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Special Coverage Tourism & Hospitality

Get Back Here

It’s called ‘revenge spending,’ or ‘vacation retaliation’ — the idea that people who were unable able to spend money on travel last year will go all-out this year. Surveys say it’s a palpable sentiment among Americans right now; the question is whether they will actually follow through on those plans, and how safe they’ll feel doing so. When they’re ready, area tourism and hospitality leaders say, Western Mass. will be an ideal destination, boasting the variety of indoor and outdoor experiences and affordability that travelers seek — an ideal answer to all that pent-up demand.

Gillian Amaral (left) and Stacey Warren

Gillian Amaral (left) and Stacey Warren, co-founders of Three Chics Hospitality.

Mary Kay Wydra learned a couple new phrases over the past few months.

“The buzz term is ‘revenge spending,’” the president of the Greater Springfield Convention & Visitors Bureau (GSCVB) said. “That is, ‘I’ll spend more on things I was denied because of COVID.’ Things like in-person entertainment, eating at restaurants next to people, and travel.”

The other buzzword making its way around the tourism industry is ‘vacation retaliation,’ and it means roughly the same thing.

She likes those phrases — or, more accurately, what those sentiments portend. “That bodes well for us as a region,” she told BusinessWest. “We are affordable and easily accessible — a destination with a lot to offer.”

Indeed, while COVID-19 has been far from a positive for the region, it did open many people’s eyes to what Western Mass. has to offer, particularly those who migrated here to escape New York City or Boston at the height of the pandemic. That’s evident in the surging real-estate market, but also in the optimism many in the tourism and hospitality sector are beginning to feel about what lies ahead.

It can be detected in Hampden County’s hotel occupancy, which was 39% in January — down from the 49% recorded a year earlier, but significantly higher than the statewide figure of 29%, and on par with national numbers.

“A great number of people are planning to travel, and Western Mass. is well-positioned to get summer travelers. We have that combination of indoor and outdoor attractions and all this green space for recreation.”

It’s also impacting surveys, like a recent ‘sentiment study’ conducted by American Express that found that 84% of Americans have travel plans in the next six months, the highest figure since the earliest days of the pandemic. And 69% of those intend to take advantage of ‘second-city’ destinations, Wydra noted — in other words, those outside of big cities and top tourist spots.

Places, she said, like Western Mass.

“A great number of people are planning to travel, and Western Mass. is well-positioned to get summer travelers,” she added. “We have that combination of indoor and outdoor attractions and all this green space for recreation.”

One more statistic from the survey: 61% of travelers intend to spend more than normal because they couldn’t go anywhere last year.

That’s music to the ears of Stacey Warren and Gillian Amaral, two veterans of the hospitality industry who recently launched their own enterprise, Three Chics Hospitality, which seeks to market its clients to group-tour operators.

“Our clients are group-friendly restaurants and attractions interested in having motorcoach groups come to their establishments or attractions; we offer consulting and marketing for them,” said Warren, who has worked in the hotel field for 17 years.

She called such connections “vital” to the region. “Every single bus that comes in may need 20 or 25 overnight rooms, then you have 20 to 25 dinners at different restaurants, attraction tickets … one bus is really a big impact on the economy.”

Amaral agreed. “Based on multiple tours we can bring in, the economic impact to the region will be huge,” she said. “And just based on conversations I’ve had with people, they’re ready to travel, they’re ready to get out, but they’re also ready to have someone else do that for them. People are like, ‘I just want to go on a tour; tell me where to go, make it easy for me, and take me there.’ That’s our business model. It just makes sense to be ready when the environment is ready for us.”

That moment isn’t far away, Warren added. “People are ready, and we want to be here to help the restaurants and attractions capture that business while they’re here.”

Jonathan Butler, president and CEO of 1Berkshire, noted in a message to that organization’s members last week that sentiment around travel is starting to turn in a way that promises to benefit Western Mass.

“A year ago at this time, we were headed into two or three months of lockdown where nearly all economic activity ceased. A year later, we’re mostly headed in the other direction,” he said. “Vaccinations are finally beginning to add up, public-health metrics have improved, and statewide capacity and operating restrictions continue to be eased on an almost-weekly basis. Out-of-state travelers from neighboring states are now only subject to travel advisories, and within the next couple weeks, even those should continue to be relaxed.”

Sensing a changing tide, Butler noted, organizations like Tanglewood and Jacob’s Pillow (see story on page 39) both recently announced a return to live performances for the upcoming season, and will be joined by other institutions like Barrington Stage Co., Berkshire Theatre Group, and Shakespeare and Co. in bringing performing arts — and, in turn, visitors — back to the region.

“When you combine this exciting news with the continued momentum of the outdoor recreation economy, and our other major cultural properties operating closer to full capacity — now having a year under their belt in learning how to best operate during this pandemic — 2021 starts to feel far more exciting than a year ago.”

 

Taking the Long View

As director of Sales for Hampton Inn Chicopee/Springfield, as well as president of Hampton Inns of New England, Warren has her finger on the pulse of hospitality in the region, as does Amaral, an assistant professor of Management at Bay Path University who also runs Events by Gillian LLC, specializing in event management and consulting, and whose past event experience includes stints at the Eastern States Exposition, MassMutual Financial Group, Enterprise Rent-A-Car, and the Basketball Hall of Fame.

The third ‘chic’ in their new enterprise’s name is, well, hospitality itself, represented by the image of a pineapple. And they feel like Western Mass. has become more of a household name in tourism and hospitality — with the potential for an even broader reach.

Mary Kay Wydra says Western Mass. is well-positioned

Mary Kay Wydra says Western Mass. is well-positioned to raise its profile in the tourism world.

“A lot of the tour operators that have been bringing groups here would just use this as a stopover because they’re from all over the country, and a lot of them just think of Boston and the Cape,” Warren said. “But they’re starting to think of Western Mass., too, and wanting to do things to add on, to offer new and fun ideas for their clients and keep them coming back.

“There are so many great things they can do right here,” she went on. “We can keep them here for a couple of days and reap the rewards, and have their clients leave here happy and wanting to come back.”

Amaral said the two of them have talked about building a business around this concept for years, and felt like this was the right time — even during a pandemic.

“We felt like there was a need. People would come to the Massachusetts area and always go straight to Boston, but what about us here in Western Mass.?” she asked. “Fast-forward to a pandemic we’re almost out of, and we thought, this is the time for us to be positioned for the influx of travel that will come with group tours.”

With their deep knowledge of the region’s tourism industry, she added, they’re able to craft itineraries tour operators can sell to clients, and it’s not too soon to start making those connections, even when the economy isn’t fully opened up.

“Every single bus that comes in may need 20 or 25 overnight rooms, then you have 20 to 25 dinners at different restaurants, attraction tickets … one bus is really a big impact on the economy.”

“Everyone is poised and ready at this point to just go — let’s hit the switch and move forward,” Amaral said. “That’s why now is the time to launch, versus in July, when things are opening up and people are feeling comfortable. At that point, you’re behind.”

Wydra agreed, noting that statistic about 84% of Americans with travel plans in the near future. “People are creating destination wish lists, and simply having a future trip planned makes people happy. We’re optimistic people are going to visit this year. We pushed pause on marketing last year, but hope to start spending again.”

She said the meeting and convention business will be slower to return, simply because large events are often planned years in advance, and an organization that cancels an event here may not be able to return for a few years. Last year, 164 groups canceled or postponed events in the region, with an estimated economic impact of $97 million going unrealized. However, about half those who canceled plan to come back in a future year, she added.

In the meantime, the GSCVB is engaging in some creative sales pitches for the region by planning virtual site visits at destinations like the Amazing World of Dr. Seuss Museum, MGM Springfield, and the Basketball Hall of Fame.

“We’re showcasing the attractions because these attractions set us apart,” she said, adding that the bureau is equally intent on highlighting the many different meeting spaces available. “We want to make sure Western Mass., as a brand, stays out there in front of meeting planners.”

Lindsey Schmid, vice president of Tourism & Marketing for 1Berkshire, recently told Berkshire Magazine about a multi-pronged marketing approach, promoting all there is to do virtually in the Berkshires, as well as continuing to feed travelers ideas and imagery that will inspire them to plan a Berkshire getaway now and more extensive travel later. Part of that message is the outdoor recreation opportunities that helped the region’s tourism sector stay afloat last summer.

It’s a widely understood selling point; U.S. News & World Report’s recent “Best States” feature ranked Massachusetts the ninth-best state in which to live, based on eight factors ranging from healthcare and education to public safely. In the category of natural environment, the Commonwealth ranked fourth.

“Our region leans on the combination of natural beauty and cultural offerings that serve as anchors to drive economic activity; right now, those anchors are preparing for big things in the summer of 2021,” Butler noted.

He added that “the pandemic has tempted us all to lean on pessimism when thinking about the future, but the progressing conditions around us truly call for more cautious optimism. We shouldn’t be so naïve as to think that the summer of 2021 will mark a return to pre-pandemic activity, but we should absolutely be preparing ourselves for a far more robust season than a year ago.”

 

Up in the Air

Certainly, optimism is in the air, although it’s still mixed with some uncertainty. Gathering limits are still a thing, most live performances remain firmly lodged in the future, and some attractions have given no definitive answers on when they’ll open, and to what extent.

For instance, Six Flags New England held a large hiring event last month to fill 3,000 seasonal positions, but the company has issued no definite opening date yet — though it is expected to decide soon, looking to state guidance and the realities of its own business model.

It will do so with heavily publicized safety protocols, like every other tourist destination — an element of the sector Wydra is particularly proud of.

“We’re climbing out of this with precautions still in place,” she said. “I’m very proud of our attractions, with all the protocols put in place, the cleaning and everything else they’re doing to keep visitors safe. You’ll see a lot of that continue.”

Warren said visitors will want to feel safe before the sector really opens up. “There are still some people who are nervous, but we’re able to show them what we can do — what plans the restaurants and attractions have in place to keep them safe when they come — and that’s making them feel very comfortable and ready to visit.”

Amaral cited research showing that people are more comfortable and apt to travel when adequate protocols are in place.

“Being knowledgeable about what to expect ahead of time puts them at ease,” she added. “And, of course, so many people being vaccinated is helping as well. The apprehension, even from six months ago, is much different than it is now. People are just ready to go — with caution, but nonetheless, they’re saying, ‘let’s go.’”

Wydra agreed. “There’s definitely some optimism as we move forward with the vaccines. We’re always hearing about new ones being introduced, and the government keeps making people eligible for it — that’s great news.”

Butler tempered that optimism with the other side of pandemic reality — which is, we’re not out of it yet, and people shouldn’t just abandon the common-sense behaviors that keep case counts down.

“Any increase in business needs to be done with public health and safety as the foremost consideration,” he said. “But all of the larger-picture conditions that have fueled growing visitor and economic activity throughout the past two decades are aligning well.”

Warren has been in the hospitality field long enough to ride a few economic cycles, but she’s never witnessed anything like last year — “and I never want to see it again,” she said. “I’ve never had to cancel so many groups and lose literally millions of dollars in revenue. So I’m looking forward to coming back strong this year and help everyone to bounce back.”

She’s heard from tour operators that they do, indeed, want to come back. But they’ll be returning to a changed tourist economy, and change isn’t always a bad thing, Amaral said.

