As the political debate raged when SB 1070 was being contemplated, Arizona’s business community figured the matter was a non-issue and largely stayed on the sidelines.
Then hotels reported conventions were canceling, with an estimated loss of anywhere from $15 million to more than $140 million. Boycotts made it tougher for some Arizona companies to get contracts. And Arizona’s tolerance of minorities came into question.
So when the Legislature eyed five additional illegal immigration bills this year, 60 CEOs took the unusual step of signing a letter of opposition. They feared the state’s image would take another hit and hurt the economic climate, said Glenn Hamer, president of the Arizona Chamber of Commerce.
“What we did not see when (SB 1070) was moving forward was the significant national and international reaction during a really difficult economic time in this state. There was simply no way to expect that level of reaction,” Hamer said. “It’s now clear to the mainstream business community that there are consequences to going it alone on immigration.”
A goal of SB 1070 was to cut taxpayer-funded services to illegal immigrants, but business leaders say the law hasn’t helped Arizona grow. Studies vary and themselves are controversial. A study commissioned by the Center for American Progress found a $141 million hit to the convention and tourism industry in the four months after SB 1070 was signed. The liberal group funded the study, conducted by Elliott D. Pollack & Co., which has produced other respected economic studies.
The study, the CEO opposition and further pushback from numerous chambers of commerce were key in blocking this year’s illegal immigration measures from succeeding in an increasingly conservative legislature, Hamer said. Businesses are speaking out in other states based on what happened in Arizona, he said, noting many states have rejected their versions of SB 1070.
“It seems pretty clear that across the country, business groups have expressed concerns about the economic impacts and that has been a major reason why these bills have not been enacted into law in these states,” Hamer said.
The tourism and convention industry took a hit shortly after SB 1070 became law, said Kristin Jarnagin, vice president of the Arizona Hotel & Lodging Association. Some booked conventions cancelled for fear some attendees would not attend.
“We had companies paying $60,000 just to cancel their meetings and not have it here,” Jarnagin said. “It wasn’t because of cost savings. It was a perception problem that had a devastating effect on our industry.”
The total impact is tricky to calculate, Jarnagin notes, because it’s impossible to know how many people decided against Arizona before they had made a reservation or even picked up the phone to inquire.
The downturn for hotels has been bigger than people might think, she said, noting tourism is Arizona’s second largest industry with a $2.4 billion economic impact.
The industry is seeing brighter days now, with hotel occupancy up 6.3 percent between February of 2010 and the same time this year.
“We feel like as long as we can continue to stay out of the negative national spotlight, that we can continue to bring back visitors to the state,” Jarnagin said.
A boycott was encouraged by activists and even by Democrat U.S. Rep. Raúl Grijalva, who came under fire for what some saw as harming Arizona’s economy. He later said he shouldn’t have called for a boycott.
The boycott stirred memories of another called when Gov. Evan Mecham rescinded the state’s new Martin Luther King Jr. Holiday in 1987. The state lost millions as entertainers and conventions cancelled events, and the National Football League took the Super Bowl from Arizona in 1993.
The economic impact of boycotts are difficult to quantify, said Jim Haynes, president of Phoenix-based Behavior Research Center, a marketing and public-opinion research firm.
“It’s easy to talk about boycotts, but historically, boycotts don’t do very much,” Haynes said. “People do things for their own reasons, not someone else’s. It’s kind of like herding cats. It’s easy to get people talking about it, harder to get them to do things.”
SB 1070’s enforcement provisions have hurt many industries struggling to hire workers, said Todd Landfried of Arizona Employers for Immigration Reform. The enforcement-only aspect of SB 1070 doesn’t address the labor shortage in some industries and creates uncertainty, he said. He points to a freeze this winter that destroyed much of the lettuce crop around Yuma. The lettuce was ripe and ready to be harvested, but farmers couldn’t get enough workers to pick it before the freeze, causing a huge loss and a spike in prices. Farmers continue to worry, he said.
“They’re nervous about how much to plant this year because they don’t know what kind of labor force they’re going to have to bring in the crops,” Landfried said.
Construction companies also worry about having enough workers to submit bids for projects, and some suppliers have told him they’ve lost bids to other cities or companies that participated in the boycott of Arizona products.
SB 1070 supporters tend to see opponents of the bill as supporters of low-cost labor, Landfried said. The real issue is there’s no legal way to get the workforce of various industries, he said.
“Part of the problem is people say, ‘Why don’t these people who work in hotels or work as landscapers come here legally?,’” he said. “The reality is there’s no visa for hotel workers. There’s no visa for landscapers.”
• Contact writer: (480) 898-6548 or ggroff@evtrib.com
olddady posted at 1:25 am on Mon, Oct 29, 2012.
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Arizona Willie posted at 11:39 am on Sat, Jul 14, 2012.
The invading aliens you see at Home Depot and other place such as working for landscapers are just the tip of the iceberg.
