Tag Archives: Arizona Tourism Alliance

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Kiehl's Since 1851 Arrives in Scottsdale

The Store

Kiehl’s Since 1851, the venerable New York-based purveyor of fine quality skin and hair care preparations, opened its very first retail store in at Scottsdale Fashion Square. Kiehl’s is proud to offer visitors and the Scottsdale community the opportunity to discover the brand’s efficacious skin, hair and body care products, personalized customer service and 162-year-old heritage.

BB Cream_SPF 50“Scottsdale has long been on our wish list for a new store, and our new space at Scottsdale Fashion Square is the ideal location to fully introduce Kiehl’s to Arizona,” said Chris Salgardo, President, Kiehl’s USA. “Our new store allows us to bring Kiehl’s further into the Southwest and share our New York heritage with a whole new community. Each element of our new store, from the design of the fixtures explaining our skin, hair and body formulations, to the historical photographs, mementos and Kiehl’s icons, helps tell the extensive story of our unique company that began as an old-world apothecary at the corner of 13th Street and Third Avenue in New York’s East Village. From design, to customer service, to the high-performing natural ingredients that are the basis of our products, we did everything possible to bring a modern version of our original store to Scottsdale, and I look forward to introducing our new community to our skin care, our customer service and our story.”

Kiehl’s at Scottsdale Fashion Square mirrors the unique ambiance found in the company’s original New York Flagship, which began as a neighborhood apothecary in 1851. The new store brings a modern New York apothecary to Scottsdale, referencing the company’s original East Village roots and blending vintage and antique apothecary fixtures with a modern neon flare. The interior design advances Kiehl’s longtime commitment to the environment with the use of natural, sustainable materials and energy-efficient light fixtures, while enhancing the overall service experience for Kiehl’s patrons.

Kiehl’s at Scottsdale Fashion Square also utilizes natural, sustainable materials and energy efficient light fixtures – and encourages patrons to recycle Kiehl’s packaging with a specially designed recycling bin, promoted through Kiehl’s Recycle and Be Rewarded! program. The program offers customers the opportunity to return empty Kiehl’s jars, bottles and tubes to the store for recycling, in exchange for complimentary products.
Kiehl’s commitment to education through attentive service is accentuated through a dedicated personal consultation area. The enhanced space provides an opportunity for customer representatives and patrons to converse privately about products best suited for the customer’s individual needs. A separate men’s destination offers specialized educationActivatedSun_LotionSpray_SPF50 tailored to the specific concerns of male patrons.  All customers receive the kind of attentive service for which Kiehl’s is known around the world today. In addition, simple, no-frills packaging allows Kiehl’s to formulate its products with high quantities of the most efficacious natural ingredients available.

Generous sampling through Kiehl’s “try before you buy” program offers the complete Kiehl’s line of skin and hair care for men, women, children and babies with a generous offering of its traditional product samples. To assure its customers always find exactly what they need, Kiehl’s offers a 100% money back guarantee on all purchases, and guarantees that customers will see revitalized skin in 28 days or their money back.
Custom gifting 365 days a year allows customers to create personalized gifts year-round. A Kiehl’s Customer Representative will help the customer assemble a personalized, custom gift box, choosing items based on recipient, theme, ingredient or price, from any and all products in the store.

Design

  • A 6-ft table provides patrons a comfortable station for complimentary Healthy Skin Consultations by Kiehl’s Customer Representatives, which helps them determine the formulas best suited for their personal needs.
  • A  space for specialized shaving and grooming education and demonstrations is designed for men. Specially designed accents such as military-style lockers, black subway tile, and props to demonstrate the perfect shave, bring this relaxing stop to life for Kiehl’s male patrons.
  • Black Nero Marquina marble highlights the shop’s exterior façade, honoring the marble exterior of the original Kiehl’s New York Flagship.
  • Carrera marble tables, counters and trim provide a utilitarian, functional approach.
  • Natural, sustainable materials, such as tabletops made from paperstone, a waterproof material made from 100 % post-consumer recycled paper.
  • Energy-efficient LED lighting illuminates Kiehl’s products in an environmentally friendly way.
  • Reclaimed wood floors and exposed brick walls evoke the old-world quality of Kiehl’s East Village neighborhood.
  • A bronze and crystal chandelier is inspired by the crystal chandeliers that have adorned Kiehl’s Flagship store in NYC for years.
  • A custom-painted motorcycle, an icon of Kiehl’s heritage, will be on permanent display, evocative of the passions and adventurous spirit of Kiehl’s founding family.
  • Antique apothecary glassware and vintage props  reference the company’s early years as a neighborhood apothecary.
  • Vintage photographs and mementos – take customers on an exciting journey through Kiehl’s 162-year history.
  • Pop-art inspired graphics – the late Andy Warhol was a long-time Kiehl’s fan, purchasing Blue Astringent Herbal Lotion in bulk from the Flagship, and special graphics were created in his honor.

About Kiehl’s Since 1851: Kiehl’s was founded as an old-world apothecary in New York’s East Village neighborhood. After years as an ambitious apprentice, John Kiehl purchased the business and began operating under the Kiehl name, serving the burgeoning New York community with unique herbal remedies. In 1921, John Kiehl’s apprentice, Mr. Irving “Doc” Morse, purchased the business and expanded it to a full-service pharmacy, stocking medicines, tinctures, and the first Kiehl’s-branded products. Doc Morse, a pharmacist and herbologist, passed the business on to his son, Aaron, himself a chemist and avid motorcyclist and aviator. Aaron’s daughter, Jami, was raised at Kiehl’s amongst the “family” of employees, who together fostered a tradition of attentive, personalized service for every patron. Over the generations, the Morse family committed Kiehl’s to serving the community uniquely efficacious skin and hair formulations made with the finest natural ingredients in the apothecary tradition.

