| Event Calendar
Central Regional Meeting
March 17 @ 8:30 AM
Trenton Marriott at Lafayette Yard
Annual Meeting & Unity Luncheon
April 13
Grand Summit Hotel, Summit
AH&LA Legislative Action Summit
February 24-25, 2004
The Washington Court Hotel Washington, DC
Central Regional Meeting
November 18 @ 12 Noon
Doral Forrestal, Princeton
 Business
Update
Spending rising more than income
Consumer spending increased 0.4% in December,
twice the rate of the personal income increase. Analysts speculate consumers
are still aiding the economic recovery, but other figures show savings
are down and after-tax income is flat, causing one to say such figures
"expose the weak underbelly of this recovery." The
Washington Post
Best Western eyes cities for addition of 160 hotels
Best Western plans to pick up another 160 hotels across the nation during
2004, adding to its approximately 4,110 hotels around the world. About
60% of the new properties are expected to result from converting other
hotels to Best Westerns. Some cities slated for more Best Westerns include
Denver, Atlanta, Baltimore, Chicago, Cleveland and Cincinnati.
American
City Business Journals/Denver
Delaware hotel occupancy rates up in 2003
Occupancy at hotels in the state was up nearly 9% last year compared to
2002, despite a lackluster market on the national level. Factors credited
with boosting the hotel stays include a heavier military presence, signs
of economic recovery and an increase in travelers vacationing closer to
home. The
News Journal (Del.)
Holiday Inn seeks updated image
Holiday Inn is beginning a makeover, featuring contemporary furniture,
high-speed Internet and roomy showers, to update its image and also deal
with competition. Holiday Inn officials will solicit feedback from guests
at the hotel group's prototype location outside Atlanta at Gwinnett Center
to help shape future redesigns. Journal
and Constitution (Atlanta)
San Diego voters to decide on hotel
tax hike
San Diego voters will decide in March whether to boost hotel room tax
from 10.5% to 13% to increase tax revenues to pay for city services such
as cleaner beaches and better roads. But some fear there would be undesired
restrictions on how to spend the estimated additional $26 million in annual
revenue raised by the measure, called Proposition C. San
Diego Union-Tribune
Philadelphia focus on smaller conventions
makes up for big-event shortfall
With fewer big conventions booked in Philadelphia in 2003, a strategic
focus on smaller conventions and meetings paid off with bookings for an
additional 100,000 room nights. The city's Convention & Visitor's Bureau
says the shifted focus was necessary when the city had just 18 citywide
conventions booked for 2003 -- down from 27 in 2002. American
City Business Journals/Philadelphia
Hilton posts fourth-quarter profit
increase
Hilton Hotels' focus on lower-paying vacationers during a decline in business
travel appears to have paid off with a rise in fourth-quarter profit.
The hotel giant posted a net income of $67 million, or 17 cents a share,
compared with $40 million, or 11 cents a share during the same period
a year earlier. MSN
Money/Reuters
Lodging Execs: Time has come to shake
dependence on middlemen travel sites
With most major hotels guaranteeing the lowest room rates on their own
Web sites, it's time for a break from their dependence on such cut-rate
Internet middlemen as Expedia and Travelocity, said executives at a meeting
of the American Lodging Investment Summit in Los Angeles. The sites helped
hotels through the post-Sept. 11 downturn, but at the expense of high
commissions and control of some rooms. USA
TODAY/Reuters
Pennsylvania mulls background checks
The bill would require all Pennsylvania lodging establishments to do background
research on all employees who would have access to room keys. The law,
currently being debated before state lawmakers, wouldn't dictate what
the individual hotels and motels did with the data when making a hiring
decision. Some lodging managers say they already perform the checks, but
encouraged lawmakers to consider different strategies to ensure guests'
safety. PennLive/Associated
Press
Tourism industry concerned about foreign
ID program
The new security program that fingerprints and photographs travelers from
some countries -- the US-VISIT program -- is raising concerns in the hospitality
industry that it may discourage foreign tourism. But some say they haven't
seen negative affects from the program yet. Journal
and Constitution (Atlanta)
Cendant Prepares For China Expansion
Cendant has signed a deal to franchise more than 40 Days Inn hotels in
mainland China by 2008, besides the two located there. The company is
betting on increased automobile ownership and an expanded Chinese highway
system to create a market. The
Wall Street Journal/Dow Jones
Pace Of GDP Growth And Business Spending
Slows
U.S. economic growth slowed to a 4% annual rate in the fourth quarter
of 2003, down from an 8.2% increase in the third quarter. While economists
expected a higher increase, most agreed the figure represented a healthy
growth rate. In another sign of economic recovery, business spending increased
nearly 7% during the fourth quarter. USA
TODAY
Extended Stay Reports Drop In 4Q Profits
Extended Stay America saw its fourth-quarter income drop by 50% because
of the weak business-travel segment. Upgrading costs also contributed
to the revenue decrease, a report says. The
Post and Courier (Charleston, S.C.)
