Just 3017 seconds. Activism is exceedingly18 important, and I need to commend you on19 your leadership. It's strong and it's20 clear and for your members of the 7021 homes really representing and, as22 Chairman Kenney said, putting a face on23 those families who potentially will be24 impacted, we really do appreciate your25 144 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 testimony.2 (Thank you.)3
Thank you.4 John Saler and Jack Ferguson,5 please, and Mr. Morr and Ethan Ross. You6 can come forth as a panel, please.7 (Witnesses approached witness8 table.)9
Mr. Saler,10 I assume you're going to lead us off.11 Please identify yourself.12
Chairman Kenney,13 Chairman Jones and members of the Joint14 Committee, my name is John Saler. I was15 recently named Chairman of the16 Philadelphia International Airport17 Advisory Board by Mayor Michael Nutter.18 I also serve as Chairman of the19 Government and Public Affairs practice20 group at the law firm of Stradley Ronon21 Stevens and Young, and I appreciate the22 opportunity of testifying to the Joint23 Committee.24 Back in 1987, Mayor W. Wilson25 145 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Goode asked me to serve as a Board member2 on the Airport Advisory Board. I served3 in that capacity for 12 years under both4 Mayors Goode and Rendell.5 Back then, the Airport had6 basically three terminals and a very7 large architecturally hideous Quonset hut8 known as the International Terminal.9 There were only a few flights to Europe10 and only maybe two were direct.11 Basically, PHL was a commuter airfield12 with a baggage delivery system that13 rivaled the Pony Express.14 Fast forward to present day and15 I'm proud to say Philadelphia16 International is a vital, thriving,17 pardon the pun, top flight airport. It18 is the economic gateway to the Delaware19 Valley and the 11 surrounding counties,20 pure and simple. It affords this region21 jobs, jobs and more jobs, some 141,00022 jobs to be exact that our Airport23 generates.24 As Mark Gale explained earlier,25 146 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 the Capacity Enhancement Program will2 generate another 45,000 construction jobs3 for approximately 12 years. However,4 there are costs to expansion, the real5 dollar tangible costs as well as the6 human cost, which we just listened to.7 We know all about that, and I think we8 all agree that the human cost is probably9 more important than any. And I think10 that we would like to alleviate a lot of11 those costs as much as possible, because12 if we don't come to terms with this great13 economic gateway to the Delaware Valley,14 it could close for business in the eyes15 of the foreign and domestic corporate16 traveler, and I would hate to see our17 first-class international status end up18 in the proverbial baggage compartment19 forever.20 Thank you.21
Thank you22 very much.23 Please identify yourself and24 proceed.25 147 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381
Thank you,2 Councilman Kenney and Councilman Jones3 and members of City Council Joint4 Committee, for having me here today to5 support the Resolution 100638,6 Philadelphia International Airport's7 expansions defined as the Capacity8 Enhancement Program. 9 I am the incoming President and CEO of10 the Philadelphia Convention and Visitors11 Bureau, the official tours and promotion12 agency for the City of Philadelphia. We13 are responsible for the marketing and14 selling of Philadelphia as a convention15 group tour and international tourism16 destination. We compete with our17 counterparts around the globe to18 generally generate more than $1 billion19 in economic impact annually in the City20 and the region for its businesses and21 residents. 24 In a recent survey of national25 148 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 meeting planners called Metropoll, 6422 respondents said the ease of getting to a3 destination is among the top three4 reasons cities are selected for5 conventions. Convenient airline service6 is extremely important when site7 selections are made. 11 Our customers want to know that12 as we expand the Pennsylvania Convention13 Center, we must expand our hotel package14 and our air service that we offer. 21 The number one priority to us22 is getting -- to us getting there is to23 have a most efficient and effective24 airport. Continued growth and efficiency25 149 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 The airlines and the FAA are3 managing and running their operations in4 the airspace with more success, but5 considering the dense air traffic in the6 northeast, Philadelphia must expand the7 runways or the Airport will remain status8 quo when it comes to efficiency and9 travel. 219 million visitors per year. 24 An emphasis on the Airport expansion will25 150 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 7 Under the leadership of Charles Isdell8 and now Mark Gale's leadership, we lured9 new flights here. As a result of the new10 flights, new people and new money started11 to come here, generating a greater12 economic impact. 