Store hours are 10 a.m. to 9 p.m. Monday through Saturday and 11 a.m. to 6 p.m. Sunday.  For more information about Kiehl’s, please visit www.kiehls.com.

106477373

Tourism groups’ merger gives industry more strength and unity

Call it strength in numbers, or strength in unity.

“With the challenges that the tourism industry has faced over the past several years, our industry has had to come together to better vocalize the importance of tourism to Arizona’s economy,” says Debbie Johnson, a longtime advocate of Arizona tourism. “In doing so, it became evidently clear that the Arizona Tourism Alliance and the Arizona Hotel & Lodging Association had virtually the same missions and goals and could have a stronger, more cohesive voice if united; so the conversations of mergers began amongst the two organization’s leadership.”

Those conversations led to the two groups combining forces early in 2012 to form the Arizona Lodging & Tourism Association (AzLTA), with Johnson leading the charge as the group’s president and CEO. The new organization has a combined membership of almost 500 and has helped broaden the reach and scope of the tourism industry’s branding and message.

“Arizona must continue to think globally as well as act locally,” says Doug Yonko, executive vice president of communications for Hensley Beverage Co. and chairman of AzLTA’s board. “We are a premiere destination. However, competition for tourism dollars is fierce so we must stand together by working closely with the private and public sector and our legislature to ensure continued growth and increased market share of the tourism dollar.”

AzLTA’s leaders say the new supergroup will give the tourism industry the ability to speak from one unified voice, particularly on the legislative front, which will strengthen the industry.

“AzLTA unites hoteliers with key segments of the tourism industry — including Phoenix Sky Harbor Airport, many state convention bureaus, private business and the Arizona Office of Tourism,” Yonko says. “The economic impact of the tourism industry affects most businesses at some level and — very importantly — our state tax revenue stream. The tourism and hospitality industry represents the second leading driver of our state’s economy, subsequently it is crucial that the business community and our legislature continue to recognize and support this pillar of our economy.”

Along those lines, the goal of the AzLTA is to work with and educate state legislators, offering training to those in the industry through workshops and seminars, and uniting those industries that are impacted by tourism. Its specific mission, Johnson says, is “to unify, protect, educate and promote the interests of the Arizona lodging and tourism industry.

“This mission is a combination of the missions of the former two groups, which were similar in structure and tone prior to the merger, but now have greater value after the merger,” she says. “AzLTA, and the Super PAC that the organization recently created, is now recognized as one of the leading industry voices in the state.”

AzLTA PAC is the state’s 25th Super Political Action Committee (PAC), which is expected to send a message to lawmakers about the strength and impact of tourism across the state. A Super PAC requires a minimum of 500 people to donate a minimum of $10 each. The funds can then be used to show support for candidates who understand the value of tourism to Arizona.

“AzLTA will have a seat at the table where policy is shaped that could directly or indirectly impact our ability to attract visitors and businesses to our state,” Johnson says. “It will ultimately raise the awareness that Arizona tourism is the catalyst to economic development,  job creation and tax revenue generation that positively impacts every Arizona resident.”

Arizona Tourism Alliance Brian Johnson

Arizona Tourism Alliance

Brian Johnson, managing director Loews Ventana CanyonBrian Johnson
Managing Director
Loews Ventana Canyon
www.loewshotels.com

With 33 years in the industry, Brian Johnson has experienced firsthand the roller coaster ride the tourism industry takes as the economy shifts. Johnson has risen far in his career, working his way up from a dishwasher to his current position as managing director of the iconic Loews Ventana Canyon in Tucson. But even a resort as well known and popular as the Loews Ventana Canyon must work hard during tough economic times and low tourism rates.

“As anyone else, we have to find ways to create a new wrinkle that will bring people back to our property,” he says. In the past and in recent days, those new wrinkles have included renovations, nature trail additions that harmonize with the surrounding environment, and a butterfly garden. As one of the first ecologically conceived hotels, the environment has always played a part in all of their decisions, he explains.

Johnson’s involvement in the Arizona Tourism Alliance, where he serves on the executive committee, has been beneficial for both himself and the resort.

“It’s one of these things where you have a group of like-minded people who are dealing with the same issues and putting everyone together to create that effect that will help the common good of our industry,” he says. “It’s a global standpoint; we’re not just looking at one area, we’re looking at all the components and doing what is good for all of Arizona.

“I think in our industry, you can be whoever you want to be. This industry has created that opportunity for me and my family … ”


Lorraine Pino, manager of Glendale Convention and Visitors BureauLorraine Pino
Manager
Glendale Convention and Visitors Bureau
www.visitglendale.com

Spend just five minutes with Lorraine Pino and one thing becomes obvious — she’s passionate about tourism, not only in Glendale, but the whole state of Arizona.

As manager of the newly appointed Glendale Convention and Visitors Bureau (formerly the Glendale Office of Tourism), Pino promotes all Glendale has to offer. She has managed several campaigns that benefit both Glendale and the West Valley. One such campaign is Shop Glendale, a program that provides daily discounts and monthly prizes for the public from more than 70 business participants. To date, more than 35,000 Shop Glendale cards have been distributed.

Pino also helped create the West Valley Events Coalition, which brought West Valley cities together to pool their resources for advertising and marketing efforts geared toward tourism.

Involvement in the Arizona Tourism Alliance has been vital to the efforts of Pino and her team, she says.

“The resources, education and connectivity of the Arizona Tourism Alliance (ATA) are a huge help and much needed foundation for CVBs and DMOs (Destination Marketing Organizations) throughout the state,” Pino explains. “With our recent transition to a convention and visitors bureau, the resources of the ATA were monumental in helping us form our business plan.”