Hispanics are NOT stupid or uneducated. Many skilled hispanics have been part of the invasion. Dental hygenists can get $18 / hour here but only $18 / day south of the border.
You never notice the bulk of invaders because they blend in and are working in factories and offices all over the place. Many hispanics can speak English as well as any native born America -- if they choose to. English is taught in school in Mexico.
Construction work used to be a good trade. People made a good living and could support a family being a carpenter or plumber. Greedy employers not only were not satisfied by going non-union they started using invading aliens for even cheaper labor.
Builders did NOT lower the price of the houses they sold you.
Masterrogue666 posted at 9:18 pm on Mon, Apr 25, 2011.
sev5150: If the federal government did something about the ILLEGAL ALIEN problem, we wouldn't NEED sb1070...
Masterrogue666 posted at 9:17 pm on Mon, Apr 25, 2011.
The only "minorities" that don't agree are those that cross the border illegally. That, or one of their relatives....
NothingButTheTruth posted at 7:21 am on Sun, Apr 24, 2011.
Yes, I would also like to see where you got your data from Dale. Of course we know that sb1070 has had little effect since key parts of it were gutted by Bolton. That doesn't mean that the majority of voting citizens isn't fully behind the law and those created it. To suggest Brewer is having second thoughts about sb1070 is wishful thinking at best.
samkat posted at 5:14 pm on Sat, Apr 23, 2011.
Dale: What is the source of your poll? I guess it was probably Univision.
Bob: How much of that third of the population (actually approximately 14.6%) is illegal and ineligible to vote?
What we need is a strong president to push a 100% E-Verify to remove approximately 8 million illegals to give the approximately 14.8 million unemployed Americans an opportunity to take those jobs. The BS about Americans will not do the work is exactly that. Every time a greedy employer has been busted, the lines of Americans to apply for those jobs is astounding. For those individuals who argue the $8 head of lettuce, why is it that the bulk of the illegals congregate in the urban areas? I suppose they are waiting for the farmers to come for them. :-)
Dale Whiting posted at 10:42 am on Sat, Apr 23, 2011.
You know, guys, we have an opinion poll showing that less than 30% think that SB1070 has had an overall positive effect on Arizona and now we are seeing Brewer veto more legislation. Where signing SB1070 was the stroke of her pen which sank Buzz Mills, looks like Brewer now has a change of heart. We should have picked Buzz!
NothingButTheTruth posted at 10:25 pm on Fri, Apr 22, 2011.
I didn't see the grammar police cite you for your spelling error probably due to toke being a word. Besides, we thought you did mean that a pull on a cigarette or pipe, typically one containing cannabis off the focus off MSCO. Sheriff Joe doesn't need the help as he enjoys the observers. Of course there will always be those who think Joe did it if they could just come up with some evidence somewhere about some wrong. Obviously you are one with Dale who thinks the invasion from the south is a boon for Arizona instead of the infestation that it is, and that Joe is guilty if only for his insistence that all laws be enforced. After all, isn't the peoples republic of mexifornia doing really well as the sanctuary state of America?
As for the environment, this administration seems bent on driving all businesses under with as much bureaucratic red tape as possible. Arizona is just one of many states that feel the same way.
I keep hearing how sb1070 is unconstitutional but no one can explain how making a state law mirroring federal law is unconstitutional. I suppose you can? How about Utah? They made a state law making illegal aliens legal. Now how's that for superseding federal immigration law. I don't see any indignation from Holder or Obama about that law at all yet. Have you?
If there are any mespeeled words I hope you will forgive.[smile]
Cerulean posted at 12:19 pm on Fri, Apr 22, 2011.
I apologize, I made at least one spelling error.
1. It TOOK some of the focus off MSCO. . . . .
Cerulean posted at 12:16 pm on Fri, Apr 22, 2011.
Out west here, some goat heads started making a ruckus over immigrants (whom had long since crossed the border and had been living here in Arizona for several years). The diversion, SB1070, served several purposes:
1. It toke some of the focus off MSCO and Joe Arpaio who was receiving millions of dollars to arrest immigrants who were violent offenders. It turns out he was not arresting violent offenders and what he did with the money is still under investigation.
http://www.pulitzer.org/archives/8374
http://www.goldwaterinstitute.org/Common/Img/Mission Unaccomplished.pdf
http://www.immigrationpolicy.org/just-facts/local-enforcement-immigration-laws-through-287g-program
2. It put Brewer (and Pearce) in the headlines for her bid on the Governors’ seat.
3. And most disappointing and important to me, it toke the focus away from Environmental Law being considered in Washington. Democrats and Republicans were discussing an environmental plan that would have signed into law some ‘cap and trade’ language for reducing greenhouse emissions. SB1070 distracted that legislation in favor spending millions $$$ to send National Guard troops to the border for a few months. Today, attorney general Tom Horne is actively trying to avert any attempt by EPA to regulate greenhouse emissions.