18 In order to grow as a19 destination and compete for leisure and20 business visitors from overseas, we must21 also add direct service from faster22 growing markets of China, Brazil, South23 Korea, Japan and India. We are now the24 only major city in the United States25 151 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 without connections to those fast-growing2 markets. 7 According to research done by a8 major credit card company, rapid growth9 is already occurring in visitations to10 Philadelphia from China and Brazil, where11 expenditures from travels have doubled in12 the past year. S. associations and16 societies offer the leading annual17 meetings of their kind in the world. For18 example, the American Society of19 Nephrology has 55 percent international20 travelers. The American College of21 Rheumatology has 65 percent22 international, and like the international23 trade show arriving in Philadelphia just24 after the Center expands is the largest25 152 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 5 The Infectious Disease Society6 of America in 2009 had 25 percent7 international attendees. 9 Of the 50 large conventions that we10 annually book into the Convention Center,11 nearly 30 percent are international12 attendees. As the American Association13 societies and trade shows grow and14 Philadelphia is selected as the15 destination, more and more of these16 conventions and trade shows are growing17 in the numbers of international attendees18 from Western Europe, Asia and the19 emerging brick countries, especially the20 life sciences. In fact, 50 percent of21 all the business that goes into the22 Pennsylvania Convention Center is now23 life science related. These same groups24 demand efficient, hassle-free service in25 153 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 traveling to and throughout the United2 States.
Our primary example is BIO,3 which is returning in 2015, ten years4 after they last were here. A life5 science convention like BIO brings great6 business potential to the City,7 domestically and internationally. It's8 during these conventions that business9 takes a look at -- excuse me. 16 As everyone considers this17 today, please keep in mind the big18 picture. How do we grow as a destination19 and continue to generate new jobs and20 economic impact. The potential impact of21 these decisions is immense. How often22 have you been on a flight into23 Philadelphia and you've heard the airline24 crew saying there are delays in25 154 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 Delays and congestion will only3 grow if we don't make changes for the4 long term for the entire region. 12
Thank you.13 Before you start, it's14 interesting because your comments15 regarding Southwest reminded me of the16 first time I suggested that Southwest be17 given a few gates at the Airport, and the18 Administration at the time vowed to never19 let it happen and actually had an open20 meeting, a very public meeting, with the21 head of U.S. Air locally, telling --22 Mayor Street telling him, Don't worry,23 we're not going to let that happen.24 So I guess Administrations from25 155 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 time to time can be wrong in their2 approach to the Airport.3 The only other thing I would4 raise -- and this is something that5 Mr. McCann raised -- and this is not6 obviously -- Mr. Saler, this is not your7 call, but as Chairman of the Advisory8 Board, I too am kind of surprised that if9 the bulk of the land is in Delaware10 County, we have no members of the11 Advisory Board that are from Delaware12 County.13
Andy Reilly, who is18 on the Delaware County Council, and Dave19 Woods, who is Chief of Staff to Senator20 Pileggi.21
Chairman Kenney,25 156 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Chairman Jones, thank you very much for2 the opportunity to speak with you today.3 In the interest of time, I have prepared4 a written statement and I'll ask that it5 be submitted for the record. Let me just6 introduce myself and make a few comments.7 I am President and CEO of8 Select Greater Philadelphia, which9 markets an 11-county tri-state area,10 Greater Philadelphia, including11 Philadelphia County. That is -- and12 Delaware County, for that matter. That13 is intended to attract companies to14 locate or expand in our region.15 The organization is an16 affiliate of the Greater Philadelphia17 Chamber of Commerce and is the operating18 program of an organization called the CEO19 Council for Growth.20 Simply put, commerce has always21 occurred where trade routes cross.22 Today, trade routes cross at major23 international airports. This is really24 about the future competitiveness of the25 157 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Greater Philadelphia region. That's why2 the CEO Council believes that the3 Capacity Enhancement Program and the4 improvements at Greater Philadelphia5 International Airport are the number one6 infrastructure investment that's required7 to make us competitive as a region