“This has been a wake-up call to most businesses to think differently, which is exciting to me. Let’s not wait for a pandemic or tragedy to happen to think about a different way to do business or attract a target market or a different product line. If there’s anything we can take from this, it’s don’t get into the same rut. Think about different ways to improve your business.”

Amid the changes, of course, some normalcy is more than welcome.

“Who would have thought, a year ago, that we couldn’t go into a bar and have a drink?” Wydra said. “I want to meet friends after work for drinks. And I’m excited, because I think we’ve got some positive stuff happening in the future.”

 

Joseph Bednar can be reached at [email protected]

Opinion

Editorial

Every sector of the economy, and every business, large or small, has been impacted by this global pandemic. But this region’s large and important hospitality and tourism sector has easily been the hardest-hit.

The hotels, restaurants, tourists attractions, event venues, and cultural institutions have been pummeled by this crisis. Some have not survived; those that have are battered and bruised, and that goes for small mom-and-pop operations, the $1 billion MGM Springfield resort casino, and everything in between.

As the calendar turns to April, though, there can finally be sentiment that the very worst is behind this sector and that better times are to come — though myriad challenges remain.

First, the good news. As various stories in this issue reveal, there are positive signs and ample amounts of optimism about what’s in store for this sector. Tanglewood, Jacob’s Pillow, and other renowned cultural institutions have announced that, after canceling everything (or staging only virtual performances) in 2020, they will have schedules of live offerings this year — although they will be different.

Meanwhile, there is a great deal of talk of pent-up demand, and new terms working their way into the lexicon like ‘revenge spending’ and ‘vacation retaliation.’ All this points to a summer — and a year — when people who spent their time off in 2020 (if they had any) on the back deck, might instead be spending some money taking in all that Western Mass. has to offer.

This good news is tempered by the hard reality that we just don’t know what this year portends when it comes to people getting back in the water — literally and figuratively. There is pent-up demand, yes, and many people certainly have money to spend. But when the time comes, will people be willing to gather in large numbers? Will there be a Big E, and if so, how many people will attend? Will people return to the casino? And when can MGM again stage the live events that bring so many people to downtown Springfield? Can the Basketball Hall of Fame bounce back from a dismal year? Will people have an appetite for crowded (or more crowded) restaurants? When will conventions return?

These are just some of the questions that will determine the short-term fate of the region’s tourism and hospitality industry. For the long term, we know the health and well-being of this sometimes-overlooked sector is absolutely critical to the economy of this region, and to its quality of life.

Thankfully, there are many signs that it’s ready to officially roar back to life.

Community Spotlight

Community Spotlight

By Mark Morris

Jennifer Nacht

Jennifer Nacht says a heavy focus on outdoor experiences last year helped Lenox weather the economic impact of the pandemic.

For the past year, the town of Lenox showed what happens when uncertainty meets a can-do attitude.

Despite the formidable challenges of COVID-19, Town Manager Christopher Ketchen said, Lenox residents and businesses have been remarkably resilient.

“Throughout the pandemic, our residents demonstrated how much they love our town,” Ketchen said. “They make their homes here, and our businesses are invested in their customers and their community.”

What began as a normal year of planning events at the Lenox Chamber of Commerce was suddenly derailed in March. Once they realized the pandemic was going to last more than a couple months, Executive Director Jennifer Nacht said, chamber members and town officials quickly met to put together a plan to salvage at least some activity for Lenox.

“We went through each season and developed a general outline of things we could do,” Nacht said. “Even though we did not know what the year was going to look like, we were able to turn around some great activities.”

Like many towns, Lenox encouraged restaurants to offer tented outdoor dining and allowed them to expand outdoor seating into public parking spaces. The town also added covered dining terraces in public spaces around town.

“The select board lifted alcohol restrictions so people could bring a bottle of wine to Lilac Park, for example, where we had set up a dining terrace,” Nacht said.

“You couldn’t get a parking place at the trailheads in town. Even obscure trailheads that were once known only to a handful of locals were crowded.”

Some developments last spring were rough. In May, the town learned that, due to COVID-19 concerns, Tanglewood had canceled its 2020 season. For some perspective on the importance of Lenox’s largest summer attraction, a Williams College study in 2017 estimated the economic impact of Tanglewood to Berkshire County and Western Mass. at nearly $103 million annually.

Because they didn’t know what to expect when Tanglewood called off its season, Nacht said everyone concentrated their efforts on making Lenox a welcome and inviting place. Outdoor dining was a first step that helped to establish a more vibrant atmosphere, and it inspired further activities.

For example, the Lenox Cultural District and the chamber organized Lenox Loves Music, an initiative that featured live music performed at the Church Street Dining Terrace for seven straight Sundays in August and September. It was a hit.

“Because we were able to turn on a dime and get everything set up, we were able to make the outside experience fun,” Nacht said. “As a result, we were better able to weather the financial impact of the pandemic.”

 

Hit the Road

If entry points to walking and biking trails are any indication, Ketchen said the pandemic helped many people discover the town’s outdoor attractions for the first time. “You couldn’t get a parking place at the trailheads in town. Even obscure trailheads that were once known only to a handful of locals were crowded.”

For more than 40 years, Lenox has held Apple Squeeze, a harvest celebration that takes over much of the downtown area with 150 food and craft vendors. The event was canceled for 2020 because of concerns that, even with restrictions, too many people would gather, leading to unsafe crowd sizes.

Lenox Loves Music

Lenox Loves Music was a hit during a time when live music was in short supply.

As an alternative, the chamber and American Arts Marketing developed the Lenox Art Walk and scheduled it for the late-September weekend when the Apple Squeeze would have taken place. Forty artists set up in different areas around town in ‘artist villages,’ which were arranged so no more than 50 people could be in one area at a time. Foot-traffic flow was also designed to keep people moving through the exhibits.

Nacht said the Art Walk received great feedback, and the artists involved loved exhibiting their work. The event also led to phone calls from event organizers from several Eastern Mass. towns who wanted to know how to stage a similar event.

The old adage about necessity being the mother of invention definitely has proven true for Lenox. “We just tried some different things that we probably would have never attempted, or done so quickly, had it not been for the pandemic,” Nacht said.

In the beginning of the summer, traffic in town was about half of what it would be during a normal season. As the weather became warmer and travel restrictions eased around the state, both traffic and business picked up.

“We began seeing more day trippers, many from the Boston area who had never been out our way,” Nacht said, adding that good weather in the summer and fall extended the outdoor season nearly to Thanksgiving.

While lodging in the area was restricted by the number of rooms that could be offered, she noted, from September through November, inn and hotel rooms were booked to the capacity they were allowed.

As the owner of the Scoop, a Lenox ice-cream store, Nacht was one of many business owners forced to move customer interactions outdoors. She found a fun way to adjust.

“We did it sort of Cape Cod style, where people order at one window and pick up their ice cream at a second window,” she explained, adding that, while 2020 was not as successful as previous years, the Scoop still saw steady business throughout its season. Even non-food stores, inspired by all the outdoor activity, set up tents in front of their shops to add to the vitality.

In a normal year, Lenox Winterland is a tradition to kick off the holiday season that features a tree-lighting ceremony and Santa Claus meeting with children. In this very-not-normal year, Winterland was forced to cancel.

Instead of losing their holiday spirit, however, the Cultural District and chamber presented a creative alternative. Local businesses and artists teamed up to decorate 30 Christmas trees, which were displayed in a tree walk through town. Nacht said the inaugural Holiday Tree Walk was so well-received, plans are in the works to expand and make it an annual event.

“Despite the obstacles of COVID, we had a decent tourism business,” she said. “We’ll continue to offer more fun events to keep the vibrancy of the town going and improving.”

 

Passing the Test

Lenox has always been proud of its cultural amenities, such as Tanglewood, Edith Wharton’s house at the Mount, Shakespeare and Co., and others. As those were scaled back, Ketchen said, the town’s outdoor amenities gained exposure they might not have otherwise.

“Once we are allowed to enjoy our cultural institutions to their fullest again, people will also have more awareness of all the recreational opportunities Lenox has,” he told BusinessWest. “That’s a big positive for us as we look to the future.”

While Nacht hopes to see Tanglewood up and running, at least in some form, in 2021, she admits the past year was quite the learning experience. “We are so dependent on Tanglewood, it was an interesting test to see what we could do without Tanglewood there.”

Despite the challenges put on municipal budgets, Ketchen said Lenox was able to pursue several modest infrastructure projects in 2020, such as maintaining roads and public-utility infrastructure. “When folks are ready to come to Lenox for the recreation and the culture, the public utilities and infrastructure will be waiting for them.”

“We began seeing more day trippers, many from the Boston area who had never been out our way.”

In short, Lenox is not only weathering the COVID-19 storm, it’s finding ways to come out stronger on the other side. Indeed, when this community, which depends on cultural tourism, was challenged to find creative solutions to stay afloat, it answered the call. Nacht credited Lenox businesses for making quick and significant adjustments in their operations.

“It was really inspiring to see our businesses make the best out of a not-so-great situation,” she said. “It says a lot about their commitment to our town.”

Undaunted by the near future, Nacht noted several businesses are planning for April openings. And she looks forward to the new year knowing that Lenox can present all the outdoor events that worked well in 2020.

“With knowledge, you just learn to do things better, and we learned a lot last year,” she added. “Once the tulips come out, that’s when we start to see everything come alive again.”

COVID-19 Special Coverage

Survival Mode

Gene Cassidy with the ‘golden tickets’

Gene Cassidy with the ‘golden tickets’ that have generated excitement for the Big E — but also raised money at a time revenue is badly needed.

When the Big E recently announced the sale of 100 ‘golden tickets’ — lifetime passes for the holder and a guest, plus parking and other perks — for $1,000 each, it was an exciting promotion for fans of the annual fair and a way to keep the event top of mind during a year when it was called off because of the pandemic.

But it was also a way to raise money — just like other recent efforts at the Eastern States Exposition (ESE), from drive-up concession events to the opening of a cream-puff bakery over the summer.

“We’ve been busy trying to survive,” ESE President and CEO Gene Cassidy told BusinessWest. “We’re just trying to figure out ways to generate resources and pay some bills. When you’re in this business, you need people, and at this particular moment, society has had to pivot in such a way that you can’t have gatherings.”

That $100,000 infusion from the golden-ticket promotion won’t come close to making up for this year’s loss of the actual fair, but it’s not insignificant, either.

“Large fairs, by and large, are supported by taxpayers. We’re not. We have to pay our own way,” Cassidy said, citing what he calls “toxic positivity” — basically a false sense of security — by many in the fair business. “Folks have this positive outlook; they know their doors are not going to close because the state government is going to support them. Here at Eastern States, if we don’t bring people to our events, there’s no income, and there’s no Eastern States.”

Peter Rosskothen, owner of the Log Cabin, the Delaney House, and D. Hotel & Suites in Holyoke, has a hand in several types of hospitality businesses — and he’s optimistic about all of them for 2021. The challenge is getting through 2020.

“I’m not worried about the restaurant business — for restaurants that survive this,” he said, adding a sobering caveat to that first thought, and citing oft-repeated projections that one in five restaurants in the U.S. might not survive COVID-19.

“I feel the government is taking way too much time right now helping the hospitality industry. People are running out of money, and no help is coming from the federal level,” he went on. “People will go out and eat. The trick is to survive.”

