Bill Geist's Zeitgeist

This is 50

Last night marked the 50th Anniversary of the birth of what is today known as Destination Madison, an organization I was proud and honored to lead during the first half of the '90s.

Thanks to Destination Madison for the kind shout out during last night's festivities regarding my part in securing the public referendum vote to build the world-class Monona Terrace Convention Center that served as the jumper cable for Madison's renaissance. 

And having my successor Deb Archer honored for her amazing 25 years at the helm of the organization was a true treat for Terri and me.

And here's to the next 50...

Bigger than the "Big Game"

What does it say when an event that simply picks future winners and losers without a resultant highlight reel is more important than the Super Bowl?

That's what the Mayor of Detroit said yesterday in announcing updated plans to hold the NFL Draft in the Motor City next April. “This is potentially bigger than the Super Bowl,” Mayor Duggan said. “Only 60,000 people can get tickets to the Super Bowl. But for the NFL Draft, hundreds of thousands can get in — and they stay for the weekend.”

That's why Detroit is reportedly changing the playbook from past NFL Drafts and concentrating all its events downtown. According to Duggan, “When you have 300,000 or 400,000 people coming from across America, we want to change the image of Detroit in their minds once and for all. We felt like to do that, we had to build the draft into the city.”

And, ain't that the whole point of events? To change perception of a destination?

Like Detroit did in 1896...when it launched a never-before utilized Convention Sales strategy to land national events to showcase the city to potential investors.

The Conversations in Which Urban DMOs Must be Engaged

The Plague emptied our downtown cores. There is a general belief today that downtowns continue to struggle. And, without our downtown cores, destinations will struggle to position themselves as viable choices for visitation, residency and investment.

But, a new study offers some hope. And, if local leadership still doesn't respect the power of the Visitor Economy, check this out: Across the 26 cities studied, visitors comprised two-thirds of people downtown, underscoring the importance of developing downtown attractions. While local variations influence a city’s recovery, the report notes that “in general, cities that have strong overall recovery rates tend to have a robust leisure and hospitality industry."

Like we've been saying...

Short Term Rentals & the Housing Crisis

The basic tenets of Supply and Demand would certainly support the concept that transferring homes and apartments into Short Term Rentals would cause remaining housing prices to increase. To be fair, Airbnb responds: "There are a number of complex factors driving today's housing affordability crisis — from growing income inequality, to decades of exclusionary zoning, and even changing location preferences post-pandemic, including the rise of remote working from home — but many experts agree the primary driver of the affordability crisis is chronic underproduction of housing, not short-term rentals. Unfortunately, short-term rentals, which in most cities make up a tiny portion of local housing stock, have become a convenient but misguided scapegoat for a housing crisis that started long before the founding of Airbnb."

Rebuttal accepted...but then, there is what has happened in Irvine CA since that community banned STRs: Within two years of the ban, long-term rents decreased significantly; roughly 60,000 rental units in the city saw a 3% rent decrease, on average.

It's a fascinating read in the ongoing conversation of how to balance the needs of all sides.

Image Credit: Tristen Rouse / St. Louis Public Radio

Do the Math

According to a recent article in Fast Company, office space takes up between 70-80% of all real estate in many downtowns. With so many of us continuing to work remote, that space is going unused...and, in many cases, unleased.

In San Francisco, it is estimated that only 40% of the pre-plague workforce has returned to the office. And, as the average worker in that city spent $168 per week near their workplaces...that pencils out to $1.2 billion in lost revenues per year to the surrounding restaurants, bars, coffeeshops, retain outlets and services businesses.

Is it any wonder so many of those businesses (even those who could find workers) are now shuttered? Which then sets about a vicious cycle of why would anyone would want to return to the office if there's nothing to do in the blocks surrounding one's building.

Cities that intend to survive are going to hafta get real creative...sooner than later...before it's too late.

 

Owning Your Space

You show me a record store in any town...and I'm there.

But I've never seen a record store own their brand essence like Black Hills Vinyl in Downtown Rapid City.

Most record stores use standard dividers between artist collections. Black Hills uses old LPs (click image to enlarge).

Yeah, I know. It may be a little thing. But we absolutely loved it.

Well played, Black Hills. Well played.

They Can't Afford to Live There Anymore

While it is certainly getting better, hospitality businesses (in general) have been notorious in paying entry-level workers less than a living wage for decades. And, as we've been saying since the reopening of America after COVID, we don't have a workforce problem...we have a housing problem. Especially in highly attractive places to live.

A recent study by the Economic Innovation Group shows, among other things, that inbound residents into Arizona's Maricopa County and Florida's Lee County earn significantly more than those residents departing those communities. In Lee County's case, that differential was roughly $50,000/year.

Those with the means are displacing those without, who are being forced to move to be able to afford living expenses. 

Like I said...it's not a workforce issue. But it certainly impacts our industry's ability to hire qualified talent.

New on the DMOU Podcast: Cannabis Tourism

Almost half of American States have legalized the recreational use of cannabis...but many DMOs in those States struggle with ways to promote the advantage they possess against States that don't. On this episode of DMOU, we talk with Brian Applegarth, the foremost expert in the intersection of cannabis and tourism, about how to escape the stigma...and focus on the health, wellness and inclusionary aspects of this amazing community asset. A fascinating episode.

Maximizing the Night

Unless you're on a serious afternoon shopping spree...when you you spend the most money? Before 6p or after?

For many consumers, it's after 6p...and yet, that part of our economy is so often overlooked by city leaders. And for law enforcement, it's the part of the day were more vigilance is expected.

This recent article from the VOA should open eyes and suggest that second and third tier communities consider appointed a Nighttime Mayor.

And, if you want to go deeper, check out our DMOU Podcast conversation with 24-Hour Dallas Project Coordinator Bryan Tony.

The Next-Gen DMO

Such a pleasure and honor to guest on Adam Stoker's Destination Marketing podcast last week. We riffed on all things Destination Marketing and Leadership...and the conversation was both fun and insightful.

Check it out.