Why Hoteliers Need to Vote Next Week

While it might feel at times like the campaign commercials and 24/7 news channel political punditry have been going full steam ahead for months now, we’ve hit the homestretch; the 2010 mid-term elections really are right around the corner. For the hospitality industry, that corner is looking more and more like a critically important turning point. Given the current political and economic climate, the results of next week’s elections could have a potentially dramatic impact on the hospitality industry, particularly the hotel owners, operators and franchisees around the country who have worked hard to make it through a significant economic recession only to find themselves potentially facing crippling legislative handicaps.

The hospitality industry is one of our nation’s most important economic engines, and depriving that engine of fuel right at the moment we should putting our collective foot on the gas would be a serious misjudgment. Hotel owners and operators across the country have worked too hard to let inflammatory rhetoric in the media, anti-business sentiment, and politically motivated policy changes hamper what should be a vibrant and dynamic period of recovery in the months and years ahead.

For anyone who cares about the hospitality industry, sitting on the sidelines in this election cycle is not a responsible option. Hoteliers need to get involved and ensure their voices are heard. Hoteliers across the country are realizing that, while mid-term elections don’t have the hype of four-year cycles, this election in particular will make a significant difference to each and every small businessperson in America. So while we watch our pennies and examine ROI at every turn, this is the one time I encourage hotel owners and managers to open their checkbooks and write the largest check possible to a hospitality political action committee, like INN-PAC.

What takes place at the ballot box next Tuesday could determine the fate of a number of critically important issues that are currently being debated, including card check, healthcare reform implementation and a range of potentially punitive economic and tax policies that would be disproportionately burdensome on small businesses.

Card Check
An issue that is still on the table, card check is likely to continue to remain on the political radar. Union leaders and other advocates of card check legislation want to do away with a system that has worked efficiently and effectively for more than 70 years. The National Labor Relations Act currently allows employees to vote for union representation through an employee secret-ballot election overseen by the National Labor Relations Board.Proposed card check legislation would do away with private ballots and make it far easier for unions to exert undue influence over workers, owners and operators. No hotel owner wants to be in a situation where they feel like they don’t have a fair say in the employment practices of their hotel, and card check would be a damaging economic blow at a time when the industry—and the nation—can least afford it.

Health Care
The new healthcare reform legislation could be potentially devastating for some hotel groups. For some operators, troubling new healthcare mandates would represent the straw that broke the camel’s back, in some cases making the difference between staying in business and failing. The degree to which healthcare reform transfers many of the costs and responsibilities to employers also adds to an atmosphere of uncertainty; hardly a promising environment for robust growth and recovery. Considering how volatile healthcare costs can be, it will be increasingly challenging for hoteliers to plan ahead while trying to account for what will be an unknown quantity.

Capital Concerns
As almost anyone involved in the hospitality industry has experienced firsthand over the last few years, the economic uncertainties and resulting credit crunch have greatly limited options in terms of expanding, renovating or acquiring new properties. The regulatory pendulum has swung too far in the wrong direction, and underwriting has become dysfunctionally strict. The hospitality industry has always faced particular challenges in the real estate marketplace, and the economic and political climate over the last two years has exacerbated those concerns. In addition, given the number of new government programs and the context of the very public recent spat between the White House and the Chamber of Commerce, there is reason to believe the lion’s share of the new tax obligations needed to pay for those programs will fall upon the business community.

No matter what the results are once the votes have been counted, those of us in the hospitality industry owe it to ourselves to devote the time and resources necessary to ensure that our voices have been heard. Franchise owners associations around the country are aligning with political action committees who are working hard to ensure that industry voices are heard, and that our legislators understand how important the hospitality industry is to the national economy.

By supporting these groups, writing letters, and becoming a passionate and engaged advocate for our industry, we can help ensure this burgeoning recovery doesn’t get stopped in its tracks by ill-conceived legislative roadblocks. This November, your time, your energy and your vote are a great way to make a lasting investment in a healthy and sustainable future for your industry.

David Wespiser is managing member of Hotel Development Services, LLC of Oxford, Ohio. He also a member of the IAHI Board of Directors, the Owners’ Association for IHG-brand hotels, representing 3000 hotel owners worldwide.


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