|
Home >
Track the Issues
> Hotels
Strictly Business
| July 17, 2009
Too Much
Friction, Not Enough Light
Next
Tuesday, the Long Beach City Council will vote on
whether or not to allow the Hotel Sierra to be build Downtown. Just as a hotel would not turn away someone
interested in a room, the City Council should not turn
away someone interested in developing a new hotel
downtown. Approving this project means Long Beach will
gain much needed jobs in this struggling economy.
It is also a troubling time for the hotel industry, but hotel
developer Lodgeworks has years of experience and a
sterling reputation that should put any concerns at
ease. If Lodgeworks see an opportunity in investing
further in the area with a new hotel they should be
supported to take the chance.
The Pike has so much commercial potential that it is
still striving to fulfill. Progress at the Pike has been
slow, which is why the Hotel Sierra may just be the
kick-start that the Pike needs. More importantly, given
the current crisis in our financial markets, Lodgeworks
has already secured the needed financing for the
construction of Hotel Sierra.
So, any friction between the City Council and the
developer needs to be solved before the hotel is back up
for a vote this coming Tuesday night. If the City
Council (except for Councilmember Gary DeLong who
opposed any delays at the last City Council meeting)
tries to delay this project at all, it will solve
nothing but increase construction costs. And, that will
surely kill the project and we will miss yet another
opportunity to improve our local economy.
The bottom-line: this project must be approved this
coming Tuesday at City Council.
Also, in this climate of mass unemployment, the jobs
that will be created by building and operating Hotel
Sierra cannot be overstated. The construction industry
has been crippled by the economic crisis, but a
five-story hotel with 125 rooms will not build itself.
It will provide relief to many construction workers
looking for a project. Once built, the Hotel Sierra will
employ nearly 30 full-time employees who will be
provided with benefits, a 401(k) plan and life
insurance. Lodgeworks boasts an outstanding record of
providing competitive wages, and will provide excellent
career opportunities once up and running.
Then, of course, there’s the effect that the Hotel
Sierra will have on the City itself. Facing a $43
million deficit next year (and possibly as much as $60
million given recent news from our state leaders in
Sacramento), Long Beach is in need of a direct cash
injection. Hotel Sierra will provide an estimated
$650,000 per year in increase tax revenue, not to
mention parking revenue and any additional money that
hotel guests spend in local restaurants and shops.
The Hotel Sierra will be a Long Beach gem, a new
beginning for the Pike, and a benefit for workers and
city funds facing hard times. The project is currently
financed with a short window for a construction start.
So, let’s
fluff up the pillows and turn the light on for them…
…and that’s Strictly Business.
Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce
Strictly Business
| March 2, 2009
They Want You To
Think It Is The Worst Of Times
 The
novel "Tale of Two Cities" by Charles Dickens opens with, “It
was the best of times, it was the worst of times…” A recent
study would lead you to believe that, for some, it was less of
the former and more of the latter.
Well, time and time again, we hear stories of visitors to our
great city who are surprised to find that Long Beach is a hidden
gem. Whether professionals or vacationers, those making their
maiden voyages to the city continue to come away impressed.
Each year, over five million visitors
travel to Long Beach pumping $343 million into our local
economy. Tourism is a major driving force of revenue, and always will be
as we move forward in making the city a desirable destination
for both business and recreation.
But Long Beach’s tourism industry has come to question in the
past month, due largely to a new 48-page study called “A Tale Of
Two Cities,” prepared by the Los Angeles Alliance for a New
Economy. Since it was released on February 4, several local
publications have written editorials both in agreement and
disagreement with the study – putting Long Beach’s tourism
industry square in the spotlight. Essentially, the arguments
surround the fairness of wages that local hotels pay their
employees.
Many employees view any job as a good job and many of the
people that work in tourism do so because of the often flexible
work hours and schedules. These jobs also allow employees to
pursue other goals, including continuing their education,
starting their own business, or earning spare money as they
develop another career.
However, according to the study and based on data from 2006, workers in Long Beach hotels and motels
earn as much as 26% less for the same work that is done in some
parts of Los Angeles County, while the local industry has
enjoyed increases in tourists and revenue – again, all according to the
study.
What the study fails to report, however, is the fact that
employees have been threatened and harassed into joining the
hotel employee union that claims to be fighting for better
working conditions. Union representatives have relentlessly
called employees to pressure them into paying an expensive fee
to join, and will even show up at their door to pressure them in
person if the employees still refuse. They claim to be looking
out for the employees’ best interests, but complaints that union
reps have resorted to banging pots and pans down hotel hallways
at five in the morning does not sound helpful to me.
These unions are looking out for no one’s interests but their
own. The same can be said for the study. The study draws a
pre-determined conclusion that was in place before the first
page was even written. Obviously, the authors’ goal was to prove
what they wanted to prove, rather than to produce an objective,
fair and balanced report on the industry.
Using data that is now three years old, the authors conclude
that hotel employees should be earning more for their work. What
they fail to ask, though, is whether or not the work performed
is actually worth increased wages. Wages are determined by the
employee’s set of skills, and whether those skills are easy or
difficult to find in an employee. Employees in the tourism
industry do not have a skill set that is difficult to replace,
and therefore do not command high wages. This is not unfairness,
as “A Tale Of Two Cities” would have you believe. Rather, it is
the fairness of a capitalistic enterprise. In truth, it would be
unfair to force Long Beach hotels to increase employee wages
when those employees lack the skill set to justify those wages.
“A Tale Of Two Cities” does not present an unbiased reflection
of Long Beach’s tourism industry. Rather, it presents a
predetermined view of the authors’ personal agenda. It is a hit
piece that devalues one of our city’s most important industries,
and should be dismissed as such.
In these difficult times, tourism is down across the country.
People are cutting down on vacation time, and our hotels will
need help as they whether this storm. What we do not need is a
sensationalist study that uses outdated information to paint a
negative portrait of a troubled industry.
Tourism is crucial to our city that is attempting to present
itself as a vacation destination. It is in our best interest to
support our local hotels and motels; not to devalue them with
outlandish claims. For the good of our city, now is the time to
stand behind an industry that both enhances the perception of
Long Beach but also generates substantial revenue...
...and that's Strictly
Business.
Randy Gordon
President and CEO
Long Beach Area Chamber of Commerce
 Email
us for more information. |
|