Market
Trends
U.S. concerned about additional security threats
The cancellation of several flights recently
had a new element to them: Intelligence that terrorists might be considering
using chemical, biological or radiological weapons on airlines. The primary
concern remains that terrorists may try to smuggle a bomb on a plane or
use a plane against an American target. Los
Angeles Times
Where is the self-service revolution headed?
From online banking to checking into hotels,
consumers feel empowered whenever they can engage in a transaction where
and when they want. Companies are advised to provide self-services in
a well-managed and targeted knowledge base. They should also reward self-sufficient
customers with lower costs and better services. destinationCRM
Meeting industry to see upswing in '04, planners
say
Meeting planners and suppliers anticipate an average 4% increase in spending
and revenue in the meeting industry this year, according to an annual
outlook from Meeting Professionals International and American Express.
Among predictions for 2004 are that budgets for independent planners will
increase from more than $4.8 million in 2003 to $6.5 million, and that
consultants' budgets will increase from $3 million to $6.9 million.
American
City Business Journals/Tampa Bay
Internet booking for travel still growing
Although the rate at which Americans use
the Internet to make travel plans has slowed, it still is growing, according
to a study by the Travel Industry Association of America. Use of the Internet
for booking accommodations increased from 57% in 2002 to 71% in 2003.
Hotel
News Resource
Holiday Inn hotels to hit high-speed Internet highway
InterContinental Hotels Group is the latest hotelier to offer free high-speed
Internet bandwagon, with the expected announcement this week that the
group will install the service in the majority of its 2,500 hotels in
the U.S. and Canada by year's end. The plan will bring access to more
than 300,000 rooms at InterContinental's Holiday Inn and Holiday Inn Express
hotels. The
Wall Street Journal
Hotelier survey sees cautious optimism for 2004
Optimism in the hotel industry seems to be on the upswing, according to
a new survey. The TRI Hospitality Consulting survey shows that as many
as 55% of respondents in the hotel industry said the current business
environment is pleasing or very pleasing, compared to only 40% agreeing
with the assessment just three months ago. Hotel
News Resource
Hotel spas are the new trend
Upscale spas in top hotels is the latest industry trend, epitomized by
Starwood Hotels & Resorts Worldwide buying the Bliss spa. But as luxury
accommodations add more expensive spa treatments to their available amenities,
the trend should trickle down to other kinds of hotels, experts say.
Newsday
Hospitality e-Marketing Awards Presented
The third annual Hospitality Sales and Marketing Association International
awards were presented for e-marketing excellence last week in New York.
Award recipients were chosen for booking performance and marketing strategy.
Hotel
& Motel Management
Hotel Group To Offer New Lifestyle Brand
The InterContinental Hotel Group is planning a new lifestyle hotel brand,
which they are currently calling Indigo. The hotel service will be for
the mid-market range and will use conversion properties. hotelbusiness.com
Identity Theft Still No. 1 Fraud Problem
For the second year in a row, identity theft topped the list of frauds
reported to the Northeast Region of the Federal Trade Commission in 2003.
