By Ed Moosbrugger
October 12, 2009 --
The American Film Market (AFM), which annually pumps millions of dollars into the Santa Monica economy during its eight-day run, will be down significantly this year.
Fortunately, the return of Cirque du Soleil to Santa Monica with its Kooza show, which will run for two months, should help make up for that.
Both events are vital this year because of the big hit tourism has taken due to a weak economy.
AFM, a working trade show for the independent film industry, will be held November 4 through 11. Kooza opens October 16 and is expected to run through December 20. Both events hold great potential for Downtown businesses.
Attendance at AFM will probably be down 10 to 15 percent this year, said Jonathan Wolf, executive vice president of the Independent Film and Television Alliance and managing director of AFM. There will be 15 percent fewer films and exhibitors at the show.
“We think that AFM will pull back to the levels of 2003/2004,” Wolf said.
That would put attendance at about 7,000 vs. the peak of 8,343 people in 2007.
Although attendance probably will drop about 15 percent, Wolf thinks the decline at hotels that allot rooms to AFM won’t be as great because rooms have been oversubscribed in the past. Still, hotels may have to woo back AFM attendees who have been staying outside Santa Monica.
With fewer films and exhibitors, AFM is taking less exhibit space. The market, which has been held in Santa Monica since 1991, will again be headquartered at Loews Santa Monica Beach Hotel.
In recent years, AFM overflowed into the adjacent Le Merigot for exhibit space. But AFM will take only half a floor there this year, down two floors from last year.
Even with the decline, AFM still means big business for Santa Monica. Downtown, where films are shown to potential buyers and distributors, is a major beneficiary.
It isn’t just the weak economy that is causing the shrinking of AFM this year.
During the easy money era of recent years too many films were made, Wolf said. In some ways that was bad because it put downward pressure on prices and profits, he said.
This year, Wolf said, there will be more balance between supply and demand. Fewer people are investing in films.
Even with the decline from the peak year of 2007, AFM remains a major boost for Santa Monica’s economy. “Were you happy with AFM in 2003/2004?” Wolf said by way of illustration.
This year, there is something new at AFM, which draws buyers from more than 70 countries. The People’s Choice Awards and the AFM have teamed up to create a “Favorite Film Pitch” contest.
The competition is designed primarily for professionals attending AFM, but is also open to others, Wolf said.
Submissions to the “Favorite Film Pitch” contest will be recorded live November 7 through 10 on a mini-set at AFM. Each pitch will be limited to two-and-a-half minutes.
Information will be available on www.AmericanFilmMarket.com/FavoriteFilmPitch.
In addition to the trade show itself, AFM offers seminars and conferences. For schedules and information, go to www.AmericanFilmMarket.com and click on “Conferences.”
The Santa Monica Convention & Visitors Bureau will be rolling out a Welcome Back Strategy when AFM is in town. Official ambassadors, who have graduated from the “I Am Santa Monica” program, will be placed at key hotels and other locations to provide a personal welcome and information.
Meanwhile, Kooza, which will be held adjacent to the Santa Monica Pier, is expected to bring millions of dollars into the city.
Many businesses are aware of the potential.
The Santa Monica Convention & Visitors Bureau noted that many local hotels and restaurants will have special offers for those attending Kooza. For information, go to www.santamonica.com/cirque-du-soleil.
In addition to its outreach in the community to develop special offers for Kooza ticket holders, the bureau has worked closely with Cirque to secure hotels rooms in Santa Monica for crew, staff and talent of Kooza, said Misti Kerns, president/CEO of the SMCVB.
The arrival of AFM and Kooza should ease some of the pain suffered by the local visitor industry this year.
Hotel occupancy and room rates are down substantially in Santa Monica this year, although the decline in occupancy lessened as the city entered the summer season.
For the first half of 2009, hotel occupancy in Santa Monica dropped 11 percent from a year earlier to 73.2 percent, according to PKF Consulting. The average room rate fell 14.5 percent to $238.47.
June occupancy wasn't quite as bad, falling 6.7 percent to 79.2 percent. The average room rate, however, fell 16.6 percent to $233.70.
Occupancy has made a bit of a comeback since the beginning of the year, when it was down 16.8 percent in January and 12.8 percent in February.