going8 forward.9 For the region to prosper, it10 needs to continue to compete effectively11 on a global scale, and to do that we have12 to be well connected to the national and13 global aviation network.14 Currently, as you've heard,15 Philadelphia International is sometimes a16 bottleneck, with delays that impact17 passengers here, the carriers and18 businesses all across the air19 transportation system. The reason FAA20 has spent time in an environmental impact21 process is to address the impact of this22 airport on the national system of air23 transportation, and improving that impact24 is a key element of this capital program.25 158 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Select frequently talks2 directly with companies who among their3 decision criteria are their ability to4 reach various parts of the country or the5 world through air transportation, and6 what we hear from those companies and7 frequently from site selection8 consultants is that there are times when9 Philadelphia International, the way it's10 configured today, is an impediment to our11 future economic growth rather than an12 enabler as it should be.13 We made a lot of progress over14 the last decade or so. Terminal A-West,15 the new Southwest gates, the security16 improvements that have been made and the17 people operating the Airport and leading18 this city have done a great job, but we19 can't stop there, that in order to20 continue the progress for us to compete21 in the 21st century, Philadelphia must22 expand and improve the service for all23 travelers who come in to the Greater24 Philadelphia region. Frankly, we believe25 159 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 that will not be possible without the2 Capacity Enhancement Program.3 We have heard a lot today about4 the desire to utilize other airports5 across the region in lieu of expansion at6 Philadelphia International.7 Unfortunately, we live in a world8 where -- a deregulated airline world, and9 that decision was made in the late '70s.10 Today, the carriers can operate wherever11 they want to. They don't have to operate12 where they're required to. If they13 wanted to operate at one of those other14 airports today, they could do that, but15 they choose not to because it's in their16 economic interest to operate at a major17 connecting point.18
Is that22 even taking into consideration the23 terrible delays that are experienced at24 the Airport? I assume the time is money25 160 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 also. Distance is money and time is2 money.3
Remember that the4 airlines are responding to ultimately to5 the customer. So they go where the6 customer wants to be, and so --7
I'm not8 suggesting that they go to Atlantic City9 or Lehigh Valley. All I'm saying is if10 the delay issue at Philadelphia11 International is so paramount an12 impediment, would they not be making13 noise to maybe land somewhere else?14
They're here because15 the customers are here. Just so you16 know, prior in my career, I actually17 began in economic development running a18 non-profit that did air service19 development for Washington Dulles20 International Airport and helped take the21 traffic there from 47 flights a day to22 over 600. I also worked on securing an23 authority for the airport, a very24 different circumstance in Washington in25 161 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 those days than what you have here. The2 reason we sought an authority in3 Washington was to create a financing tool4 to be able to finance the improvements5 that have happened at both Dulles6 International Airports. Here you have an7 enterprise organization that is already8 capable of issuing debt to finance9 projects. So you really don't need a10 separate authority to do that. You can11 do it within the existing governance12 structure.13 What I'd like to do is just14 close by saying that expansion of the15 Airport is one of the most important16 regional economic development projects17 that we will see in the next decade, and18 a sincere effort has been made in this19 process. There have been some 20 public20 meetings and four public hearings as part21 of the FAA's environmental process to get22 to the point where we are today. This is23 not something that has not been out in24 the world at large. People have been25 162 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 invited to participate in that process2 going forward.3 Capital development --4
People5 other than those who are sitting in this6 room.7
For those10 folks who have to vote on Airport bonds,11 it would seem kind of sensible to have12 some involvement directly with this body.13 And that's not your call. You mentioned14 it and I'm raising the issue that we're15 sitting here today partly because of that16 problem.17
