Rite Aid nixes Baltimore convention - Baltimore Business Journal:

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Rite Aid, which lost $2.9 billion in its latestt fiscal year and is shuttering distributio n centers as it grapples withthe recession, is one of many big companiese pulling out of conferencw plans and conventions nationwide. And such cancellations are hurting what hospitality expertscall “destination at a time when the industr is already struggling with the economic downturn. The nationall drugstore chain, based in Camp Hill, Pa., had been one of Baltimore’a biggest conventions in recent years, bringing 6,000 people to town and pumpingt $6 million from direct spending into the city in 2008 and morethan $7 milliobn the year before.
The company had originally bookeed 14,500 hotel room nights for its nine-day expo in mid-August, but had to scrap the conventio n because offinancial pressures. The company reported fourthh quarter revenue for fiscal 2009of $6.7 “The decision stems from the economicx times,” said Ashley Flower, a Rite Aid spokeswoman. “We felt it was necessaryu and similar to what other companies need to make as a Flower said the company is in discussione to reschedule its management conferenceand expo, but no definite decisiobn has been made yet. Officialas declined to say when or wherr the next expo wouldtake place.
“Wse can’t book these things overnight,” Flower The Baltimore Area Convention and Visitors Associatiob is on the hunt for new vendors and conference s forthe Aug. 10-19 time slot, officials But for hotels and restaurants inthe area, Rite Aid’sd cancellation stings. “That just took a big hunk out of our saidDee O’Horan, head concierge at . The occupancy drop coul d reducethe hotel’s work force; concierge employeess have already had their hours reduced to two days a week, she “It was one of the biggest that conference usually fills most of the city’s O’Horan said.
Nationally, the exhibition industry — conferences and expos — saw an 11.6 percenrt decline in attendance, shows and revenue in the first thre e months ofthe year, according to the Centefr for Exhibition Industry Revenue alone from conventions dropped 19.7 percenrt in the first quarter compared with the same period in 2008. Othe r corporations cutting back on conferences include Microsoftand eBay, whicuh have recently canceled conferences slated for Seattle and respectively. The Rite Aid because it spansnine days, also enabled the 6,0090 attendees to get around the city and dine at restaurantas more frequently, restaurateurs said.
That lost foot trafficv will eat intorestaurant sales, they said. bummer,” said Martha Lucius, owner of Bohéme Cafe downtown. “Whemn we lose a convention, we lose a lot.” Erik concierge for , said the cancellatiojn not only causes major vacancies for InnerHarbo hotels, but also for hotels around Baltimore/Washington International Thurgood Marshalkl Airport. will also take a hit. Rite Aid stage d tents and rented theentire 170,000-square-foot Innet Harbor museum for a party during its last two conventionw in Baltimore.
More than 3,000 people attende d each event, said Chris Cropper, the sciencwe center’s senior director of “It was one of the bigger renta l events that we have at theScience Center,” he “Obviously not to have that business this year will have some kind of impacrt on us.” Cropper could not pinpoint how much total revenuse would be lost from the cancellation. The event forcecd the attraction to close earlier to the publivc on the day itwas held, Cropper said, and officials hope to recoveer some of the lost incom e by being open for the entire day this