The Atlantic Builders Convention meets in Atlantic City every year to talk construction. The show, billed as a preeminent event for building industry professionals, was booked for April 1-2 at Harrah’s Waterfront Conference Center.
But in mid-March, the coronavirus pandemic shut down casinos, hotels and just about everything else in Atlantic City, and also put a stop to the conference. The association has rescheduled the event for September 30-October 1, but those dates, too, could be questionable.
“Restrictions on gatherings have put the convention business in a very difficult situation, as well as the ability of people to travel to a destination,” Jeffrey Vasser, executive director of the New Jersey Division of Travel and Tourism, told GGB News.
At press time, a total of 17 events had been cancelled in Atlantic City, said Sandi Harvey, vice president of sales for Meet AC. “Over 50 percent of our events have rebooked for 2021.”
Several other events remain on the books for 2020, waiting for reopening plans to be finalized, including the New Jersey Education Association annual convention, one of the longest-running in the country. According to the NJEA website, the convention is still set for November 5-6 at the Atlantic City Convention Center.
While the cost to the shore resort could best be described as fluid, the projected economic impact is currently $74.7 million due to cancelled and postponed meetings and conventions, Harvey said.
“That loss of business will be a big drag on all businesses, including the casinos,” Michael Busler, professor and finance program coordinator at Stockton University, told GGB. “It will likely be well into 2121 before that market recovers.”
In Las Vegas, so far this year 17 shows with an estimated attendance of 352,500 have been cancelled, among them the National Association of Broadcasters convention, which would have brought more than 100,000 people to the city. Some 11 shows have been rescheduled, including the two-day Nightclub and Bar Show, which moved from March 31 to October 20, according to the Las Vegas Convention and Visitors Authority (LVCVA).
Of all cancellations set for MGM Resorts properties in Las Vegas, 70 percent were scheduled between March and June, said Stephanie Glanzer, vice president and chief sales officer for MGM Resorts. “Of the total number, more than half of them have committed to rescheduling or contracting a future year (many for 2021 if they weren’t already contracted for multi-year).”
A number of groups are still on the books between September and December, and even some over the summer, Glanzer told GGB.
The uncertainty of the situation in Las Vegas and Atlantic City has sparked more interest in teleconferencing, said Harvey. “Virtual events are being considered by several clients as an alternative.”
“Nothing can replace a face-to-face meeting, but in these unprecedented times, we know that people still need to meet, and we’re hosting virtual meetings to keep our travel and meetings industry partners up-to-date and connected,” said Maria Phelan, communications manager for the LVCVA.
Said Glanzer, “We are working with many of our groups on a hybrid virtual option through our event production division to develop creative alternatives for many of our groups.”
But Busler said such options remain a poor choice. “For customers who attend shows and conferences, watching on a TV screen is not nearly the same. It may help, but I don’t think it will make a large contribution.”
Despite a disappointing 2020, the pace for 2021 is already very strong, Phelan said. “We believe people will be eager to return to in-person meetings when the time is right, and Las Vegas will be ready to welcome them back. We’ve continued to rebook cancelled groups into the year and we are continuing to see demand for 2021 and beyond.”
Unlike Las Vegas, which depends so much on air travel for its convention business, Atlantic City remains a drive-in market, said Vasser. “It should recover sooner than some other destinations. People will be getting in their cars sooner than getting back on an airplane.”
Meet AC has received several inquiries and is working on potential events for late 2020 to 2023, Harvey said. “Atlantic City is stronger together, and we remain positive for the travel and tourism industry.”
In related news, the LVCVA has introduced a budget for the upcoming fiscal year that’s been slashed by 36 percent from last year’s. The $160.6 million spending plan includes $65 million for advertising, also down 36 percent from last year. The budget anticipates a hiring freeze, 168 layoffs and cuts to salaries and benefits of $23.7 million.