I suspect that that18 problem will be solved in a matter of19 moments. But the capital programs are20 difficult to plan and to mobilize. It21 takes years to do so. The challenge here22 is, we have to operate the development of23 this Airport so that it doesn't get out24 too far ahead of the carriers and their25 163 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 economic capacity, but that it's not too2 far behind them, because I guarantee you,3 if the economy takes off and air traffic4 increases by 10 or 15 percent, they will5 be the people most concerned about the6 cost of delay at the Airport.7 So we have to be responsible8 stewards of the community. We've got to9 anticipate the future and to assure that10 Philadelphia International and the entire11 region are prepared and able to compete12 in the global economy. It's for that13 reason that we wholeheartedly support the14 CEP and recommend that it move forward as15 expeditiously as economically feasible.16 Thank you.17
Thank you18 for your testimony. Before we get to our19 last witness, I don't think any of us20 disagree with you, and I don't think that21 even the folks who came in to complain22 about the CEP necessarily disagree with23 you, but the realities of the Airport is24 that it's constrained and that it is25 164 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 located primarily in a county other than2 Philadelphia. So if you're concerned3 about the potential of an authority, if4 you're concerned about when Jack and we5 go to Harrisburg to talk to folks about6 tourism support and they're angry,7 there's a possibility we're going to have8 a problem there. When people come to9 testify that they believe that their10 school district is going to be majorly11 impacted by this plan and we go to12 Harrisburg this year and next year in a13 difficult situation with our schools, I14 don't want those folks mad.15 So the Airport does not, as you16 know, does not exist in a vacuum.17 Obviously there are other interests and18 other cause and effects that come as a19 result of what the Airport decides to do.20 One cause and effect was where we've been21 in this process. Number two, one cause22 and effect is the fact, honestly, that23 both houses of the Legislature and the24 Governor is now the republican party.25 165 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 That's a reality.2 Now, do I think the Governor or3 any leadership in the Legislature want to4 hurt the Airport? Absolutely not. I5 think they recognize the Airport is the6 economic generator and job creator that7 you all describe it as and its potential,8 but when folks are angry about impacts,9 they do things that sometimes have a10 cause and effect that I don't want to11 see.12 And when we first put this13 hearing out and people were like a little14 jumping up and down about our witness15 list, I think it's appropriate to have16 folks who are impacted by our plans or17 what we're going to do have a say, and18 that's the reality of the politics of19 what we're dealing with.20
I absolutely21 understand what you're saying, and in22 fact, in Washington the way we got to23 where we were was due to exactly this24 kind of concern over noise impacts at25 166 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Washington National. So I have a long2 history of understanding. I'm very3 sympathetic to the people who are most4 directly impacted, some of whom bought5 their homes after the Airport was there6 and knew it was there, but chose to live7 there in any case.8 But what has to happen -- we9 all have multiple interests in this10 process. I may be impacted by aircraft11 noise because I live near the Airport,12 but on any given day, I may have a13 daughter that's coming in to the City and14 I care about her being able to arrive and15 depart on time and safely, or I may also16 be a businessowner that cares about my17 employees being able to reach out to18 customers so that it's not -- we don't19 have one single interest as we sit in20 these meetings, and I'm very sympathetic21 to the folks in Tinicum Township. I22 think the Airport is trying to find a way23 to be the best neighbor it can be and24 still accomplish its objective as a key25 167 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 component of the economy of a much2 broader region.3
Just let me4 finish up with Mr. Ross and then whatever5 comments Councilman has. That's all I6 have on the list. I don't think there's7 anyone else. That's fine. Okay. Thank8 you.9 Please identify yourself.10
Good11 afternoon, Councilmembers. I just have a12 brief statement.13
