Although anti-corporate travel rhetoric is starting
to subside in Washington, months of negative press have taken their toll on an
industry that employs 2.4 million Americans and generates $240 billion in
spending and $39 billion in tax revenue.
As
the chair of the U.S. Travel Association, I would like to set the record
straight about why business travel is still vital to our country’s bottom line,
and encourage you to take action to keep America meeting. A new Oxford
Economics USA study shows that for every dollar spent on business travel,
companies realize $12.50 in incremental value and $3.80 in profits. Just a 10 percent increase in business travel
spending will increase our gross domestic product (GDP) by between 1.5 and 2.8
percent.
Unfortunately,
too many CEOs these days see business travel as frivolous spending, when the opposite
is true. The data shows that companies would have to pay employees 8 percent
more to achieve the same level of motivation that business travel achieves for
less. And, although profits are driven by many factors, nothing enhances
business relationships better than face-to-face meetings.
Although the
White House encouraging business travel is a good sign, we still have a long road
toward recovery. Fifty-two percent of
respondents to a recent Meetings & Conventions magazine survey said that the mass-media backlash against meetings has
influenced their companies’ decisions to hold events. With only 20 percent of
the hotel market reporting, meeting and event cancellations exceeded $220
million for January 1 through February 28, 2009, alone. As meetings and
events decline, local communities – nearly all of whom are dependent on visitor
taxes – struggle to pay for essential
services such as education, public safety and social services. As the largest
economy in the U.S., California is particularly
vulnerable. With $36 billion in
annual business travel revenues, we could be one of the most affected states if
our meetings and events industry continues to decline over the long term.
To help CEOs, the U.S. Travel
Association recently recommended a clear meetings and events policy that supports legitimate business and helps keep Americans employed. I
urge corporate leaders in the Golden State and beyond to learn the facts about
how appropriate corporate travel is part of a sound long-term business
strategy. Go to www.meetingsmeanbusiness.com to learn about the ROI of corporate travel and to access
tools to educate policymakers, opinion leaders, companies and the media on this important issue. Let’s keep America
meeting!