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FEATURE

Utah's Stellar Convention, Tourism Industry Continues to Blossom

Utah’s healthy convention and tourism industry adds hundreds of millions of dollars to the state’s economy every year and generates tens of millions of dollars in local and state taxes. “To say the Utah tourism industry is not only healthy, but critical to the overall well-being of the state, would be an understatement of great magnitude,” says Scott Beck, president and CEO of the Salt Lake Convention & Visitors Bureau.

Indeed, 2006 revenues for the Salt Lake County hospitality community surpassed the records set in the 2002 Olympic year. Hotel revenues grew at an astonishing 11% for both 2005 and 2006 and are greater than they have ever been, while Salt Lake County restaurants enjoyed their most successful year ever, and the car rental industry bounced back in incredible fashion, he says.

Having set records in 2006, Beck says Salt Lake City has momentum right now. Tradeshow Week magazine recently voting Utah’s capitol city as one of America's best convention destination values, and the city has received other accolades (like its 12th Meeting & Conventions Gold Service Award) for its community service ethic.

What’s more, increased activity could not come at a more important time for Salt Lake and the state. Says Beck, “Even with all of the exposure generated by the wonderful job our city, county and state did to host the 2002 winter Olympics, Utah still battles some negative perceptions and the perceived lack of activity. We know the reality of our destination is highly appealing to a broad section of leisure and convention travelers, and we know we are a great experience waiting to happen for unsuspecting visitors. All we have to do is get them here.”

To the south in Utah County, hotel occupancy rates have steadily increased and rev par (revenue per available room) is up 69.8%, according to Joel Racker, president and CEO of the Utah Valley Convention & Visitors Bureau. “That’s significant,” he says. “In 2003 our rev par was $32.06. In 2006 it was $54.45.” What’s more, Racker’s organization generated 11,664 group room nights for the county in 2006, with an economic impact of over $5 million, and restaurant sales in the county have increased 34 percent. “We calculate about 17 to 20 percent of those sales are tourism related,” Racker says.

While exact figures are not readily available in Cache County, both Logan and North Logan are taking significant strides toward making the area more favorable to conventions and visitors. Kirk Jensen, with Logan City, commented that the City’s new mixed-use business park currently under development will feature a 120 room Marriott SpringHill Suites, as well as a conference center. “Studies indicate that the project will bring in $4-7 million annually,” said Jensen. The hotel and conference center will be completed in late 2008.

In addition, North Logan City has entered into a Memorandum of Understanding with Gateway Hospitality Group, of Ohio, to develop the Hilton Garden Inn and Cache Valley Conference Center. Civic leaders there anticipate the hotel and state of the art conference center will result in $25 million to $35 million in capital investment and generate ongoing economic and fiscal impacts in the tens of millions of dollars each year.

“The long-term vision for a true city center in North Logan, and for a new tourism and economic driver for the Valley, can be realized by the introduction of the Hilton Garden Inn and Conference Center,” says Mayor Cary Watkins. “This facility will allow us to attract additional retail, restaurants, entertainment, office, and other developments to the city center, as well as providing the economic base for introducing new public parks and open space, art projects, and other community amenities.”

Racker says Utah County has only one conference center, which is part of the Marriott Hotel in Provo, but there are plans or discussions in the works to build three more: A 100,000 square foot conference center associated with a hotel in Pleasant Grove, the Brandt Anderson/Frank Gehry high rise hotel, basketball arena and conference facilities north of Cabela’s in Lehi, and possibly a small convention center in downtown Provo. Such facilities will help draw more visitors to the county, where Racker’s objective is to get them to stay longer.

“We realize who we are,” he says. “We are not really a primary vacation destination point. As a convention and visitors bureau, our role is to educate and encourage visitors to spend more time in the county.” To that end, Racker’s data shows that in the past, visitors averaged less than two nights per reservation. Utah County hotels are now averaging 2.9 nights per reservation. “We are getting that third night, and that is significant,” he says.

Utah County may not be a primary vacation destination point, but it is well-known for certain amenities, including Sundance Resort, Timpanogos Cave National Monument, the Alpine Loop, Cabela’s, Thanksgiving Point, and the “Stadium of Fire.” With its amenities in mind, Racker’s organization recently brought in 45 high-end meeting planners for a three-day overview and familiarization tour of Sundance and the effort is already paying off. “We just booked an event off of that tour today,” he says.

