Let’s Learn From Our Past Mistakes
According to the Washington Times @http://washingtontimes.com/national/20040118-114320-9103r.htm, Mississippi ranks #1 in public corruption. Other sources remind us that we rank #50 in per capita incomes.
When I graduated from St. Stanislaus in 1982, there were few desirable jobs in the tourism industry. The reason was because the tourists had felt deceived after their first night's stay on the MS Gulf Coast because of a real estate development/petroleum consumption marketing strategy. Foreign brochures encouraged tourists to change plans in the middle of their vacation, adding hundreds of miles to each vacation, with little exploration of the local allure. Local downtowns had died quickly.
The owners of our national chain hotels were actively cross-marketing their other investments in South Alabama and West Florida and generated absolute disgust in the MS Gulf Coast vacation, hence labeling us a “tourism trap”. By dissolving the assumed marriage between the accommodations and the rest of the local tourism industry, our economy was kept in a downward spiral throughout the 1970s.
In 1979, County Supervisors opted for a socialistic/beaurocratic approach to fixing the economic displacement and created the Harrison County Tourism Commission with a 3% tourism penalty tax. This was a direct assault on all concepts of living in a free market, whereby solution makers are given a chance to fix economic poroblems through better business/capitalistic leadership.
By creating this false economy, this fueled the profits to local national chain hotels that were causing our economic misfortunes, while the attraction, shopping, dining and golf industry continued to struggle so much that we lobbied heavily for gaming in 1991. In 1994, I observed that over 90% of all family tourism brochures picked up in MS Gulf Coast’s national chain hotels promoted out of state destinations. Family tourism businesses were going bankrupt, fast..and national chain corporations were making fortunes.
Unlike national chain hotels, condos/time share investments are not in a position to profit while divorcing the rest of the tourism industry, since they may have hundreds of investors that hold the management accountable for a great vacation on every visit, every day of the week, year round. If you are wondering what happened to your other casino attempts in the area, start by realizing that tourism taxes are working to keep us poor by spoiling bad accommodations management practices with high and unearned profits. In economics class, we call it a false economy. The poor will always be kept poor in a false economy.
If you want to experience economic alchemy in Lakeshore and Clermont Harbor, I have three suggestions: (1) Keep politics local and incorporate ASAP. (2) Endorse the development of condominiums with local appeal. (3) Since all the hotels are housing construction or casino workers right now and for the next couple of years, we definitely have no need for a tourism commission, so ask your governor to seize all coastal tourism taxes to help with other more important uses of this money for Katrina recovery. For more insight, visit http://www.tourismguru.blogspot.com/.
Henry D. Ward
Tourism Consultant
Tourismguru777@yahoo.com
Friday, April 21, 2006
WHERE were they thinking?
When Governor Blanco appointed Mike Olivier to Secretary of Economic Development, my confidence in Louisiana’s future was raised tremendously. He had previously served the people of the Mississippi Gulf Coast (MS Beach) with absolute distinction. As a frequent visitor to the institutions that make New Orleans famous (The French Quarter, Tipatina’s, Mandina’s, WWOZ, etc), I hope the voters make the right decision for mayor to confidently guide the city’s future. I look forward to helping any way I can.
Last year, The Times Picayune published U.N.O.’s research about New Orleans tourism activity. It may have seemed far fetched to show an increase by 226% in family tourism, but let me assure you the numbers are probably accurate. One story that I witnessed helps explain your pre-Katrina tourism boom. While your convention hoteliers protected your interests, Mississippi Gulf Coast Convention and Visitors Bureau (MGCCVB) tax and spin programs launched a self destruction marketing strategy.
In Spring of 1999, Stephen Richer Ex. Dir. of MGCCVB (a Princeton graduate) was busy convincing national chains and casino hoteliers in Mississippi to work with his “brilliant scheme” to tap into the stronger New Orleans market (35,000+ rooms) to support his smaller dysfunctional market (15,000+ rooms) through WHERE magazine in MS Beach hotel rooms. WHERE promised to mix their potentially new Mississippi advertisers with their long existing New Orleans customer base. Cross-marketing these two competing destinations (only one hour apart and completely different) was his foolish approach to economic development.
Long before this fiasco was implemented, a Times Picayune Money section warned readers of Mr. Richer’s intention and published a leading N.O. convention hotelier response, “We don’t want any part of this, you don’t bite the hand that feeds you.” The next morning, WWL 870 AM’s Andre show suddenly removed the “WHERE controversy” from the main topic of discussion as previously advertised. The magazine went on to run three long years in MS Beach with over 90% of the paid advertisements about the New Orleans area in every monthly issue.
