PricewaterhouseCoopers Market Study in Their Own Words: Hardly A Vote of Confidence

By Luis A. Mendoza and Robert Edwin Field

Despite repeated requests by the undersigned then city councilman and other officials and concerned citizens to view the PricewaterhouseCoopers 2000 and 2002 purported “feasibility studies,” access was denied. It was alarming to learn recently that the so called “feasibility studies” were merely market studies. But, upon finally having an opportunity to review the market studies, it is shocking to discover that they are more negative than positive in their implications. Here are quotes from the studies:

· “Air access (‘an airport served by major airlines’) is important for national and regional events where the majority of attendees fly to the destination…. “Lancaster’s closet major airport is located approximately 30 miles north of the city in Harrisburg.”

· “Highway access to the center is relevant for statewide and local events since attendees tend to drive to the destination and the venue.”

· “A wide range of attractions and amenities help a destination draw a greater number of attendees and increase the possibility of attendees bringing accompanying persons.”

· “…trade shows are generally located in destinations offering large regional resident populations, large metropolitan area hotel room inventories, a facility with more contiguous exhibit space than can be accommodated in a center city location, and an airport served by major airlines.”

· “…for professional association facilities, surveys of meeting planners and association executives typically state lack of a concentration of proximate high quality hotel rooms, unique shopping outlets, or a wide variety of nearby restaurants as main reasons for not selecting a center of destination.”

· “Multilevel exhibition halls are successfully marketed in only a few of the most popular destinations in the world, such as Boston and Hong Kong.”

· “Primary advantages of existing facilities in Lancaster as cited by these [likely] users included convenient location, affordable costs, and the presence of a golf course on-site.”

· “Disadvantages or concerns listed by some event organizers included ….traffic problems getting into downtown, lack of entertainment and evening activity in downtown, and parking issues including availability and the possible lack of free parking.”

· “Interviews indicated that there was not substantial demand for uses of this facility as a sporting event or other special event venue.”

The vast majority of the pages are devoted to discussion of convention centers in general, rather than to the Lancaster project. Furthermore, in discussing the market for the hotel, Pricewaterhouse.Coopers resorts to such vague terms as “would consider” and “would possibly use the facility.” For example, it is most unusual for a survey to lump together “they would definitely, highly likely, or possibly use a new convention facility” in a single category without first providing a break down of each. And while a projection is made of how the convention center might generate economic activity, no off setting allowance is made for the negative impact that the hotel sales tax causes for hotel business, curtailment of hotel investments, and reduction in hotel employment.

Although the cost of a genuine feasibility study will likely exceed a hundred thousand dollars, it will be a bargain if it results in a general consensus to proceed or not to proceed and were it to enable us to avoid a financial albatross.