Mar 04
Ashley SpitzerNews economy, Keep America Meeting, meeting industry, travel promotion act
Guest Blog Post – courtesy of Rob Hard
President Obama signed the U.S. Travel Promotion Act into law (March 4, 2010), creating a nonprofit organization (public-private partnership) that will be overseen by the U.S. Commerce Department to promote the U.S. as a business travel and tourism destination – and help explain security and entry policies into the country. Politicians and many in the U.S. hospitality industry proclaim this as a victory.
The national tourism office will be funded with up to US$200 million to create a marketing campaign to international visitors. Sounds great, right? Not so fast. At least half of this money will come from a new tax scheme.
A US$10 fee will be charged to international visitors from 35 countries that participate in the Visa Waiver Program (VWP) to cover up to US$100 million of the budget. The fee would be assessed once every two years, allowing unlimited visits into the U.S. during that time. The legislation also allows the U.S. Department of Homeland Security to charge a separate administrative fee which some say will amount to US$2-3 per transaction to manage the program – costing another US$20-30 million each year. Individuals are likely to incur personal credit card fees as well.
The other US$100 million will be covered by a combination of in-kind and cash investments contributed by third parties in the U.S. tourism industry – most of these organizations already have a financial interest in promoting themselves to international travelers.
While the fees may sound nominal, it’s something that has many people from the impacted countries upset, says Steve Lott, spokesperson for the International Air Transport Association (IATA), Washington, DC.
“Other countries charge their entry/exit fees every time you enter,” a US Travel Association spokesperson explains. “The US$10 fee is far lower than similar fees – ranging from Ireland’s US$14 entry tax to the UK’s whopping US$100 – paid by Americans when they travel abroad. And with a mere 35 countries that would be required to pay the fee, fewer than 30% of foreign travelers will be affected.”
The USTA’s reference to the UK may be appropriate; however, the UK’s Air Passenger Duty (tax) is viewed quite controversially, and some in the UK are concerned that it will negatively impact tourism as the fee continues to increase. The UK introduced a small fee to generate needed revenue in 1993, and the tax has grown significantly since then. And just because someone else charges a fee isn’t enough of a reason for others to follow.
The IATA has taken a position against the U.S. fee, saying that an entry or exit fee charged by other countries is a matter of comparing apples to oranges: none of the 35 countries have a tourism-specific fee.
IATA isn’t the only business travel organization against the fee. The National Business Travel Association (NBTA) doesn’t support it either “because it taxes the traveler to pay for an item that doesn’t tangibly benefit the traveler,” says Shane Downey, director of public policy for the NBTA, Alexandria, Virginia.
Nobody is questioning the importance of creating a U.S. tourism office – or a needed marketing campaign.
But it’s important to know that roughly 47 million international business and leisure travel visits were made to the U.S. in 2009 (excludes Mexico) – a decline of about 6%, and the amount they spent dropped by 15% to about US$122 billion (includes Mexico), according to data from the U.S. Office of Travel & Tourism Industries, Washington, DC. In general, overseas travelers spend about US$4,500 per trip to the U.S., according to the USTA.
Given the amount international visitors already contribute to the U.S. economy, why isn’t the cost of the program being covered from existing taxes?
It seems unfortunate that the fees are tied to visitors from VWP countries – a program initially developed to streamline and encourage international tourism to the U.S. It was chosen because the VWP system already exists and can be easily modified to capture a new fee.
The verdict is also out as to whether the U.S. has risked alienating individuals and governments from some of these countries who may opt to visit elsewhere and/or establish retaliatory fees upon U.S. international visitors to their countries. If that happens, this legislation should ultimately be viewed as a new tax on U.S. international travelers.
As for the argument that this is needed because the U.S. isn’t promoting itself internationally, this is simply misleading. Many U.S. cities and states advertise and participate at international travel shows around the world.
It has already been reported that the U.S. plans to promote its tourism to emerging markets, including Brazil, China and India. I, of course, want travelers from these and other countries to know that they are welcome in the U.S. But I’m not sure how business travelers and tourists from Australia, Japan, Spain and other countries may feel as they pay an extra fee to cover the cost of that campaign.
So is it only a matter of time before other countries will be asked to pay a U.S. entry fee for tourism?