The new status as a CVB has brought a wealth of positive changes, she says. Funding from the members can now be used toward more aggressive marketing and branding efforts.


Doug Yonko, vice president of communication Hensley DistributingDoug Yonko
Vice President of Communication
Hensley Distributing
www.hensley.com

Doug Yonko is a true believer in longevity and commitment. Just take a look at his employment history with Hensley Distributing. The Phoenix-based beer distributor has existed for 55 years and Yonko — who works as the vice president of communications — has been with the company for more than half that time.

Hensley Distributing is active in many of the community’s charitable efforts, and encourages its employees to do likewise. The company and its employees are also committed to being involved in key issues that impact the state, including Arizona’s tourism. Yonko demonstrates that objective through his involvement on the Arizona Tourism Alliance’s executive committee, where he says he has the “opportunity to connect with some really smart people who truly understand the significance of tourism.”

The downturn in the economy and political issues such as SB 1070 have hit the tourism industry hard, Yonko says, but the situation has taught the business community how to withstand hard times.

“I believe there is a silver lining in these challenges,” he says. “The issues ranging from immigration to budget cuts, etc., have brought the business community closer in terms of the discussion and development for long-range solutions to protect and to foster the growth of the tourism industry. … We have to hold ourselves accountable, as well as the Legislature for our future — funding is critically important if Arizona is to remain competitive.”

AZ Business Magazine Jan/Feb 2011

Enchantment Resort in Sedona - AZ Business Magazine Jan/Feb 2011

Studies Show That Every Dollar Invested In Tourism Returns At Least Double That Amount

Forests of Saguaro cacti lit by fiery red and orange sunsets, gun-toting cowboys staging shoot-outs, and the Grand Canyon’s striated walls looming over the Colorado River.

One would think these distinctly Arizona images could sell themselves. Unfortunately, Arizona’s tourism industry is learning the hard way that it takes more than just the state’s natural beauty and attractions to bring in visitors — it takes dollars.

“That’s why we need to be out there marketing Arizona, reminding people about what a great, wonderful, warm, welcoming destination we are,” says Debbie Johnson, executive director of the Arizona Tourism Alliance and president and CEO of the Arizona Hotel & Lodging Association.

The recession caused Arizona’s once vibrant tourism industry to flounder, and in 2009, the stigma related to the corporate meetings industry continued the industry’s downward spiral.

“We weren’t just feeling the pain like everybody else. We were getting hit much more significantly than the nation overall,” says Mitch Nichols, president of Nichols Tourism Group, which provides research services to the tourism industry.

Visitor spending in Arizona decreased 10.6 percent, while the nation saw a decrease of just 4.4 percent, from 2007 to 2009. Additionally, Arizona lost $780 million in potential visitor spending because its share of national travel expenditures dropped from 2005 to 2008, according to Nichols Tourism Group.

In early 2010, the state Legislature dealt the industry a one-two punch when it passed SB 1070 and redirected funds from the Arizona Office of Tourism’s (AOT) budget to the general fund.

The Legislature redirected the tourism formula fund, which is composed of 3.5 percent of the state’s bed tax, 3 percent of the state’s amusement tax, and 2 percent of the state’s restaurant tax. This redirection will take approximately $28 million away from AOT over the 2011 and 2012 fiscal years.

In November 2010, the Center for American Progress, a progressive think tank, announced more bad news for Arizona’s tourism industry. In a study, it was reported that the controversial SB 1070 bill had cost the state $141.4 million in lost spending.

However, the industry isn’t down for the count.

Led by the Arizona Tourism Alliance, the tourism industry is campaigning to reclaim the budget, which it believes will help pull Arizona out of the recession and return millions of visitors to Arizona.




Arizona Inn in Tucson

Photo: Arizona Inn




While the long-term effects of SB 1070 on the tourism industry are hard to quantify, the budget redirection is projected to cost Arizona big.

Even the most conservative estimate puts the state’s losses at $26.7 million, but “actual revenue losses could potentially be many times this amount,” according to an independent study by Elliot D. Pollack & Co.

Nichols Tourism Group estimates the state could lose as much as $1.6 billion.

“You’re not finding $14 million. You’re creating a much bigger hole that will have to be funded in the future,” Nichols says.

The redirection of money decimated AOT’s marketing budget, allowing other states to sneak in and steal Arizona’s market share. These states recently discovered the tourism industry’s power to pull a state out of the recession.

“Some of our key competitors, California in particular, got much more aggressive in terms of the resources they were spending to try and convince visitors to choose California,” Nichols says.

Arizona is becoming out of sight, out of mind, and statistics prove it, Johnson adds.

From January to August 2010, the daily rate for Arizona hotel rooms declined 4.4 percent, while the nation’s daily rate only declined by 1 percent, and California’s daily rate declined by 1.1 percent, according to Nichols Tourism Group.

“Too often there’s a mindset that people will come whether or not you advertise. And we’ve got to increasingly ensure that kind of mindset does not carry the day,” Nichols says.

To remedy the industry’s declining revenue, Arizona’s Legislature needs to be reminded of what tourism means to the state. Tourism brings in revenue that funds education and many of the public services that are necessary during recessionary times.

The return on investment for every dollar spent on tourism marketing is seven to one, out-of-state studies show, according to the Pollack study.

In addition to pulling in revenue, the tourism industry directly and indirectly employs around 300,000 Arizonans, about 10 percent of the state’s work force.

Two key pieces of Arizona’s future, the economy and the work force, depend upon tourism. If the budget is restored, and soon, Arizona can rebound to pre-recession numbers within five years, Johnson says.

“Our destination has shown … that we can come back from adversity,” Johnson says. “We saw that after 9/11. (We were) one of the top five destinations, in terms of rebounding. I think we’re going to see that again because of what we have to offer, because we do have such a strong industry here. We’re a united industry. We work together and we come together in times like this. I think you’re going to see Arizona rebound.”

