NEW YORK — The flame from the Olympic Winter Games appears to still be burning brightly on Salt Lake City's tourist and convention business.
A new study, conducted by Jones Lang LaSalle Hotels, shows that Salt Lake City welcomed more conventions and attracted larger conferences in the first 10 months of 2002 than in any other year in the city's history.
"This is in contrast to many other cities, which have continued to experience waning convention attendance following Sept. 11," said Melinda McKay, senior vice president of Jones Lang LaSalle Hotels and author of the report. Jones Lang LaSalle Hotels is a unit of Jones Lang LaSalle Inc. of Chicago.
Although the city boosted its hotel room inventory by 64 percent since it was awarded the 2002 Winter Games, its hotel occupancy and room rate growth has far outperformed the national average.
Revenue per available room, or revpar, which is a common metric used to measure room rate and occupancy growth in the hotel industry, rose a stunning 30.1 percent in the first 10 months of this year. By contrast, the national average is negative 3.6 percent.
Dianne Binger, president of the Salt Lake Convention & Visitors Bureau, said the bureau stepped up its efforts years ago to bring conventions and other large groups to Salt Lake City.
"For the past several years, we have worked very hard to make 2002 a successful convention year," Binger said. "Most of the groups that came to Salt Lake in 2002 made their decisions to come several years ago. The Olympics gave us a very big boost. . . .
"It's interesting to note that Atlanta did not have the same experience as Salt Lake. Hotels in Atlanta suffered from lower occupancy rates in the months following the 1996 Olympics. That has not happened here, even with a national recession and a slowdown in the travel industry."
The Olympics themselves drew smaller-than-expected crowds as security concerns in the wake of Sept. 11 combined with a tough economy prompted many Olympics-watchers to stay home.
"The original estimate was daily attendance of 70,000. However, what transpired was a 40,000 daily attendance level," McKay said.
However, the payoff can come after — not during — the event.
"The key 'win' for Salt Lake City's hotel industry is the massive international exposure, which will be felt long after the final gold medals are awarded," said McKay. Indeed, 3 billion people tuned in to the Games, making it the most watched Winter Olympics in history, she said.
Aside from the worldwide television exposure, the city also continues to reap the benefits from billions of dollars in Olympic preparation spending on projects such as a new freeway, light rail line and convention center, and improvements to the downtown area.
The Olympics have been a windfall for the city's hotel business, McKay said.
"In one definitive stroke, the Olympics provided the opportunity to change the perception that Salt Lake City is not a fun, party town," said McKay. "The results of such a colossal branding campaign will be enjoyed for many years to come."
Binger agreed, stating that 2003 is shaping up to be a strong convention year as well. The future is bright for Salt Lake City, Binger said.
"The convention industry has become increasingly competitive as a result of a dip in the national travel industry," she said. "Cities like New York, San Francisco, Las Vegas and Chicago are now competing directly for conventions that used to go only to communities like Salt Lake, Seattle and Denver.
"We have to work even harder now for convention business, and compete with the biggest destinations in America. But we are very confident about Salt Lake as an up-and-coming ski, convention and leisure travel destination. We can compete with the big cities and win. The Olympics established a great legacy for our hospitality industry, and we will continue to build on that foundation."
Contributing: Dow Jones Newswires; Jenifer K. Nii