Identity theft accounted for 42% of the complaints filed with the FTC,
up from 40% in 2002. Newsday
Accor: More than 6 million rooms booked online
last year
The hotel group reported a 57% increase in online booking in 2003, up
from 3.9 million rooms booked on its suite of Web sites in 2002. Around
the world, more than 80% of nights were booked on Accor's own hotel sites,
while 17% were secured through outside Web sites. Hospitalitymagazine.com.au
Employment Costs Show Smallest Growth In Nearly
Two Years
Figures released by the Labor Department show wages and employment costs
increased by only .7% last quarter, as the still-soft economy made employers
more cautious about spending. Separately, initial unemployment claims
hit their lowest levels in recent weeks, with some speculating the drop
is a sign layoffs are decreasing. Pittsburgh
Post-Gazette/Associated Press
Manhattan's "Restaurant Collection"
Opens
The collection of eight upscale restaurants in the Time Warner Center,
featuring new ventures from celebrity chefs such as Thomas Keller and
Charlie Trotter, opened yesterday. Instead of viewing each other as competitors,
the restaurants are banding together to whip up publicity for the whole
group of eateries, hoping to drive in more dining dollars. Newsday
Best
Practices
Hotels need to take heart, equip facilities
with life-saving defibrillators
A hotel may be as likely a setting as any for a person to suffer a heart
attack, yet surprisingly few hotels are equipped with automated external
defibrillators, or AEDs, which can save the lives of those in cardiac
arrest. The Carlson Hotel chain last year announced its plans to
install AEDs at all of its U.S. owned and managed hotels and Harrah's
Hotel and Casino reports its employees have saved nearly 200 lives
with the devices. The
Rooms Chronicle
Keep company mission in focus
Management that concentrates on figures only is not delivering lasting
value. Instead, having a company mission and sticking to it is the best
way to deliver for customers, employees and the company itself.
Strategy+Business
Don't let the bed bugs bite -- Experts offer
tips
April showers may bring more than flowers -- bed bugs, cockroaches, rodents
and ants also may make their presence in spring, creeping into businesses
and hotels for warmth and food. Experts offer tips for keeping critters
out, including keeping garbage pails closed, maintaining and cleaning
indoor garbage compactors, closing cracks where pests can enter and eliminating
water sources by repairing leaky drains. Cleaning
& Maintenance Management
Mold lingers as indoor air quality issue for
buildings
Advances in building automation are making it easier to manage huge HVAC
systems, but issues still arise demanding special attention and mold has
become a particularly frequent problem. Experts say one of the keys to
beating the mold problem is to maintain positive pressure in buildings
so that moisture ingress remains minimal. FacilityCity.com
Screening Essential To Choose Contractor For Commercial
Property Jobs
When it comes to maintenance and engineering at institutional and commercial
facilities, property managers should carefully screen mechanical contractors
to ensure quality work is done in a timely and cost-efficient manner.
Essential factors to consider include worker training, safety precautions,
experience and references. FacilitiesNet/Maintenance
Solutions
|
Save The Date
The New Jersey Commerce & Economic Growth Commission's Office
of Travel & Tourism, along with the New Jersey Travel Industry
Association present The 2004 New Jersey Governor's Conference On Tourism.
Wednesday, Thursday and Friday, March 17, 18, 19, 2004
Crowne
Plaza Meadowlands, Secaucus, NJ
• Profit from a great line-up of results-oriented business
workshops.
• Equip yourself with strategies that can energize your business
to new prosperity.
• The workshop line-up targets the challenges facing your business
with actions that you can implement short-term for long-term success.
[Back To Top]
New Jersey Legislative Update
The first statewide hotel and motel occupancy tax was instituted on
August 1, 2003, despite an aggressive lobbying effort by the New Jersey
Hotel and Lodging Association. The legislature imposed a state occupancy
tax of 7% (to be reduced to 5% on July 1, 2004) and authorized municipalities
to impose a tax of up to 1% (may be increased to up to 3% on July
1, 2004).
During this legislative session NJH&LA will actively:
-
Support any legislation that would repeal all or
part of the tax.
-
Support legislation sponsored by the New Jersey
Travel Industry Association to require a quarterly reporting on
tourism promotion activities.
-
Supply supporting materials to the local lodging
industry to help fight or redirect the municipal portion of the
tax locally.
