Strategic Hotel's Laurence Geller Calls for Feds to Stimulate Hospitality Industry by Ending Rhetoric (United States)
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Strategic Hotel's Laurence Geller Calls for Feds to Stimulate Hospitality Industry by Ending Rhetoric (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2009-03-10
The current political climate wherein legitimate meetings, business events and recognition travel are now being portrayed as perks and symbols of excess by government leaders further threatens the economic foundation of the hotel and hospitality industry. If the hyperbole and rhetoric are not toned down, job losses will exceed the 247,000 travel industry jobs projected to be lost in 2009.
We have seen cancellations skyrocket in the last month and this threatens to greatly worsen an industry already in crisis. In the past month, one of our hotels -- The Ritz Carlton Half Moon Bay -- suffered 32 group cancellations which would have generated $2 million in direct billings and many times that in residual economic impact. Staff hours at the hotel have been reduced by approximately 25%. This is just one of our nineteen hotels, and we are one hotel owner amongst thousands.
Congressional leadership must quickly realize the unintended consequences of this rhetoric and publicly champion the benefits of business travel. We must be conscious about fostering a climate wherein the business community is encouraged to spend smartly, inclusive of business travel, and not operate in fear of misplaced criticism. The private hospitality industry -- a $240 billion industry in 2008 that has received no stimulus -- has a critical role to play employing millions of hourly U.S. workers, but cannot do so without a revenue stream.
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