HomeMy WebLinkAbout1M Staff Correspondence Added ItemDATE
The Honorable Gavin Newsom
Governor of California
State Capitol
Sacramento, CA 95814
Draft letter from legislators
Re: Lack of Guidelines for Corporate Meeting and Events is Preventing our Communities from
Competing with Other States for Business in 2022 and Beyond; Further Jeopardizing Jobs and Revenue
Dear Governor Newsom:
We appreciate your commitment and dedication to keeping Californians safe during the COVID-19
pandemic. As you know, COVID-19 has had a devastating impact on various parts of the economy that
are not conducive to telework, notably California's travel and tourism industry, and especially the
business meetings segment.
We represent cities that rely on revenue from convention centers and the meetings that draw so many
people into California. Before the pandemic, this industry employed workers in a wide range of jobs and
skill sets, including janitors, servers, security staff, electricians, painters, chefs, and stage and audiovisual
technicians. Sadly, due to current restrictions, many of our constituents are still out of work months
after the initial shutdown.
Business meetings, trade shows and conventions are a major driver of California's broader tourism
industry accounting for $66.1 billion in direct spending and 457,000 jobs in 2019, according to studies by
Oxford Economics.12
California is the only state that has prohibited business meetings of any size since the state's stay at
home order went into effect on March 19, 2020. Other states are in various phases of allowing business
meetings to take place. We are concerned that California's lack of guidelines for meetings, events and
conventions will allow these states an opportunity to poach business that isn't scheduled to take place
until 2022 and beyond.
This exploitation is happening because planning and booking for this sector of the economy requires
several months and sometimes years of lead-time. Our convention centers, hotels and other meeting
venues can't compete for future events when it appears California is closed to this business indefinitely,
leaving on the table good -paying jobs and desperately needed local revenue. The Oxford studies also
1 Oxford Economics, October 2020, "Economic Impact of Conventions and Trade Shows in California." (page S)
"Total economic activity" represents direct, indirect, and induced impacts. "Direct impacts" consist of the direct spending and jobs that are
directly involved in planning and producing conventions and trade shows, and for participants and exhibitors to travel to conventions and trade
shows, as well as other convention- and trade show -related spending. "Indirect impacts" refers to supply chain impacts. "Induced impacts"
occurs as employees spend their wages and salaries in the broader economy. (LINK)
2 Oxford Economics, October 2020, "Economic Impacts of Meetings in California." (page 6) (LINK)
"Total economic activity" represents direct, indirect, and induced impacts. "Direct impacts" consist of the direct spending and jobs that are
directly involved in planning and producing conventions and trade shows, and for participants and exhibitors to travel to conventions and trade
shows, as well as other convention- and trade show -related spending. "Indirect impacts" refers to supply chain impacts. "Induced impacts"
occurs as employees spend their wages and salaries in the broader economy.
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found that California is losing $4.1 billion each month we continue to delay safe reopening for meetings
and events.
The state's silence and lack of clarity and direction puts California's communities at a competitive
disadvantage to retain and secure business when the pandemic is long over. This is why it is critical your
administration immediately release guidelines for the safe future re -opening of business meetings
events, and conventions.
We hope your Administration will thoughtfully consider the attached guidelines. A diverse coalition of
organizations that manage convention and meeting venues and represent labor organizations and
workers who depend on this business for their livelihoods prepared and submitted these guidelines in
June 2020. These protocols adhere to safety standards established by the Centers for Disease Control
and Prevention (CDC) and your own California Department of Public Health (CDPH). They include best
practice recommendations for sanitation, staff training, physical distancing, and communication.
Releasing these, or similar guidelines, is desperately needed to signal California is ready to compete for
and win back future business, jobs, and revenue we are currently losing to other states.
If we don't act soon, many of these events and jobs will be lost forever.
Thank you for your consideration,