Who Pays The Price For Negative Rhetoric?
With nearly US$2 billion in travel and tourism losses in January and February, effect is far reaching to local communities and workforces.
Contributed by Jonathan Tisch, chairman and CEO, Loews Hotels, New York City -- Hotels, 5/31/2009 11:00:00 PM
|
These are extraordinarily difficult times for our nation’s hospitality and travel industry. The drop in leisure travel is certainly linked to a lack of consumer confidence; however, the falloff in meetings, events, incentives and corporate travel is a different and increasingly serious matter.
Nearly US$2 billion in losses were felt in the travel and tourism industry in January and February of this year alone. Threats of federal regulation and sensational coverage are creating a paralyzing environment where companies across the country are canceling meetings and events. Critics have mislabeled many meetings and events as unnecessary and frivolous, causing companies that have received federal government support and those that have not to cancel planned and future activities. Whether a company has received emergency government lending or not, its inclination is to avoid being the next easy target and being ridiculed like others.
We have experienced this firsthand at many Loews hotels throughout the country. Yet no hotel company or region of the country is immune to the economic impact of canceled meetings, events and incentive programs. This toxic environment has created a serious threat to one of America’s strongest industries, to our employees and the communities where we do business. American workers and local communities pay the price as meetings, events and incentives decline.
The U.S. Labor Department reported a loss of nearly 200,000 travel-related jobs in 2008, and Department of Commerce data predicts a loss of an additional 247,000 travel-generated jobs in 2009. Sadly, if the negative rhetoric continues, the problem will be exacerbated, resulting in the loss of thousands and thousands of more jobs. And these are good jobs that allow individuals to build careers and support their families; that provide the first opportunity for immigrants seeking the American dream; and are positions that can’t be exported.
Business travel creates 2.4 million American jobs, US$240 billion in spending and US$39 billion in tax revenue. The meetings and events component of business travel is responsible for nearly 15% of all travel in the United States, drives US$101 billion in spending, generates 1 million jobs and creates US$16 billion in tax revenue at the federal, state and local levels. As meetings and events decline, local communities—nearly all of whom are dependent on visitor taxes—struggle to pay for essential services such as education, public safety and social services.
So regardless of one’s specific business or position, this clearly affects all of us. For more information on the value of meetings, events, incentives and corporate travel, as well as what you can do to help this cause, please visit www.meetingsmeanbusiness.com.
No related content found.
View All Podcasts
