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Government and Community Relations

Speeches and Presentations

Hospitality industry fuels the area economic engine
Dr. Dustin Swanger
Associate Vice President for Workforce Development and Dean of Technical Education at MCC
Rochester Business Journal
02/01/2002

While few cities can compete with the culinary and entertainment likes of New York City or Paris, there is an untold story about Greater Rochester's hospitality industry and its impact on our economy and community.

The hospitality industry in Greater Rochester is multidimensional and larger than it appears on the surface. The area's restaurants, theaters, night clubs, sports teams and museums have a substantial financial and employment impact on our communities, they support other businesses and they help reinvigorate our neighborhoods.

To understand just how profound a role this industry plays in the economy and our lives, a myth must be dispelled: The hospitality industry is more than the high school student at the counter of a fast-food restaurant, the cleaning staff at an area hotel and the ticket-taker at an amusement park.

As in any type of business, the hospitality industry has some low-wage positions, but it also has a large number of highly paid, skilled positions filled by dedicated professionals who contribute to the growth of the communiftes in which they live.

Consider the fine chef who makes you a meal you remember for years to come. Or the travel consultant who arranged all of the details for your honeymoon. Or the hotel manager who ensured your stay at her place of business was an unforgettable experience.

When looking at the hospitality industry, we must consider all of its various components. Beyond the fast-food chains, we have fine restaurants such as Edwards and Richardson's Canal House at Bushnell's Basin; entertainment venues, including Geva Theatre, the Rochester Philharmonic Orchestra and the Rochester Broadway Theatre League; getaway locations such as Canandaigua Lake and Six Flags Darien Lake; athletic clubs and meeting places like Oak Hill Country Club and the Rochester River-side Convention Center; and many, many more. How does this contribute to economic development?

Hospitality's economic impact chartFirst, let's examine the financial contribution of the hospitality industry in the Finger Lakes region and the state in the accompanying chart.

With a grand total of $778 million in sales in our region alone, the hospitality industry is, if nothing else, a major player in generating revenue through sales tax, It also employs more than 22,000 local people in a variety of careers.

Next, let's think beyond the industry itself and look at how the industry supports other businesses.

When a company is looking for a place to relocate or to grow its business, many variables are considered. One such variable is quality of life.

Quality of life is measured primarily by three factors: housing cost, education quality and cultural amenities. The hospitality industry underpins those cultural amenities that other businesses find attractive. In fact, the Finger Lakes area is replete with hospitality venues that make the quality of life in our region one of the best in the country.

How many business deals have been closed across the table in an upscale
restaurant? How many out-of-town guests have done business in Rochester while staying at our hotels or bed and breakfasts? How many times have companies taken customers to theatrical performances or sporting events in order to help gain a new account?

The hospitality industry plays a significant, supporting role in these business dealings. Companies in the industry help enable others to do business.

Additionally, the hospitality industry spawns new enterprise itself. Consider the vendors that provide the meat, vegetables and wine to local restaurants. And what about the technology advances for the hospitality industry? Consider the new computer systems designed to track inventory, keep customers' accounts and communicate with credit card companies. Consider the tremendous amount of audiovisual technology used in the hospitality industry. Consider the projection systems, lighting and sound systems used in each performance or high-tech business meeting.

All of these services contribute to the growth of the economy and spark new products and companies.

Finally, few business sectors play as important a role in shaping or reshaping our neighborhoods and communities as the hospitality industry.

Take, for instance, the East End Cultural District, the High Falls Entertainment District, the St. Paul Corridor and the proposed redevelopment of the city's waterfront. These clusters are planned and focused economic development endeavors whose success will depend, in part, on the area's hospitality industry.

Through the industry's creative efforts, the hope is to restore Rochester as a place to work, play and live. In doing so, an energy is created where
neighborhoods are reinvigorated and ancillary businesses that cater to new residents begin to spring up.

Perhaps the most important outcome of these efforts is how they can help keep young people in our region who, instead of looking for the things they find important in a quality life elsewhere, will discover what they are looking for right here.

Whether it is directly contributing to the region's economic bottom line, generating jobs, supporting other industries or reshaping our communities, the hospitality industry is as important today to the overall socioeconomic health of Greater Rochester as it has ever been.


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