Rosskothen has been creative in his operations, offering getaway packages at the adjoining Delaney House and D. Hotel where hotel guests can have a fancy dinner set up in their room, with tables, chairs, candles, and menus, and end their stay with a spa treatment. “It’s a nice, safe, romantic getaway.”

The way tourism and hospitality businesses rely on each other in Western Mass. has also come into starker relief, he added.

“ I feel the government is taking way too much time right now helping the hospitality industry. People are running out of money, and no help is coming from the federal level.”

“A lot of my peers are working hard to develop a vacation concept and attracting people from nearby, meaning Boston, Worcester, and Vermont,” he noted, adding that a family might drive in for Bright Nights and stay overnight at a hotel, eat at restaurants, and do some shopping. “Even stopping at a gas station is an economic multiplier.”

That said, Rosskothen’s hotel occupancy is running between 45% and 50% — not quite the 60% level needed to turn a profit, but a strong number during the pandemic. In fact, Mary Kay Wydra, president of the Greater Springfield Convention and Visitors Bureau (GSCVB), said the region’s hotel-occupancy rate closely tracks what D. Hotel is seeing.

“We’ve had a beautiful autumn, people have come to explore, and the hotel occupancy reflects that,” she noted. “Last September, we ran about 70%, but we also had a Big E. Taking that out, this year was still 44%. Boston was in the teens. They’re nowhere near climbing out of this. We’ve been hit, but not as hard as some metropolitan areas.”

Rosskothen said he’s encouraged by the numbers, but part of that success is due to the efforts hotels are making to keep guests safe — in his case, fogging rooms, changing every sheet and towel, and disinfecting every surface between guests — and to let visitors know that. “Staying in a hotel is, for me, a very safe thing as long as it’s a responsible hotel. If people want a break in their routine, there it is.”

 

Keeping the Lights On

In a typical year, Greater Springfield’s hotel-occupancy rate is around 64%, just a tick or two below the national average, but well below a city like Boston, which hovers around 79% occupancy. This year’s reversal represents one welcome trend this year — a perception, by families from metro areas, of Western Mass. as, well, a nice place to get away.

That phenomenon also happened when tourism and hospitality were badly dented following 9/11, Wydra said. “We’re more of a rural location, and we kind of pulled up a little sooner.”

That said, the region relies on its tourist attractions, which are “demand drivers,” she told BusinessWest. “How the hotels and restaurants do is a byproduct of those attractions — it’s the whole package. We’re trying to build on what we can and give people a reason to come to Western Mass.”

That’s why the announcement that Bright Nights would take place at Forest Park in Springfield this holiday season “is the best news we’ve had in the last 30 to 60 days.”

Other winter attractions will be open as well, albeit altered in some ways by the pandemic. At Yankee Candle Village in South Deerfield, families can still walk through the facility’s classic winter wonderland, but the visit with Santa at the end will be a video chat, followed by a photo with St. Nick taken using green-screen technology. Reservations will be required, and no walk-ins will be accepted.

For outdoor enthusiasts, Bousquet Mountain in Pittsfield will also require reservations for anyone who doesn’t have a season ski pass. The lodge will primarily be used for operational staging and employee use, and the resort will add outdoor features such as firepits and seating areas while offering outdoor food and beverage service via hot-beverage huts, a walk-up bar, and a pavilion area.

As winter gives way to spring — a time when everyone is hoping a widespread vaccine program begins to put the pandemic in the rear view — “I think there will be pent-up demand” for things to do, Wydra said. “We have quarantine fatigue right now; people want to gather, they want to be with people, and that’s our business. I’m encouraged by news of a vaccine and the progress made on that front. And people are still looking for safety protocols. We’ve got to lead with the fact that they can have a safe visit in our region.”

In the meantime, virtually everyone in the tourism and hospitality world has had to pivot, sometimes dramatically. “I’m proud of our attractions and hotels and restaurants, all of whom had to break from traditional business models and alter the way they do business during the pandemic,” she said. “We really pivoted from being destination marketers in the region to destination managers.”

Explaining that thought, she said communication was ramped up among the region’s businesses and attractions, with a lot of give and take and learning from each other’s experiences.

“For a period of time, we pulled back on the marketing because it made no sense — people weren’t traveling, and they didn’t know where they could go or what to do during the summer,” Wydra went on. “All things considered, we are holding our own. We’re nowhere near where we were in previous years, but when you look around the rest of the state and the rest of the country, we don’t look as bad as many regions. We’re coping.”

John Doleva was certainly hoping for a different sort of 2020 than the one he experienced as president and CEO of the Basketball Hall of Fame. The Hall unveiled a $23 million renovation this year, and the class of 2020 was one of the most star-studded in memory, headlined by the late Kobe Bryant, Tim Duncan, and Kevin Garnett. The pandemic certainly cut into the crowds that might be expected after such a renovation, and the 2020 induction was moved to Mohegan Sun in Connecticut.

The class of 2021 induction ceremony will be back in Springfield, he noted. But, perhaps more notably, after the Hall reopened on July 8 following a forced closure due to the state’s economic shutdown, visitorship has been about 55% of the prior year’s rate — a decent number, all things considered.

“Moms and dads who are at home want something to do with the kids on an afternoon when it’s raining,” he said. “And the NBA season going through the summer kept basketball top of mind.”

Despite the dueling travel advisories between the two states, the Hall has actually seen more visitors from Connecticut than Massachusetts this year. “People know they can come for a few hours, be safe, and go home,” Doleva said. “I thought 35% to 40% of the prior year would be a good year, so we are pleased with where we are right now.”

It helps that the Hall, whose revenues were nearly 100% admissions-driven when its current building first opened in 2002, operates under a much different model today, with visitorship accounting for about 16% of revenue. That’s good, Doleva added, because visitor numbers can fluctuate with something as minor as a jump in gas prices, let alone a global pandemic.

“We have forecasted we can survive in COVID mode all the way through 2021. I call that a glide path in terms of cash flow,” he told BusinessWest. “But we expect we’ll be out of this by April or May, which positions us for a great summer season.”

 

Measurable Impact

The Big E, on the other hand, can’t sustain its current level of business — meaning, if the fair gets called off next fall … well, it’s not a scenario anyone wants to think about, for myriad reasons, starting with the Big E’s annual economic impact on the region, estimated at close to three-quarters of a billion dollars, all on an operating budget just over $20 million.

“That’s what makes Eastern States so important to so many people, whether you’re somebody who loves the exposition or a neighbor providing parking or a local business providing laundry services or printing services, or a hotel,” Cassidy said. “The breadth of the impact of the fair is very profound, and when it’s been compromised, like it was in 2020 … well, it really can’t sustain much more than what it’s experienced to date.”

News on a vaccine is welcome in the fair world, he added — “it can’t get here soon enough” — but he wonders how quickly people will want to gather en masse, even after a vaccine is widely distributed.

“People’s sensibilities are clearly going to be influenced by COVID. They say if you do something for two weeks, you can create a habit. Now, add up the number of weeks we’ve been sequestered or people haven’t gone out to dinner. There will clearly be changes in people’s sensibilities. But humans are social animals, and we like being with each other. I take some comfort in that.”

Rosskothen, who hosted a Big E event at the Delaney House recently, featuring fair food and craft vendors, has pivoted in other ways as well, from letting people reserve entire small rooms at that restaurant to planning to keep the outdoor tent up — with heaters running, of course — well into the cold months.

His restaurant business is around 75% to 80% of a normal year, in fact, with the biggest change coming in the volume of takeout and delivery, which currently account for about one-third of sales. He’s also bullish on next year’s events slate at the Log Cabin, assuming crowds are able to gather once again.

“Next year could be the best year we’ve ever had, if we can do all those events. They’re social events — weddings, showers,” he said. “I feel like the social-event business will boom next year.

He’s more reserved about corporate events, feeling that companies will be more timid and want to stick with remote and hybrid events for a while. “But I feel like, when social events are allowed, people will do it. I’m optimistic that the event business will be very good next year.”

Wydra is similarly optimistic, although the region is entering a winter season bereft of large-scale events like the AHL All-Star Classic in 2019 and Red Sox Winter Weekend at the start of 2020.

Even so, she said, “we have tried to be mindful of the phases that our state is going through, and I think our attractions and hotels and restaurants have done everything they can to keep guests top of mind, in terms of offering a safe environment for them.”

Those tourist attractions have come to rely on the GSCVB more than ever for regional destination marketing, she added, because their own budgets have been stretched to the limit this year, and marketing efforts are easily cut when a business is struggling just to cover the mortgage and payroll.

“So many attractions are working so hard to make sure we’re in good shape,” said Doleva, who serves as the bureau’s board chair. “We have an aggressive plan to market and promote the region.”

Wydra agreed. “We’re trying to get the message out there, what these attractions have to offer. Our role as been heightened,” she said. “We’ve learned a lot throughout this pandemic. We’re a resilient industry, and we will come back.”

 

Joseph Bednar can be reached at [email protected]

Berkshire County

Culture Shock

Berkshire Theatre Group managed to present a musical in August

It took plenty of creativity — in the set design and elsewhere — but Berkshire Theatre Group managed to present a musical in August when no one else could.

For the folks at Berkshire Theatre Group, things were going according to plan.

A three-year sustainability plan, to be specific, developed back in 2018, said Nick Paleologos, the organization’s executive director.

“We had a checklist of things we needed to do in addition to putting on a decent artistic season in 2019, and we hit a lot of goals. As we hit 2020, we had just two or three outstanding boxes left unchecked, when all of a sudden, in mid-March, our world was turned upside down.”

Versions of that story have been told countless times not only in Massachusetts, but around the country and the world. But for the performing arts, it’s been a particularly tough stretch.

“Starting around St. Patrick’s Day, all we were doing was canceling shows and returning money; we were really in a kind of freefall,” Paleologos continued. “What initially saved us in the short term, and bought us time to figure out how to reimagine our 2020 season, was the Paycheck Protection Program. That was a lifeline, and it accomplished exactly what it was supposed to do — it allowed us to stay in business for those crucial eight weeks in the spring.”

The 2020 season — the BTG was planning eight shows in its three indoor spaces in Stockbridge and Pittsfield — was certainly about to change. “All of a sudden, we had no idea whether we’d be allowed to perform at all,” he noted.

The journey that followed, culminating in live, outdoor performances of Godspell in August and September (more on that later), was a remarkable one, but it’s hardly the robust schedule the venerable company normally puts on. Meanwhile, performing-arts destinations like Jacob’s Pillow and Tanglewood canceled their live slates completely.

It’s a story that affects more than arts patrons; it impacts no less than the entire Berkshires economy, which is so intertwined with, and dependent on, culture and tourism.

Nick Paleologos

Nick Paleologos

“We hit 2020, we had just two or three outstanding boxes left unchecked, when all of a sudden, in mid-March, our world was turned upside down.”

“The visitor economy is definitely a backbone sector for us; it supports a tremendous amount of dollars in the region,” said Jonathan Butler, president and CEO of 1Berkshire, the multi-faceted agency that focuses on tourism, economic development, and business retention in Massachusetts’ westernmost county.

In fact, he noted, visitor dollars spent in the region over the years are approaching the $1 billion mark — and the presence of cultural attractions and other tourist destinations, from restaurants to ski resorts, is a major quality-of-life factor in business owners wanting to set up shop here.

