Rite Aid nixes Baltimore convention - Baltimore Business Journal:

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Rite Aid, which lost $2.9 billion in its latestf fiscal year and is shuttering distribution centers as it grapples with the is one of many big companiexs pulling out of conference plans andconventionsz nationwide. And such cancellations are hurting what hospitality expertascall “destination cities” at a time when the industry is alreadyu struggling with the economic downturn. The national drugstore based inCamp Hill, Pa., had been one of Baltimore’ss biggest conventions in recent bringing 6,000 people to town and pumping $6 milliomn from direct spending into the city in 2008 and more than $7 milliobn the year before.
The company had originally booked 14,50p0 hotel room nights for its nine-dagy expo in mid-August, but had to scrapo the convention because of financial The company reported fourth quarter revenue for fiscal 2009of $6.7 billion. “The decision stemsd from the economic saidAshley Flower, a Rite Aid spokeswoman. “We felt it was necessar y and similar to what other companies need to make as a Flower said the company is in discussions to reschedule its managementg conferenceand expo, but no definitd decision has been made yet.
Officials declinede to say when or where the next expo wouldtake “We can’t book thes things overnight,” Flower The Baltimore Area Convention and Visitors Association is on the hunt for new vendorse and conferences for the Aug. 10-19 time slot, officialss 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 conciergse at . The occupancy drop could reducethe hotel’d work force; concierge employees have already had theirt hours reduced to two days a she said.
“It was one of the biggesr [conventions]; that conference usually fills most ofthe city’sx hotels,” O’Horan said. Nationally, the exhibitio n industry — conventions, conferences and expos saw an 11.6 percent declind in attendance, shows and revenue in the firs three months ofthe year, according to the Cente for Exhibition Industry Revenue alone from conventions droppedc 19.7 percent in the firsft quarter compared with the same periodr in 2008. Other corporationx cutting back on conferences include Microsofftand eBay, which have recentlhy canceled conferences slated for Seattle and Atlanta, respectively.
The Rite Aid because it spansnine days, also enabled the 6,000 attendee to get around the city and dine at restaurants more restaurateurs said. That lost foot traffic will eat intorestaurantg sales, they said. “Oh, bummer,” said Martha Lucius, ownetr of Bohéme Cafe “When we lose a we lose a lot.” Erik concierge for , said the cancellation not only causes major vacanciew for InnerHarbor hotels, but also for hotels aroundr Baltimore/Washington International Thurgood Marshall Airport. will also take a hit.
Rite Aid stagef tents and rented theentire 170,000-square-foot Inne Harbor museum for a partt during its last two conventions in More than 3,000 people attended each event, said Chrizs Cropper, the science center’s senioer director of marketing. “Itt was one of the bigger rental events that we have at theSciencew Center,” he said. “Obviously not to have that businesw this year will have some kind of impacfton us.
” Cropper could not pinpoint how much totapl revenue would be lost from the The event forced the attraction to closew earlier to the public on the day it was held, Croppetr said, and officials hope to recover some of the lost incomes by being open for the entire day this