Based in Chicago, Rob Hard is a freelance business travel writer and publisher of http://BusinessTravelDestinations.com, business travel views to international destinations, and event planning guide for About.com. He is also founder of RH Communications, Inc., a boutique marketing firm that provides creative and printing solutions. Email him at editor@rhcommunications.com or write to him at PO Box 4405, Chicago, IL USA 60605.
Feb 24
Ashley SpitzerNews economy, Keep America Meeting, meeting industry, travel promotion act
The long awaited Travel Promotion Act may face a final Senate vote this week.
Why It Matters: it will attract more visitors to our nation, create new jobs, and increase revenue for lodging businesses and local governments, all at no cost to American taxpayers. This is a bill that can help this nation’s economy during a time when job creation is a top action item for Congress.
How YOU Can Help: reach out to your Senators this week and tell them how import the Travel Promotion Act is to the meetings industry industry-and your state.
Thank them for their earlier support of the bill (the Senate passed an earlier version 79-19 in September) and urge them to again help one of the nation’s largest industry sectors during this tough economic period.
How to Contact Your Senators:
• Call the U.S. Capitol operator at 202-224-3121 and ask for your Senator’s offices, or view this list of Senators and their states.
• Explain you are resident of the Senator’s home state.
• State you are calling to register your strong support for the Travel Promotion Act (S. 1023/H.R. 1299) and urge your Senators to vote “YES” for the bill to support their state’s lodging and travel industries.
If the Senate vote is successful, the bill will then head to President Obama’s desk for his signature into law.
Support the meetings industry and call your Senators!
Feb 11
Ashley SpitzerNews economy, meeting attendance, meeting industry
2010 seems hopeful for meetings and events in Las Vegas, based on numbers released earlier this week by the Las Vegas Convention and Visitors Authority.
Meetings in 2009, overall, suffered a 13% decline from the previous year.
December, however, is the fourth month in a row that year-over-year visitor numbers increased. Even meeting figures saw an increase!
Have your meetings picked up in 2010? Hoteliers, are you booking more business? We have seen a dramatic increase in RFPs from planners using the RFP Valet service. Let’s stay busy and meeting in 2010!
Feb 09
Ashley SpitzerContests, Tips for Meeting Planners, Trade Shows economy, environmental-friendly, food and beverage, meeting ideas
If one of your New Year’s resolutions was to save time and money, meeting planners have a lot of suggestions to cut food and beverage costs.
Each of the planners mentioned below shared their advice in the “Stellar Tips” section of ConventionPlanit.com.
Food and beverage charges are always a major cost center. Customizing menus can allow for greater variety, fresher ingredients, and cut costs.
“When working with a limited budget for a full day of meals, I provide my total dollar amount to the chef or catering manager and request that they customize menus for me, keeping in mind any specific requirements I have for each event,” says Kathleen Zwart of Blue Cross Blue Shield of Florida.
“This allows them to use seasonal or local specials, piggyback onto other events being held that day, take advantage of specials offered by their food suppliers, and offer smaller, healthier portions. I stay within my budget, my attendees are offered healthier options, and the chef is able to use some creativity instead of the same old banquet menus. It’s a win-win for all.”
Even simple changes in how food is presented at meal functions can save money.
“If you’re having a reception, pass/butler the more expensive items,” says Debbie DeJacques of GMA Washington.
“You’ll be able to make them last longer and save money. Don’t set plates on the display table – use only napkins (this will ensure your attendees get to sample all the offerings but won’t walk away from the display station with a mound of food) and stick with beer and wine at the bar.”
Laura Johnson of Market*Access International recommends asking the caterer to slice bagels, croissants and muffins in half. Attendees will take smaller portions – leaving more food to go around and wasting less while stretching your breakfast budget.
Stacey Petersen with MHA Ventures, Inc., eliminates canned soda:
“I have found that canned soda costs a lot of money to provide at our conventions. To save on money, and save on the waste of half cans of soda being thrown away and people taking two or three cans ‘for the road,’ two years ago I moved to using a self-service soda fountain station. These stations are conveniently placed near break areas, and are serve-yourself.
All the venue has to worry about is ice, 6-ounce disposable cups, and replacing the canisters once a day (instead of counting and recounting soda cans). It’s a win-win situation – it’s saved me on my budget, members are happy, the hotel staff is happy to not have to count cans anymore, and the waste is significantly decreased!”
