By Dale J. Venturini
President/CEO, Rhode Island Hospitality Association
Lately, it seems we’ve all been reading about various corporations that are taking bailout money and are still proceeding with lavish out-of-state events and functions. While I don’t think anyone agrees that these companies should continue with their opulent business travel, it’s important to distinguish the difference between this type of rare situation and necessary business travel conducted by millions of responsible companies.
Business travel is responsible for more than 2.4 million jobs nationally and injects more than $240 billion into the nation’s economy, providing $39 billion in federal, state and local tax revenues. This is a vital revenue stream that we cannot dam based on the actions of a few companies that are making national headlines.
Recently, in an effort to create transparency in spending and offer business travel parameters, the American Hotel & Lodging Association, and members of the meetings, events and incentive travel industries, joined in issuing guidelines on acceptable business travel practices to companies that have received emergency government lending. These guidelines are poised to offer assistance so that every company is able to participate in sensible and necessary business travel.
Even though we live in a world of telecommunications, videoconferencing and webcasts, face-to-face meetings are crucial to getting business done. And, we need to recognize that business travel cannot come to a halt without seriously damaging the economies of the states with which companies choose to spend their business dollars.
With every meeting and convention that comes to your home state, citizens recognize tangible tax relief in the form of subsidies from hotel and food and beverage taxes. According to the RI Economic Development Corporation, every 220 visitors to Rhode Island equals a new job here. And, visitor (business and leisure) tax contributions save every Rhode Island household $1,350.00 in taxes, annually.
In fact, business travel represents millions of dollars to Rhode Island every year from meetings and conventions business which also impacts hotel, restaurant, and attraction revenue. In fact, 26% of all tourism revenue is a direct result of business travel. With so many states facing massive deficits, we cannot discourage responsible business travel.
Even as our President has openly discouraged corporate travel and spending, his ‘meeting’ on January 20th brought in an estimated $150 million to Washington, DC businesses. I am certain every hotel and every restaurant in DC and in the surrounding states were thankful to have had such an incredible influx of people. It was possibly the largest-scale ‘convention’ in the area in recent memory.
At 10.5%, Rhode Island has the third highest unemployment rate in the nation, just under Michigan and South Carolina. When companies cancel corporate travel, it means blocks of hotel rooms stay empty, seats in restaurants remain vacant and the convention centers sit dark – this translates into hundreds of hourly workers being released from work. In a State in which one in every 10 Rhode Islanders has a job in the tourism industry, canceled meetings and conventions business equals hundreds of jobs.
The bottom line is that business travel equals jobs. We can’t afford any more job loss in Rhode Island, Michigan, South Carolina or anywhere else. We need to continue doing business and to welcome companies into our states to fill our convention centers, our hotels, our restaurants and our attractions.
This is not the time to call for business travel restrictions; this is the time to recognize that responsible business travel is integral to the success of the companies practicing it, as well as the states hosting it. Let’s continue welcoming business travel with open arms and be the true ambassadors who will keep the folks in our industry working.
President/CEO, Rhode Island Hospitality Association
Lately, it seems we’ve all been reading about various corporations that are taking bailout money and are still proceeding with lavish out-of-state events and functions. While I don’t think anyone agrees that these companies should continue with their opulent business travel, it’s important to distinguish the difference between this type of rare situation and necessary business travel conducted by millions of responsible companies.
Business travel is responsible for more than 2.4 million jobs nationally and injects more than $240 billion into the nation’s economy, providing $39 billion in federal, state and local tax revenues. This is a vital revenue stream that we cannot dam based on the actions of a few companies that are making national headlines.
Recently, in an effort to create transparency in spending and offer business travel parameters, the American Hotel & Lodging Association, and members of the meetings, events and incentive travel industries, joined in issuing guidelines on acceptable business travel practices to companies that have received emergency government lending. These guidelines are poised to offer assistance so that every company is able to participate in sensible and necessary business travel.
Even though we live in a world of telecommunications, videoconferencing and webcasts, face-to-face meetings are crucial to getting business done. And, we need to recognize that business travel cannot come to a halt without seriously damaging the economies of the states with which companies choose to spend their business dollars.
With every meeting and convention that comes to your home state, citizens recognize tangible tax relief in the form of subsidies from hotel and food and beverage taxes. According to the RI Economic Development Corporation, every 220 visitors to Rhode Island equals a new job here. And, visitor (business and leisure) tax contributions save every Rhode Island household $1,350.00 in taxes, annually.
In fact, business travel represents millions of dollars to Rhode Island every year from meetings and conventions business which also impacts hotel, restaurant, and attraction revenue. In fact, 26% of all tourism revenue is a direct result of business travel. With so many states facing massive deficits, we cannot discourage responsible business travel.
Even as our President has openly discouraged corporate travel and spending, his ‘meeting’ on January 20th brought in an estimated $150 million to Washington, DC businesses. I am certain every hotel and every restaurant in DC and in the surrounding states were thankful to have had such an incredible influx of people. It was possibly the largest-scale ‘convention’ in the area in recent memory.
At 10.5%, Rhode Island has the third highest unemployment rate in the nation, just under Michigan and South Carolina. When companies cancel corporate travel, it means blocks of hotel rooms stay empty, seats in restaurants remain vacant and the convention centers sit dark – this translates into hundreds of hourly workers being released from work. In a State in which one in every 10 Rhode Islanders has a job in the tourism industry, canceled meetings and conventions business equals hundreds of jobs.
The bottom line is that business travel equals jobs. We can’t afford any more job loss in Rhode Island, Michigan, South Carolina or anywhere else. We need to continue doing business and to welcome companies into our states to fill our convention centers, our hotels, our restaurants and our attractions.
This is not the time to call for business travel restrictions; this is the time to recognize that responsible business travel is integral to the success of the companies practicing it, as well as the states hosting it. Let’s continue welcoming business travel with open arms and be the true ambassadors who will keep the folks in our industry working.
