Wednesday, May 20, 2009

Populist anger and the business traveler









If there's a really long, overdue plan of action in the works, it could be efforts by some of the leading figures in the U.S. hospitality industry to convince more people to travel and book hotels.



But the campaign isn't targeted toward families who might be nervous about whether they can afford a vacation this year or designed to entice European to keep visiting us. The campaign is aimed at a very particular group: business travelers. And that includes corporate America.



That's because there have been few greater villains since the economy began falling off a cliff last September than our corporate leaders -- particularly the notion of corporate bigwigs going on lavish "business trips" while the CEOs come to Congress begging for taxpayer-funded bailouts. We've all seen the politicians, Democrat and Republican alike, line up to play the outraged populist, raging at luxury hotels booked for company leaders, with high priced meals and entertainment and the like, while the average citizen is facing rising unemployment, plummeting home values, a declining stock value, and just plain misery. Is there no justice, they cry out, within corporate America?



As populist shticks go, this one is like catnip to the purring politician. Ok, fine. But another way to look at this -- particularly from the perspective of Central Florida, which is, after all, a major tourism capital -- is that every dime spent in this region on travel expenses, whether it's by a family of four or a huge corporate outing, is money in our pockets.



Let's say a family of four books a weekend stay at a hotel near Disney. Great. But then let's say a leading corporation books a week for a conference at Gaylord Palms Resort and Convention Center. Another big firm books a week of conferencing on International Drive. Let's say they spend tons and tons of money on five-star rooms and lavish meals and their employees also get out and see the sights in our region. We're all supposed to be outraged when they bring far more consumer dollars to our area than the family of four ever could? Does anything think Gaylord Palms' employees and managers sob about corporate greed when they book big corporate outings?



The Barney Franks of the world will counter that they don't care what these well heeled CEOs do, as long as they don't come to the American taxpayer for subsidies to cover up past bad decisions. But not every business booking travel for its employees is arriving in Washington D.C. with a tin cup in its hand, and for that matter, since when do politicians make a distinction between large businesses seeking bailouts and those that don't? Democrats in particular rarely get tired of blaming corporate American for mistreating the average worker, exploiting the common man, handing out six-figure bonuses to the top echelon while skimping on the pay raises for the little guy down below, and so on. Populism is like a drug to these guys: the common man versus the all-powerful giant industry is too juicy a target for them to resist.



On the other hand, big tabs left at area resorts from corporate America means a lot to tourism centers in our midst. Every dime spent by these supposedly greedy folks helps a host of people on the lower end -- the maid who cleans the rooms, the chefs who prepare the meals, those who handle valet parking. If the business world stopped these trips altogether out of fear that it sends the wrong public image, what should our local resorts do as a Plan B?



It was interesting to see Oscar Goodman, the mayor of Las Vegas, blast President Obama for criticizing business junkets to Sin City (the president had said "You can't go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer's dime.")



Likewise, James Tisch, CEO of Loews Corp., accused Congress of "killing the resort hotel business" through their populist rage.



I think they have a point. It's fine to criticize companies that want a bailout at taxpayer expense , while continuing to reward these supposedly critical employees with unnecessary perks. But I think far too many politicians go beyond that, demonizing business travel altogether as nothing more than fat cats living high on the hog while the poor minimum wage folks get the long hours and miniscule pay raises.



They should also remember all the folks here in our region, making less than $10 an hour, who depend on that business travel for their jobs. Like it or not, we're a destination area and business travelers love coming here. In this economic climate, we don't need to bite the hand that helps feed us.





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