Metro Detroit Tourism Outlook
By Brad Van Dommelen, Sr. Vice President, Strategic Business Development, Detroit Metro Convention & Visitors Bureau

 

As we look back on 2003 we say farewell to a year that challenged us with continued economic issues, war and the outbreak of SARS, all impacting, in a dramatic way, both the leisure and business travel sector that metro Detroit is so dependent on.  This resulted in a two percent slip in hotel occupancy and average rates that were one percent below 2002.
We are looking forward to 2004 and the opportunities that come with it. With a more positive outlook for the economy, we project that the metro Detroit region will experience improvements in both occupancy and average rate.

Despite the economic challenges and the impact on the tourism industry over the past few years, metro Detroit is enjoying a steady stream of improvements in its tourism product. Some projects recently completed are already having major impact on the market.  Such as the new Northwest Terminal at Metro Airport, which has been met with such favor that last year the airport shot from last place in JD Powers customer satisfaction rating to second place in the nation. The incredible restoration of Greenfield Village at The Henry Ford resulted in a summer attendance increase of 52 percent over 2002.  The opening of Compuware Headquarters in the center of the city has provided proof of new investment returning to the regions urban core.
 
Visitors are excited to see the improvements made to the Renaissance Center with the addition of the beautiful new Wintergarden and the fabulous renovation of the Detroit Marriott Hotel and the work continues with the redesign of the front entrance.  Ribbon cutting ceremonies have become the norm as dozens of new restaurants and nightclubs have opened providing many new choices for entertainment.
 
What’s so exciting is that we are not even close to being done as evidence of continued progress is apparent throughout the city with cranes and heavy equipment changing our landscape, including the addition of Campus Martius Park opening in late 2004 providing some wonderful greenspace in the city center.  The new Hilton Garden Inn located in Harmonie Park will be open in early 2004 and as Detroit prepares for the Super Bowl in 2006, streetscape improvements for Washington Blvd, Woodward Ave., Gratiot and Broadway are already underway.
 
Planning continues on the renovation and reopening of the Book Cadillac Hotel along with the anticipation that construction will start soon on the three new casino hotels. In May, the long awaited auto plant tours will become a reality at the Ford Rouge Plant. Perhaps the most exciting project of all is the development along the riverfront. Detroit will finally be able to showcase our greatest natural resource, on an international border, as an area of pride that both visitors and residents will enjoy.
 
In September of 2004, metro Detroit will host the Ryder Cup matches, which kicks off a series of world-class events coming to the region in the next several years, including the MLB All Star Game and the National Tour Association Annual Convention in 2005, Super Bowl XL in 2006 and the NCAA Final Four in 2009. These events will certainly have a great economic impact. More importantly, the national media and industry exposure they generate will allow us the opportunity to influence the perception that people have of our destination translating into growth in our leisure and group tour markets.
 
With great opportunity comes great challenge. I believe one of the most significant challenges we face is in the convention and tradeshow markets. As cities like Orlando and Las Vegas continue to add capacity and draw events from other first tier cities like Chicago, the trickle down effect dictates that these cities will look to fill their holes with business that has traditionally gone to second tier cities. This accentuates our need to plan for the expansion of Cobo Hall or the construction of a new convention center and the addition of a smaller suburban convention center as we will be challenged to enhance our product and find creative ways of remaining competitive.
 
All of these activities demonstrate the dynamic nature of the metro Detroit market.  Our future has never looked brighter or more exciting and we look forward, with great anticipation, to the developments taking shape that will greatly enhance our destination for tourism.