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Obama’s second inauguration brings a yawning gap in business
Question of the Day
In Washington, even Democrats may find themselves wishing this weekend that they had voted for Mitt Romney — considering the economic boost that comes from a fresh presidential inauguration compared with the lackluster redo planned for President Obama’s second term.
One Washington catering company recalls cooking for a party with 12,000 guests and another with 10,000 guests for Mr. Obama’s first inauguration.
This time? The biggest party they are catering is for 1,500 people.
“The novelty has worn off,” said Susan Lacz, owner of the Ridgewells Catering. “Four years ago, it was such a phenomenon that we had our first African-American president that everybody wanted a piece of it, everyone wanted to be part of history in the making. But we’re certainly not at the same capacity as we were then.”
Mr. Obama hasn’t been able to muster the level of excitement as he did for his first inauguration in 2009, but that is typical for most two-term presidents. Still, it’s little comfort for some small businesses.
“As far as Washington is concerned, electing a new president is always better than re-electing the incumbent,” said Ric Edelman, chairman and CEO of Edelman Financial Services in Fairfax. “When you have a new president come to town, he brings with him new people to Washington. It’s a big jolt to the local economy.”
Mr. Obama’s legacy will forever live in the shadow of his first inauguration. Supporters came from around the world. They celebrated for days at the inaugural parade, extravagant balls and star-studded concerts. Then, crowds packed the Mall, from the steps of the Capitol all the way to the Lincoln Memorial, to witness “change.”
It was one of the biggest events in Washington’s history, and it boosted the local economy. Hotels and restaurants were completely booked. It seemed that every local business — particularly caterers, limousines and taxis — profited from the historic event.
This time, many people are “scaling back” and the numbers couldn’t be more underwhelming for local businesses.
“When he was first elected, there was elation and optimism and he ran on the notion of change,” said Clem Bason, president of Hotwire.com. “This time around, that sentiment certainly isn’t as good as it was in 2009. They’re trying to tout something in the face of general public dissatisfaction with the U.S. government right now.”
Flights into Washington are down 9 percent from four years ago, and prices have dropped nearly $70 for a round-trip ticket, according to Hotwire, which tracks travel statistics. Hotels still have plenty of rooms available, and many are dropping their “minimum night stays” requirement, which is usually three or four nights during large events, so they can fill the empty rooms with tourists who might come for only a day.
“A first-time event is a first-time event, and there’s a certain excitement that goes along with that,” Mr. Bason said. “Anything ‘re,’ whether a redo or re-election, is bound to be less popular than the first time around.”
Businesses all over Washington are feeling this deflation in demand.
“The bookings were much more intense four years ago than they are today,” said Richard P. Kane, president and CEO of International Limousine Service Inc. Sure, it will be better for business than a regular January, but “it’s just not first-term material.”
Mr. Kane compared it to a “typical inauguration.”
© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.
About the Author
Tim Devaney is a national reporter who covers business and international trade for The Washington Times. Previously, he worked for the Detroit News, Grand Rapids Press, Portland Press Herald and Bangor Daily News. Tim can be reached at firstname.lastname@example.org.
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