AZ Business Magazine Jan/Feb 2011

Monument Valley in Arizona, part of the Arizona Office of Tourism's new marketing campaign - AZ Business Magazine Jan/Feb 2011

Arizona Launches Innovative Media Campaign To Bring Back Tourists

Arizona has gotten a bad rap as of late, with the added national backlash from the passage of SB 1070 making it even tougher for the state to climb out of the recession. But the Arizona Office of Tourism is fighting back, and it has only one word for you — monumental.

It’s part of the Arizona Office of Tourism’s “In One Word — Arizona” marketing campaign that launched Nov. 8. The campaign couples iconic images of Arizona with one word describing the image. Bet you can guess which image is paired with “grand.”

The campaign’s eight images, ranging from the Grand Canyon and Monument Valley to Sedona and Flagstaff’s distinctive terrains, will run from November 2010 to May 2011 primarily in Chicago and Los Angeles, the two major markets for Arizona tourism.

This campaign features traditional print, TV and radio ads, but also includes innovative strategies, such as video-on-demand, “wallscapes” on buildings in Chicago and Los Angeles, and versions of the ads appearing on the print-out boarding passes of eight major airlines.

The advertising is “layered to continue to drive home the wonders and the diversity of Arizona,” says Sherry Henry, director of the Arizona Office of Tourism.

Spreading the message of Arizona’s allure is not limited to the Hollywood Hills and Chicago’s Magnificent Mile. An extensive digital media campaign also will run in San Francisco, Denver, New York City and other major markets, as well as Mexico and Canada.

But the biggest accomplishment of AOT’s new campaign is the fact that despite intense budget cuts that practically erased the marketing budget, the campaign is forging ahead, focused on bringing in much-needed tourism to the state.

The state Legislature removed revenue from the tourism formula from AOT’s budget and placed it in the general fund. Because of this shift, the AOT will receive approximately $14 million less in the 2011 fiscal year than it received in the 2010 fiscal year.

“We have this budget, and we are going to make this budget stand like it is 10 times what we have,” Henry says, adding that AOT’s mission is “to use the dollars we do have to drive as much revenue as we can.”

The budget stress isn’t the only issue facing Arizona’s tourism industry. The recession, which caused the budget decrease, is the No. 1 issue, Henry says. The swine flu epidemic of 2009 hurt, as well as the “AIG effect,” in which big businesses cut down on holding corporate meetings at resorts. Then, boycotts from the passage of SB 1070 gave a further beating to an already crippled industry.

However, Henry says Arizona’s tourism is going to surge back because of the state’s well-established image and the strong partnerships within the tourism industry.

“The branding of Arizona hasn’t changed,” Henry says. “There are some misconceptions of what’s happening here, but it hasn’t really affected the Arizona we all know and love.”

AOT has partnered with local convention and visitor bureaus and the Arizona Tourism Alliance to reach the group-and-meeting tourism market. The relationships between all sectors of Arizona’s tourism industry are “stronger than any other state we know of,” Henry says.

Although 2009 saw a 10.2 percent decrease in travel expenditures and a 2.1 million decrease in overnight visitors, 35.3 million visitors still made Arizona their destination of choice.

Statistics show that in 2010, top-of-the-line leisure traveler numbers are up, Henry says. AOT identifies leisure travelers as Arizona’s target visitor.

“We’re finally beginning to see it creep up again,” Henry says of visitor numbers.




Arizona Office of Tourism's new campaign

Images courtesy of the Arizona Office of Tourism




AZ Business Magazine Jan/Feb 2011

Steve Chucri, president and CEO Arizona Restaurant Association - AZ Business Magazine Jan/Feb 2011

Q&A Steve Chucri, President and CEO Arizona Restaurant Association

-In 2002, Steve Chucri was lobbying at the state level when the Arizona Restaurant Association president and CEO position was presented to him. Chucri now uses his political and lobbyist backgrounds to help Arizona’s restaurant industry navigate today’s tough issues. An executive committee board member with the Arizona Tourism Alliance, Chucri discusses strategies to create workable solutions to many issues affecting his industry.

Could the recession have been worse for the restaurant industry?
I always think it can be worse, because you don’t know worse unless you’re in it. That being said, yes, the economic hit, the recessionary hit to our industry was substantial. It may not be as substantial as to other elements of the tourism industry, but when you have the closing of restaurants double from normal times during this recessionary time, that’s pretty substantial. … I’m not going to say we were the worst or we were the most impacted, but there has been a huge impact from the most experienced restaurateur to the novices of the industry. Both were equally hit.

How have the arizona restaurant Association and the arizona tourism alliance been working together to get through the recession?
Restaurants over the recent years have become more and more dependent on tourist dollars. The receipts show that. About 25 percent of our receipts from restaurants are coming from tourists. … I think what we’ve been able to work on with both organizations is how do we continue to work together and make Arizona a destination? We’re becoming more and more known for our culinary fare.

Second to that, we’ve also worked legislatively together to ensure we’re not being targeted for miscellaneous taxes and we’re not getting targeted as an industry when it comes to funding issues, especially the Arizona Office of Tourism.

What challenges do you see facing the restaurant industry in 2011?
I see an increase in costs. We’ve been fortunate to maintain costs at a low level because of the recession, but I’m getting concerned that if things do start to pick up we will see costs starting to rise. I feel as though the smallest of things, the profitability of a restaurant, is very, very low and it doesn’t take much. You can’t just go to your menu and start raising prices in an economy like this. … I think we’re going to make a real push to see how we can get rid of that CPI (consumer price index) component with the minimum wage, but I don’t want to dwell too much on that, as we’re still in the strategic phases.