“We were pretty heavily involved in the state’s reopening process — we played a key role in getting some of the museums open and fleshing out guidelines for hotels and restaurants,” Butler told BusinessWest, while 1Berkshire’s website has become an oft-updated clearinghouse of information on the region and its public-health response to COVID-19.

Due to belt-tightening everywhere, including among its strategic partners, 1Berkshire hasn’t operated with the same marketing budget it normally would. “But we have been able to raise enough money to do some things, and we’ve pivoted to a vision of the Berkshires that talks a lot about outdoor recreation, and about our museums and hotel properties that have been able to open.

“We’re talking about the Berkshires as an escape from the city,” he went on. “We’ve been trying to tell the story of the Berkshires as a place people can escape to and enjoy the outdoors. And, honestly, we’re feeling better than we were two or three months ago.”

A few success stories will do that, but stakeholders in the region are certainly hoping 2021 looks a lot different than 2020.

Out and About

Take, for example, Bousquet Mountain, which recently hired a new general manager and announced a series of renovations, including a new summit-to-base triple chairlift and a revamped snow-making system with more than 25 new snow guns, as well as new grooming equipment and a new, more accessible beginner area.

In addition, Pittsfield native and two-time Olympian Krista Schmidinger will partner with Bousquet to further the site’s youth programming, contributing to the Race Club and SnowSports School and assisting with race and school-program design, instruction, and one-on-one opportunities for young skiers. All this speaks to a resort expecting a busy season, even in the midst of COVID-19.

As for Berkshire Theatre Group, it had to fight to get a live production staged — a fight marked by creativity, not animosity. In short, the Actors Equity Assoc. wasn’t allowing any of its 59,000 unionized members to work in 2020 unless the safety of the actors could be assured.

Jonathan Butler

Jonathan Butler

“We’re talking about the Berkshires as an escape from the city. We’ve been trying to tell the story of the Berkshires as a place people can escape to and enjoy the outdoors.”

“We’re an Equity company, so that puts a little crimp in our plans,” Paleologos said. To stage Godspell, Artistic Director and CEO Kate Maguire developed a 60-page manual with detailed safety protocols, including quarantining, physical distancing, and regular coronavirus testing for actors. The actors were to be kept six feet apart at all times — 10 feet when singing — with this spacing and plexiglass dividers incorporated into the set design itself.

Maguire was denied at first, “but she was relentless,” Paleologos said. “She wouldn’t take no for an answer.”

When the company and the union finally struck a deal, BTG became the only company in the entire country performing or rehearsing a musical — a major success, he noted, considering that, just weeks earlier, no one knew whether they’d have a live theater season at all, and most companies nationwide didn’t attempt one, moving instead to virtual performances only.

Meanwhile, many patrons of canceled BTG shows exchanged their tickets for future credits or donated the tickets back as contributions, as a show of support for a company — and an industry — so important to locals.

“This is not a sustainable model going forward, performing under a tent for 50 people,” Paleologos said. “But it was a miraculous success story that was totally unexpected. Our goal was just to be a beacon of hope in an otherwise dismal moment in Berkshire County.”

It’s not the only such beacon.

“It’s too soon to gauge anything in the quantitative sense, but from what I’ve heard anecdotally, in conversations with different sectors in the visitor economy, those that have reopened have done all right,” Butler said. “A lot have changed their model — some hotels have a three-night minimum because of the cleaning expenses of turning over a room, and some businesses are closed a day or two a week to focus on cleaning and sanitizing.”

Last week, Main Street Hospitality Group, which operates several hotels in the region, announced the hiring of a COVID compliance officer, or CCO, who makes monthly visits to each hotel for routine inspections and engagement with staff and leadership. A board-certified physician, the officer strictly adheres to mandates from the state and the Centers for Disease Control and Prevention, and stays informed on the latest public-health advancements in order to advise on any necessary changes to the hotels’ protocols and procedures.

“In addition to several months of strategic planning that led to our initial creation of safeguards, it is equally important to continue evaluating our health and safety practices with the CCO’s help and expertise,” said Sarah Eustis, Main Street’s CEO. “A trusted editor was needed to process the ever-changing breadth of information out there.”

Meanwhile, the hotel group has also partnered with Blue Canary, a company that trains hotels in hospital-level cleaning methods and conducts regular check-ins. Main Street’s housekeeping leaders participated in three days of intensive sessions that focused on best practices and heightened awareness. Attendants were trained in techniques that include longer cleaning times, stronger disinfectants, new cleaning tools, and identifying critical, high-touch areas that require the most attention to ensure guest health and safety.

“This new reality has impacted our housekeeping teams in a huge way,” Eustis said. “Main Street Hospitality is committed to staying at the forefront of this.”

Restaurants have had barriers to overcome as well, Butler said, especially those that depend on visitor traffic at other area attractions. “Some have been able to pivot and focus on a delivery and takeout model, while others haven’t made the transition as seamlessly, and many don’t have the square footage inside to sit too many, and if they’re not able to adapt some outdoor seats, it can be challenging.”

The soon-to-arrive colder weather will force many eateries to become more creative until the state lifts restrictions on indoor capacity — and patrons feel safe enough to eat indoors.

“We certainly understand some businesses will have to make more permanent decisions about their fate. And some businesses, unfortunately, won’t make it to the other side of this,” Butler said. “But the outdoor recreation scene has been very busy — it’s flourishing this summer, and that will continue into the fall.”

Lessons Learned

Paleologos told BusinessWest that banks did a good job easing loan terms for cultural organizations and other nonprofits in the spring, and argues that the next step would be a permanent shift in that direction.

Writing this month in Berkshire Trade & Commerce, he cited a study in Berkshire Blueprint 2.0, an economic-development plan for Berkshire County, showing that jobs in the creative industry grew at a faster pace than in any of the other sectors examined.

“In other words, cultural nonprofits are absolutely central to the Berkshire brand,” he wrote. “The profitability of other commercial industries depends heavily on the success of this county’s theatres, museums, music, and dance companies. Creating new and innovative financial products that contribute to the long-term sustainability of the nonprofit sector must become a top priority for local banks. As an example, sufficiently collateralized operating loans to nonprofits must be offered at the most favorable rates — not the least.”

Meanwhile, Butler added, bringing visitor traffic back to 2019 levels will depend largely on people’s confidence regarding safety, and the public-health metrics on that front have been very good in the Berkshires. “We’re optimistic that will continue and we’ll come out in a stronger place at the end of this.”

That said, there certainly has been a visitor footprint in the Berkshires this year, he went on.

“We won’t have hard data until 2021, and I’m certain it’s going to be down — we don’t have a lot of the key economic drivers, like Jacob’s Pillow and Tanglewood. But on the plus side, we’ve seen a lot of visitation from Eastern Mass.; they see us as the rural side of the state. We’ve had a lot of visitors from Connecticut and New York. Second homeowners have been living here since March, making their Berkshire residence more permanent during the pandemic. All those dollars circulate back into the local economy, which is a good thing.”

Any forward momentum is welcome, Paleologos added. But so much still remains in flux.

“We can’t guarantee, by the time we get to next summer, we’ll be in a situation where we’ll be able to have shows indoors again,” he said. “The good news is, having had this experience, being able to find a way to do it outdoors, maybe we could incorporate a hybrid model, under tents and indoors. A lot is up in the air at this point, depending on how fast a reliable vaccine comes on the market and how much public confidence there is at its safety and efficacy.”

He noted that the theater business goes back to an amphitheater cut into the hillside at the Parthenon 2,500 years ago — and likely before that.

“From then up to now, the bedrock of our business is people coming together in a single place to have a shared experience and to learn a little bit about what it is to be a human being,” he said. “That’s what we do.”

That’s what the Berkshires do, too, bringing people together every year for an array of activities, many of which have been curtailed in this year of COVID-19.

But the show will go on, eventually — with or without plexiglass.

Joseph Bednar can be reached at [email protected]

Community Spotlight Franklin County Special Coverage

Waiting Game

Scenes like this one are nowhere to be found right now at Historic Deerfield

Scenes like this one are nowhere to be found right now at Historic Deerfield, which is developing plans for a September opening.

Magic Wings is a year-round operation, Kathy Fiore said — even when its doors are shut.

“This is different from a clothing store,” said Fiore, who co-owns the butterfly conservatory in Deerfield with her brother. “When we closed our doors, we still needed to have staff here, because we have to take care of whatever is happening. Butterflies are laying eggs every day. Caterpillars are hatching out every day. We need to feed and care for the lizards, tortoises, birds, fish … all sorts of animals have to be taken care of.”

And that means expenses that don’t disappear when no visitors show up — which they haven’t since the facility closed to the public in mid-March, part of a state-mandated economic shutdown in response to COVID-19.

“We kind of saw it coming, and then it just happened,” she said of the closure. “As owners of the business, we’ve tried to remain positive and upbeat and assure our staff, assure our customers.”

As for when Magic Wings will be allowed to reopen, phase 3 looks most likely, which means very soon. But the state’s guidance is only one consideration. The other is keeping visitors safe and helping prevent a viral flareup in a region that has effectively depressed infection rates, as opposed to states like Florida and Texas that were more lax about regulating crowds — and have seen cases spike in recent weeks.

“When we closed our doors, we still needed to have staff here, because we have to take care of whatever is happening. Butterflies are laying eggs every day. Caterpillars are hatching out every day. We need to feed and care for the lizards, tortoises, birds, fish … all sorts of animals have to be taken care of.”

“My brother and are watching how things are going,” Fiore said. “We’re certainly watching other businesses open back up, but we’re also hearing about the resurgence in certain places, about people getting together and going right back to a situation we don’t want to be in.”

Historic Deerfield, which shuttered its buildings to the public a few weeks before the start of its 2020 season, doesn’t expect to reopen most of them until September.

“We had a lot of different challenges and things to figure out,” said Laurie Nivison, director of Marketing, explaining why the organization’s leadership isn’t rushing back before they feel it’s safe. “Just thinking ahead to when it might be possible to open again, we decided to move some bigger things to the fall. The fall season is always a big time for us. That’s when people start thinking they want to come to Deerfield, so we said, ‘let’s look at opening around Labor Day weekend.’”

Losing an entire spring and most of summer is a considerable financial hit, of course, and the center was forced to lay off dozens of staff. But at the same time, it has looked to stay relevant and connected to the community in several ways, including putting a series of ‘Maker Monday’ workshops online, taking a virtual approach to teaching people how to stencil, make their own paper, or building a decoupage box, to name a few recent examples.

Meanwhile, museum curators have been sharing plenty of interesting artifacts from the collection online, while the director of historic preservation recently took people on a virtual tour of the attic of one of the historic houses.

“People never have the opportunity to do that, so that was great,” Nivison said. “We’ve become really creative trying to think of what we can do to bring Historic Deerfield to people when they can’t come here. Being closed down, we still want to have people engaged.”

Many Franklin County attractions, especially of the outdoor variety — such as Zoar Outdoor and Berkshire East in Charlemont, where people can engage in ziplining, biking, kayaking, and other outdoor activities — are already open. But indoor attractions face different challenges and are on a different reopening pace, due to both state guidelines and their own sense of caution.

But a wider reopening is the goal, as area tourism officials consider the region a connected ecosystem of activity that draws visitors to take in multiple sites, not just one. In short, the more attractions are open, the more each will benefit.

