Federal policy should not dictate based on perception the location of where U.S. government conferences and meetings are held, but rather on overall cost, facility space, and quality of service provided.

BACKGROUND

Beginning summer 2009, it was reported that several U.S. government departments and agencies issued an informal directive banning their employees from holding conferences and meetings in specific U.S. cities out of concern that these destinations are viewed by the public as either leisure-oriented or resorts that are not ‘businesslike’.

While no public or comprehensive list of ‘blacklisted’ cities is available, AH&LA has compiled this list from news reports of U.S. cities that government meeting planners are allegedly avoiding because of a perception of extravagance:

• Las Vegas, Nevada 
• Reno, Nevada 
• Orlando, Florida

Government agencies named in news reports as enforcing this informal order on their travel planners and employees include:

• U.S. Department of Agriculture
• U.S. Department of Homeland Security
• U.S. Department of Justice
• Federal Bureau of Investigation
• General Services Administration
• Bureau of Indian Affairs
• Social Security Administration

Government travel for meetings, conferences, and seminars is an important source of economic activity for many communities throughout the United States.  Every U.S. destination should have an equal and fair opportunity to host their federal government’s meetings and events.

The U.S. government should make their meeting location selections based on such tangible factors such as overall cost, appropriate meeting facility space, and quality of services provided in a particular city, convention facility, or specific hotel or resort.

An estimated $240 billion was spent on overall business travel in 2007, according to the U.S. Travel Association, with about 2.4 million jobs relying on business travel.  This activity also generated $39 billion in tax revenue at the federal, state, and local levels.

In FY2008, the most recent year available, the U.S. government spent $14.8 billion in travel costs.  These included airfare, car rental, meals, conference expenses, and hotel room rental.  The Defense Department spends almost two-thirds of the federal travel budget, with $543 billion in travel spending in 2008.  The Homeland Security Department’s travel budget is a distant second, followed by Justice, State, and Agriculture Departments.  All federal departments and agencies spent $2.5 billion just on hotel rooms in 2008, up $200 million from the previous year.  43.5 percent of the federal hotel spending was outside of the top 26 hotel brands, most likely with small independent lodging properties. 

The U.S. government and the U.S. hotel industry are linked together, with our properties delivering superior and cost-effective service and lodging to our hundreds of thousands of federal guests each year.  Business meetings allow for an exchange of ideas between employees on how to make their corporation—or government department—work better and more efficiently.

In recent months, destinations such as Las Vegas have suffered as a result of companies reducing their meetings and conference budgets.  In some cases, some companies relocated their meetings to avoid the appearance of extravagance.  Nevada Gov. Jim Gibbons has urged the state’s Congressional delegation to press President Obama for an official change in any existing government policy that lessens the value of Las Vegas as a business travel destination.

While some cities may be more enjoyable to travel to for leisure, the same cities are also proud to host serious business meetings and conferences.  Many hotels that cater to leisure travelers also boast superior conference facilities that are designed to accommodate many business travelers who ask for comfortable facilities to better conduct their meetings and attract more attendees.  They have decades of experience handling conferences of all sizes and have the services needed for tourism. Cities like Las Vegas and Orlando whose local industries depend on travelers ensure they have enough competition amongst hotels to accommodate any budget.

Orange County (Florida) Mayor Richard Crotty sent a letter this spring to 1,800 government meeting planners promoting Orlando, Florida, as a ‘value destination’ for conventions and business travelers.  The mayor touted the city’s convention center, low airfares, low government per-diem costs, and an abundance of affordable hotel rooms. 

AH&LA applauds the government for husbanding the taxpayer’s money, especially in the current economic downturn.  But the association also believes that federal agencies and corporations are going too far to avoid the appearance of wasteful spending during a recession that is also hurting the U.S. lodging and travel industries.

There will always be room to cut and reduce government expenditures.  But to do so at the cost of economic growth is a false choice, and one that the U.S. lodging and travel industries hope does not become an expedient way to generate favorable publicity at the expense of American jobs.

CURRENT CONGRESSIONAL ACTION

On July 29, Sen. Harry Reid introduced the "Protecting Resort Cities from Discrimination Act of 2009, (S. 1530), which would make it against the law for government bureaucrats to implement travel policies that prohibit official travel to specific destinations "perceived to be a resort or vacation destination."

Senate Majority Leader Harry Reid (D-NV) also sent on June 26, 2009 a letter to President Obama’s chief of staff Rahm Emanuel asking for White House assistance in reversing the informal policy being used to discourage or prohibit government meetings in Las Vegas, Nevada and other cities.  Emanuel responded favorably, writing, “I agree that federal policy should not dictate the location where such government events are held.”

Sen. Bill Nelson (D-FL) and a strong supporter of his state’s tourism industry, stated on July 24, 2009 that he would introduce legislation blocking federal agencies from making travel policies that ‘blacklist’ U.S. cities. 

Reps. Suzanne Kosmas (D-FL), Dina Titus (D-NV), Lincoln Diaz-Balart (R-FL), Shelley Berkley (D-NV), Dean Heller (R-NV), Corrine Brown (D-FL), Alan Grayson (D-FL), and John Mica (R-FL) asked the Government Accountability Office via letter on July 23, 2009 to investigate the criteria used by each federal agency for holding meetings in U.S. cities, and investigate any orders that directed agency personnel to avoid specific U.S. destinations.  The representatives also asked for a list of cities that are being purposely avoided by government meeting and travel planners.  This GAO investigation will not be completed until early February 2010.

AH&LA has joined with other travel organizations to lobby Congress and the Obama Administration to ensure that government meeting locations are determined by cost, and not by perception.  Government employees and the taxpayer deserve to have their travel and meeting funds spent wisely.  AH&LA President and CEO Joe McInerney sent a letter on July 30 to all 15 Cabinet Secretaries and to those aforementioned independent agencies asking them to be geographic neutral when considering their meeting plans and business travel.  As of late September, AH&LA has received replies from 13 of the 16 departments, and GSA and Social Security.

(Updated September 2009)