Another, lesser-known aspect of the Utah Valley Convention & Visitor’s Bureau is its film commission arm. “Film is very important to us down here,” Racker says. “It is a very good fit for Utah Valley.” Utah County has the only full-service working sound studio in the state and the best infrastructure to attract film opportunities. Such opportunities may well help the county become more of destination point after all.

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Jeff Edwards, president and CEO of the Economic Development Corporation of Utah (EDCUtah), tries his hand at driving the new "Front Runner" commuter rail car.
 

Bombardier/UTA Partnership
Will Bring Jobs to Utah

Bombardier Transportation Group, one of the world’s top rail vehicle producers, and the Utah Transit Authority announced a partnership that will bring Bombardier jobs to Utah. Bombardier has signed a contract with UTA for up to $25 million to refurbish light and commuter-rail cars.

The company has plans to hire approximately 35 local engineers, mechanics and electricians. Currently, UTA has 28 used light rail vehicles acquired from Valley Transit Authority in San Jose. Additional work will be created when 30 more cars arrive from New Jersey.

The announcement was made at a gathering with local leadership at the rail maintenance facility, where Governor Jon Huntsman Jr. commented, “This is a hugely important deal…it not only assures short-term mobility, but also means that we’re likely to generate more economic opportunities by having this facility here.”
 
Attendees of the event got a first hand look at the new, bi-level coaches UTA has purchased from Bombardier to serve the “Front Runner” commuter rail lines.

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Utah Cities Among Best
for Doing Business

Inc. Magazine ranks St. George #1 on its overall list of the nation's top cities for doing business; Provo-Orem is ranked #31, Logan is ranked #44, Ogden-Clearfield is #62, and Salt Lake City is #68. See complete overall list here, as well as the rankings of Utah cities on secondary lists here, here, and here.

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IN THE NEWS

Economic Development Headlines

Rail Line Drives Utah Development

- The 30-acre $140 million development by Hamlet Homes, one of this region’s largest builders, will have 420 units of housing and 200,000 square feet of retail and office space. (New York Times)

Reinventing Downtown

- Historic Logan district still looking for ‘that something’ to draw bigger crowds. (Daily Herald) 

Firms Struggling to Find Downtown Office Space

- When the summit group outgrew its downtown Salt Lake City offices, it spent four years examining 70 different buildings before finding a suitable new location. (Morning News)

Tax Rebate is OK'd to Help Plant Upgrade

- The Governor's Office of Economic Development's Business Development Board on Friday approved a tax rebate of up to $286,000 over a 10-year period to help Malnove Inc. relocate, expand and upgrade a folding carton manufacturing plant in Weber County. (Morning News) (Standard Examiner) (SL Tribune)

Guv Touts Connecting World Via Broadband

- Utah's governor on Thursday likened the fiber-optic network development being done in the state and in other spots in the world to other great infrastructure projects of the past. (Morning News)

S.L. County Officials Go on Taiwan Junket

- A coterie of Salt Lake County officials is in Taiwan this week with the goal of forging relationships in the southeast Asian economic powerhouse. (Morning News) (SL Tribune)

Huntsman's Trade Mission to Canada Begins Monday

- Gov. Jon Huntsman Jr. will lead a trade mission to Toronto Monday through Wednesday...and will focus on the life sciences economic cluster. (Morning News) (KCPW) (Utah Business)

Village Starts to Take Shape

- Groundbreaking on the Village at Main Street means that, after more than a year of delays, the mixed-use development is starting to take shape. (Standard Examiner) (Clipper Today)

St. George Golf Promo Nets Over $1M

- Just three years after it was formed, the Red Rock Golf Trail already has generated more than $1 million in revenue for the St. George economy, according to the St. George Area Convention and Visitors Bureau (CVB). (SL Tribune)

Mount Holly Ski Resort Plan on Hold

- Developers eager to build a posh, private ski resort in southwestern Utah will have to wait before they start turning any dirt. (SL Tribune)

Exclusive Club Moves Toward Public Hearing

- Plans for what could become Utah's first private ski resort for the rich scored a major victory Monday, leaving those who once enjoyed schussing down the Tushar Mountain slopes out in the cold. (SL Tribune) 