Kathy Fiore says Magic Wings won’t reopen

Because it’s an indoor attraction, Kathy Fiore says Magic Wings won’t reopen until she’s confident visitors will be safe.

“We’re talking a lot about how we can convince visitors to come back when the time is right because there’s so much outdoor fun you can have here,” said Diana Szynal, executive director of the Franklin County Chamber of Commerce. “We have hiking, cycling, fly fishing, regular fishing, walking trails — there’s so much opportunity for things to do here that are perfectly safe and healthy.”

Safety First

Szynal was just scratching the surface when she spoke to BusinessWest. From retail destinations like Yankee Candle Village to museums, golf courses, wineries, and covered bridges, it’s a region that has plenty to offer, and attractions like Magic Wings and Historic Deerfield certainly sense anticipation among fans and potential visitors when they connect with the community on social media.

But they also don’t want to jump the gun and see the region turn into another Houston.

“It’s been a little unnerving, but from the beginning, my brother and I didn’t want to reopen until we feel it’s safe, even if the government lifts the regulations for businesses like Magic Wings. We don’t mind waiting it out a little bit to make sure everything is safe,” Fiore said.

“We normally can take in a lot of people, but we’re different because we’re an indoor facility,” she added, noting that Magic Wings will follow the state’s guidelines for social distancing, masks, and crowd count, while considering options like visiting by appointment as well. “We’re trying to think of all the different things we can do to make sure people are really safe but still have a pleasant experience.”

It helped, she said, that the conservatory procured a Paycheck Protection Program loan to keep its staff paid, and now that reopening approaches, she’s hoping to get everyone back on the regular payroll. “We’re responsible for the livelihood of a lot of people.”

But the shutdown also posed an opportunity, she added. “It’s beautiful here — it’s in pristine shape, because we were able to do some cleanup things, different projects, that we don’t have the opportunity to do when we’re open every single day. We hope to welcome people back to a nice, fresh environment that’s better than they remember.”

While the museum houses of Historic Deerfield remain closed for now, the organization got a boost from the reopening of Deerfield Inn and Champney’s Restaurant & Tavern. The week she spoke with BusinessWest, Nivison said the restaurant already had more than 100 reservations lined up for the following week.

Those facilities will benefit from September’s museum reopening, but this fall may still look a little different than most, as tours may be limited — or be smaller, self-guided experiences — while outdoor tours may be expanded. Demonstrations of trades like blacksmithing may be moved outdoors, while the annual Revolutionary muster event, typically held on Patriots’ Day in April, will likely happen this fall as well.

“We’ve become really creative trying to think of what we can do to bring Historic Deerfield to people when they can’t come here. Being closed down, we still want to have people engaged.”

“We want to be able to give a good experience to folks and really take advantage of all the outdoor things they can do,” Nivison said. “There are a lot of things we can do.”

One thing people aren’t doing as much as they normally would is getting married — with crowded destination receptions, anyway. Because Magic Wings is a popular spot for weddings and receptions, that was another significant revenue loss this spring and summer, Fiore said.

“Couples had to shift everything, and a couple bumped their weddings into 2021. One couple canceled altogether,” she told BusinessWest, noting that weddings already have a lot of moving parts, and couples are simply unsure right now how many guests they’ll be allowed to include until the state offers more guidance.

All Aflutter

That said, Fiore has been buoyed by the number of people calling since the closure. In addition to its social-media presence, Magic Wings also recently ran a television commercial featuring soothing sights and sounds inside the conservatory — to put a smile on viewers’ faces more than anything.

“It was an opportunity for people to take a deep breath,” she said. “We’re all in the same boat, we’re all experiencing something totally new, and we’re all concerned and feeling anxious about what’s going to happen — what’s safe and what’s not.

“People love butterflies, and they do come see us from all around,” she added. “But they also want to know it’s not going to be a huge health hazard, and that’s what we’re working toward.”

Szynal understands the concerns, too.

“People are taking this seriously,” she said. “I see the masks. When people are out on errands, walking through stores, they’re giving each other space. As long as this behavior continues, people will feel better moving around a bit more” — and that includes visiting Franklin County attractions.

“I feel people respect this virus and respect each other,” she concluded. “So far, they’re taking the steps they need to keep Massachusetts on the right track.”

Joseph Bednar can be reached at [email protected]

Coronavirus Special Coverage

Destination Unknown

John Doleva

John Doleva says the Basketball Hall of Fame still has a big, important year on tap, even if the schedule has shifted quite a bit.

As he talked with BusinessWest about his industry and his family’s hotel group, Kishore Parmar kept glancing back and forth between the lobby of the Hampton Inn in Hadley and the parking lot outside.

He did so with a look that blended something approaching disbelief — still, after roughly three months of the same view — with resignation.

“This lobby is essentially empty, and this is not how it is,” he explained. “If this were a normal day in June, you’d see families, you’d see business people in and out, there would be staff going up and down the hallways. We would be sold out for tonight, or very close to it.”

Instead, there would be maybe six or eight people staying in this 71-room hotel just off Route 9 that night. The lobby was empty. Just a few vehicles dotted the parking lot, all of which Parmar could identify as belonging to staff.

This view is a metaphor of sorts for what hotels have been experiencing since mid-March, something none of those in it have ever seen before. Business for the Pioneer Valley Hotel Group — which also includes a La Quinta by Wyndham in Springfield, Hampton Inn and Homewood Suites by Hilton in Hadley, Holiday Inn Express in Ludlow, and Hadley Farms Meeting House in Hadley — is off roughly 80% from what it was a year ago. And the numbers would be even worse if some first responders didn’t stay in these hotels in the early days of the pandemic.

Perhaps the most unsettling thing is that Parmar doesn’t know if, when, or for how long things will get appreciably better.

But while the view for all hoteliers in the region is similarly troubling, there are some signs of life in the broad tourism and hospitality sector. Indeed, many area restaurants are now open for outdoor seating, and a good number of them are creating intriguing spaces as they welcome back customers that have been relegated to takeout for more than three months.

Signs at the Hall of Fame

Signs at the Hall of Fame will use players’ wingspans to send a message about standing six feet apart — or, in Giannis Antetokounmpo’s case, more than seven feet.

Meanwhile, some tourist attractions are moving closer to opening their doors. The state’s casinos are eyeing a late June opening — although MGM Springfield has not committed to a specific date — while the Basketball Hall of Fame, which is in the final stages of a $23 million renovation project, is targeting July 1 as its reopening date.

President and CEO John Doleva isn’t sure what kind of turnout that opening will boast, although he told BusinessWest the Hall will be aggressive in marketing what was supposed to be a high point in a year of many high points.

“In January, I sat down with the senior staff and said, ‘first of all, this is going to be the greatest class ever — Kobe (Bryant), Tim Duncan, Kevin Garnett. That was before Kobe passed away, which was pretty unbelievable,” he recalled. “On top of that, we had a 100% new museum, top to bottom, that was going to open up on May 1” — not to mention a commemorative coin from the U.S. Mint, to be unveiled at the Final Four in early April.

The coin was eventually released, but the Final Four was cancelled, the 2020 induction was moved into 2021, and, who knows what the July 1 grand opening will bring? But Doleva is optimistic.

“The good news is, all these things are going to happen; it’s not like we lost them. They’re just not on the time frame we thought they would be,” he said. “But we do feel that people want to do stuff — but how will they decide?”

That equation has surely changed in the year of COVID-19.

“People always ask, ‘what am I going to see, what does it cost, how far away from my house is it, and what kind of experience is it?’” he noted. “But kind of rising to the top is, ‘what kind of procedures and protocols does an organization have in place to ensure my family’s health and safety?’

“Safety is paramount at any tourism destination at this point,” Doleva added. “You’ve got to communicate not the traditional marketing of ‘we’re fun and we’re affordable; your family’s going to have a great time and talk about it forever.’ It’s also, ‘you can come here and feel safe — and here’s everything that we’re doing.’”

And that presents an opportunity in a region rich in attractions that are often taken for granted by locals. There are indications that, due to real concerns about traveling in anything but a car, area destinations might get a boost from those looking to take a ‘staycation,’ rather than typical vacation, and that includes visiting sites where they feel safe.

“This lobby is essentially empty, and this is not how it is. If this were a normal day in June, you’d see families, you’d see business people in and out, there would be staff going up and down the hallways. We would be sold out for tonight, or very close to it.”

But a host of challenges remain for this sector, and questions remain about everything from how hotels will serve guests breakfast to whether there will be a Big E — which benefits a number of businesses in this sector — and what that fair might look like. But as tourism lurches back to something resembling life, there’s plenty of hope in the air, too.

Animal Attraction

It was opening day at the Zoo in Forest Park & Education Center in Springfield — a full nine weeks later than usual — but Sarah Tsitso liked what she saw.

“People are definitely responding,” said Tsitso, the zoo’s executive director, as guests took advantage of a new timed reservation system that, at least for now, lets only 10 people in every 10 minutes, to promote social distancing. “It’s great seeing families and children so happy being out seeing the animals, and the animals are happy to see their friends come back. We close the first week of November. That’s a long time to be closed to the public.”

The key word is ‘public.’

“The zoo is open 365 days a year for the animals. They live here, and they’re fed and get vet care whether it’s winter or summer. We rely on the visitor season to generate revenue for the months we’re closed.”

Those nine lost weeks cost the center some $200,000 in revenues, losing not just gate receipts but educational programs, a robust schedule of spring field trips, and three major events typically held annually between March and July.

“That’s a pretty huge loss,” she said. “We’re still not sure what’s happening with summer camps, which would start around June 25. We’re not sure what that’s going to look like.”

Whatever shape the summer takes, it will be better than the waiting game to reopen, during which the zoo managed to secure a Paycheck Protection Program loan to keep staff working and developed the protocols now in place, from a mask requirement and sanitizer stations to additional barrier fences and a one-way path around the grounds.

“It was certainly challenging, but manageable,” Tsitso said. “The biggest change was probably the timed ticketing system. But we were quickly able to identify a system that works for us and get it up and functioning. We were just waiting for the green light.”

The light turned decidedly red for Peter Pan Bus Lines back in March, CEO Peter Picknelly told BusinessWest.

“We ran for a few weeks once the pandemic hit, but within two and a half weeks, sales declined over 90%. So we shut down for about eight weeks,” he said. “Shutting down was one of the hardest things we have ever done.”

When the buses did start rolling again earlier this month, making limited runs to major destination cities, Picknelly was pleasantly surprised. “Activity has been pretty good,” he said after the first week, adding that the second week was looking even busier. “There’s a pent-up demand to get out of Dodge, and that’s what we help people do.”

One issue is that destination cities like Boston and New York are still reopening in their own way, and once the big cities fully open, he expects more of a rush. For now, the company is getting its “sea legs back,” he said, and making sure everyone on the bus feels safe.

Kishore Parmar

Kishore Parmar says the most unsettling thing about the pandemic, from the hotel industry’s perspective, is not knowing when business might get better.

To that end, Peter Pan has improved its contactless boarding procedures while introducing PermaSafe, a CDC-approved product that purifies passenger cabin air while making interior surfaces anti-microbial and self-sanitizing. The company also uses electrostatic handheld sprayers to sanitize and disinfect the buses every night. In addition, passengers are required to wear a face mask at all times, and employees have been issued personal protective equipment, including face masks and hand sanitizer.