On the good side too, I believe that people are going to realize, yes we’re in a recessionary time but restaurants essentially are on sale right now. … I see people also realizing, like I said on the positive side, that it isn’t all that expensive to go out to eat.

How has Arizona’s restaurant industry been recovering from the recession?
In many, many ways, across many segments of our industry, it’s been at a snail’s pace. … I will tell you that 2010, from the quick-serve industry all the way to fine dining, it has been better than 2009. Now, that’s not universal, but the increases we are seeing are at a snail’s pace.

I think the wish, if there was one, of the industry would be that growth would pick up a little more quickly. Not at the crazy pace we were going at back in 2006, 2005, but something that is more meaningful and can be measured. … I think that restaurants are doing all they can to make sure that happens by offering these terrific deals and really using a lot of ingenuity and happy hours.

Restaurants are really good at incentivizing and getting people to come in. I think we’ll always continue to see that happen. … If restaurants can grow and if our industry can grow back up to the 4 percent or 5 percent and it’s sustainable each month and it’s sustainable on a consistent basis, you’d see a lot of smiles on restaurateurs’ faces.

Arizona Business Magazine Jan/Feb 2011

ATA Profile: Jim Prueter, Senior Vice President of AAA Arizona

Jim Prueter
Senior Vice President, AAA Arizona
www.aaaaz.com

As senior vice president of AAA Arizona, Jim Prueter is part of a company that provides automotive, insurance and travel services to nearly 800,000 Arizona members. He’s no stranger to AAA, having worked as vice president of AAA Mid Atlantic in Philadelphia, and as executive vice president of AAA Chicago Motor Club. But he didn’t get his first taste of the travel industry side of the company until 1998, when he arrived in Arizona.

In his current post, he is responsible for heading up the largest leisure travel agency in Arizona, AAA Travel Agency. In addition, he is the publisher of AAA’s member magazine, Highroads Magazine. With a subscription of nearly half a million, the magazine is the largest in the state. In his various professional affiliations and as current chair of Arizona Tourism Alliance’s board of directors, Prueter recognizes the importance of tourism advocacy efforts.

“It is vitally important that the Arizona travel industry has a voice that is heard by our elected officials, the business community at large and the public. Tourism has a huge economic impact on our state, that is largely unknown, that must be heard,” Prueter says.

The ATA, Prueter says, is a driving force in spreading the message about the enormous impact the travel industry has on the state’s economy.

“The ATA serves as a catalyst and voice for the Arizona tourism industry dedicated to providing advocacy and generating awareness of the industry by providing education and leadership to the industry,” says Prueter. “Over 37 million domestic and international overnight travelers visited our state in 2008, spending some $18.5 billion. That equates to more than $51 million pumped directly into our economy every day. It is the only industry that brings prosperity to all 15 Arizona counties.”

He adds that taxes paid by visitors have a direct and measurable benefit on Arizonans, generating $2.6 billion in local, state and federal tax revenues in 2008.

“The point is, out-of-state visitors spend money that benefits businesses far beyond traditional travel entities. The purchases travelers to Arizona make generate taxes that create tax revenue that fund jobs and public programs, such as police, firefighters, teachers, road projects and convention centers,” Prueter says.

The dismal economy certainly put a strain on the industry, as did the faltering state budget and bad press regarding corporate meetings (Meetings account for more than 70 percent of resort revenues in the state).

To counter this, Prueter encourages individuals to join organizations such as the ATA, the Arizona Hotel and Lodging Association, the Arizona Restaurant Association, local convention and visitors bureaus and other industry organizations. His goal is to continue to work with the ATA on advocating tourism to all industries. With events such as the Unity Dinner and the Governor’s Conference on Tourism, the ATA will continue its efforts on behalf of travel and tourism in Arizona.

Getting the industry back on track will take some time, but Prueter offers this advice: “Don’t sit on the sidelines wringing your hands … Let them know what the economic impact of the Arizona tourism industry means to their business and the positive impacts travel has to the benefit of all Arizonans.”


Arizona Business Magazine

February 2010

ATA Profile: Deborah Ostreicher, Deputy Aviation Director At Sky Harbor International Airport

Deborah Ostreicher
Deputy Aviation Director, Sky Harbor International Airport
www.skyharbor.com

As deputy aviation director of Sky Harbor International Airport, Deborah Ostreicher has a hands-on grasp of the travel industry. A typical day at the airport includes more than 1,200 aircrafts arriving and departing and more than 100,000 passengers coming and going. It’s no surprise that Sky Harbor is one of the 10 busiest airports in the world and has a $90 million daily economic impact.

Ostreicher’s professional background is in international business and marketing. She lived in Europe and the Middle East for about 10 years before coming to Phoenix. Although the travel industry always interested her, it wasn’t until 1996 that she became a travel professional. She joined Sky Harbor as the air service development manager, working to recruit airlines to Phoenix. The industry has certainly seen its share of changes since Ostreicher entered the scene.

“When I joined the industry, it was booming like crazy. With the economic downturn and post 9/11 era, things are certainly slower; and so is the cash flow that was once available for promotions and marketing,” Ostreicher says.

Yet Ostreicher sees her roles at Sky Harbor and as an executive committee member of the Arizona Tourism Alliance’s board of directors going hand in hand.

“As the area’s main airport and one of the largest in the entire Western region of the U.S., our role is to provide data and support to the efforts of the alliance,” she says. “Working together is critical, since a huge number of tourists come to Arizona by air and a large part of the airport’s business is the leisure market.”

Sky Harbor was not immune to the detrimental economic climate. Yet, the airport fared better than many others across the country.

“There has been an overall decrease (in passengers) of about 10 percent in 2009, but this is significantly better than many airports across the country. It’s important to keep in perspective that, rather than about 100,000 passengers a day, now we have about 90,000 per day,” Ostreicher says.

