Nov 10, 2009 10:19 pm US/Central
Chicago Conventions Take A Hit Due To High Costs
CHICAGO (CBS) ―
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At McCormick Place conventions, catering and contractor costs have been a thorn in the side of city convention and tourism officials forever.
CBS
Chicago used to be King of the Hill when it came to conventions. Not anymore. Las Vegas, Orlando, even Rosemont are all gaining ground. Chicago's convention and tourism take is off substantially. CBS 2 Chief Correspondent Jay Levine reports that one reason is the economy. Another, could be the hundred dollar case of pop.
Eighty-five dollars to be exact. It's a story making the rounds of convention executives nationwide. A total bill of nearly $350, a full $100 of that in taxes and service fees for four cases of pop.
And it could cost Chicago a major trade show.
CBS 2 found the annoyed exhibitor who got the bill and started spreading the word.
"When the price went up over $100," said Tim Hanrahan, who was exhibiting at the International Plastics Showcase back in June, "people started getting interested, and they started laughing after a while and the reaction was that people thought it was ridiculous."
It is the normal reaction of exhibitors and attendees of McCormick Place conventions, where catering and contractor costs have been a thorn in the side of city convention and tourism officials forever.
"That's the way it goes in McCormick Place," said Hanrahan, of noted plastics recycler Erema Inc. "You're a captive audience and they really can determine what the prices are gonna be."
But $85 a case for pop that costs $7.14 at Dominick's?
According to Mayor Richard M. Daley, "People don't realize that they become very, very selfish. They can't be. You can't have selfishness out there."
Because that's the perception out there when it comes to Chicago and McCormick Place. Marathon Pundit John Ruberry, who has been blogging about trade shows being driven from Chicago, found it when he was courting exhibitors.
"People don't like to be viewed as walking ATMs," Ruberry said.
It's a different story in suburban Rosemont. When asked what they do differently there, Rosemont Mayor Brad Stephens said, "We make money."
Money, Mayor Stephens said, he's returned to taxpayers in the form of home improvement grants averaging nearly $3,000 last year; while Chicago's losing millions.
Money made, Stephens said, charging exhibitors far less for things like pop than McCormick Place.
"It's not about gouging somebody," Stephens said. "We sell it for what we feel is the right number. I can't answer why soda costs so much more a few miles down the road."
The Rosemont model, with everything handled by in-house contractors who share the risk and profits, may not work for much larger McCormick Place.
But one thing's for sure.
"There has to be reorganization at McCormick Place," said Mayor Daley, "because it deals with less and less shows coming in town."
And tougher competition. Which won't stand for a bill CBS 2 was told about: Four guys having coffee and donuts catered for a morning McCormick Place meeting; $20 for the food, $120 service charge.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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