“Here’s my theory — nobody wants to get sick; nobody wants to get someone else sick,” Picknelly said. “But nobody wants to be cooped up any longer, either. A lot of what we do is leisure travel, but people also have to travel for medical appointments, for school, for business. There’s not only a pent-up demand to get out of Dodge, there’s also a need.”

But, they also need to feel safe, he said. “As time goes on, people will be more and more comfortable getting out. I’m confident this is going to end way sooner than people think. And I think any smart business person knows, if you want customers to come in — and come back — you’ve got to make them feel safe and comfortable.”

At the hall of fame, protocols in place for the opening include regular disinfection of all frequently touched surfaces, complimentary stylus pens to use on interactive touchscreens, an electrostatic disinfectant air-mist system, and … well, the list is frankly too long to detail all of it here.

“We’ll have the clean team out in the museum unlike ever before,” Doleva said. “People will see it in action.”

And it’s important they see it, he added.

“People are clamoring to get out. They’re looking for the safe places that are paying attention — but I definitely think there is pent-up demand.”

Some will want to be among the early visitors, he added, while others will take a wait-and-see approach. “It will be a short summer, but we are going to showcase the museum. This is a grand-opening summer, and everyone has the opportunity to come here.”

Room for Improvement

Parmar told BusinessWest that, for his group’s hotels, and most all facilities not in the shadow of ski resorts, winter is a slow, difficult time.

And what he fears is that, unless some things change, 2020 might take on the look of a 12-month-long winter in terms of occupancy rates and overall vibrancy.

“We might go from winter … right into another winter,” he said, adding that July, at this moment, doesn’t look much better than June, and the rest of summer and fall amount to a giant question mark.

The company has essentially seen its busiest season wiped off the calendar, losing college commencements, visits to area colleges and universities, business meetings, weddings, bridal and baby showers, and much more.

This certainly isn’t what the company was expecting in 2020, a year that began with hopes and expansion plans. Indeed, this is the first full year for the Homewood Suites facility, opened just over a year ago and off to a solid start, and there were plans to create a new hotel on the site of the old Howard Johnson’s on the Mohawk Trail in Greenfield and completely renovate the Roadway Inn in Hadley, which is currently closed.

That’s were. “We had a plate full for this coming year, and we were very excited about it, but then we had it all taken away,” Parmar said, adding that those projects have been put on ice, and the company is essentially trying to make the most out of what will be a trying year.

The company applied for and received a PPP loan and used it to bring its employees back to work after many were furloughed earlier in the spring. The problem now is that the money is running out, and business certainly hasn’t come back — as evidenced by the parking lot and the front lobby. Parmar said there is little if any leisure business at this point, and also little if any business travel, as companies continue to rely on Zoom meetings.

“We’re bootstrapped right now — we’re counting every penny, we’re counting every dollar,” he said. “We’re doing our best to reduce every cost there is.”

While hotels might continue to struggle, however, many in the tourism sector feel they will see more ‘staycation’ action than usual — particularly if out-of-state travelers are put off by Massachusetts’ suggested (but not required) 14-day quarantine when entering.

“If someone from Enfield wants to come to the Hall of Fame, they’re not going to take a 15-day trip to see a one-day experience. So that’s got to be clarified,” Doleva said. “I do think it is an impediment to tourism. People see ‘suggested,’ they think ‘required.’ So we’re hoping for some clarification because it affects us, and it affects hotels, restaurants, and other attractions.

Doleva said he never foresaw what 2020 would bring when he began a two-year term as board chair for the Greater Springfield Convention and Visitors Bureau back in November. But he’s been impressed with the planning the GSCVB has done to hit the ground running once tourism ramps up again this summer.

“We have a very aggressive plan to advertise the region like never before, the attractions especially,” he told BusinessWest. “We’ve never brought people together the way we are now. That’s a blessing in disguise — this is bringing the different factions of the tourism business tighter than ever.”

As chair, he also hopes elected leaders develop a greater appreciation of the impact of the tourism and hospitality industry and the numbers of people it employs, as well as the taxes it generates — and make investments in supporting tourism statewide over the long term.

“I think, if we look for the silver lining, this has caused us all to step back and focus on how we’re all interdependent, and when one improves, we all improve,” he added. “We know we have something special out here. It’s a nice place to visit, we’ve got a lot of things to do, and the industry is very focused on safety. Now we need to move forward together.”

Joseph Bednar can be reached at [email protected]

Cover Story

A Six-month Checkup

Mike Mathis, foreground, with recently promoted MGM employees

Mike Mathis, foreground, with recently promoted MGM employees, from left: Marissa Dombkowski, Bill Blake, and Nickolaos Panteleakis.

A half-year after opening its doors, MGM Springfield is well behind its stated goals and expectations for gross gaming revenues, or GGR, and the numbers have been declining each month since the fall. But the winter months are traditionally the slowest in this industry, said Mike Mathis, president and COO of the resort, and the company is still ramping up its operation. Overall, he said, there are a number of positive indicators.

‘Ramping.’

That’s the word you hear quite frequently from MGM’s leaders as they talk about the $950 million property in Springfield’s South End. Jim Murren, president and CEO of MGM Resorts International, used it early and often in a conference call with stock analysts last month following the release of MGM’s fourth-quarter earnings in 2018.

And Mike Mathis, president and COO of MGM Springfield, leaned on it as he talked with BusinessWest late last month, six months after the facility opened its doors. With casinos like this one, Mathis said, the ramping-up process, if you will, goes on for three years or so and is quite involved.

It entails watching, listening, learning, and adapting, all with the goals of growing visitation and, therefore, the bottom line, while also improving efficiency and making the operation in question more profitable.

“I think it’s premature to judge us, or anyone, on a partial data set; it’s a little early to say we’re going to underperform or overperform for our first year.”

“In the context of a new resort, it’s commonly understood within the industry that there’s a three-year stabilization period — a ramp period to stabilization,” he explained. “Three years serves as a benchmark. You’ve been through a few different seasonality rotations, you see the different ranges of weather, you see the different ranges of how holidays land, whether they land on weekends or midweek — you get all those different scenarios.

“You’re also building up your database,” he went on. “Seeing how your competition’s reacting to what you’re doing — how are they activating their property. You get a feel over a couple of years — did we do well that weekend because the competition didn’t have much going on? Or did we suffer because they put in a big act to counter that weekend? That all shakes out over two or three years.”

These references to ramping up are being generated by questions about revenues at MGM Springfield, and, more specifically, about why they are not approaching the numbers the company projected to the Mass. Gaming Commission.

‘Slower’ is the operative word being used with regard to revenues, and it fits if one considers MGM’s projections of $418 million in annual gross gaming revenue (GGR) in its first year of operation, or $34.8 million per month. Indeed, the company recorded $21.58 million in GGR in December, and just $19.7 million in January (February’s numbers will not be released for a few weeks). GGR for November was $21.2 million, the number was $22.2 for October, and in September, it was $26.95 million.

Mathis, while certainly acknowledging that the numbers are lower than projected, at least for the winter months, told BusinessWest that the $418 million projection given to the Gaming Commission was made several years ago, and that the landscape has changed in some ways since then.

Mike Mathis says the winter months are traditionally the slowest for casinos

Mike Mathis says the winter months are traditionally the slowest for casinos in the Northeast, and he is optimistic that visitation will climb as the mercury does.

Meanwhile … it’s early, said Mathis, referring to the fact that the casino has only been open for six months, and a few of those months (January, February, and early December, before the holidays) are among the slowest for casinos, especially those in the Northeast.

“I think it’s premature to judge us, or anyone, on a partial data set; it’s a little early to say we’re going to underperform or overperform for our first year,” he told BusinessWest. “If you look at our August and September numbers, we would have exceeded our expectations. And going into the winter months … that’s the low end of the season.”

And, overall, the casino is still ramping.

That means it’s still learning, collecting data, watching patterns develop, and adapting to what the data shows. As he said earlier, it’s an involved process that involves a number of factors, including the weather. Make that especially the weather.

Mathis said he and his team are tuned into the forecasts, because one thing he’s noticed thus far — and this counts as one of the surprises on his list — is that, despite a reputation for being hardy, people in New England are apparently easily scared off from traveling in snow — or even forecasts of same.

“We thought New England would be hardier than what we’ve seen on some of these snow days,” he said with a laugh. “We’ve had a little bit of experience with snow in Detroit and Atlantic City, but I think every market is unique, and we’re learning some of the patterns and behaviors.

“And it’s not just snow,” he went on, sounding much like area golf-course operators when they talk about rain and how it impacts them. “It’s what type of snow and what time of day it hits and what day of the week it hits. Weather forecasts have become an important tool for operating and planning; it’s been a very interesting learning curve.”

One that extends, as he said, well beyond snow, and into other realms such as where people are visiting from, how often they visit, which games they play, which restaurants they frequent, and much more.

Overall, and as might be expected, Mathis is optimistic that the monthly numbers for GGR will improve as the weather gets better and the casino can make much better use of its outdoor facilities with concerts — Aerosmith is coming for the first-anniversary celebration — and other activities.

But looming over MGM Springfield, in a big way, is the opening of a competing casino in Everett, slated for sometime this summer. Mathis said that development will further alter the landscape and certainly add new wrinkles to the ramping process.

Driven by Data

Mathis told BusinessWest that this first six months of operation have been a learning experience on all kinds of levels, and this, too, was to be expected, because gaming is still relatively new to Massachusetts (Plainridge Park Casino, a slots facility, opened in the fall of 2017), and while those at MGM had expectations, they didn’t know exactly what to expect.

What have they learned? For starters, they’ve learned that visitors much prefer the weekend to the weekdays. And while that sounds obvious, the disparity in the numbers is eye-opening.

“I’m surprised at how weekend-centric the business has been — the difference between weekends and weekdays is pretty dramatic,” Mathis noted, adding that, with the former, visitation averages roughly 18,000 to 20,000 a day, while with the latter, it’s closer to 10,000.

This disparity is far greater than it is in Las Vegas and with most other MGM properties, said Mathis, adding that one big reason for this is a still-ramping (there’s that word again) meeting and convention business in Greater Springfield.

Mike Mathis says the ROAR! Comedy Club has become a solid attraction for MGM Springfield

Mike Mathis says the ROAR! Comedy Club has become a solid attraction for MGM Springfield and a vehicle for bringing new audiences to the resort.

“We have the ability to impact those numbers midweek by putting more convention groups in the MassMutual Center, getting more citywide events, and getting more entertainment mid-week, which we plan on ramping up,” he explained. “There’s ways to impact that midweek business to the benefit of the entire downtown.”

What else have they learned? There’s that aversion to traveling in snow that was mentioned earlier. That was in evidence a few weeks back. The weekend before Presidents Day was one of the best the casino had since it opened, said Mathis, crediting MGM’s ROAR! comedy shows and a host of other things happening downtown and elsewhere, including two Thunderbirds games and a camping and RV show at the Big E, for the surge, one that contributed to one of the few real traffic jams recorded since the property opened.

But the holiday itself (a day off for the vast majority of workers in this region) was considerably slower, and Mathis believes that the few inches of snow that fell overnight had a lot to do with this. Of course, Monday is also a weekday.