Claire Modarelli of Moffitt Cancer Center, replaces bottles of water with water coolers and pitchers. It saved her $1,000 last year!
Stray from a traditional break time – offer variety and cut costs with a voucher program.
“We worked with a hotel to provide vouchers for breaks instead of serving an expensive break time. Each participant was given vouchers to go to the snack shop located in the hotel lobby.
Each voucher was worth $3. For each item the participant chose, they turned in a voucher. The vouchers were then counted and charged to the master account. This wound up costing considerably less than paying for breaks,” shares Kathy Craig of the Ecumenical Stewardship Center in Indianapolis, Indiana.
Closely monitoring a beverage manager can also pay off, as Stacy Wald of Orthopaedic Associates explains,
“When I do my banquet event orders I let the manager know at that time that I would like to be with the beverage manager when they tally the bars and empties. Liquor is counted by tenths of a bottle and then billed accordingly.
If I disagree with a count and the measurement is changed it could be the equivalent to 10-12 drinks. It also keeps the beverage manager on his toes! I have saved hundreds of dollars just by checking the bars before the totals are finalized.”
What is your cost saving tip? Share your ideas by commenting on this post!
Jan 14
maureen-pickellTrade Shows economy, meeting attendance, meeting industry, pcma, upcoming meetings industry events
Well, the PCMA 2010 Annual Meeting wrapped up with another strong day of education beginning with a Plenary Session entitled “The State of the Meetings and Travel Industry.” The theme of “cautious optimism” that has run through the conference was reiterated once again – this time with hard numbers presented by Peter Yesawich of YPartnership.
His panel included Minaz Abij of Asset Management, Thomas C. Dolan, PhD., CAE, American College of Healthcare Executives, Brian Phillips of FedEx Office, Thomas W. Storey, Fairmont Hotels & Resorts and Frits van Paasschen of Starwood Hotels & Resorts Worldwide. The consensus of this distinguished group is that business meetings are coming back slowly. The 2nd quarter will see the emergence of small and mid-sized events with large meetings surfacing in the 4th quarter. Association business will pick up with higher attendance at annual conferences because of the pent up demand for face to face encounters.
According to Thomas Dolan, “You still need to see to sell and convince.”
It appears that 2nd quarter will see a rush to get these meetings launched. To help our planners manage their “time poverty,” ConventionPlanit.com offers the RFP ValetTM service. Instead of spending time researching facilities and chasing properties for timely responses, we do the work for you. To learn more about this service, click here.
Your dedicated blogger was virtually overwhelmed by the wealth of information presented during PCMA 2010 – Convening Leaders. I’ve attempted to share some of the highlights with you over the past 4 days, but in order to comprehend the wide scope of the education that was offered, go to www.pcma2010.org and click on Video to view the PCMA-TV News Summary.
We’ll see you at PCMA 2011 in Las Vegas!
Jan 13
maureen-pickellTrade Shows economy, environmental-friendly, green meetings, Keep America Meeting, overseas meetings, pcma
Your intrepid blogger had another busy day. The sessions at the PCMA annual conference continue to be varied and interesting, beginning with “Beyond Borders: Advanced Solutions for International Meetings.” Roundtable discussion topics ranged from Risk Management and Attendance Building to Budgets and Cost Containment as well as Working with Partners. The goal was to help eliminate the trial and error of international planning by sharing information among participants. Specific issues were introduced and solutions discussed using the expertise of both planners and suppliers.
For those of you interested in the results, the notes will be posted on the PCMA website after the conference.
Then on to “Top Industry Leaders on the Future of Meetings.” The meetings industry version of “The Magnificent Seven” including Jonathan Tisch, Roger Dow, John Graham, Bruce MacMillan, Michael Gehrisch, Brenda Anderson and Deborah Sexton addressed the outlook for 2010 and beyond. A lively discussion about the power of collaboration revealed that the prognosis is basically optimistic but more work needs to be done to rebuild and renew our industry.
The standing room only audience seemed more than anxious to take on the challenge by furthering the grass roots movements begun this past year.
