Meetings and Events - America's best-kept Economic Secret

In these tough financial times, the best opportunity to revitalize the American economy has been hiding in plain sight. For all the talk about tax credits, subsidies, bailouts and interest rates, our greatest hope is to invest in job creation. The country's best-kept economic secret - The Meetings and Event Industry – does just that.

 

For 25 years I've had the privilege working in this industry, beginning as a tour guide in Hawaii and later in my career, building three separate hospitality-related businesses in Dallas. Through good times and bad times, including the devastating industry-wide impact of 9-11, the Meetings and Events Industry has pulled together and made America stronger.

That’s easy to appreciate from the inside, knowing what I know. Meetings and Events are significant, creating $244 billion in spending, 2.4 million American jobs and $39 billion in tax revenue at the federal, state and local level. The industry provides solutions to many of the technology, trade, manufacturing, innovation, small business and green jobs must haves President Obama sets forth in his plan to revitalize the economy.

Knowing what I know, it’s been difficult in recent weeks to turn on the TV or pick up a newspaper and see how misperceptions are beginning to inflict significant damage on my business, the local economy and the industry at large. I understand the rush to judgment, especially in light of actions by companies like American International Group, Inc. (AIG) which accepts an $85 billion bailout from the federal government and then jets its executives off on a retreat for it’s at the ultra-fabulous St. Regis Resort in California, running up a tab of $440,000 on rooms, meals, spa and golf.

I have no sympathy for AIG, which lost more than $5 billion in the last quarter of 2007 through its risky financial products division. AIG is a train wreck, a classic example of corporate greed and denial that is staggering in its stupidity. American taxpayers are rightfully outraged about their money going to rescue companies run by arrogant, over-paid, and coddled executives AIG is among the worst of the worst, and someone there – lots of people there – should go directly to jail.

 

But AIG and many of the other companies receiving TARP monies are not representative of the many hard-working and ethical business professionals and companies who comprise the Meetings and Events Industry. For the most part, meetings, conventions and conferences are cost efficient, well planned mechanisms used by companies to drive business and are a huge economic boost to cities that host the meetings. That’s not what I see in the media or the discussions on Capitol Hill. I see critics mislabeling meetings and events as lavish and unnecessary. 

 

When business meetings and incentive travel programs are demonized and canceled, American workers – not CEOs – are the ones who pay the price. Hourly wage employees are the first to lose their jobs as business travel declines. In fact, without the jobs generated by meetings and events, the unemployment rate in the United States would quickly jump from 7.6 percent to 8.2 percent. Recent calls for the introduction of legislation and media reporting is having a damaging effect on companies that have never taken a cent of TARP money. Some of those same companies are canceling meetings and other events because they are afraid of being attacked as wasteful. 

 

So, here we are, with bad apples setting bad examples and creating misperceptions about an industry America needs now more than ever. The Meetings and Events Industry is the largest delivery system of continuing adult education on the planet. We learn, we teach and we mentor. Over the past 20 years, the industry has provided more opportunities for women and minority-owned business than any other. Meetings and Events Matter to Millions.

Closer to home, the industry directly affects the almost 200 employees of mine, many under the age of 25, who fear being laid off as meetings and conventions decline. Ours is just a small family-owned business in Texas, but we help build careers for young people in the area, we provide additional employment opportunities for older workers and we partner with other organizations to promote business within the larger destination.

How important are meetings and events? Ask those on both sides of the aisle in Congress how important it was for their respective organizations to hold national meetings in Denver and Minneapolis-Saint Paul last year? Does it matter that their members have an opportunity to meet, discuss ideas and strategy, and network with their partners? How vital were those meetings to their overall objectives and success?

Travel for meetings, events and incentives is a cost-effective tool vital for companies to strengthen business relationships; align and educate employees and customers; and compensate employees for business performance.  In our weak economy, the last thing Congress should do is implement policies or spout overheated rhetoric that jeopardizes jobs and the local tax revenue my community depends upon.

 

Few communities exist which don’t have a vital stake in business and visitor travel. Yes, we need guidelines that include competitive bidding, expense reporting, cost containment, and policy compliance, exactly the type of transparency and accountability President Obama has called for. But we need to walk carefully and not rush to judgment with legislation which would unfairly restrict companies’ ability to use meetings, events and incentive travel as a legitimate business tool.

 

We can’t afford not to get this one right.