By Brook Stockberger/ Sun-News Business Editor

LAS CRUCES — The equation is simple: More hotel guests equals more customers.
Artist Maria Christina operates Regalos y Art Gift Shop in the Ramada Palms de Las Cruces, 201 E. University Ave. She hopes the opening of the new Las Cruces Convention Center nearby later this year — construction is scheduled to be completed by December — will boost the number of visitors to Las Cruces and thus bring more traffic to the door of her little store.

"That's our high hope that we're hanging on to here at the gift shop," the Las Cruces artist said. "When the Ramada is busy, we're usually doing really well."

Even though some of them will compete with the convention center for convention business, Helga Byndas, the general manager at Hotel Encanto de Las Cruces on South Telshor Boulevard, said many overnight lodging businesses are excited to have the convention center in town.

"I definitely think we can have a symbiotic relationship (with the convention center)," said Byndas, whose hotel does host a multitude of events. "It'll lure more outside conventions and (when more people are in town overnight) almost every hotel makes more money."
James Peach, who teaches economics and international business at New Mexico State University, believes the convention center will be a boon to the area.

"I think it's going to be good, no doubt. We clearly need the facilities in Las Cruces," Peach said. "If you think about it, on campus for example, we have the Corbett Center ballrooms, which are just inadequate for larger events."

Peach believes success will beget success and the facilities in town that also offer conference space.

"I think it's sort of like the Starbucks effect. People worry about effect on local coffee places when Starbucks moves to town, but generally the locals have done well," he said. "There will be some conventions and conferences that check out the convention center first and then go to one of the other places. The more the merrier in many respects."

The one negative he sees is the lack of a four-star hotel property. One was scheduled to be built on campus property near the convention center, but that project has been put on hold due to the economy.

"We don't have like a Grand Hyatt or that kind of place, but we will. It's almost inevitable," Peach said.

Some of the events already lined up for the convention center include the New Mexico Coaches Association gathering next year and in 2014 as well as the 2011 Beta Sigma Phi New Mexico State Convention in June.

"The convention center will have huge benefits for Las Cruces," said Chris Faivre, media/publications manager with the Convention and Visitors Bureau. "It will allow the CVB to bring in larger meetings that we could not accommodate in the past, which will in turn bring in more visitors, more lodger's tax and gross receipts tax revenue.

"I think residents have gotten so used to not being able to do certain things because of a lack of space that when they see all the benefits associated with having a convention center they will be shocked," Faivre said.

The addition of the Las Cruces Convention Center is expected to increase hotel occupancy as it draws more events. During the recently completed fiscal year, Las Cruces saw a slight increase in local occupancy, the amount of lodger's tax collected and the number of rooms available.

"The hospitality industry in Las Cruces never suffered the same effects of the economy as a lot of other destinations did," said Chris Faivre, media/publications manager with the Convention and Visitors Bureau. "Even during the downturn, we were still able to attract our share of business and leisure visitors."

Las Cruces added 114 new rooms in the past fiscal year with the addition of the Hilton Garden Inn.

Brook Stockberger can be reached at (575) 541-5457

Sunday, August 01, 2010