By Ken Alltucker
The Cincinnati Enquirer

Facing the prospect of declining convention bookings through the remainder of the decade and an outcry from hoteliers, the Greater Cincinnati Convention and Visitors Bureau is tackling some of the most sweeping changes in the organization's history.

A month ago, the group's board voted to restrict membership to Hamilton County businesses and spinoff tourism duties to a yet-to-be formed super-regional group that includes Northern Kentucky and Warren County tourism interests.

But perhaps some of the most controversial moves have involved the staff and its mission. From Chief Executive Officer Lisa Haller on down, the 35-person bureau is virtually a new organization with mostly new employees, new strategies and even a new office. A total of 30 bureau employees have quit or been fired since 2001.

The bureau's vice chairman, John Taylor, said the changes executed by the board and Haller were sorely needed to do a better job of booking conventions and boosting Cincinnati's hotel occupancy rates to levels posted by many Midwest competitors. He said the changes stemmed from an audit by Chicago-based C.H. Johnson Consulting.

"I just want to underscore that we've got the right leadership in Lisa and we've got the right strategies," said Taylor, PNC Bank's president for the Ohio and Northern Kentucky region.

Some hoteliers aren't so sure. They championed an aggressive reorganization a year ago, but now question whether the shakeup has created more business for downtown hotels, restaurants and shops, an important core for the region's hospitality industry, which employs more than 80,000 people and has an annual economic impact exceeding $2 billion.

The bureau projects a 10 percent slide in hotel room bookings this year from a year ago. From 124,857 actual room nights in 2003, bookings are expected to drop to 112,925 in 2004 and 64,054 in 2005. The bureau continues to work on securing bookings, but acknowledges that 2004 and 2005 will be especially difficult years because of ongoing construction at the convention center.

And the declines are expected to worsen even beyond the $160 million expansion of the downtown convention center, scheduled to be finished in 2006.

"My thought is if you're going to turn people over, you better have a solid plan," said Rob Gauthier, general manager of the Millennium Hotel, who questioned whether the bureau is pursuing an effective strategy to fill downtown hotel rooms.

Greg Kaylor, general manager of the Crowne Plaza Hotel, said he believes "(bureau staff ) stability and continuity (are) important factors on consistent bookings." But he added, "sometimes there is pain before gain."

Haller is confident the bureau's changes will lead to stronger hotel bookings. "We have a solid team we stand behind," Haller said.

When Haller was hired in May 2002 for the $170,000-a-year position, she said downtown hoteliers wanted her to execute three main objectives: improve accountability, narrow focus to Hamilton County and spin off the bureau's tourism duties.

"We've hit all three," Haller said.

Many downtown hoteliers applauded the bureau board's vote last month that limited membership to Hamilton County and committed $1.1 million to a startup regional tourism group.

Haller said she tackled the accountability goal on two fronts. The bureau ordered an audit of hotel room bookings that showed reports from 1998 through 2002 substantially overestimated room bookings.

Then there is the staff reorganization aspect. Haller cites various reasons for the staff turnover. She said some employees were dismissed because they weren't performing at acceptable levels. Others left to pursue other jobs. One information technology worker was replaced because the bureau found it more efficient to outsource the work.

"In most cases, we upgraded the (employee) skill set," Haller said.

The moves proved costly in another way. The bureau has paid more than $400,000 in severance to the former employees, although most of that was in the $288,782 in severance package including salary, health and other benefits paid to Haller's predecessor, Mike Wilson. Wilson, a 30-year bureau veteran, resigned in September 2001 following the C.H. Johnson report that showed Cincinnati's tourism industry had fallen behind key Midwest competitors.

Karen Keller, the bureau's longest-tenured employee, said the pressure and time demands of her job overseeing convention, visitor and membership services contributed to a recent decision to resign. The 29-year veteran's last day is Jan. 23.

"We've got a big job, and we strive for the highest level of service," said Keller. "It's a time-demanding position."

One of the most controversial personnel moves was last month's firing of the bureau's sales director, Mark Wallisa. Wallisa, a seasoned Las Vegas hospitality industry executive, was hired in March after a nationwide search. Neither Wallisa nor Haller would discuss the dismissal.

Wallisa took the job after an Atlanta executive left after less than two weeks on the job. The bureau hired Daniel Engle in November 2002. Haller said Engle, who could not be reached for comment, quit for personal and health reasons.

After Engle resigned, Haller offered the position to Linda Jensen, Paramount Kings Island's vice president of marketing. Jensen tentatively accepted the position, but decided to stay at Kings Island after talking with her employer.

Both Haller and Taylor acknowledged that the bureau's quest for a full-time sales director has been a difficult, but important, search. They could not say when a new sales director will be hired.

"We're in complete alliance with the hoteliers as to the importance of that position," Taylor said.

Not all downtown hoteliers have been critical of the bureau's moves. Michel Sheer, general manager of the Hilton Cincinnati Netherland Plaza hotel downtown, said downtown's convention prospects are much brighter than two or three years ago. With a bureau focused exclusively on driving convention business to Hamilton County and a convention center expansion under way, Sheer expects to see improved results.

"We've just now gotten to the point where things are consolidated and people can look at this and say the city has its act together," Sheer said. "Now we've got to go out and sell."

E-mail kalltucker@enquirer.com