The demanding pace of keeping up with security changes, coupled with economic difficulties, is an ongoing challenge for the airport. Yet, it’s a challenge that Ostreicher is confident Sky Harbor can and will overcome. The recently announced Sky Train is one major project in the pipeline that is sure to bring growth and development to the airport.

“The Sky Train is by far the biggest project that will serve tourists, as well as the local community,” she says. “This will be ready for use by 2013, making it much easier for people to travel to, through and from the airport well into the future.”

Ostreicher recognizes the need to advocate the long-term benefits that a strong and vital tourism industry will have on the state. Though things may be difficult now, she says it’s still wise to invest in an industry that will be integral in Arizona’s economic recovery.

“The demand for tourism and air travel will undoubtedly bounce back,” she says. “But we can’t wait for that to happen to construct services necessary to serve this rebound. We have to do it now; and if you come to Sky Harbor, you’ll see that at America’s Friendliest Airport we are working to serve not only today’s customers, but tomorrow’s.”


Arizona Business Magazine

February 2010

Q&A With Debbie Johnson, Executive Director Of The Arizona Tourism Alliance

Debbie Johnson
Executive Director, Arizona Tourism Alliance

Debbie Johnson, executive director of the Arizona Tourism Alliance, is a major force in the Valley and state’s tourism and hospitality industry. She also serves as president and CEO of the Arizona Hotel & Lodging Association and the Valley Hotel and Resort Association. Johnson also represents the tourism industry by serving with the following organizations: American Hotel & Lodging Association; Arizona Film and Television Commission; the Governor’s Tourism Advisory Council; International Society of Hotel Association Executives; Arizona Sports & Tourism Authority; Civic Plaza Task Force; and the Phoenix Tourism and Hospitality Advisory Board. In 2003, she was named the Arizona Tourism Champion of the Year at the Arizona Governor’s Conference on Tourism, and in 2006, she was given the Phoenix Visitor Industry Champion Award by the Greater Phoenix Convention & Visitors Bureau.

How badly did the recession affect the state’s tourism and hospitality industry, and could it have been worse?
The tourism industry was particularly hard hit in 2009 by several factors, including the recession, the negative perception of travel and meetings, the fear of the H1N1 virus, and some misplaced political rhetoric. While our industry suffered unprecedented occupancy and revenue losses, I’m sure it could have been worse, although I shudder to think of what that would have meant to so many of our residents who rely on tourism for their livelihoods.
What we learned this year was the importance of the meetings industry to our state. Group and business travel accounts for more than 70 percent of revenue for most of our larger properties, and when we saw mass cancellations in that market due to fear of negative media coverage and public perceptions, it resulted in tens of millions of dollars missing from our state, city and county budgets. We’re still feeling those effects today as the Legislature grapples with how to deal with the deficit because of less than expected tax revenues.

What do you foresee for 2010?
We’re hearing mixed messaging as far as what the tourism industry can expect in 2010. While we anticipate having another challenging year, we are optimistic that the worst is behind us, and feel that we’ll make some inroads toward recovery.

What initiatives is the Arizona Tourism Alliance taking to help strengthen the state’s tourism and hospitality industry?

The Arizona Tourism Alliance’s most important roles are to advocate, educate and unite our industry. Bringing the industry together through annual events and monthly updates is key to keeping our members engaged and informed, and educating elected officials on the value of tourism revenues is an ongoing process that requires constant attention. With the current crisis that our state budget is in, tourism’s return on investment ($8 returned to the state budget for every $1 spent on tourism marketing) provides a positive and short-term solution toward lowering our deficit; so it’s critical for us to provide that positive message.

You are involved with several other tourism and hospitality organizations here in the Valley. How have all of those groups been working together to ride out the recession and prepare for recovery?

The Arizona Tourism Alliance, Arizona Hotel & Lodging Association, Valley Hotel & Resort Association and Southern Arizona Lodging and Resort Association have always been strong partners, but 2009 was the year that truly brought our industry and all of our advocacy organizations together. With all challenges come opportunities, and the bright spot of 2009 was that it united our members in the resolve that we’re all in this together. We have emerged from this crisis as a stronger and more resilient industry. And the theory that a vibrant Arizona tourism industry equals a healthy Arizona economy is undeniable.

www.aztourismalliance.org | www.vhra.net | www.azhla.com


Arizona Business Magazine

February 2010

ATA Profile: Mark Grenoble

Mark Grenoble
President, Enchantment Group
www.enchantmentgroup.com

Not many professionals can say they grew up in their industry. Mark Grenoble is one of the few who can. He has worked in some capacity in the tourism industry since he was a teenager, and aside from a few years in real estate, he has never left the industry.

From humble beginnings as a hotel banquet waiter, Grenoble has risen to the ranks of president of the Scottsdale-based Enchantment Group, a company that provides spa and resort property development and luxury hotel management services. He founded the firm with senior executives of Enchantment Resort and Mii amo, a destination spa that has been ranked No. 1 in the world by Travel & Leisure. Yet, Grenoble doesn’t think his story is very unique.

“There are so many stories just like mine; started at 15, 16, 17 and have grown up in the business, have a passion for it and enjoy it,” he says. “I like the resort side of the hotel business even better. Everyone wants to be there. The business is fun in general. Most people in this business are very passionate about what they do.”

That passion has helped Grenoble etch out a successful career in an industry that has undergone many changes during his 25 years and counting. All his hard work and dedication has not gone unnoticed. Last year, Grenoble was named the Tourism Champion of the Year at the Arizona Governor’s Conference on Tourism.

Though he thoroughly enjoys the industry and his role within it, Grenoble is very frank about the future. Recent challenges have plagued this industry and Grenoble’s role in the Arizona Tourism Alliance is to educate the public on the value of tourism.

