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May / June 2006 Article

In New Orleans: First Hand Update
Honest answers to all your questions

“The city is clean, safe and open for business. The business and tourist parts of the city look fine. In fact, probably never cleaner,” reports Jim Schultenover, Krisam president, after a recent tour of New Orleans with clients and Successful Meetings magazine. They all experienced the city as any visitor would, except they were given an inside update by local officials. Here are Jim’s honest capsule comments on everything a planner would need to know to decide to schedule an event in New Orleans.

Comments from Stephen Perry of New Orleans Convention and Visitors Bureau and panel members from the meetings industry:

• Service and general population are coming back in stages. The pre-storm population was 1.35 M and currently is 1.1 M.
• Over 1000 restaurants are now open in the city. A few big names, like Commander’s Palace have not reopened but will by Memorial Day.
• Billions of dollars will be spent by the end of 2007 on the city and surrounding area.
• Utilities for the city are fully restored but not in all of the outlying areas. Part of this is because the rebuilding regulations and approvals for the hardest hit areas have not yet been finalized.
• There were 1,650 police officers pre-storm and they now have 1,400. On a per capita basis they have more police per person now.
• Staffing? It is true that all the staff is not yet fully back, but the core group is. Everyone does multiple jobs. They are adding staff as the business grows. Library Association will be the biggest group so far this June with 20,000 people and about 10,000 rooms. Also, they did have about 400,000 people at Mardi Gras so they have had ‘practice’ in gearing up. At present both the Royal Sonesta and Windsor Court are at a 1 to1 staff to guest ratio. Some staff still live in the hotel, but much lower numbers than before.

Hotels

• They look great and most services are back to normal. Pricing will vary based on season but they will be flexible. Not always a super low rate as they do have some business on the books, especially late fall, believe it or not.
• The significant hotels that will not reopen before 1st quarter 2007 are: Hyatt, Ritz-Carlton and The Fairmont.

Renovations

• The Convention Center is ready.

Hurricane emergency plans

• Hotels have revised plans. Guest evacuation is going to be a priority in the future. The hotel association is being very aggressive as they want to be able to control the safety of their guests and not count on the government. If the government does help in the future, it will be a bonus vs. relying exclusively on them.
• By June the levee system will be rated at Category 3 which is pre-Katrina level. Category 5 protection is underway but no date set for completion.
• Planners CAN get a copy of our member hotels’ emergency plan if they want. (Royal and Chateau Sonestas, Le Pavillon, InterContinental and Windsor Court.)

Airport

• Lift is about 65% of pre-Katrina levels, but ramping up based on demand. 166 daily flights before, about 92 currently. Expect by fall to be back to regular frequency.
• Fares seem to be in line even though flights are quite full.

Infrastructure

• Some signature restaurants do not have all of their rooms open but the main dining room is open. Some hours are cutback until demand increases. Not a problem in general, however.
• Only streetcar line not yet operating is the St Charles line. Functioning by August.
• All buses operating.
• Canal streetcars almost back to regular capacity.
• Taxis about 50% but ramping up.
• Motor coaches—2 companies did not return to the city but 50 coaches available in the city so they can handle up to 3,500 people without bringing in buses from the region---which they did before for the bigger groups.
• Plenty of mini buses and limos.

DMCs

• Most DMCs back at some level
• Groups are doing more community service projects than ever before. However, they also include ‘fun’ in their program so it isn’t all work and no play.

Negotiations

• Lots of flexibility---what does the customer need? For now, just about everything is negotiable—attrition, cancel, rates, F & B, etc.

Hospitals

• Per capita, hospital coverage and EMT are close to normal and improving all of the time. One major hospital is not reopened but there are other facilities within a few miles of the city that can be used.

Marketing to attendees

• They will provide a new New Orleans DVD---only about 7 minutes. It was filmed after the storm so it shows New Orleans as it is today.
• They will provide testimonials.
• More open to flying customers to site if needed.

Check the New Orleans CVB website for the latest information - it covers everything.