WHERE magazines were helping tourists change their vacation plans to book hundreds of rooms to New Orleans from MS Beach hotel rooms and Beach Boulevard every day. The average length of stay on MS Beach was shortened and room rates fell dramatically. The productivity of every advertising dollar also fell. The cost of doing business in MS Beach went up dramatically. The primary MS Beach benefactors from this campaign were selling gasoline, advertising, car rentals or bus tours to New Orleans, while major New Orleans hoteliers had blacklisted the distribution of such nonsense about MS Beaches, but kept their advertising contracts with WHERE.
So many bureaucrats and politicians blamed the stagnant economy in MS Beach on the economic absorption caused by the introduction of the $750 million Beau Rivage investment in April 1999 (sending a message to future investors). They may have been half-right, since Beau’s daytime concierge went along with the program and complained to me about running out her limit of 3000 WHERE magazines before the second weekend of the month.
This economic curse plagued MS Beach casino profits and small business growth as we lost new and repeat visitors year round for many more years to come. By no means is this the first time I’ve seen this socialistic intervention program (MGCCVB) mislead their constituents into economic misfortune. I only wish my governor would seize and better distribute that tourism tax for more important things like infrastructure, sewage and water recovery, as locals should turn to their Chamber of Commerce and entrepreneurs in the marketplace for leadership. Restoration of the basic fundamentals of capitalism is necessary for MS Beach economic recovery.
The strong progressive track which my business had helped to create for the merchants of Bay St. Louis and Ocean Springs since October of 1996, and of Pass Christian since 1994, was desperately compromised beginning with the first issue of Where in April 1999. If only more people, investors, voters and politicians in Mississippi had subscribed to this informative newspaper, this kind of economic tragedy might have easily have been avoided altogether.
My advice to every voter in New Orleans is to find the candidates that can best work with Mike Olivier and the city’s convention hoteliers, so your recovery will be destined for sound and progressive leadership.
Henry D. Ward
Tourism Consultant
Tourismguru.blogspot.com
Tourismguru777@yahoo.com
Bay St. Louis, MS
When Governor Blanco appointed Mike Olivier to Secretary of Economic Development, my confidence in Louisiana’s future was raised tremendously. He had previously served the people of the Mississippi Gulf Coast (MS Beach) with absolute distinction. As a frequent visitor to the institutions that make New Orleans famous (The French Quarter, Tipatina’s, Mandina’s, WWOZ, etc), I hope the voters make the right decision for mayor to confidently guide the city’s future. I look forward to helping any way I can.
Last year, The Times Picayune published U.N.O.’s research about New Orleans tourism activity. It may have seemed far fetched to show an increase by 226% in family tourism, but let me assure you the numbers are probably accurate. One story that I witnessed helps explain your pre-Katrina tourism boom. While your convention hoteliers protected your interests, Mississippi Gulf Coast Convention and Visitors Bureau (MGCCVB) tax and spin programs launched a self destruction marketing strategy.
In Spring of 1999, Stephen Richer Ex. Dir. of MGCCVB (a Princeton graduate) was busy convincing national chains and casino hoteliers in Mississippi to work with his “brilliant scheme” to tap into the stronger New Orleans market (35,000+ rooms) to support his smaller dysfunctional market (15,000+ rooms) through WHERE magazine in MS Beach hotel rooms. WHERE promised to mix their potentially new Mississippi advertisers with their long existing New Orleans customer base. Cross-marketing these two competing destinations (only one hour apart and completely different) was his foolish approach to economic development.
Long before this fiasco was implemented, a Times Picayune Money section warned readers of Mr. Richer’s intention and published a leading N.O. convention hotelier response, “We don’t want any part of this, you don’t bite the hand that feeds you.” The next morning, WWL 870 AM’s Andre show suddenly removed the “WHERE controversy” from the main topic of discussion as previously advertised. The magazine went on to run three long years in MS Beach with over 90% of the paid advertisements about the New Orleans area in every monthly issue.
WHERE magazines were helping tourists change their vacation plans to book hundreds of rooms to New Orleans from MS Beach hotel rooms and Beach Boulevard every day. The average length of stay on MS Beach was shortened and room rates fell dramatically. The productivity of every advertising dollar also fell. The cost of doing business in MS Beach went up dramatically. The primary MS Beach benefactors from this campaign were selling gasoline, advertising, car rentals or bus tours to New Orleans, while major New Orleans hoteliers had blacklisted the distribution of such nonsense about MS Beaches, but kept their advertising contracts with WHERE.
So many bureaucrats and politicians blamed the stagnant economy in MS Beach on the economic absorption caused by the introduction of the $750 million Beau Rivage investment in April 1999 (sending a message to future investors). They may have been half-right, since Beau’s daytime concierge went along with the program and complained to me about running out her limit of 3000 WHERE magazines before the second weekend of the month.
This economic curse plagued MS Beach casino profits and small business growth as we lost new and repeat visitors year round for many more years to come. By no means is this the first time I’ve seen this socialistic intervention program (MGCCVB) mislead their constituents into economic misfortune. I only wish my governor would seize and better distribute that tourism tax for more important things like infrastructure, sewage and water recovery, as locals should turn to their Chamber of Commerce and entrepreneurs in the marketplace for leadership. Restoration of the basic fundamentals of capitalism is necessary for MS Beach economic recovery.
