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When the government busted the parties during the financial crisis, it also harmed thousands of hotels and entertainment venues that depended on corporate fun.
Consider Donovan Smith, who owns Ngala, a 42-acre private animal reserve in Collier County. The reserve entertains corporate chiefs and their best customers from around the country under a giant safari tent with tiki torches, African dancers and 45 exotic animals.
But when the government shamed companies that entertained clients and their best employees, the parties stopped and Smith lost half his business. “The last eight months have been tough,” Smith says. “Everybody got in a panic state.”
However, Smith used the downtime to reexamine his entire operation and squeeze out expenses. For example, he installed a reverse osmosis system that will save $8,000 on his annual water bill. Switching to a smaller dumpster during the slow summer saved $300 a month. “When you sit down and cut costs without sacrificing the product, it's a good thing,” Smith says.
When the rebound does occur, all those expense savings will add to the bottom line. And Smith is heartened by the fact that business hasn't completely died off.
“Companies are spending less, but they're still spending,” he says.
Corporations still reward their best customers and employees with travel perks, but instead of going overseas they might come to Naples instead. “Now, the meeting planners are looking for great deals,” Smith says. “My mom and dad stayed at the Naples Grande hotel last week for $80 and last year it was $500.”
Companies in the struggling financial services, pharmaceuticals and automotive industries have pulled back on travel and entertaining. But other companies have fared better.
For example, Ngala recently hosted a party for a pasta company with record profits because more people are buying the less-expensive staple than before the recession. Large restaurant and soft-drink manufacturers are also entertaining at Ngala. To his advantage, companies have slashed their workforces so much that they need to reward those who are left to carry the heavy load.
Although Smith says 2010 will be a better year than 2009, he says companies are still cautious about spending. “Corporate business is not going to happen overnight,” Smith says. “2011 is going to be a really, really great year,” he estimates.
To make it easier for companies to justify entertainment at Ngala, Smith plans to launch a nonprofit conservation foundation in December. The foundation's mission will be to provide education about animals and it will allow companies to make contributions as part of the experience, helping to justify the entertainment.
Smith has put off opening Ngala to the public, mostly because he doesn't have room for parking. Buses now take clients from area hotels to Ngala, which is in an unmarked location in Collier County.
In the meantime, Smith is exploring other programs, including a camel train echo tour. Four camels he owns will take riders around the property and perhaps on the beach or in other wilderness locations near Naples.
—Jean Gruss
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