County’s Job Growth Lags

- While still strong, Davis County’s employment growth from March 2006 to last month lags behind the state as a whole. Figures released by the Department of Workforce Services Tuesday morning indicate Davis County’s employment growth was 3.1 percent for that period, compared to 4.5 percent for the state. (Clipper Today)

Gravel Pit to Sit Tight a Little Longer

- The city’s old gravel pit will have a much quieter summer than originally expected. Delays have pushed the preliminary site plan for the property, currently in development to become North Salt Lake’s Village Center, from an original completion date in March to what is now predicted to be the first couple of weeks in May. (Clipper Today)

Economic Program Producing Top Jobs

- After four years of preparation, the privately funded, state-backed $100 million Utah Fund of Funds economic development program is producing hundreds of high-paying jobs. (SL Tribune)

City Offers Grants to Evicted Shops in Sugar House

- Half a dozen local merchants on the "Granite Block" in Sugar House will soon be evicted to make room for new development. (KCPW)  (Morning News)

Online System to Track Applications

- A local construction boom has prompted the city to implement an innovative online system that enables developers to track the progress of site plan applications.
(Standard Examiner)   

Sandy Reveals RSL Document Details

- City officials revealed some of the first details Tuesday of formal documents being drafted that will, eventually, pump $45 million of public money into Real Salt Lake's $110 million soccer stadium, slated for 9256 S. State St.
(SL Tribune)

Economy Going Strong

-  Utah's economy is holding steady, the pedal very near the floor. The state's unemployment rate crept slightly higher in March to 2.4 percent from February's 2.3 percent, according to a report released Tuesday by the Utah Department of Workforce Services. (Morning News)

Salt Lake to Put 3 Buildings Up for Sale

- Salt Lake City is ready to put for-sale signs on three downtown low-income housing buildings while it helps fund other housing just outside downtown. (Morning News)

Tourism Conference May 16-18 in Price

- The fourth annual Utah Tourism Conference will take place May 16-18 at the College of Eastern Utah in Price.
The conference is sponsored by the Utah Office of Tourism and the Utah Tourism Industry Coalition and will feature members of the state's tourism community learning about the latest industry trends. (Morning News) 

Mayor Pushes for Zoning to Save Sugarhouse Businesses

- Shopkeepers in the eclectic Sugarhouse Business District are grasping for options that will let them stay in the neighborhood, despite impending redevelopment. For his part, Salt Lake City Mayor Rocky Anderson is pushing for zoning laws that could help, but says it's in the City Council's hands: (KCPW)

Dillard’s to Rebuild as Part of Fashion Place Mall Renovation

- Dillard's department store will follow Nordstrom's lead by building a new store in the southwest part of Fashion Place Mall’s renovation project, to be completed by 2010.
(SL Enterprise)

South Dakota Firm to Bring Staybridge Suites Lodging Concept to Utah

- U tah Hospitality LLC, an Aberdeen, S.D. hotel developer that owns several properties in Utah, is preparing to bring Staybridge Suites, a Holiday Inn hospitality brand, to the Utah market. (SL Enterprise) 

20,000 Square Foot Trampoline, Party Center Planned in Lindon

- Jump On It LLC, a new Utah company, plans to open a 20,000 square foot trampoline and party center in Lindon by early June (SL Enterprise)

70-Acre Project to Bring Retail, Office, Residential to Heber

- Summit Point Realty and Construction, Park City, is beginning development of 70 acres that will bring retail, office and retirement residential housing to the Heber Valley.  (SL Enterprise) 

Dallas-Based Firm to Bring Mexican Dining Concept to Utah

- Dallas-based Brinker International Inc. has signed a development agreement to bring its On The Border Mexican Grill & Cantina restaurant brand to Utah.
(SL Enterprise) 

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The EDCUTAH Economic Review is a weekly publication of the Economic Development Corporation of Utah. It is distributed to EDCUTAH partners and selected other government and civic organizations interested in Utah's economic development. If you prefer not to receive this newsletter, please use the link below. Subscribe or Unsubscribe Your comments and suggestions regarding this newsletter are always welcome. Click here: Comments