I had to interview Mayor Karl Dean by email Thursday for my story about the state of Nashville’s tourism/hospitality industry as he pushes for a new convention center and hotel. While I prefer to interview sources on the phone so I can adjust to unexpected remarks, ask follow-up questions, etc., the written format does allow me to share the full exchange. So here it is:
How do you feel Nashville’s tourism industry is doing?
Nashville’s hospitality industry is performing ...
relatively well, particularly when compared to the rest of the country. If you look at how a number of the attractions, honkytonks, and even downtown hotels are performing, it’s apparent that there is relative strength in the market.
Has it recovered from the recession yet?
While we have certainly not fully recovered, we are beginning to see significant signs of recovery. Over the last couple of months visitor activity has been relatively strong. In addition, Hard Rock is in the process of its $6 million upgrade, another $6 million being invested in Nashville Shores and there are other pending announcements in the near future. Investment activity certainly points to a strong hospitality industry.
What gives you confidence that it will be strong enough going forward to support the convention center?
Nashville has a long track record of consistent growth in the tourism industry. We’ve been through recessions before and come out strong. And we have a great product to sell – we have a great downtown. The redevelopment of downtown Nashville over the last 20 years is really one our market’s greatest strengths. We’ve invested hundreds of millions of dollars in our downtown, and it’s now one of our city’s best attractions.
But it’s not just my personal confidence in Nashville that we’re going to depend on. The financing for the convention center will be based upon an independent analysis of our revenue projections.
Not to take issue with the question, but I think it’s important people understand this project isn’t about our tourism industry supporting the convention center – it’s about using the convention center to grow our tourism industry. Every study points to the fact that a new, larger convention center will allow us to compete for more than 70 percent of the convention business; we compete for 20 percent now. More business means more jobs and a stronger tax base – and that’s the only reason for doing this project.
The market response to the proposed center in terms of pre-bookings is probably the best litmus test we could have, and we’ve well exceeded our goals in that area. I have personally pitched several potential clients and have seen first-hand the reaction to this city and this project. I’m more confident than ever in the viability and timing of this project after listening to the potential users and seeing the results.
What has Gaylord discussed with you regarding leisure travel to the city and ways to address any shortcomings in that area? Have they talked about any specific building plans or requests for assistance from the city? Why do you think Gaylord is raising that issue right now? Is it trying to undermine the convention center argument?
Gaylord has mentioned to us that they want to do something in the leisure area. They’ve offered no specific proposals. In terms of public assistance, my position is the same as with all companies – we’re always willing to listen, and we’re going to make those decisions based on the best interest of our taxpayers.
I view any private company’s interest in growing the leisure travel part of our tourism industry as a clear sign of our market’s strength and potential. I already mentioned the projects underway or announced for the Hard Rock and Nashville Shores.
I take Gaylord at their word that they support the convention center. Gaylord has said over the last couple of weeks that they recognize the distinction between the two markets. I know they have some concerns about the hotel. I’m not particularly excited about a publicly-financed hotel, but no final decisions have been made about that yet. I’ll consider their point of view, but we’re ultimately going to propose what we think is in the best interest of the city. Gaylord is a private company that answers to their shareholders. I answer to the citizens of Nashville, and I’m going to do whatever is in their best interest.
What do you think the city as a whole – whether Gaylord or other parties – should be doing to boost leisure travel? Is that segment performing like it could or should be?
Leisure and group travel are related but separate segments of our tourism industry. We outperform most of the other cities in group travel, but at the same time, we’re missing out on a large part of the market because of the space limitations at our existing convention center. There’s no question that we should be looking to develop a stronger leisure market down the road. Tourism is our No. 2 employer. Our philosophy, as it relates to this important industry, is that we should explore any opportunity for growth – it benefits everyone.
We have a lot of potential in leisure travel because of our brand as Music City. Other cities would die for the brand that we have. We need to take advantage of it. That’s an area that I’ve asked the Music Business Council to work on. We need more music venues, more music events and more opportunities to showcase our product. And we need more things for families to do in our city. We’re investing $30 million in revitalizing our riverfront, and millions more in expanding our other outdoor amenities like bike paths and parks. These things are great for our residents, but they’re also the types of amenities leisure travelers look for in a city.
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