What else? Well, to date, MGM Springfield is “underperforming” (Mathis’ word) when it comes to attracting people from Central Mass. Indeed, while the casino does well in drawing people from Upstate New York, New Hampshire, Vermont, and Connecticut (the I-91 corridor), the numbers from the central part of the state are less impressive, which, if you take the glass-is-half-full approach, which Mathis does, means there’s considerable room for growth.

“We’re trying to understand the phenomenon of east-west travel on the Pike, frankly,” he explained. “I think there’s a bias to go north-south — I think that might be the more the traditional traffic pattern, and that’s what the data shows — but we’re also doing well with Boston.

“The good news about how this data shakes out is that there’s upside opportunity for us in Central Mass.,” he went on. “And this might blunt the impact of the Everett casino.”

There have been a few other surprises, including the number of people making their first visit six months after the ceremonial ribbon was cut.

“I’m still surprised by how many people I’m meeting on the floor who are seeing it for the first time,” he said. “Our team has been at this since 2012, so sometimes I feel that anybody who was interested in coming would have come in the first month or two. But there are people hitting the floor every day who are brand new, and for whatever reason have decided that this is the weekend they want to check it out.”

A Laughing Matter

While much of the media’s focus has been on GGR and the hard fact that the numbers are not where they were projected to be, Mathis said there are a number of positive developments to note as the casino passes that six-month mile marker. Here are several he listed:

• The data clearly shows that the opening of MGM Springfield has grown the overall gambling market in this broad region, he said, adding that this becomes clear when one does some simple math and looks at MGM’s revenues and the declining numbers for competitors. The former is larger than the aggregate of the latter, which translates into growth, which bodes well for all players.

“I think one of the good things about new properties coming into the market is it keeps everybody in a position of having to keep up.”

“I’ve met countless customers on our floor who have said that MGM Springfield is their first casino gaming experience, and there’s a few reasons for that,” he said. “Some say they were in Las Vegas, they’re Mlife members, and they’d been to a convention or show, but didn’t happen to go into the casino on that trip; with this in their backyard, they thought they’d give it a try. Others will say they like our non-smoking gaming environment and had never gone into another casino because they didn’t want the smoke; that’s a real competitive advantage for us.”

• The ROAR! Comedy Club has been a solid addition to the MGM lineup, helping to drive visitation, especially during some of the slower months on the calendar. Located in the historic Armory, the shows have drawn consistent crowds, said Mathis, adding that, as the calendar turns to spring and then summer, the team at MGM Springfield will look to maximize its outdoor facilities with a full slate of entertainment to be announced in the coming weeks.

“In talking with the comedians, they say we’re now the buzz within that community — it’s a cool venue, something all the comics want to play on their East Coast rotation,” he told BusinessWest. “it’s a great way to expose the building to different customers.”

• The team continues to find new ways to leverage its many facilities at the casino, said Mathis, noting that it has added entertainment in its ballrooms — Sinbad recently performed two sold-out shows — and the staff continually looks for new opportunities.

“We’re doing a lot of fun activations in different parts of the resort,” he explained. “We want to make sure we understand the booking patterns for convention and meeting groups, and when we see holes, it’s like an empty airplane seat; how do you fill it, and how do you bring new customers to the resort?”

• The hotel and food and beverage side of the casino operation has been exceeding expectations, said Mathis, adding that, among other things, a recently added weekend brunch at Cal Mare restaurant has helped grow that side of the equation.

“Our hotel and restaurant business has been extremely strong, and we thought that would be the case, because there’s good, local lodging and F&B in the market, but perhaps not to a Vegas standard, and we believe we’ve brought a Vegas standard to this market. We’ve exceeded occupancy, and we’ve exceeded our average daily rate.”

• But despite this success, there has been some spillover to other area businesses in this sector, and this is by design, said Mathis, noting that the hotel, with 252 rooms, is not particularly large, and the dining options, while growing (groundbreaking on a Wahlburgers is slated for later this year), leave plenty of opportunities for other eateries in the downtown.

“One of the reasons we sized the hotel the way we did was that we wanted to make sure that developments like ours have a spillover effect to other businesses,” he said. “And we wanted to make sure that came true. Some restaurant owners, including the Caputo family at Red Rose, have been quoted as saying that their business is up 20%, and people are expanding and extending hours.”

• Likewise, the numbers regarding the workforce have been generally positive, said Mathis. He estimated a 35% churn rate since the facility opened its doors, and noted that, while this might sound high to business owners and managers in other sectors, it’s in line with industry norms and actually lower than in many other areas.

Meanwhile, the targets for hiring Springfield residents, veterans, women, and minorities have all been met or exceeded, and many employees have already moved up the ladder since the casino opened its doors.

“I got the stat the other day … I think we’ve had 200 or so promotions since day one, and 30% of those are Springfield residents,” he noted. “Nothing makes me prouder than to see a line-level employee on day one who’s now wearing a suit in a supervisory management role. And it’s happening.”

As examples, he cited three employees who joined him for photos later in the day: Bill Blake, formerly graphic supervisor and now creative manager; Nickolaos Panteleakis, formerly Front Services manager (where he handled many front desk duties) and now director of Front Services; and Marissa Dombkowski, who has been promoted twice already — she started as an HR communications specialist, moved up to Entertainment Marketing coordinator, and is now Marketing manager for the MassMutual Center.

Overall, and to recap, Mathis reiterated that ramping up is, indeed, a three-year process, one that involves a serious learning curve on many different levels.

“I tell my team all the time, ‘if it were easy, everyone would do it,’” he said of casino operations in general. “That’s why we’re here — to manage through, collect data, and be smarter every day as we collect data and finetune the business.”

Driving Force

Mathis was one of those people caught in that traffic jam on the Saturday of Presidents Day weekend.

He told BusinessWest that it took him more than 45 minutes to get to an event downtown from his home in Longmeadow, normally a 15-minute drive. But unlike most others, he certainly wasn’t complaining.

“I’ve never been happer to be in stand-still traffic,” he said, adding that, while it has always been MGM’s goal to minimize such disruption, he’ll gladly take more nights like that in the weeks and months to come.

And he predicts he’ll be getting more as that ramping process continues.

George O’Brien can be reached at [email protected]

Tourism & Hospitality

Rolling Out the Welcome Mat

Mary Kay Wydra (left) and Alicia Szenda

Mary Kay Wydra (left) and Alicia Szenda say the GSCVB works closely with area hotels as part of efforts to draw conventions and other events to Greater Springfield.

There’s more than one way to look at a number. That’s especially true when it comes to hotel occupancy rates.

Take Greater Springfield’s occupancy rates through the last six months of 2018. At almost 67%, they’re 5% higher than they were over the same period in 2017.

That’s good news on its own, but especially positive when considering the capacity added over the past 18 months, from Holiday Inn Express on State Street in Springfield to Fairfield Inn & Suites in Holyoke; from Tru by Hilton in Chicopee to, of course, the hotel at MGM Springfield, the resort casino which is perhaps the region’s top tourism development in decades.

“We’ve definitely seen growth,” said Wydra, president of the Greater Springfield Convention & Visitors Bureau (GSCVB), adding that the average daily room rate also rose by $3 over that time frame.

“The fact that we added inventory and we’re still able to grow rate and grow occupancy is a really good thing,” she noted. “In analyzing that, a lot of it is the MGM factor, and it’s conservative because MGM didn’t open until the end of August. We don’t even have a full year’s picture of them being fully operational, but in just those four months, it’s helped.

“And by charging a higher rate for their rooms,” she added, “it allows everyone else in the marketplace to go up a little bit, which from our perspective is really good because, before they got here, we weren’t moving that needle.”

“The fact that we added inventory and we’re still able to grow rate and grow occupancy is a really good thing. In analyzing that, a lot of it is the MGM factor, and it’s conservative because MGM didn’t open until the end of August. We don’t even have a full year’s picture of them being fully operational, but in just those four months, it’s helped.”

But MGM is just one factor in drawing visitors to the region and increasing demand for hotel rooms. In fact, the relationship between hotels, tourist attractions, convention business, leisure travel, and a host of economic benefits that follow in wake of all that is the result of a coordinated dance between the various players — a dance that has continues to pick up the tempo.

Go for the Juggler

Greater Springfield still runs slightly below the national average in hotel occupancy rate — 63.6%, to be exact, compared to 66.2% nationally. And it doesn’t compare to a city like Boston, which hovers around 79% occupancy.

“Remember, hotels serve the leisure traveler, conventions, bus tours, corporate travel, and also having businesses surrounding you. Boston has growth from the companies being built. It’s not all tourism. It’s business travel as well,” Wydra said. “There’s clearly corporate travel in our area too, probably not to the extent that a major city like Boston has. We’re more focused on other things: the conventions, the leisure, the bus tours, sports.”

The GSCVB has, indeed, seen an uptick in conventions in recent years, and believes MGM is just one more perk to draw in convention groups looking for a vibrant scene, which Western Mass. offers, especially during the summer.

The new Tru by Hilton in Chicopee

The new Tru by Hilton in Chicopee is one of several hotels that have recently opened in the region.

“You’ll see that with some of the national conventions we work with,” said Alicia Szenda, director of Sales for the GSVCB. “We’ve hosted the National Square Dance Convention, the International Jugglers Association … those events take place in the summer, and people participate in them not for their job, but for their leisure activities, their hobbies, so they look forward to that week every summer, and that’s their family vacation.

“So they’re here,” she went on, “and they’re participating in educational seminars and shows and the dancing or whatever it is, but they’re also going to Six Flags, they’re going to Yankee Candle, they’re going to the museums, and doing some sightseeing while they’re here. A lot of the conventions we work with build that social component into their event schedules, so people get to experience the area they’re in. So the more attractions we have, the more variety of hotels, the more attractive we are to different groups.”

And a dynamic hotel scene is, indeed, a key element, which is Wydra is happy to see new names on the scene and planned renovations as well, such as Tower Square Hotel’s plan to return the Marriott name to its complex.

“I think one of the good things about new properties coming into the market is it keeps everybody in a position of having to keep up,” she said. “You’ve got to be reinvesting in your property and making changes; it’s survival of the fittest.”

As part of her role in recruiting conventions to the region and guiding them through the process (more on that later), Szenda also works directly with hotels, asking them to quote rates and block off a certain inventory of rooms, sometimes three years out.

“What the hotels give back depends on where they’re located, what other business they have, and whether they want to roll the dice and let other hotels get the group business,” Wydra said. “They might say, ‘I don’t want that. I’m going to roll the dice and see if I get the leisure visitor.’ They can charge leisure travelers a higher rate — because Alicia’s going to beat them up and say, ‘I want the best rate I can get for my group.’”

Besides attractive hotel rates, the GSCVB might find local ties to entice a convention group, Wydra said, giving the hypothetical example of bringing in a convention of railroad hobby enthusiasts and trying to set up a tour of the CRRC rail-car manufacturing plant in Springfield. “We try to tie in local business with the groups that we have.”

Holding Hands

But there’s far more to the equation, Szenda noted.

“Some groups come to me and say, ‘this is everything I need.’ But a lot of groups I work with don’t have that. It might be their turn to host, and they’ve never planned a national convention before. I sit with them and go through everything they need. Then I send those leads out to our members. Depending on what they need for space, the lead could go to Eastern States, or the Mullins Center, or the MassMutual Center, all three.”