In the end SB1070 is unconstitutional, and what little was accomplished could have been achieved (with money added to State revenue instead of costing the State millions $$$$) through an agreement with DHS called 287(g).
Also, we got to watch business pull the strings in its favor with every immigration related bill that Pearce proposed. Meaning - nothing was done and Republicans wasted a lot of money.
NothingButTheTruth posted at 9:45 am on Fri, Apr 22, 2011.
Just who do you think "the democrats" are bob? Progressives, blacks, Latinos are the democrats. You say businesses aren't locating in Arizona? Where are you getting that data if they aren't even mentioning it bob? So what if half the younger population is Hispanic. Is that supposed to mean that they will grow up to be open border, amnesty democrats like you? I really doubt that. Your message reeks of racism.
asuaguila, do you really believe nappy and the DHS or anything they put on their web site? If they were such a dynamic force to deport illegal aliens, why would they encourage states to help? Why would they sue Arizona for trying to help? They want amnesty only.
asuaguila posted at 8:48 am on Fri, Apr 22, 2011.
The cut backs in education are big part of this reluctance. Bob, I am not disagreeing with you, but would like to add that many larger businesses shun away from Arizona due to the large segment of our workforce that is under educated and the insufficient of qualified university graduates.
bobunf posted at 2:24 am on Fri, Apr 22, 2011.
The Democrats have done nothing to support the boycott. It's Hispanics, Blacks and progressive groups across the country.
The conventions are probably the least of it. Business don't locate in Arizona, and don't even mention it to anyone. Businesses are told, Don't even bother bidding. Honeywell is in real serious trouble with an LA contract worth $106 million plus - because of their Arizona connection. They aren't the first, and won't be the last.
Deeply offending a third of your population is going to have some very negative effects. It's just beginning. And the nativists are on the losing side; half the children under 18 in Arizona are HIspanic. The world is changing.
asuaguila posted at 9:14 pm on Thu, Apr 21, 2011.
As of June 2010 there were 22,800 border patrol agents along the Mexican/US border. 3,600 were stationed on the Arizona/Mexico border. These numbers have increased and does not take into account the National Guard units that are being withdrawn in a few months. Last year's Customs and Border Protection budget was $17 billion. And the Obama administration is deporting aliens at a faster rate than the previous administration, 400,000 last year. (Source: DHS website). And yes, he is a Democrat.
samkat posted at 7:03 pm on Thu, Apr 21, 2011.
It all boils down to the chamber of commerce and the businesses trying to protect their cheap illegal labor.
NothingButTheTruth posted at 6:48 pm on Thu, Apr 21, 2011.
There will always be consequences for standing up for the rule of law. Obviously, businessmen haven't the stomach for a fight. For them it will always be about the money.
Lets be clear about whose fault the boycott was. Democrats are why there was a boycott and not sb1070. The first time I ever heard about a boycott was from U.S. Rep. Raúl Grijalva who does in fact regret ever calling for it. The farmers wouldn't be in a state of uncertainty if the feds had just done their jobs for the last 30 years, so don't even try to blame Arizona's attempt to make a law mirroring federal immigration law. The feds answer to our attempt was to sue us saying, only we can control immigration and we choose to do nothing. How about asking yourself why the feds have been sitting on their hands these last 30 years instead of doing their job, and then suing Arizona when they tried to stop this invasion. And what about Utah? They just passed an immigration law the really does supercede federal immigration law. Their law is in direct contradiction to federal law and Obummer isn't saying a word because it benefits the illegal aliens. Get a clue fools.
CooperG posted at 5:24 pm on Thu, Apr 21, 2011.
Leon: BZZZZZ, incorrect. But thanks for playing.
The boycott discussions were underway long before Grijalva said anything, long before and he wasn't part of the discussions. He came out in support AFTER the boycotts were called. So it is simply, factually incorrect to suggest it was his idea. It wasn't.
sev5150 posted at 3:40 pm on Thu, Apr 21, 2011.
If it wasnt for SB1070 then this wouldnt have happened... SO YA, BLAME SB1070
Leon Ceniceros posted at 2:44 pm on Thu, Apr 21, 2011.
THERE WAS NO TALK OF A TOURISM ..............."BOYCOTT".........UNTIL..... CONGRESSMAN RAUL GRIJALVA.... FROM TUCSON WENT ON EVERY NATIONAL TV SHOW TALKING ABOUT ONE FOR WEEKS.
THE THE DEMOCRATS,THE "HISPANIC" ACTIVISTS FROM CALIFORNIA, THE UNIONS AND THE BLACK ACTIVISTS, REV. AL SHARPTON AND JESSE JACKSON GOT IN TO THE PICTURE.
SO DON'T BLAME SB 1070...........BLAME THE..........DEMOCRATS.