Monday, August 2, 2010

IMMIGRATION LAW SHOWS LITTLE SHORT-TERM IMPACT, LONG-TERM STILL UNKNOWN

Early results for hotels and resorts in metropolitan Phoenix show little evidence of a short-term impact from Arizona’s new immigration law. According to Smith Travel Research, hotel occupancy was up 6.5 percent in May and 10.6 percent in June from the previous year. In addition, revenue per available room increased 6.2 percent and 11 percent in May and June, respectively. The increases through June are positive, but hoteliers and industry analysts caution that they don't tell the full story. What the numbers don’t show is whether the gains would have been stronger without the immigration law, which was passed in late April. In addition, industry insiders say the true tourism impact of the law likely won't show up in industry statistics until next year and beyond. This is because most of the impact would come from associations and other groups boycotting Arizona as a site for meetings. Generally, meetings are booked at least two years in advance and can't be canceled at the last minute without large fines. Many hoteliers are worried about losing business they can’t quantify, such as groups taking the state off their list of potential destinations. (Arizona Republic, July 28)

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