NJH&LA will continue to advocate on your behalf but we need your
help. We are vulnerable for increases in the occupancy tax every time
the state or local governments have a need for additional revenue.
The stronger the Association and the more active individual members
are locally, the more difficult it will be for government officials
to pass an increase in the tax. Please get involved now!
[Back To Top]
DCA Adopts Amendments On Carbon
Monoxide Detectors
The Department of Community Affairs has adopted regulations clarifying
that the installation of battery-powered or plug-in type carbon monoxide
alarms are ordinary maintenance and shall be treated as such by every
enforcing agency. No permits for, inspections of, or notice to the
enforcing agency of ordinary maintenance shall be required. This amendment
effectively treats carbon monoxide detectors in the same manner as
the installation of battery-powered smoke detectors and components
of a fire alarm or smoke and heat detection equipment (other than
the replacement of a fire alarm control panel).
[Back To Top]
Fox Rothschild Attorney Checks In On New Hotel
Tax
As of August 1, 2003, hotels, motels and similar facilities
in New Jersey were required to add a 7% State Occupancy Fee to the
rent for every room occupancy through June 30, 2004. Effective July
1, 2004, the occupancy fee is reduced from 7% to 5%. Jill Ojserkis,
a corporate attorney with the Atlantic City law firm Fox Rothschild
LLP, offers a quick primer for hotel and motel owners struggling to
understand the tax and its implications. Ojserkis also noted that
municipalities other than Atlantic City, Wildwood, Wildwood Crest,
North Wildwood, Jersey City and Newark, may adopt ordinances imposing
an additional 1% to 3% after June 30, 2004.
“From our conversations with our clients, we know that there
are a variety of questions surrounding the State Occupancy Fee, and
since the first tax return including the new fee was due in September,
2003, we have fielded many more questions,” said Ojserkis, whose
position as longstanding legal counsel to the New Jersey Hotel &
Lodging Association and participation on the Atlantic County Economic
Advisory Commission and the Advisory Board of the Rutgers Seashore
Family Business Program keep her interested in and informed of tax
issues affecting the hospitality industry in New Jersey. “In
order to demystify the new tax, we’ve assembled a few different
scenarios, each covering different aspects of the State Occupancy
Fee.”
Scenario 1: On July 15, 2003, a family
reserved two rooms for Easter Weekend at an Ocean City hotel. As of
August 1, 2003, the rate paid by the family for their hotel rooms
is subject to the 7% State Occupancy Fee as well as the 6% State Sales
Tax. Even if the family made the reservation, placed a deposit or
pre-paid the fee for the room prior to August 1, 2003, the room rental
is still subject to the State Occupancy Fee. When the family checks
out of the hotel after Easter weekend, the bill for their hotel stay
must specifically state both the sales tax and the occupancy fee,
and the hotel owner may not tell the family that the occupancy fee
is waived or included in the room rate, or that the fee will be refunded
to the family. The hotel owner collects the sales tax and occupancy
fee from the family, and reports the taxes and fees collected from
these guests (and all others) during the month of April, making payment
to the New Jersey Division of Taxation.
Scenario 2: A nonprofit group books
a tour package in Wildwood through a tour operator. Because Wildwood,
Wildwood Crest and North Wildwood already impose local fees on hotel
and motel occupancies, the State Occupancy Fee for rooms in these
municipalities is 3.15%, rather than 7%. (Newark, Jersey City and
Atlantic City also impose local taxes or fees, and as a result, the
Occupancy Fee for these municipalities has been lowered to 1%.) While
the nonprofit group is exempt from the 6% State Sales Tax, it is not
exempt from the State Occupancy Fee. New Jersey State agencies, Federal
agencies, the United Nations and other international organizations
of which the United States is a member are the only groups exempt
from the tax. As a result, the tour operator booking the nonprofit
group must pay the 3.15% Occupancy Fee on the purchase of the accommodations
in Wildwood and pass the fee along to the nonprofit group as part
of the package price.
