Cashing in on Same-Sex Wedding Bells
Condé Nast Portfolio
By Christopher Lisotta
June 17, 2008
As gay and lesbian couples start to wed in California, businesses
large and small prepare to pull in millions.
At Los Angeles' gay pride parade June 8, a local radio station had a
float emblazoned with a banner that read, "Welcome to the hell that is
marriage." The message was a cheeky nod to the May 15 California Supreme
Court ruling legalizing marriage for same-sex couples, but it typified how
quickly some segments in the business community are gearing up for
same-sex nuptials, which began Monday evening.
Gay and lesbian couples are sure to be ecstatic on their wedding days,
but the ones shedding the most tears of happiness may be California's
wedding and honeymoon vendors. Will a change in law mean a bull market for
big fat gay weddings? The Williams Institute at the U.C.L.A. School of Law
thinks so. The think tank released a study June 9 showing California's $6
billion-a-year wedding industry will get an infusion of $683 million over
three years in direct spending by same-sex couples.
Based on numbers in Massachusetts, where it has been legal for resident
gays and lesbians to marry since 2003, the Williams Institute estimates
roughly half of California's 102,000 domestic partners will get married,
while another 68,000 couples from outside the state are expected to come
and celebrate their nuptials. The Institute thinks same-sex marriage
should generate 2,200 jobs in California, bring in $8 million in
marriage-license fees, and increase sales and occupancy tax revenues by
$55 million. A 2005 study showed that if same-sex marriage was legalized
nationally, the wedding industry could generate another $2 billion
annually.
That's peanuts for the overall industry, since 2.4 million straight
couples get married each year and spend on average $20,000, racking up a
total of $72 billion, according to bridal website theknot.com. But the
potential for a deep-pocketed, underserved market coming online in an
economy where more straight couples may be thinking of pulling back their
spending is undoubtedly attractive to vendors.
The impact on California and the rest of the country could be
significant, says Betsy Stevenson, an assistant professor at the Wharton
School who studies the tax implications of marriage. She compared marriage
in the Golden State today to Nevada 60 years ago, when that state's lax
divorce laws made it a destination for couples looking to split. The
revenue Nevada brought in encouraged other states to change their divorce
laws. "Once California starts making money, other states will want to get
into the game," Stevenson said.
San Francisco first saw the economic potential back in 2004. Thousands
of same-sex couples were married out of City Hall around Valentine's Day
before the state put the kibosh on the renegade licenses and began
litigation that ultimately led to this year's decision. Businesses in the
city, which for years have catered to informal commitment ceremonies, were
struck by a "Flowers from the Heartland" phenomena, a movement in which
well-wishers ordered wedding flowers for same-sex couples they didn't
know. Thousands of bouquets were distributed randomly to the throngs of
couples waiting to get married, a boon to florists in the city.
But this time around, the feeling is that marriage will be more
lasting, said Joe D'Alessandro, the president and C.E.O. of the San
Francisco Convention and Visitors Bureau. He and his partner of nearly six
years are planning a 75-person wedding for Labor Day, with a budget of
about $10,000. "That's the ballpark we've talked about," he explained.
"It's easy to run up. You can go through that in a flash."
Expanding existing business without alienating the mainstream is a
common theme, even if you're taking out full-page newspaper ads that seem
to be congratulating same-sex couples. Less than two weeks after the
California court decision, Macy's made headlines in San Francisco and Los
Angeles touting its gift-registry program in an ad that read, "First comes
love. Then comes marriage. And now it's a milestone every couple in
California can celebrate." Macy's spokesman Jim Sluzewski resisted any
suggestion Macy's was taking a stand on same-sex marriage, since all the
company was doing was innocently running an "inclusive" ad that promotes
its registry, which has been open to same-sex couples for 15 years. "The
fact that we are advertising a wedding registry is not at all unusual," he
said. "In the wedding business, everything is new business."
For businesses rushing out to buy rainbow-colored paraphernalia and
bride-bride cake toppers in bulk in a bid to attract cookie-cutter gay
nuptials, cool your heels, since same-sex couples are likely to be as
individualistic as their straight counterparts, said Tegan Firth of San
Francisco's Hornblower Cruises & Events. Her company has served same-sex
couples for years, and in the first 10 days after the court decision got
inquiries from 15 couples, half from outside California.
"Commitment ceremonies and now same-sex weddings are going to be
similar to other kinds of social celebrations in the sense that it is a
very unique experience for the individual," Firth said. "A lot of times
the requests we receive are very specific to the couple."
Joie de Vivre Hotels is offering a promotion that is designed to appeal
to socially conscious gay and lesbian couples. The boutique hotelier's
Silicon Valley property Hotel Montgomery will donate 10 percent of any
group block rate for same-sex marriage bookings to the Human Rights
Campaign, a national gay-rights advocacy group that is gearing up to fight
a statewide constitutional amendment initiative in November seeking to
overturn the marriage decision.
The hotel group is also preparing an information packet for couples
that includes courthouse times and other specifics visitors may not know,
such as the requirement that you must be in California for at least 24
hours before getting married.
Susan Wilcox, the vice president of communications for the California
Travel and Tourism Commission, put out a press release June 3 promoting
venues beyond the traditional gay favorites that are also waiting to serve
the happy groom and groom, such as locations in Yosemite and the Cascades.
Figuring out if estimates are correct that marriage is a financial gain
for California is premature. "It's kind of hard to say what that will net
out as," Wilcox said, noting economic impact numbers are "elusive
statistics." But in this case, there will be a paper trail.
"At least with marriage numbers we'll be able to tell who came and what
they did," she said. "We will know from the marriage licenses. All of
those statistics will be very telling."
But for D'Alessandro, his marriage is more than just a statistic to
him. "It is a basic civil-rights issue," he said. "The emotions are very
powerful."
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