“Our leadership in the industry needs to be active and advocate. We need to educate business leaders and elected officials on the value,” he says. “We’re a major industry in the U.S. and the state. Millions are employed nationwide. It’s an industry that is an economic driver; it’s a career path and we need to educate people on the value of it.”

Tourism is a huge part of the state’s economy, especially in smaller, rural communities. Sedona is one example. The city does not have a property tax because tourism funds services for the town.

“Tourism drives the economy for the town and real estate values. It adds a quality of life. Sedona has a population between 10,000 and 15,000 people. All the activities, art galleries, etc. — as a resident you would never be able to do that without the tourism aspect of it,” Grenoble says.

One positive thing that has occurred as a result of this downturn, he adds, is that communities, and even some elected officials, are willing to invest in tourism dollars. They have begun to understand the value of it and the long-term benefit of the cities and the state as a whole.

Grenoble also was instrumental in adding a communications position to the Arizona Hotel & Lodging Association, a move that proved itself to be an excellent resource during last year’s trying times. The position bridged the gap between the industry and the public, and helped communicate the value of tourism.

“We’re trying to engage the public, elected officials and our membership, all the constituents of the tourism industry. We need to understand what we’re doing as an industry,” Grenoble says.

One way that Grenoble hopes to accomplish this is to include outside industries in tourism advocacy. The goals and missions for all industries is to bring economic stability to the state, and the best way to do so is to recognize the value of each industry and work together.

“We’re all intertwined, and that’s why we need to build alliances and bridges with those outside industries,” he says.

Another cause that Grenoble thinks could be helpful in aiding the tourism and travel industry in its recovery is a regulated school calendar that doesn’t begin until after Labor Day.

“It’s had a very positive uptick in taxes for states that have mandated school start after Labor Day,” Grenoble says.

He is currently lobbying supporters for this, but he remains focused on the main goal of tourism helping lead the state out of the economic downturn.

“I think the state has a lot going for it and I see the lights at the end of the tunnel,” Grenoble says.


Arizona Business Magazine

February 2010

The State’s Tourism Industry Puts A Face To Those Hurt By The Corporate Meetings Backlash

The image the word tourism often brings to mind is of fun, sun, and beautiful destinations and resorts. But with the industry under siege last year, those who work in the sector here in Arizona decided it was time to give tourism a new face — that of a relative, a friend, a neighbor, someone you know, even you.

In 2009, the tourism industry across the nation was hit by the recession and the fevered backlash against corporations that had received billions of dollars in taxpayer bailout money. To those in tourism, this became know as the “AIG effect,” so-called because the foundering insurance giant went ahead with lavish retreats after getting an initial $85 billion bailout in September 2008 under the federal government’s Troubled Asset Relief Program (TARP). The Valley became connected to the controversy when ABC News reported in November 2008 that AIG had spent more than $340,000 on an event at an area resort. AIG countered that the event was not a corporate retreat, but rather a conference for independent financial advisers. But the damage was done.

“For us, to be in a destination that just happens to be lovely, that just happens to have nice weather, that happens to have those beautiful structures that are really good at providing a great amount of business opportunities inside them in the form of meetings — we got really hit,” says Rachel Sacco, president and CEO of the Scottsdale Convention and Visitors Bureau.

The result was plunging occupancy rates, declining tax revenues, curtailed employee hours and even layoffs at Valley resorts and hotels.

In an effort to diffuse the hostility, the U.S. Tourism Association began a Face of Tourism media campaign to spotlight the people who were directly hurt by corporations canceling all manner of events — the millions who work in the tourism and hospitality industry. Over the past summer, the various players in the state’s tourism industry, including the Arizona Tourism Alliance, joined forces to launch the Face of Arizona Tourism campaign.

“The Face of Arizona Tourism campaign was really about trying to make sure that there is an understanding of how personal this industry is,” Sacco says. “ … it’s people at all different levels that are doing work that is meaningful and important, and frankly is their livelihood. I think the campaign was really successful to see that there is a face, that I might even know that face, and I might even be that face.”

The person selected to embody the Face of Arizona Tourism campaign is Mia Yates, a banquet server at the Westin Kierland Resort & Spa in Scottsdale.

“My story is this is my full-time job, working in the banquet department at the Westin, and I’m a single mom with three children.” Yates says. “When businesses stopped coming to Arizona, and more specifically the Westin, my hours were affected. They don’t need me to work, so I don’t work, I’m unable to hold onto my health benefits that allow my children to go to the doctors. I guess the Westin felt that I had a story. I was pretty close to the average working bear.”

Yates acknowledges that the Westin weathered the worst of the downturn better than other resorts, and she credits the efforts of management to look after its employees.

“They opened up positions around the resort and allowed us to cross train to help us keep our hours,” she says. “We only had to do that during the summer months, and pretty much we’ve been back up to nice hours in the banquet department.”

Bruce Lange, managing director of the Westin Kierland, says getting out Yates’ story — and all the others she symbolizes — was critical in short-circuiting the AIG effect.

“I’m absolutely certain we reacquainted our elected officials with where the rhetoric was hurting our economy, specifically if you know that one out of every eight people in the nation is engaged in the industry called tourism,” Lange says. “We are able to put the faces of the Mia Yates of the world and say, ‘Here’s your victim. Your intended victim may be the CEOs of those organizations, but here is where it’s really coming home to roost.’ I’m absolutely certain it’s had a positive impact.”

As a result of the recession and the AIG effect, Lange says the Westin Kierland’s business was off 25 percent in 2009 as compared to 2008. But the numbers only tell part of the story.

