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Lodging Industry Takes to The Hill The AH&LA's Legislative Action Summit is in full swing and hoteliers are spending a day lobbying to elected officials. Tuesday, March 16, 2010 Glenn Haussman

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It’s time to shake, rattle and roll. Today, the hotel industry’s most politically involved are storming Capitol Hill. And the goal is clear: deliver relevant information to elected officials that will result in favorable policies and legislation that will enhance lodging and tourism businesses in the United States.

The effort is part of the American Hotel and Lodging Association’s Legislative Action Summit and its goal is to show that lobbying Capitol Hill can make a difference.

In recent years the AHLA has become a more effective advocate for the lodging industry in the political scene, looking after the interests of hotel owners and operators.  In fact, it’s becoming widely known by politicos just how important travel and tourism is to the entire American economy.

“Your association has enhanced its prestige on The Hill because of your involvement,” said Rep. Bill Delahunt (D-MA) to Summit attendees this morning. “There is not a single member of the House or Senate that is unaware that tourism industry and specifically hotel and motel association that is so critical to our economy. Now it is time to use your newly acquired political capital to further your agenda. You have become players in Washington and your people have done an excellent job on this piece of legislation, but don’t let that capital be frittered away.”

That ‘piece of legislation’ was the Travel Promotion Act, which was signed into law by President Obama on March 4.

The Travel Promotion Act (TPA), according to the AH&LA is expected to help attract 1.6 million new international visitors, create $4 billion in new spending, and drive $321 million in new federal tax revenue. It will also create over 40,000 jobs in the U.S. travel industry per year.

The law also creates a public-private partnership to better explain the ever-evolving U.S. security policies and promote U.S. travel to attract millions of additional overseas visitors. It also is funded entirely by fees generated from the Visa Waiver program and travel industry contributions—no taxpayer money is used, said AH&LA literature.

The biggest hot-burner issue is preventing online travel companies (OTCs) from pushing their agenda on the Hill that many lodging industry insiders feel will have a negative effect on hotel owners. That issue is fully explained in yesterday’s article here, and poses a threat of higher taxes being foisted upon individual hotels. Essentially there is a disagreement in what is owed in occupancy taxes to local jurisdictions and hoteliers fear if OTCs have their way it will shifting the burden of taxation from internet booking sites to the individual hotels resulting in further profit erosion.

Another issue that will be discussed in depth with elected officials and the aides is the potential threat if the Employee Free Choice Act is revived. Though the AH&LA and other lodging industry lobbyists were able to stamp out this legislation, proponents are looking to either revive the bill or circumvent the legislative process entirely. How is that possible?

Those familiar with inside the beltway politicking say components of EFCA could be enacted through the National Labor Relations Board (NLRB). Currently there are two open spots on its board and rumors are swirling the President will appoint individuals during the upcoming Easter recess.

One of the nominees is Craig Becker, who according to experts on this issue is pro-union and s looking to accommodate a pro union agenda.

“We are picking up indications of recess nominations around Easter. When the Board gets going it will do everything they can to tilt more to unions and not employers. We all need to keep our eye on the Board’s actions with current law,” said Kyle Hicks, Republican Labor Counsel, Senate Committee on Health, Education, Labor and Pensions.

In addition to the NLRB, the unions are looking to create a “compromise” bill before the November 2010 elections. According to the AH&LA, here are the key points of this issue:

• The proposed EFCA compromises are no compromise at all. The “mail-in” voting proposal still does not protect an employee’s secret ballot from intimidation and manipulation, and the binding arbitration changes proposed still give government bureaucrats the final approval on an employee’s contract.

• Private ballots are a cornerstone of American democracy; card check removes our employee’s right of a private ballot in the workplace. EFCA leaves workers open to intimidation and coercion by union organizers, their employer, and their co-workers.

• EFCA imposes contract terms on private, unionized employers through a process of government mandated binding arbitration if both parties cannot come to an agreement within 120 days. This jeopardizes American workers’ ability to vote on the terms of a new union contract—including their own pay and benefits.

• Not a single job will be created by EFCA. To the contrary, this legislation will hurt small lodging businesses because they are particularly vulnerable under card check and binding arbitration.

• A 2009 study found that for every 3 percent gain in union membership through EFCA, the following year’s national unemployment rate would be predicted to increase by 1 percent. 600,000 jobs a year would be lost under EFCA and another 900,000 would never be created, totaling 1.5 million American workers unemployed by the passage of this legislation.

Marlene Colucci, AH&LA Executive Vice President of Public Policy, said the AH&LA did a study and looked at a similar bill that was enacted in Canada. She said it enacting the bill cost Canada 600,000 jobs in the first year. “It is important to make sure legislators understand that. We can’t ever afford to lose jobs, especially now,” said Colucci.