My name is15 Ethan Connor-Ross. I'm the Research16 Director at the Greater Philadelphia17 Tourism Marketing Corporation. S. 23 GPTMC's mission is to make the24 five-county Philadelphia region a premier25 168 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 destination through marketing and image2 building that increases business and3 promotes the region's vitality. 8 Visitors who arrive by plane9 stay longer, spend more and are more10 likely to stay in a hotel than those who11 arrive by other methods. 14 The Airport is also important15 in building the impression of a16 destination. For many visitors, the17 Airport is the first introduction to a18 city, and in some cases, it will be the19 only impression if they're passing20 through. 24 A world-class airport can be a tool in25 169 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. The Capacity Enhancement4 Program has the potential to bring in an5 additional million passengers a year by6 2025. These passengers will conduct7 business in the region and, as leisure8 tourists, will eat in our restaurants,9 shop in our stores and sleep in our10 hotels. 16 The forecasted increases in17 Airport traffic are consistent with the18 increased visitation we have seen over19 the past decade. 22 In 2009, despite a down economy, we23 welcomed 36 million, a 35 percent24 increase, and that figure is expected to25 170 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 2 Philadelphia has also seen3 major increases in international4 visitation over the past decade. Our5 hotels have benefited greatly, with6 leisure room nights in Center City7 tripling during that time. 10 The addition of airline11 capacity has been a major part of this12 growth. 17 Increased visitation is good18 for each of our counties, because19 visitors see nearby activities, not20 county lines. 24 Tourism is a critical component25 171 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 3213 billion for Montgomery County. 22 Airport expansion is a critical part of23 this growth. If we can't accommodate24 additional visitors, they will not be25 172 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 5
Thank you,9 Mr. Chairman.10 I'm conflicted by two11 experiences, one as a resident and one as12 a traveler. The first one as a traveler13 is, I've been stranded. I have the14 distinction of spending the night in15 Denver Airport, and it was a scary16 proposition. As the roll-down gates from17 the retail stores started closing, it18 became like a scene out of one of my19 nightmares. I wound up going home,20 getting on a flight maybe 12 hours later.21 As a result of a delay, then a22 cancellation, that happened to me.23 I did the same thing overseas24 in Aman, Jordan, which was even more25 173 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 frightening. The thing I drew from both2 of those is that I will, God willing,3 never travel to either one of those4 destinations again, and that's an5 important note to make.6 The second part is as a7 resident, meaning I was moved by the8 conversation about a barbecue and you're9 trying to talk to your relative and a10 plane goes over you. That happens to me11 at least several times a day in my living12 room in Wynnefield, which is probably as13 far away from the Airport as you can get14 and still be in the -- well, no, that's15 not true. Roxborough. But very far16 away. And a helicopter path that goes to17 one of the major hospitals goes right18 over our head, and literally next to my19 favorite chair, favorite chair where I20 watch television when I can, particularly21 the Eagles, the window vibrates so22 violently that I almost move away23 thinking it's going to break.24 So those are two conflicting25 174 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 personal experiences as we deal with this2 hearing, but let me ask a couple of3 questions.4 One, when we talk about5 regional marketing and the importance of6 that centerpiece of the Airport to that7 end, how much economic benefit -- and I8 think you touched on it -- does happen as9 a result of a major convention? What10 comes to mind is the Regatta. How many11 hotels in Delaware County benefited from12 Philadelphia's Regatta; do you know?13
Or the Penn16 Relays or Army/Navy. How does that work?17
That's not an18 area that the Convention Bureau is19 involved with. If you're talking about a20 convention like the -- I'll use the21 American College of Rheumatology, which I22 referenced here, that was here in 2009.23 It was their second largest convention24 ever in their history of 75 years. Their25 175 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 largest was in San Francisco. They2 consumed 38,000 rooms, 6,000 additional3 rooms outside of the block, which4 means -- you know how they block hotel5 rooms? They were outside of the -- what6 does that do? When compression happens7 downtown, it spills into the Airport8 hotels. It spills into City Line Avenue9 hotels. It spills out to Conshohocken10 and all the way out to Valley Forge and11 across the pond, across the river to12 Southern Jersey and sometimes down into13 Wilmington, Delaware.14
But from any15 of you, how many of you keep stats16 specifically on Delaware County and its17 benefit from those kinds of events, and18 is it something that if we're talking19 about marketing regionally --20
