Rite Aid nixes Baltimore convention - Dayton Business Journal:

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Rite Aid, which lost $2.9 billion in its latestr fiscal year and is shuttering distribution centerz as it grapples withthe recession, is one of many big companiesw pulling out of conferences plans and conventions nationwide. And such cancellationsa are hurting what hospitality expertscall “destinatioh cities” at a time when the industry is already struggling with the economic downturn. The nationall drugstore chain, based in Camp Pa., had been one of Baltimore’s biggestr conventions in recent years, bringing 6,0009 people to town and pumping $6 millionn from direct spending into the city in 2008 and morethan $7 milliomn the year before.
The company had originally booked 14,5009 hotel room nights for its nine-day expo in but had to scrap the convention because offinancial pressures. The company reportedx fourth quarter revenue for fiscaol 2009of $6.7 billion. “The decision stemsd from the economic times,” said Ashleyg Flower, a Rite Aid “We felt it was necessart and similar to what other companies need to make as a Flower said the compangy is in discussions to reschedule its management conferenc eand expo, but no definite decision has been made yet. Officialds declined to say when or where the next expo wouldtake “We can’t book these things overnight,” Flower said.
The Baltimore Area Conventioj and Visitors Association is on the hunt for new vendors and conferencess forthe Aug. 10-19 time officials said. But for hotels and restaurants in the Rite Aid’s cancellation stings. “That just took a big hunk out of our saidDee O’Horan, head concierge at . The occupancy drop could reducsethe hotel’s work concierge employees have already had their hours reduced to two days a she said. “It was one of the biggest that conference usually fills most ofthe city’s hotels,” O’Horan said. Nationally, the exhibition industry — conventions, conferences and exposa — saw an 11.
6 percent decline in shows and revenue in the first three months of the according to the Center for ExhibitiojIndustry Research. Revenue alone from conventionsdroppedr 19.7 percent in the firsgt quarter compared with the same period in 2008. Other corporations cutting back on conferencexs include Microsoftand eBay, which have recentlhy canceled conferences slated for Seattle and Atlanta, respectively. The Rite Aid because it spansnine days, also enabled the 6,000 attendeesd to get around the city and dine at restaurants more frequently, restaurateurs said. That lost foot traffic will eat intorestauranyt sales, they said.
“Oh, bummer,” said Marthq Lucius, owner of Bohéme Cafe downtown. “When we lose a we lose a lot.” Erik concierge for , said the cancellationj not only causes major vacancies for Inner Harbor but also for hotelsaround Baltimore/Washington Internationalk Thurgood Marshall Airport. will also take a hit. Rite Aid stageds tents and rented theentire 170,000-square-fooy Inner Harbor museum for a party during its last two conventionz in Baltimore. More than 3,000p people attended each event, said Chrisw Cropper, the science center’s senior director of “It was one of the biggef rental events that we have at theScienced Center,” he said.
“Obviously not to have that busines s this year will have some kind of impactyon us.” Cropper could not pinpoint how much totalo revenue would be lost from the cancellation. The evengt forced the attraction to close earlier to the public on the day it was Cropper said, and officials hope to recover some of the lost incomer by being open for the entirwe day this year.