The higher expenses of San Francisco conventions could chip away at the city’s healthy convention tourism business, according to tourist officials.
“It’s not hotel or restaurant rates keeping away conventioneers; it’s the fixed cost of the convention itself,” write the local Business Journal.
Where cities like Las Vegas, San Diego and Portland offer incentives from free convention space to discounted services, San Francisco stands by its seemingly competitive published rates.
Other cities offer incentives, according to Joe D’Alessandro, president and CEO of the San Francisco Convention and Visitors Bureau.
“We don’t have those tools here in San Francisco at this point,” he said.
Three factors could have a negative impact on the area’s convention business: the living wage ordinance, mandatory health care and paid time off, said Jim Abrams, president and CEO of the California Hotel and Lodging Association.
“San Francisco has made itself more expensive than any place else, and that’s going to have an impact,” he predicted.
D’Alessandro hopes to engage elected officials as well as members of the hotel and hospitality communities to scheme ways to keep San Francisco competitive in a crowded field that can be lucrative for the city.
“We’re not talking about giving something away for nothing,” Mr D’Alessandro said. “The return on conventions is huge, which is why others are doing this.”
Report by David Wilkening
