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Sacco & Heaton: A message from Scottsdale’s tourism leaders

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Unprecedented times. Two words we all seem to use a lot these days.

And while the crisis Scottsdale’s tourism industry now faces can be described in no other way, our industry and our community’s ability to overcome incredible challenges is not unprecedented.

In the past, we rallied together in the aftermath of 9/11, during the Great Recession, and throughout countless public health emergencies. Each time, our industry took our hits and emerged even stronger.

That resiliency is why tourism has and always will be one of Scottsdale’s largest and most important industries. Though our industry has a long, tough road ahead, we have no doubt the same will be true this time.

Current forecasts indicate that the U.S. tourism industry will face an impact six times greater than that of 9/11, with nearly 4.6 million jobs in the travel and tourism sector lost throughout the remainder of the year.

At the local level, the outlook also is grim. Scottsdale’s hotels and resorts are being forced to make impossible choices about their operations.

According to hotel market researcher STR, Inc., in the first two weeks of March, the Scottsdale-area tourism industry saw occupancy decline by 23.3% year over year and total revenues decline by 26.6% year over year.

We anticipate the losses will be even greater throughout the remainder of March and well into April, if not beyond.

Tourism is the lifeblood of our community and the foundation of our economy.

This is a devastating blow to the many other businesses that depend on visitor spending. In the U.S., 83% of hospitality businesses are considered small businesses.

No matter their size, our galleries, restaurants, golf courses, wineries, museums and shopping centers are all struggling, as are the 28,000 people whose livelihoods depend on a thriving tourism industry.

Scottsdale is missing out on millions of dollars in visitor-paid tax revenue as well, which typically accounts for 26% of the city’s total annual privilege-tax collections to support public services and tourism-related research, events, capital projects and promotion.

All of this comes during Scottsdale’s peak tourism season when we should be welcoming baseball fans and spring break travelers en masse. But for now, the nation is standing still, and people are staying home. In light of this worldwide health crisis, Experience Scottsdale has suspended all marketing, public relations, convention sales and tourism programs.

We are working diligently to shift dollars so that we can be ready to activate strong programs when the time is right.

Destination promotion will be critical in maintaining a positive perception of Scottsdale as a travel and meetings destination, but those messages are not ready to be heard by the traveling public.

In the meantime, Experience Scottsdale is focused on serving our clients’ needs. We are assisting meeting planners in rescheduling their meetings and conferences and helping travel advisors in rebooking their clients’ vacations.

Taking care of these important relationships will help our community recover faster.

Experience Scottsdale also is working closely with the regional hospitality and business community, as well as elected leaders and staff with the City of Scottsdale and the Town of Paradise Valley to prepare for our recovery. We are all working in lockstep to ensure we have a coordinated and united front to protect our economic future.

Now, more than ever, we cannot despair. We must remember that travel is a truly resilient industry. For more than three decades, Experience Scottsdale has worked with our 400-plus partners to overcome previous hurdles. We are an industry of passionate-minded, hard-working individuals who know how to hunker down, weather the storm, and climb our way back to the top.

We ask you as individuals and as Scottsdale residents to follow guidance from public health authorities and take all necessary precautions to keep yourself, your family and our community safe.

If it is within your ability to do so, consider ordering take-out or buying gift cards from Scottsdale restaurants, donating to our arts organizations, ordering online from local shops, and booking future staycations. Though this is an uncertain time for everyone, we can all help our economy by raising each other up.

Let us not forget our strength as a community, our passion as an industry, and our resilience as people --- no matter how unprecedented these times may be.

Editor’s Note: Rachel Sacco is the president and CEO of Experience Scottsdale and Doug Heaton is the organization’s board chair. Experience Scottsdale’s mission is to enhance the local community by promoting the Scottsdale area as a luxury destination for meetings, events and leisure travel.