The strong progressive track which my business had helped to create for the merchants of Bay St. Louis and Ocean Springs since October of 1996, and of Pass Christian since 1994, was desperately compromised beginning with the first issue of Where in April 1999. If only more people, investors, voters and politicians in Mississippi had subscribed to this informative newspaper, this kind of economic tragedy might have easily have been avoided altogether.
My advice to every voter in New Orleans is to find the candidates that can best work with Mike Olivier and the city’s convention hoteliers, so your recovery will be destined for sound and progressive leadership.
Henry D. Ward
Tourism Consultant
Tourismguru.blogspot.com
Tourismguru777@yahoo.com
Bay St. Louis, MS
Tuesday, April 11, 2006
Condos vs. National Chains
As a fifth generation local, my interests have always been to help grow our economy from within, always preserving heritage. Professional leadership in the accommodations industry is always critical.
I’ll never forget hearing my ole friend complaining about having to cross USM Campus to take a course in professional selling. He said in Dr. Ivy’s class that he should not have to study any marketing, since his major was hotel/restaurant management. As a national chain manager, marketing is outsourced, so he stated.
After studying the exact causes of the fall of the MS Gulf Coast tourism economy throughout the 1970s and 1980s, I strongly encourage the endorsement of condos over national chains. Unlike national chain-ism, whose success is protected under Socialistic tourism tax and spin programs (Harrison County Convention and Visitors Bureau HCCVB), condo managers can easily be held accountable by their guests (owners) for their ability (or lack thereof) to sell the value of the local community.
My research and development programs were instrumental in marketing Old Town & Ocean Springs while cross-marketing Grand Casinos, Theater and Entertainment beginning in October of 1996. I began helping Pass Christian’s merchants in March of 1994. The Downtown Association, Chamber and City of Gulfport hired my services one month before Katrina to begin the first stage of recovery. Grand Casinos, Hard Rock and many condominiums were eager, even before Katrina, to help my business better market Downtown Gulfport’s shopping and dining potential.
The research concludes that condominiums and certain casinos are more in touch with their guests and are more instrumental in sending hungry tourists into these downtowns. Unlike many national chains, the managers of these condos are usually locals rather than foreigners. This means that their credibility for selling the local lure is trusted and appreciated. This translates into strong economic and community development for the independent small business owners and artists.
If you want to see the rebirth of our heritage and encourage the success of mom and pop businesses paying higher wages to keep the locals from leaving, please welcome condominiums with distinct community appeal. Condos will not intrude on our heritage, but will actually give us a chance to build on it. Thank you.
Henry Ward
Tourism Business Solutions
Downtown Redevelopment Consultant
tourismguru.blogspot.com
tourismguru777@yahoo.com
As a fifth generation local, my interests have always been to help grow our economy from within, always preserving heritage. Professional leadership in the accommodations industry is always critical.
I’ll never forget hearing my ole friend complaining about having to cross USM Campus to take a course in professional selling. He said in Dr. Ivy’s class that he should not have to study any marketing, since his major was hotel/restaurant management. As a national chain manager, marketing is outsourced, so he stated.
After studying the exact causes of the fall of the MS Gulf Coast tourism economy throughout the 1970s and 1980s, I strongly encourage the endorsement of condos over national chains. Unlike national chain-ism, whose success is protected under Socialistic tourism tax and spin programs (Harrison County Convention and Visitors Bureau HCCVB), condo managers can easily be held accountable by their guests (owners) for their ability (or lack thereof) to sell the value of the local community.
My research and development programs were instrumental in marketing Old Town & Ocean Springs while cross-marketing Grand Casinos, Theater and Entertainment beginning in October of 1996. I began helping Pass Christian’s merchants in March of 1994. The Downtown Association, Chamber and City of Gulfport hired my services one month before Katrina to begin the first stage of recovery. Grand Casinos, Hard Rock and many condominiums were eager, even before Katrina, to help my business better market Downtown Gulfport’s shopping and dining potential.
The research concludes that condominiums and certain casinos are more in touch with their guests and are more instrumental in sending hungry tourists into these downtowns. Unlike many national chains, the managers of these condos are usually locals rather than foreigners. This means that their credibility for selling the local lure is trusted and appreciated. This translates into strong economic and community development for the independent small business owners and artists.
If you want to see the rebirth of our heritage and encourage the success of mom and pop businesses paying higher wages to keep the locals from leaving, please welcome condominiums with distinct community appeal. Condos will not intrude on our heritage, but will actually give us a chance to build on it. Thank you.
Henry Ward
Tourism Business Solutions
Downtown Redevelopment Consultant
tourismguru.blogspot.com
tourismguru777@yahoo.com
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