at the PHLCVB's
annual luncheon for the city's hospitality community. PHLCVB also plans to
announce its latest coup, the signing of the American Heart Association to
bring its 2019 convention and 25,000 delegates to the city.
The association has never held its convention in
Philadelphia. The group passed on a previous bid by the city, but decided to
reschedule its 2019 meeting for Philadelphia in response to the work-rule
changes, according to Graham. The association brings to 18 the number of major
conventions - those involving more than 2,000 delegates - booked so far for
2019, the most since 20 in 2013.
The work-rule changes were part of a new "Customer
Satisfaction Agreement" (CSA) reached in May with four unions whose
members work at the center. The agreement gives exhibitors greater flexibility
and work rights to ensure a smoother and less costly experience.
The agreement was reached only after considerable
negotiation between the unions and the center. Two unions - the Carpenters and
Teamsters - did not sign by the board-imposed deadline and lost their right to
work there. They continue to hold periodic protests outside the center,
contending they were the targets of a lockout.
"Clearly the center would be better off if it did
not have to endure these protests," Fox said. "But our customers have
been very understanding. When they see these protests, they see just how hard
we have been working to make things better."
Mike Barnes is president of the local stagehands union,
which signed the CSA and has taken up much of the work previously done by
members of the Carpenters. "In my opinion, we have turned the building
from being one of the least desired convention centers," Barnes said,
"to one of the most desired convention centers to do a trade show
in."
Fox said he is hearing the same from convention planners
he has spoken to.
"The hospitality industry is something like a cult.
Everybody knows each other," he said. "If something bad happens at a
center, somebody in South Dakota knows about it by tomorrow afternoon. The
opposite is true, too. Good news spreads like wildfire."
That is evidenced by the National Black MBA Association,
which has not held a convention here since 2003.
"We withdrew from hosting our conference in
Philadelphia because of labor issues in terms of inflexibility and costs,"
said Terra Dailey, head of marketing for the Chicago-based association.
The group reconsidered following the new CSA and the
reviews the Convention Center is receiving.
"The city has responded and we are pleased with the
results," Dailey said. "As a result, we are returning in 2017."
So, in September that year, the organization is bringing
8,000 delegates to Philadelphia - where they are expected to spend $9.6
million.
Source: Philly.com
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