Well, it's a21 great question, Councilman Jones, and the22 interesting thing is, when the23 Pennsylvania Convention Center runs full,24 which is the hospitality economic engine,25 176 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and the hotels downtown create2 compression, it pushes out. That doesn't3 necessarily -- it pushes other business4 out, and they look for accommodations in5 the counties. If the CVBs of the6 counties were here, they would say every7 time Philadelphia is filled, it's a good8 day for us. It's a good week for us.9 So in answer to your question,10 what that does, it creates revenue for11 the County of Philadelphia, which is what12 the convention is doing, but it also13 generates opportunities for more revenue14 to go into the hotels at the Airport and15 Delaware County or to the hotels in16 Chester County, and it also, because17 there's demand, can raise the price to18 the traveler.19
My point is,20 I specifically remember three events.21 The Regatta had that impact. You22 couldn't find a hotel in the region. The23 one that's near and dear to my heart,24 which is the Penn Relays, and having been25 177 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 a former track coach, I know that same2 impact happens for hotels in the region3 and restaurants in the region. Trying to4 book a hotel then is ludicrous. And5 then, finally, the Republican National6 Convention, I happen to know, that -- I7 was at the Commerce Department back8 then -- that it had a similar impact.9 So what I would suggest also,10 as we start to talk about -- and they're11 absolutely right to say if we have a12 regional approach, if it ain't measured,13 it ain't managed. And I know that's14 broken English, but it is true. If we're15 going to talk about regional benefit,16 then we have to have specific data that17 we can put forth as a benefit to our18 neighbors in Delaware County.19
If you have23 all visitation to Delaware County, not24 necessarily specific to the conventions25 178 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and the events you had mentioned, but2 they do welcome over 3 million visitors a3 year, more than a million of whom stay4 overnight. As I mentioned in my5 testimony, that spending results in $6746 million in impact. I can give you a7 couple of other numbers - $93 million8 generated in taxes, over 9,000 jobs9 supported and 227 million wages based on10 those jobs. And that's from a GPTMC11 study. So we do track each of the12 counties separately.13
I think14 that's important as we discuss how we15 become better neighbors.16 This Administration, if I could17 give them some kudos, Mayor Nutter made18 specific impacts inroads to regional19 cooperation. Our Chairman, Councilman20 Kenney, is true, this is interlocking21 relationships on multiple issues and22 what -- where we have the advantage23 today, they may have the advantage24 tomorrow. So we should not disregard our25 179 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 neighbors' interests, because it goes2 around real quick.3
Councilman, I might4 suggest that maybe your office also5 contact a gentleman by the name of6 Patrick Killian, who runs the Delaware7 County Chamber, and is very able and a8 former member of the Airport Advisory9 Board many years ago.10
Okay.11 Couple of other questions very12 briefly. Have we ever had a documented13 cancellation of a convention based on14 transportation issues, specifically15 Airport related? And a nod will do,16 affirmative or -- to your knowledge.17
Not19 specifically, for the record. Okay.20 Anyone at the table here?21
I'm not going to22 speak to conventions because that's23 really what PCVB and GPTMC are involved24 in, but we get questions from companies25 180 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 that are looking to expand into the2 region and they ask us to analyze the3 availability of service to particular4 markets, the frequency of the service to5 those markets and the cost, and that's an6 important factor in their decision. If7 they can't get all the places they want8 to go, that knocks us down the list in9 terms of being able to be competitive.10 Right now, for example, we have11 terrific service to Europe, and we12 brought -- 55 percent of the companies13 that have come here, in the time I've14 been doing this, have come from overseas,15 but we don't have a single flight to16 Africa, Asia or non-stop to South17 America. We need to develop a full18 pattern of international air service to19 be fully plugged in to the global20 economy, and that's a critical need, and,21 frankly, this program is an important22 part of having the capacity, the gates23 and the operational efficiency to do24 that.25 181 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381
Well,2 further evidence of our interlocking3 relationship is the fact that we don't --4 the soccer stadium is in Delaware County5 and another one of the gambling6 facilities is in Delaware County, and I7 know no one goes to a convention and8 selects it because of amenities such as9 soccer or gambling or things like that.10 We know they're strictly there for the11 meet of the conference, but I'm wondering12 how these kinds of cause and effect13 things matter.14