Then she gets to work finding the aforementioned local connections, setting up reasonably priced hotel options, and assembling tourism information about the region.

“Really, it’s the destination a lot of times that’s going to sell that piece of business,” Szenda said, “because you’re trying to convince that one person to bring thousands of people here. They have to make sure each person has something to do that interests them. And, once we win that piece of business, we continue to hold their hand through the process.”

“I think one of the good things about new properties coming into the market is it keeps everybody in a position of having to keep up.”

Part of that is a hospitality program that many similar-sized cities don’t offer, she said, which includes everything from airport pickups and hotel greeters to downtown maps and goodie bags.

“A lot of the business we get is repeat business because we’ve done a good job from the very beginning — meeting them, listening to what they need, giving them what they need, and holding their hand until the event occurs,” Wydra said. “And while the event occurs, we don’t disappear. Even with groups we’ve hosted for years, we never want to rest on our laurels and say, ‘well, we’ve got them.’ It’s a very competitive business, so we want them to know how much we appreciate they’ve selected Western Mass.”

And it’s not just repeat business from that convention group at stake, she added. Oftentimes family members tag along, extending the trip with some family time.

“You never know which of those participants might want to come back,” Szenda said. “They might belong to another association and want to bring a group here or come back with the family. A lot of people to do that.”

It’s always interesting to see what impresses event planners, Wydra said. Once, Springfield was competing with a city in New Hampshire, and when the group heard that welcome signs would be hung downtown, it was a game changer. The planner had previously walked the streets of unfamiliar downtowns, getting permission as she went to tape up handmade signs.

“She didn’t want to do that; she had a day job,” Wydra said. “The minute we take that out of their hands, make it easy, the results are often good for us.

“We work hard to get the groups, so at the very least we want to keep them,” she went on. “We want repeat business. Alicia loves when someone signs a multi-year contract, and we can count on them for years to come.”

What’s in a Name?

If Tower Square does bring back the Marriott name — and makes the upgrades required to do so — that will be another note of progress for the region’s expanding hotel scene, Wydra said.

“Brands are important,” she noted. “I think a brand kind of promises something, if the property does it right. People know what they’re going to get. They know they’re going to get a certain style room, they’re going to get a free breakfast, affinity programs, whatever it is they want.”

Greater Springfield is a brand of sorts, too, even though it can be a tough sell during the winter, which is why events like the recent AHL All-Star weekend are so desirable, driving room nights during a challenging time of the year for the hospitality industry.

But there’s still plenty of room for hotels to flourish, Szenda said, as evidenced by the challenge of cobbling together enough rooms when multiple conventions and event planners want to swoop in during the same weekend — typically between spring and fall.

“During the summer months, we do quite well on weekends, with Six Flags and other activities,” Wydra said. “It’s always midweek that we’re trying to find business, and especially in the winter.”

But a rising tourism brand, buoyed most recently by MGM Springfield — and increased convention volume, much of which promises to become repeat business — is certainly changing the demand picture for the better.

Joseph Bednar can be reached at [email protected]

Economic Outlook

Right Place, Right Time

John Doleva shows off the Basketball Hall of Fame’s renovated theater, one of many improvements at the hall.

John Doleva shows off the Basketball Hall of Fame’s renovated theater, one of many improvements at the hall.

They call it the ‘need period.’

There are probably other names for it, but that’s how those at the Greater Springfield Convention & Visitors Bureau (GSCVB) refer to the post-holiday winter stretch in this region.

And that phrase pretty much sums it up. Area tourist attractions and hospitality-related businesses are indeed needy at that time — far more than at any other season in this region. Traditionally, it’s a time to hold on and, if you’re a ski-related business, hope for snow or enough cold weather to make some.

But as the calendar prepares to change over to 2019 — and, yes, the needy season for many tourism-related businesses in the 413 — there is hope and optimism, at least much more than is the norm.

This needy season, MGM Springfield will be open, and five months into its work to refine and continuously improve its mix of products and services. And there will also be the American Hockey League (AHL) All-Star Game, coming to Springfield for the first time in a long time on Jan. 28 (actually, there is a whole weekend’s worth of activities). There will be a revamped Basketball Hall of Fame, a few new hotels, and some targeted marketing on the part of the GSCVB to let everyone know about everything going on in this area.

“The last half of 2018 has been great, and we’re very optimistic — our outlook for tourism is really positive for 2019. Certainly, MGM is a factor — it’s a huge factor, it’s a game changer — but it’s just part of the story.”

So maybe the need period won’t be quite as needy as it has been.

And if the outlook for the traditionally slow winter months is brighter, the same — and more — can be said for the year ahead, said Mary Kay Wydra, president of the Greater Springfield Convention & Visitors Bureau, noting that expectations, based in large part on the last few quarters of 2018 and especially the results after MGM opened on Aug. 24, are quite high for the year ahead.

“The last half of 2018 has been great, and we’re very optimistic — our outlook for tourism is really positive for 2019,” she told BusinessWest. “Certainly, MGM is a factor — it’s a huge factor, it’s a game changer — but it’s just part of the story.”

Elaborating, she said MGM is helping to spur new development in this sector — one new hotel, a Holiday Inn Express, opened in downtown Springfield in 2018, and another, a Courtyard by Marriott, is set to open on Riverdale Street in West Springfield — while also filling more existing rooms and driving rates higher.

Indeed, occupancy rates in area hotels rose to 68.5% in October (the latest data available), up nearly 2% from that same month in 2017, and in August, they were up 5% (to 72.6%) over the year prior.

Meanwhile, room revenue was up 4.6% in October, from $113 a night on average in this region to $119 a night, and in August, it went up 7.2%.

And, as noted, MGM is just one of the reasons for optimism and a bright outlook in this sector, Wydra said. Others include the renovated hoop hall, yearly new additions at Six Flags, and the awesome drawing power of the Dr. Seuss museum on the Quadrangle.

An architect’s rendering of the renovated third-floor mezzanine at the Basketball Hall of Fame, which includes the tributes to the inductees.

An architect’s rendering of the renovated third-floor mezzanine at the Basketball Hall of Fame, which includes the tributes to the inductees.

For 2019, the outlook is for the needle to keep moving in the right direction, she said, noting that some new meetings and conventions have been booked (more on that later); Eastec, the massive manufacturing trade show, will be making its biennial pilgrimage to this region (specifically the Big E); the Babe Ruth World Series will again return to Westfield; and the AHL All-Star weekend will get things off to a solid start.

John Doleva, president of the Basketball Hall of Fame and a member of the executive board of the GSCVB, agreed.

“With MGM now in the marketplace and being active, there does appear to be a lift, much more of an excited spirit by those that are in the business,” he noted. “Everybody is saying that, at some level, their business is up, their interest in visitation is up — there is a general feeling of optimism.”

Getting a Bounce

Doleva told BusinessWest that MGM opened its doors toward the tail end of peak season for the hoop hall — the summer vacation months. Therefore, it’s too early to quantify the impact of the casino on attendance there.

But the expectations for the next peak season are quite high, he went on, adding that many MGM customers return several times, and the hope — and expectation — is that, on one or several of those return trips, guests will extend their visit far beyond the casino’s grounds.

“Once people return a few times, they’re going to be looking for other things to do,” he said. “I definitely feel a sense of excitement and anticipation, and I’m definitely looking forward to next summer when it’s the high-travel season, and really get a gauge for what the potential MGM crossover customer is.

“Conversely, there are probably individuals that would probably have the Hall of Fame on their list of things to do,” he went on, “and now that there’s more of a critical mass, with MGM right across the street, I think we rise up on their to-do list.”

But MGM’s arrival is only one reason for soaring expectations at the hall, said Doleva, adding that the facility is in the middle of an ambitious renovation project that is already yielding dividends.

Indeed, phase one of the project included an extensive makeover of the lobby area and the hall’s theater, and those steps have helped inspire a significant increase in bookings for meetings and events.

Mary Kay Wydra says 2019 is shaping up as a very solid year for the region’s tourism industry.

Mary Kay Wydra says 2019 is shaping up as a very solid year for the region’s tourism industry.

“Our renovations have led to a great number of facility rentals for events that are happening in our theater, our new lobby, and Center Court,” he said, adding that the hall was averaging 175 rentals a year, and will log close to 240 for 2018. “Before, the theater wasn’t a hidden gem, it was just hidden; it was like a junior-high-school auditorium — it was dark, it was gray, it had no life. Now, it’s a great place to have a meeting or presentation like a product launch.”

Phase 2 of the project, which includes a renovation of the third-floor mezzanine, where the Hall of Fame plaques are, and considerable work on the roof of the sphere, will commence “any minute now,” said Doleva, adding that the work should improve visitation numbers, but, even more importantly, revenue and profitability.

The improved numbers for the hall — and the optimism there concerning the year ahead — are a microcosm of the broader tourism sector, said Wydra, adding that a number of collaborating factors point toward what could be a special year — and a solid long-term outlook.

It starts with the All-Star Game. The game itself is on a Monday night, but there is a whole weekend’s worth of activities planned, including the ‘classic skills competition’ the night before.

“Even with the average daily rate going up and occupancy growing, we still have that need period — which is true for all of Massachusetts,” she noted. “When you have an event like the All-Star Game in January, that really helps the hotels and restaurants.”

Additional momentum is expected in May with the arrival of EASTEC, considered to be New England’s premier manufacturing exposition. The three-day event drew more than 13,000 attendees last year, many of whom patronized area restaurants and clubs, said Wydra, adding that MGM Springfield only adds to the list of entertainment and hospitality options for attendees.

The Babe Ruth World Series is another solid addition to the year’s lineup, she noted, adding that the teams coming into the area, and their parents, frequent a number of area attractions catering to families.

Analysts say MGM Springfield has a far-reaching impact on the region’s tourism sector, including higher occupancy rates at area hotels and higher room rates.

Analysts say MGM Springfield has a far-reaching impact on the region’s tourism sector, including higher occupancy rates at area hotels and higher room rates.

Meanwhile, the region continues to attract a diverse portfolio of meetings and conventions, said Alicia Szenda, director of sales for the GSCVB, adding that MGM Springfield provides another attractive selling point for the 413, which can already boast a host of amenities, accessibility, and affordable hotel rates.

In June, the National Assoc. of Watch and Clock Collectors will stage its 75th annual national convention at the Big E, she said, an event that is expected to bring 2,000 people to the region. And later in the summer, the Professional Fire Fighters of Massachusetts will bring more than 900 people to downtown Springfield.

Those attending these conventions and the many others slated during the year now have a growing list of things to do in this region, said Wydra, who mentioned MGM, obviously, but also the revamped Hall of Fame; Six Flags, which continues to add new attractions yearly (a Cyborg ride is on tap for 2019); and the Dr. Seuss museum, which is drawing people from across the country and around the world.

“The Seuss factor is huge,” said Wydra. “It’s a big reason why visitation is up in this region. Seuss is a recognizable brand, and the museum delivers on the brand, and they keep reinventing that product.”

Staying Power

This ‘Seuss factor’ is just one of a number of powerful forces coming together to bring the outlook for tourism in this region to perhaps the highest plane it’s seen.

Pieces of the puzzle continue to fall into place, and together, they point to Western Mass. becoming a true destination.

As noted, even the ‘need period’ is looking less needy. The rest of the year? The sky’s the limit.

George O’Brien can be reached at [email protected]