Laurie Stroll’s company, Newport Hospitality, had done the planning and the pricing and was readying a proposal a few weeks ago for a large financial company interested in having its directors visit Newport this year.
It was not a big corporate gathering – about 50 people. “But to us, that’s a good piece of business,” said Stroll, president of the company that handles many of the dining, entertainment and transportation details of corporate groups traveling to Rhode Island.
Then the financial company called without warning: They weren’t coming to Newport.
“They said they’re just not doing it,” Stroll recalled. “It’s not like they were going somewhere else. They weren’t going anywhere.”
The company representative never said it, but a shocked Stroll suspected the sudden cancellation had a lot to do with the financial situation of that corporation – which she declined to identify – and the poor economic climate in the banking industry.
While companies, event-and-meeting planners and tourism officials say the sagging economy has yet to have a deep impact on corporate spending for events and outings, in some cases those budgets are starting to show some strain.
For instance, Newport Hospitality representatives are hearing more frequently from their clients that meeting trips “are on hold to further notice.”
Stroll remained optimistic last week, saying she expects this year to be about as good as last year, which she acknowledged wasn’t a banner one.
She said she does get concerned that all the talk of a slowing economy and recession will feed on itself and scare companies into staying home. “We really have to stay positive,” Stroll said.
But even among smaller businesses, event planner Laurie Robinson has seen some companies using their annual outings as a place to trim expenses.
Robinson, owner of Event Planning Specialists, of East Greenwich, has organized clambakes and golf tournaments, as well as employee-appreciation outings and Christmas parties.
“They’re still having the events,” Robinson said. “But basically, there has been a change with regard to spending.”
She’s seeing more events and outings in which spouses aren’t invited or ones scheduled in the middle of the week, when rates are cheaper.
With that, Robinson said her company is putting more focus on personal events – such as weddings, which is a growing segment of her business – instead of corporate.
Providence-based accounting firm Kahn, Litwin, Renza & Co. Ltd. isn’t cutting back on its company outings, according to marketing director June Landry.
The firm will still have a retreat and a holiday party, both at a Seekonk country club, and employees are planning the annual family outing, most likely to see the Pawtucket Red Sox at McCoy Stadium.
And during tax season, there are catered meals at the firm every Wednesday.
“The company realizes that its employees are the greatest asset,” Landry said.
Westerly-based Washington Trust Co. did away with the company picnic several years ago, but only because the bank had grown so big it was unwieldy and because fewer people were attending, according to Elizabeth Eckel, senior vice president of marketing.
But Washington Trust has no plans of cutting its annual employee appreciation event – called Employee Fest – at the Crowne Plaza Inn at the Crossings in Warwick or its holiday party. “It’s a chance for everyone from different offices to see each other,” Eckel said.
As far as corporate meetings, Tim Walsh, vice president of sales at the Newport County Convention and Visitors Bureau, says his staff hasn’t seen any trend that would panic them.
According to Walsh, the bureau had 151 meeting trips booked in 2006-07 year. That number declined slightly to 144 booked for the 2007-2008 year, ending on March 31.
But, he acknowledged, things could change quickly. “When the economy starts to sour, meetings can be the first things on the chopping block,” Walsh said.
Such bookings can be critical to local businesses. Walsh said one study indicated a corporate gathering puts $290 per person, per day into local economy.
And despite the less-than-rosy economic picture, there is a bright side.
Some bigger corporations that might have gone overseas for their high-level meetings are now keeping things domestic – in part because of the unfavorable exchange rate.
Stroll said she contacted Daytona Beach, Fla.-based Embry-Riddle Aeronautical University after the international school had rejected plans to hold a board of directors meeting in Paris.
The school, which had meetings in Newport several years ago, was investigating Boston, but Stroll sold them on visiting Providence.
Stroll said that’s what makes Rhode Island such a good place to attract these types of extended corporate outings – Providence and Newport are two distinct destinations close to each other and near both Boston and New York.
The state also fits in with the trend of smaller, regional gatherings. Stroll said January and February bookings were slow, but she expected that when the weather turns warmer business will get more brisk.
“It’s already picked up in the last week or two,” Stroll said. •