“If I tell you that our business is off 25 percent and we send, from a tax revenue standpoint, to state and local government $12,000 a day, is that impactful?” Lange asks. “Or is it more impactful for me to say that our average employment is about 1,000 people and if we’re down 25 percent we have 25 percent fewer folks? I think where the rubber meets the road is the human aspect much more so than the statistical aspect.”

Sacco adds that it’s important to educate the public as a whole about how hard times in the tourism industry have a far-reaching effect.

“The impact tourism had of losing hundreds of millions of dollars in our community gets back to the Face of Tourism, because when you start losing money and business, it hurts that face of tourism, it hurts the small business that isn’t getting all of the trickle-down impact, it hurts all the galleries that have closed,” she says. “It didn’t just hurt people in the tourism industry.”

www.scottsdalecvb.com | www.kierlandresort.com


Arizona Business Magazine

February 2010

ATA Is Promoting The Message That Tourism Will Bolster The State’s Economic Recovery

Tourism is not an expense — it’s an investment.

That’s not an official slogan for advocates of Arizona’s tourism and hospitality industry, but it is a message they are working hard to imprint in the public consciousness as legislators eye further cuts to the state’s budget. As in past budget crises, funding for marketing the state’s tourism and hospitality industry is vulnerable once again.

“Too often, public officials wrap up tourism with the other cost sectors rather than looking at it as an economic engine that can help bring new spending, support new jobs, support incremental tax revenues,” says Mitch Nichols, president of the Nichols Tourism Group and treasurer of the Arizona Tourism Alliance.

Nichols says the ATA is developing an advocacy program to better explain the role tourism can play in the state’s economic recovery.

“Tourism helps Arizona’s economy on two levels. One is its role as a base industry where it can bring new spending which will support new jobs and new taxes. So it’s role as a base industry is really critical,” he says. “The other element with tourism is its role across the state. A couple of years ago when the state did an economic development plan and looked at the various clusters, they looked at tourism as the common denominator. It was the only base industry that has applications in all 15 Arizona counties.”

According to a report prepared last year by the Portland, Ore.-based economic and marketing research firm Dean Runyan Associates for the Arizona Office of Tourism, the total direct and secondary impact of the Arizona travel industry in 2008 was 310,000 jobs and $10.2 billion in earnings.

The report also found that in 2008, direct travel spending was associated with $1.4 billion in state and local tax revenues and $1.2 billion in federal tax revenues. That was the equivalent of $1,080 per household in Arizona.

In other findings:
Total direct travel spending in Arizona in 2008 was $18.5 billion, a 3.2 percent decrease over 2007.
Travel-related employment, earnings and tax receipts declined in 2008.
The collapse of the housing market and recessions in Southern California and Arizona contributed to the travel decline.

Nichols warns that while it may seem easy to cut state funding for tourism marketing, the result could be long-term damage to the industry and the derailing of a fragile economic recovery. The effects could be even more troubling as competitor states such as California hold firm despite their own economic difficulties.

“There are other states that do see the full potential of tourism,” Nichols says. “California doubled its tourism budget up to $50 million a few years ago. The state is maintaining that budget despite cuts.”

Quite a lot is at stake, according to Nichols. Citing the Dean Runyan study, Nichols says U.S. leisure and business travel spending is expected to increase 4.5 percent and 5 percent in 2010 respectively. That has the potential to create 90,000 new jobs nationwide.

Nichols says Arizona needs to step up — not back — if it wants to bring a portion of those jobs and tax revenues to the state. In order for Arizona to compete against California and Nevada, the state needs to aggressively market at both a state and regional level.

Nichols points to Flagstaff as an example of how substantial the ROI on marketing tourism can be for a community. Last spring, as the economy continued in freefall, the Flagstaff City Council acted on a recommendation by the city manager to provide a $250,000 tourism “stimulus.” The money went toward marketing Flagstaff during its traditionally slow months of May and June.

The effect on Flagstaff’s tourism industry was positive and immediate, says Heather Ainardi, director of the Flagstaff Convention & Visitors Bureau.

Ainardi says Flagstaff’s hospitality tax collections dropped almost 10 percent in March, compared to 15 percent for the state. In April, when the city began its tourism marketing push primarily in the Valley and Southern California, hospitality tax revenues fell just 1.5 percent for Flagstaff, compared 11 percent for the state. In May, Flagstaff’s hospitality tax revenues were flat and dropped 7 percent in June.

“So, although we were still down, we were doing well compared to the state. Where everybody else was seeing double-digit declines (in tax revenue), we were either flat or saw small declines. Our occupancy actually went up in May and June,” Ainardi says. “I think people look at marketing and don’t understand the return. It’s not something where you can put in a quarter and a dollar comes out. It truly is something where you put in a quarter and you see an across-the-board impact.”

According to a study the city conducted with the Arizona Office of Tourism, the tourism and hospitality industry has a $501 million annual impact on Flagstaff and creates 5,400 jobs every year.

And Ainardi and other tourism supporters in Flagstaff are on a mission to educate residents about how those tourism dollars affect their lives.

“We really promote that revenues from that tax don’t just go toward marketing,” she says. “They actually go toward parks and recreation, they go toward public beautification, economic development and the arts and sciences. In Flagstaff, we have a system developed where we can help people understand that the 47 miles of urban trails that they utilize on a daily basis are built and maintained through tourism dollars.”

As a member of ATA, the Flagstaff CVB has worked closely with the group in its efforts to save funding for the Arizona Office of Tourism. Ainardi says her organization plans to continue its partnership with ATA to further the alliance’s advocacy mission.

“Tourism is amazingly important and it’s been one of the traditional backbones of some of our economies,” she says. “It’s not everyone’s favorite industry, but it is one that continues to grow and benefit our communities.”

www.nicholstourismgrp.com | www.flagstaffarizona.org


Arizona Business Magazine

February 2010