Scenario 3: A couple hosts a wedding
at a Cape May hotel, renting a small meeting room for the ceremony
and a ballroom for the reception. Several guests stay overnight at
the hotel, and several stay at a nearby Bed and Breakfast. The rental
of a room in a hotel or motel for the purpose of assembly, such as
a meeting, seminar, or wedding, is not subject to the State Occupancy
Fee, and as a result, the tax would not be added to the price of renting
the meeting room or the ballroom. “Breakfast Included”
occupancies are subject to the Occupancy Fee, and accordingly, both
the guests of the hotel and the guests of the Bed and Breakfast would
be charged an Occupancy Fee for their stays. In the case of the Bed
and Breakfast, the entire fee for both the room and the breakfast
provided is taxable, unless the guest has the option of renting the
room without the breakfast for a lesser fee. In that case, the cost
of the breakfast is not subject to the tax.
Scenario 4: A businessperson on assignment
in the area reserves a room at an Egg Harbor Township hotel from January
1 through April 15. If the businessperson stays at the hotel for 90
consecutive days or more, the stay is not subject to the State Occupancy
Tax. (It is also exempt from New Jersey State Sales Tax.) If, however,
the businessperson’s assignment ends early and as a result,
she leaves prior to March 30, the entire period of occupancy is subject
to the Occupancy Fee, as well as New Jersey State Sales Tax. Also,
since Egg Harbor Township is one of 48 municipalities in New Jersey
who have opted to impose a municipal tax in addition to the State
Occupancy Tax, beginning in December 2003, an additional 1% tax is
imposed on hotel stays in this municipality.
“We strongly encourage hotel and motel owners to consult with
their attorneys and/or accountants to ensure that they are fulfilling
their tax obligations,” advises Ojserkis. “In order to
avoid fines, penalties and the inconvenience of an audit, it’s
important that the business owners charge, record and remit these
taxes promptly and properly.” Those who have additional questions
for the tax law professionals at Fox Rothschild should contact Jill
Ojserkis, Esquire, at (609) 572-2216.
[Back To Top]
Hotel Tax - Frequently Asked Questions
Do I pay the State Occupancy Fee instead of
the regular 6% New Jersey Sales Tax? No. Any room rentals that
are currently subject to the 6% New Jersey Sales Tax are also subject
to the new 7% State Occupancy Fee, which means that you will pay both
the 6% Sales Tax and the 7% State Occupancy Fee.
Is the tax rate on the State Occupancy Fee
likely to change in the near future? For occupancies on or
after July 1, 2004, the fee will be reduced to 5%.
Are hotels and motels in all municipalities
required to pay the State Occupancy Fee? Hotels and motels
in all municipalities are required to pay the fee, but because some
municipalities (Newark, Jersey City, Atlantic City, Wildwood, Wildwood
Crest and North Wildwood) already impose local taxes or fees on hotel/motel
occupancies, the State Occupancy Fee is imposed at a lower rate in
these municipalities. Hotels and motels in the Wildwoods are subject
to a rate of 3.15%, and hotels and motels in Newark, Jersey City and
Atlantic City are subject to a rate of 1%.
Can I expect any additional taxes to be levied
on the occupancy rates? The State did give most New Jersey
municipalities the option of imposing an additional municipal tax
on room occupancies. Between August 1, 2003, and June 30, 2004, any
New Jersey municipality except Newark, Jersey City, Atlantic City
and the Wildwoods may impose a municipal tax in an amount less than
or equal to 1% of the occupancy rate. (Beginning July 1, 2004, the
municipalities may increase the tax rate to 3% or less.) To date,
48 of the state’s 466 municipalities, including Galloway Township
and Egg Harbor Township, have added the tax.
Since church groups, school groups and other
nonprofits are not required to pay New Jersey Sales Tax on their room
rentals, does that mean that they are also exempt from this new tax?
No, they are not exempt. Although these groups are not required to
pay New Jersey Sales Tax on their room rentals, they must still pay
the State Occupancy Fee. The only guests who are exempt from the State
Occupancy Fee are: (1) A New Jersey State or Federal Agency, or the
United Nations or any other international organization of which the
United States is a member; and (2) Permanent residents who rent a
room for at least 90 consecutive days. If the guest leaves prior to
the 90 days, the entire period of occupancy is subject to both New
Jersey Sales Tax and the State Occupancy Fee. There is a ballroom
in my hotel which I rent for weddings. Is that rental fee subject
to the new tax? No, it is not. The rental of a room in a hotel or
motel for the purpose of assembly, such as a meeting, seminar, or
wedding, is not subject to the new fee. However, if the guests of
the wedding also rent guestrooms in your hotel, the rental of those
guestrooms is subject to the State Occupancy Fee.
