Final Analysis: Out of Their Minds

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When I moved to Seattle 22 years ago, I remember thinking I had never lived in a city where so many people had moved here not for a job, but for a sense of place. I had relocated from St. Louis, and I love St. Louis. But trust me: No one moves to St. Louis because it is geographically blessed, whereas hordes will move to Seattle precisely for that reason. Even during the 1990-91 recession, I kept encountering people who had moved here for the hiking, the climbing, the sailing. They sang the praises of the scenery, the temperate climate. They figured the career thing would eventually take care of itself. They wanted to live here because the place is so incredibly special.

A lot of people who don’t live here also think Seattle is pretty special. We know this because they pump $16.4 billion a year into the state’s economy and assure the employment of people who make $4.5 billion in wages.

How long that attraction continues will have a lot to do with how well we continue to promote Washington tourism. The state of Washington right now isn’t spending a penny on tourism promotion. A revenue-strapped Legislature shut down the state tourism office last year and eliminated its $1.8 million budget.

A makeshift private organization called the Washington Tourism Alliance is now the de facto promoter of state tourism. People who work in tourism created it, knowing that while Washington will always remain an attractive vacation option, it’s hard to compete with other inviting places that pump tens of millions of dollars a year into promoting their attractions. The thinking is that once we’re out of sight, we’ll quickly be out of mind.

At a public forum on travel and tourism recently, the sponsor of the event—a major bank—declared it had become the first financial institution in Washington state to join the Washington Tourism Alliance.

The announcement did not lead the 11 o’clock news. But it opened my eyes. “The health of the tourism industry does not just affect hotels and restaurants,” said KeyBank executive John Roehm. “The hundreds of attractions, retail and hospitality businesses, and the 160,000 people employed in this sector are our bank customers. They open checking accounts, they pay mortgages and they make investments. It is in our interest to ensure the industry survives and grows.”

That was my “well, duh!” moment. For some reason, we who live in this geographically blessed place don’t seem to think of tourism as an industry, at least not in the same way we think about airplane manufacturing, software development or even online retail. There’s no one going to a factory or an office building to “make” something. We seem to think it just happens. But if we take it for granted, it will go away.

In 1993, during an anti-taxation frenzy, Colorado voters apparently thought the same thing. They cut the state’s travel-promotion budget from $12 million to zero. Colorado’s share of the domestic travel market plunged from 2.7 percent to 1.8 percent. State funding returned about seven years later, but it took 19 years for Colorado to get back to the market share it had enjoyed in 1993.

In Washington state, the Alliance realizes it cannot continue relying on the kindness of strangers. Its ultimate goal is to persuade the Legislature to devise a promotion model that keeps travel and tourism a viable industry in Washington state. But until that happens, you may want to consider ponying up for a membership in the Alliance. After all, this is a special place. But, as Colorado quickly discovered, it’s not that special when an entire industry dries up.

JOHN LEVESQUE is the managing editor of Seattle Business magazine. Full disclosure: His wife is employed by KeyBank. 

Final Analysis: The Sporting Life in 2017

Final Analysis: The Sporting Life in 2017

Three predictions for the coming year on a new arena, an old arena and the Mariners.
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As every first-year business student knows, a city’s economy is not considered “world class” until said city has erected at least four shrines to professional sports and these shrines remain empty and unused most days of the year. Seattle is knocking on the door of world classiness because it already has KeyArena, Safeco Field and CenturyLink Field up and running. Occasionally. Just one more monument to appease the great mass of athletic supporters and we’re there. Hallelujah!
 
It’s only a matter of time because Chris Hansen, the San Francisco rich guy who wants to build a new arena on First Avenue South and bring pro basketball and pro hockey to Seattle, is this close to getting his way. In October, Hansen revealed that he and his investors are now willing to pay the whole honkin’ bill for plopping a new arena into the SoDo neighborhood a block from Safeco Field. He still wants a piece of Occidental Way vacated and also expects some tax breaks from the city, but that’s how rich guys are. (See: Trump, Donald.) Besides, the people who believe we’re not world class until the NBA returns to Seattle are salivating over this deal because it’s the best deal we’re ever going to get
 
Of course, these same people said Hansen’s previous offer, which would have required that $200 million in public money be plowed into a new arena, was also the best deal we were ever going to get. 
 
Hansen’s decision to pay more for his arena places the sports economy clearly in the local spotlight this year. Heaven knows we could use more opportunities to pay $9 for a beer and see millionaire athletes selling Jaguars and BMWs on TV. It’s the kind of economic shot in the arm that only comes around whenever a sports league is in a coercive mood. 
 
And so, in the spirit of this January issue’s “looking ahead” theme, we offer three predictions relating to the regional economy as the Hansen arena intrigue continues to unfold.
 
Prediction 1: Hansen, who has already spent more than $120 million buying up property in the area of his proposed arena, will persuade the Port of Seattle, his arch nemesis in this melodrama, to fold up its tent and send all cargo-handling operations to Tacoma. That decision will pave the way for so many trendy bars and restaurants with names like Kale & Kumquat or Cobblestone & Wingtip that Hansen will be persuaded to create a private streetcar system to connect Pioneer Square with the burgeoning Stadium District. 
 
Prediction 2: The city-owned KeyArena, whose very future is clouded by the Hansen proposal, will announce plans to house up to 10,000 homeless persons every day. Even on days when the Seattle Storm and Seattle University basketball teams need the building, the city believes the Storm and the Redhawks could use the attendance boost, so it becomes a classic win-win.
 
Prediction 3: The Seattle Mariners, who still don’t like the arena proposal, will channel their hostility onto the field of play — and still not win the World Series. (This is called pattern-recognition analysis.) However, always mindful of improving the fan experience — because it’s not whether your team wins or loses, but whether you’re inclined not to press charges for being gouged by a vendor — the Mariners will introduce several new fan-friendly food items, plus mani/pedi stations in the pricey seats and roving loan officers to assist anyone trying to finance the purchase of hot dogs and sodas for a family of four. 
 
JOHN LEVESQUE is the managing editor of Seattle Business magazine. Reach him at john.levesque@tigeroak.com.