PHILADELPHIA—With 710,000 international visitors coming to Philadelphia in 2008—a 29 percent increase from 2007 and the largest increase for any U.S. city—Mayor Michael Nutter of Philadelphia was more than happy to celebrate the work of the Philadelphia Convention & Visitors Bureau (PCVB).
In the afternoon of July 28, 2009, Mayor Nutter joined 400 members of PCVB, Philadelphia’s official Tourism Promotion Agency, at its annual meeting at the Doubletree Hotel Center City.
At the meeting, titled “Times are Tough – We’re Tougher,” PCVB Chairman Nick DeBenedictis unveiled PCVB's 2009 Annual Report and Business Plan to boost the city’s economy with tourism.
The annual report revealed some interesting trends of the hospitality industry. In 2008, Philadelphia received a total of 29.75 million visitors, both domestic and international, which generated $9.32 billion in economic impact, including 153,100 hospitality-related jobs and 1.35 billion in taxes (federal, state, and local).
Individual visitation contributed more than conventions. In the city's hotel market, individual visitors contributed more than half of the total revenue (56 percent), compared with conventions (39 percent).
Jack Ferguson, executive vice president of PCVB, attributed the current trend—shifting from corporate events and conventions to individuals—to the media debacle AIG incurred when it scheduled lavish corporate events in the midst of accepting federal aid.
According to a recent national survey conducted by the Professional Convention Management Association (PCMA) and American Express, more than 4 in 10 (44 percent) corporate meeting planners stated they expect a decrease in meetings in 2009 and 2010 due to image, publicity, and policy considerations. The study also found that the economic impact of cancelled corporate events, due to publicity concerns, is greater than that of the general economic downturn.
In the past six months, Wall Street excessive bonuses and corporate extravagance regarding offsite meetings and events have received extensive media coverage and public criticism. Not surprisingly, meetings in resort destinations have been most likely to be cancelled as indicated in the PCMA survey results.
Philadelphia, not a resort destination, clearly benefits from this trend. According to the PCVB annual report, as corporate events scheduled dropped on average by 15 percent nationally, Philadelphia only slipped 7 percent to 8 percent.
Ferguson said Philadelphia is closely associated with history in people’s minds.
The history factor is crucial to Philadelphia’s prosperity, said Michael W. Zuckerman, professor of history at the University of Pennsylvania. “It is in the history that America’s best is crystallized. It makes people feel good and proud of American identity—this is the place where America’s freedom, democracy, constitution, revolution got started.”
Professor Zuckerman encourages promotion of Philadelphia’s history. “Those who have intense care about history treasure the fundamental values of this country,” said Zuckerman, who added that these fundamental values are timeless and may offer consolation to people in troubled times.
When asked who would be the most interesting historical figure to profile in marketing efforts about Philadelphia, Zuckerman answered, “Benjamin Franklin. He is so funny, and he is the only founding father to sign four founding documents.”
The history factor also gave Philadelphia a boost in international visitation. According to a U.S. Department of Commerce report, Philadelphia enjoyed the highest percentage growth (29 percent) in international visitation among the top 20 most-visited international cities. International visitors made a great contribution to Philadelphia’s economy.
Among the top eight countries ranked by visitors’ spending in Philadelphia, three are Asian: Japan, South Korea, and China.
John Chin, executive director of the Philadelphia Chinatown Development Corporation, a member organization of PCVB, said PCVB launched new Japanese and Chinese Web pages and a visitors guide to reach travelers from Japan and China. “Asia is a very significant tourist market for Philadelphia.”
Todd Liu, Ph.D., a member of and a business consultant for the Greater Philadelphia Asian Culture Center said that Internet marketing is a highly effective tool in reaching Asian audience members. “Asia has 41 percent of the world's Internet users," said Liu.
He added that China by far has more Internet users than any other country, totaling 298 million. "Offering the Philadelphia story in the Chinese language will definitely help turn many interested online into visits to Philadelphia.”