And lastly, how many of you know the difference between Free range poultry and Cage free birds? The session entitled “Green Guide: Sustainable Food and Beverage” presented tips on selecting sustainable food choices and staying within budget while implementing a program to manage food and beverage waste. Again, consult the PCMA website for a glossary of terms relating to this important topic.
Looking forward to Wednesday’s sessions and networking!
Aug 25
Damion RutherfordNews, Places to Stay economy, Five Diamond, Five Star, hotels, meeting industry
The latest casualty of the struggling hospitality industry is the rating system itself.
Bloomberg.com reports many luxury hotel brands have begun cutting ratings to save costs.
The AAA and Mobil rating systems identify specific service requirements for hotels to receive a five-diamond or five-star rating. These services can be quite costly for the hotels.
According to the Mobil Travel Guide, if the hotel has a pool, guests arriving for a swim should be escorted to their chairs and offered refreshment. Welcome gifts and thoughtful items on pillows at turn down service are expected. Ice buckets must be glass, metal or stone, and tongs must also be provided.
The Bloomberg.com article quotes Stephen Bollenbach, former chief executive officer of Hilton Hotels Corp.:
“Ratings aren’t based on making good returns on your investment.”
If the trend of hotels cutting back on services and lowering ratings continues, will rating systems become irrelevant? Are they outdated?
As a guest, how important is the AAA or Mobil rating in your booking decision? Can hotels survive on reputation alone?
Aug 04
Ashley SpitzerContests, Tips for Meeting Planners attendee interaction, economy, meeting ideas, meeting planner feedback, Tips for Meeting Planners
A smart way to save on your meeting costs is by cutting back on the breaks.
We worked with a hotel to provide vouchers for breaks instead of serving an expensive break time. Each participant was given vouchers to go to the snack shop located in the hotel lobby.
Each voucher was worth $3. For each item the participant chose, they turned in a voucher. The vouchers were then counted and charged to the master account. This wound up costing considerably less than paying for breaks. Hope this tip helps you in your planning!
…this idea comes from Kathy Craig, Administrative Assistant with Ecumenical Stewardship Center in Indianapolis, Indiana, who just won our July Stellar Tip Contest.
If you have a meeting tip to share, enter the August contest to win a $100 prize!
Jul 28
Ashley SpitzerNews, Places to Stay, Tips for Meeting Planners Chicago Hotels, economy, Hotel Unions, hotels, meeting experiences, meeting industry
Chicago’s City Council is hoping to pass an ordinance that would notify potential hotel guests of work stoppages.
Specifically, work stoppages of 20 or more hotel employees having gone on for more than 15 days would be reported to guests prior to booking.
The ordinance would protect guests from being surprised with unions picketing outside hotels or a lack of staffers during their stay.
Quoted in the Chicago Sun-Times, Chicagoland Chamber of Commerce President Jerry Roper said,
“With business as difficult as it is to attract, all the meeting planners need is one extra little thing to say, ‘We wanted to get out of Chicago anyway. This is our out.’… In these tough economic times, we don’t need any more negative impressions.”
What do you think?
As a meeting planner, do you have a right to know if the conditions at a hotel are abnormal? How would your decision to stay at a property be affected by a union strike, if at all?
From the hotelier side, do you agree with Mr. Roper? What are some alternative solutions?
Jul 16
Ashley SpitzerNews economy, hotels, Keep America Meeting, meeting industry
USA Today posted an interesting article about the ethics of Congressional travel.
Here’s the linK:
Ethics rules alter travel by Congress – USATODAY.com.
The amount of travel over the past few years for lawmakers has dropped significantly, according to the article. From the ethical standpoint, I do not want lawmakers traveling on the dime of a non-profit in order to sway legislation.
However, I can’t help but think about the matter from the hospitality industry’s standpoint. Any travel cutbacks I read or hear about cause me to cringe…because, as we know and have experienced, businesses have been canceling trips and meetings to avoid seeming lavish and excessive in the eyes of Congress.
My hope is that the travel industry, which has already experienced significant lows this year, will not be bundled with Congress’ unethical behavior.
Let the industry have a fair chance for the good to be seen – awareness is the best way. Let’s help spread the word of campaigns like Keep America Meeting to help generate positive press about the travel industry.
What are your thoughts? Does it bother you to see travel associated with negativity? What are some other ways to spread the importance of the industry?
Older Entries
Current Discussions