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As Boycott Arizona Enters Second Week, Widening Economic Impact

Posted May 2, 2010 by Patrick Young, Esq.
Categories: Hate Watch

Arizona’s largest newspaper, the Arizona Republic, reports that the states tourism industry felt the effects of the boycott within hours of passage of the new anti-immigrant law. As of Friday, 15,000 room-nights had been canceled at Arizona hotels as part of the boycott. But the economic impact is spreading as the Boycott Arizona movement enters its second week and is buoyed by the dozens of demonstrations that took place yesterday that publicized the call to quarantine Arizona.

Here is a look at how the passage of the bill has hurt the Arizona economy sector by sector:

Tourism

Arizona’s multibillion-dollar tourism industry, still struggling to recover from a bruising recession, has been among the highest-profile targets of immigration-law opponents.

Calls for a boycott of Arizona meetings and vacations started within Arizona, with U.S. Rep. Raúl Grijalva asking for a convention boycott a few days before Gov. Jan Brewer signed the bill into law April 23.

The American Immigration Lawyers Association is the only publicized cancellation to date, but hotel and convention officials say that 19 meetings have been cancelled and several other groups have taken Arizona off the list of sites under consideration in the past week. The cancellations could have an economic impact of more than $6 million, the Arizona Hotel and Lodging Association said.

The National Minority Supplier Development Council, which is scheduled to bring about 7,000 attendees to its national conference in downtown Phoenix from Oct. 24-27, has effectively put the state on notice.

In a statement, President Harriet Michel, who had urged Brewer to veto the bill, said the group “deplores this clearly discriminatory action.”

The organization is talking to its members about the issue and closely watching how matters unfold, with lawsuits and petitions trying to stop the law from going into effect in 90 days, spokeswoman Kim Brown said. “Basically, we’re taking a wait-and-see attitude so we can determine what’s in the best interest of the organization,” she said.

But the National Black Caucus of State Legislators and the National Hispanic Caucus of State Legislators on Thursday said it is showing its disapproval of the “misguided legislation” by relocating its annual Promoting Healthy Lifestyles Conference from Scottsdale. It was due to be held June 10-12, with more than 60 state legislators attending, the group said. The black caucus’ website now says location to be determined for the June meeting.

Jason Llorenz of the national Hispanic caucus said the group supports Arizona business but doesn’t feel it’s appropriate to meet in the state at this time.

Other cities and states are considering or being urged to consider wooing businesses who no longer want to meet in Arizona. Santa Fe’s mayor, in coordination with local tourism officials, plans to introduce a resolution inviting conventions shunning Arizona to come to Santa Fe. A Florida newspaper editorial suggested it’s payback time for Florida tourism officials, who have seen the Phoenix area lure many of their spring-training teams.

Economic development

It didn’t take a week after Gov. Jan Brewer signed the immigration law before Acumen Fiscal Agents LLC in Mesa felt a tickle on the back of its neck. The firm, which has been identified as an Arizona company although it is incorporated in Utah, is being considered for renewal of a $19 million contract with San Francisco to reimburse companies participating in the city’s Jobs Now employment assistance program.

But the San Francisco Board of Supervisors on Tuesday is scheduled to consider a boycott that would prohibit city business with any company in Arizona, putting Acumen’s contract at risk. Los Angeles is also considering an Arizona boycott and there has been talk of New York state doing the same. Karen Hoffman Tepper, Acumen director of quality, said, “This (contract) is a substantial part of the business we do.” She said a number of the company’s 120 employees could be laid off if it loses the deal.

Health care

Arizona’s health-care interests are still evaluating potential repercussions of Arizona’s strict new law. Illegal immigrants who were reluctant to seek medical care at clinics or doctor’s offices before the law likely will be even more fearful of seeking care now. Hospitals are required to treat patients at emergency rooms regardless of their ability to pay or immigration status.

A spokeswoman for the Arizona Hospital and Healthcare Association said the new law won’t change how hospitals provide care for patients. Yet the spokeswoman could not answer whether hospitals would share information about patients with local law enforcement when they suspect patients are here illegally. Representatives of Banner Health, Arizona’s largest hospital system, said it is too early to tell what the law’s impact will be. However, Banner representatives anticipate that hospitals that serve large numbers of immigrants could see a drop in emergency-room traffic and potentially in new births.

Real estate

For more than a century, the Phoenix-area construction industry has taken advantage of a willing and ready force of low-wage laborers from south of the Arizona border. While the demand for those workers has all but evaporated in the current real-estate slump, a crackdown on illegal immigrants, tied to employer sanctions and the new immigration law, could force changes when Phoenix hits its next growth spurt.

Without a guest-worker program in place in boom times, the new law potentially could raise the cost of construction, and in times of low unemployment could leave builders without an adequate labor pool. Immigrant-labor groups and the construction industry both say they would prefer a legal way to continue their generations-old working relationship. Such a system would benefit the U.S. economy by ensuring those workers and employers were paying their fair share of taxes. Laborers would benefit because they would be less vulnerable to exploitation and abuse.

Sports and entertainment

Suggestions have surfaced from San Francisco, a New York congressman and others that Major League Baseball pull the 2011 All-Star Game from Phoenix. The Major League Baseball Players Association on Friday issued a statement opposing the law, pointing out that it has many players who are not U.S. citizens who spend time in Arizona, especially during spring training.

While the law did bring singers Shakira and Linda Ronstadt to Phoenix Thursday to publicize their opposition, some entertainers are staying away. Canadian indie-pop band Stars said in a terse Tweet they won’t come to Arizona until the law is repealed. Tom LaPenna at Lucky Man Concerts, who operates the Marquee Theatre, says one group has cited the law for their cancellation - post-punk revivalists She Wants Revenge, who were to play June 27 at Martini Ranch. They pulled out Wednesday.

Retail

Retailers, still reeling from the effects of reduced consumer spending, could be hurt by a drop-off in sales as their Hispanic customers, both legal and illegal, leave a state that is now perceived to be hostile to them. Reduced sales eventually could affect shopping centers and retail developers. Retailers could find themselves scrambling to replace workers suddenly lost to raids, audits and fear.

Businesses in parts of the Valley with large Hispanic populations and those that cater to Hispanic customers could be especially hard hit. Many retailers had no comment on the situation. Jim Pederson, a shopping-center developer and a former Democratic candidate for U.S. senator, said in the long run, any negative image of the state created by the law could impact the decisions of individuals and companies on whether to move to Arizona. “That’s going to negatively affect population growth and jobs, which underpin the whole retail economy,” he said. “It could be a disaster.”

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