Well, you15 bring -- two things that you bring up16 there. Let's go back to the Convention17 Center, your questions about the18 convention. When we were talking about19 rheumatology, it's about a $40 million20 economic impact in about four days into21 the City. What happens is -- and,22 remember, they're rheumatologists from23 all over the world. Their primary focus24 is networking and sessions in the25 182 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 Convention Center from, say, as early as2 6 o'clock in the morning to about 5:30 at3 night. After that, the activities4 continue on and it's all about venues,5 and those venues include cultural,6 historical, restaurant, sporting events,7 shopping. They all play into it. And if8 you have 10,000 or 18,000 people in the9 City at a given time, not all 18,00010 people do the same thing.11 The beauty of Philadelphia and12 its selling of its package to13 conventions, to trade shows and to people14 coming in, twofold. First of all, we're15 a very tight-packaged city. We're16 walkable once you get there. The fact17 that the Airport is only seven miles from18 downtown and you're there in 15 minutes,19 whether you take a cab or you take the20 regional rail, is unbelievably a huge win21 for us against the competition, against22 the competitive set. It's a very23 important thing to understand how the24 total package is sold, and that makes us25 183 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 very, very competitive.2 The other thing that makes us3 very competitive is the fact that where4 we're located in the United States.5 We're within 40 percent of the U.S.6 population by a day's drive. So you've7 got rail and you've got air and you've8 also got automobile. They're great modes9 of transportation to get to whether it's10 selling to the leisure traveler or it's11 selling to the conventioneer.12 What we try to do13 organizationally, both groups, is to take14 the conventioneer and convert him or her15 to a leisure traveler or to a business16 traveler on their own and vice-versa.17 You have a leisure person that comes in18 and they own a business or they belong to19 an association and society and said, I20 have not been to Philadelphia before,21 it's been so long since I've been in22 Philadelphia, this would be a great place23 to have a meeting. So that's why we work24 closely with Select Greater Philadelphia25 184 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and their initiatives on the business2 side of it, and we work with the leisure3 side of it with Meryl and her team to4 accomplish this so that Philadelphia wins5 over someone else. But the Airport is a6 critical, critical component in the7 success of the hospitality industry.8
Finally,9 Mr. Chairman, I want to just say that I10 want to extend an opportunity at least11 for myself and I'm sure other members of12 this Committee to do two things. One you13 suggested is spend some quality time with14 the Administration out at the Airport to15 go into these matters, because we're not16 going to get all of them done today, but17 also I want to take a ride out to Tinicum18 Township and maybe go out there. I want19 to meet with the community, because we'll20 be representative of Philadelphia, but21 maybe you could escort us out there and22 show us some of your concerns so we have23 a better sense of what is going on, what24 needs to happen and how we can be25 185 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 cooperative.2
I wonder if I3 can just share one other thing with you4 that might help you in your understanding5 of the hospitality business, and I don't6 want to make an assumption that you know7 that the Philadelphia Convention and8 Visitor Bureau is a membership-driven9 organization of 900 members. Now, that's10 900 company members. That means tens of11 thousands of people want to be where the12 customer is coming in. Included in that13 are the hotels in Delaware County.14
We have 8516 member hotels. Many of them we do not17 put conventions in. We put meetings18 specifically for their hotel in their19 hotels.20
-- but we24 have to do it right. I mean, again, we25 186 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 can't -- Councilman Kenney was right on2 point that to take advantage of leverage3 today winds up tomorrow's disadvantage if4 we don't take into those concerns, and5 we're going to be mindful of that as we6 proceed.7 Thank you.8
Thank you.9 And as far as site visit to Tinicum, my10 grandparents lived in Clifton Heights, so11 I should be pretty much all right.12
It should15 be okay.16 But thank you, and thank you17 for your testimony. Thank you for coming18 today, and hopefully we've opened a19 dialogue that will be productive, both20 for the Airport's needs and for our21 fellow Pennsylvanians in Delaware County.22 Thanks.23 (Joint Committees on24 Legislative Oversight and Transportation25 187 12/2/10 - LEGIS. OVERSIGHT/TRANS. - RES. 1006381 and Public Utilities concluded at 4:002 p.m.)3 - - -4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 188 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on December 2, 2010, and that7 this is a true and correct transcript of same.8 9 10 11 12 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 16 17 18 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23 24 25