I own a campground. Are the campsite rental
fees subject to the new tax? No, they are not. Because campsites
are treated as the rental of real property, which is not subject to
sales tax, campsite rentals are not subject to the Occupancy Fee.
I own a Bed and Breakfast. Are my guestroom
rentals subject to the State Occupancy Fee? Yes, they are,
and in fact, where lodging facilities offer guests breakfast or other
amenities as part of the amount charged for the accommodations, the
total amount charged to the guest is subject to the Occupancy Fee.
I am a tour operator that offers tour packages
to groups. Are the packages I sell subject to the new tax?
Yes, if your packages include a stay in a hotel, motel or other lodging
facility, then the price of the accommodations is subject to the Occupancy
Fee. You must pay the tax and pass the cost on to your customers as
part of the package price.
My hotel offers a package which includes dinner
and a one-night stay. Is the entire package price subject to the Occupancy
Fee? Not necessarily. If you contract with another business
to provide the dinner that you are offering your guests, you may deduct
the amount you paid for the dinner from the package price and pay
the occupancy fee on the remainder of the package price. If you provide
the dinner yourself, and your guests also have the option of purchasing
the same package without the dinner for a lower price, the amount
paid by the customer for the dinner is not subject to the fee. I don’t
want my guests to pay an extra tax. Can I pay it for them? No, you
may not. The State Occupancy Fee and the Municipal Occupancy Tax must
be imposed directly on the customer and must be separately stated
on any bill given to the customer. You may not advertise that the
Fee is not due, that you will pay the Fee for the customer or that
the Fee will be refunded to the customer.
Where does the money go? The State Occupancy
Fee is allocated in varying percentages to the following: The New
Jersey State Council on the Arts; New Jersey Historical Commission;
New Jersey Commerce & Economic Growth Commission; New Jersey Cultural
Trust. In cases where Municipalities impose a Municipal Occupancy
Tax in addition to the State Occupancy Fee, the Municipal Occupancy
Tax is distributed back to the municipality.
Hotel and motel owners in New Jersey with additional questions on
the New Jersey State Occupancy Fee can contact Jill Ojserkis, Esquire,
at (609) 572-2216.
[Back To Top]
2004 Governmental Affairs Issues Survey
AH&LA's governmental affairs department seeks the input of our
membership to help us effectively focus our governmental affairs and
lobbying efforts on the issues that are most important to you. To
that end, we have prepared a brief survey encompassing many of the
legislative and regulatory issues that may be considered by the Congress
and Executive Branch during the next year.
Please take a few minutes to complete our online survey, indicating
each issue's level of importance to you. If you need more information
on a specific issue, please visit AH&LA's website at www.ahla.com.
We would appreciate your response by February 20, 2004.
To take the survey, please click below or copy and paste the URL into
your browser.
http://www.ahla.com/survey1/takeSurvey.asp?surveyID=5
[Back To Top]
Senate Makes Way for Labor Proposal
to Move Forward
New Rules Expected to Clarify Overtime Regulations,
Prevent Lawsuits
Following months of extensive lobbying by the American Hotel &
Lodging Association's (AH&LA's) governmental affairs department,
the $820 billion Omnibus Appropriations Act of 2004 was passed and
signed into law without certain legislative provisions that would
have prevented the U.S. Department of Labor's (DOL's) proposal to
update the overtime rules of the Fair Labor Standards Act (FLSA).
AH&LA opposed these legislative provisions and supports the DOL
effort to make changes that will prevent many lawsuits that originate
because of unclear and confusing overtime regulations.
U.S. Secretary of Labor Elaine Chao is expected to announce the updated
labor rules by March 31, 2004.In a hearing earlier this week before
the Senate Committee on Appropriations Subcommittee on Labor, Health
and Human Services, and Education, Secretary Chao rejected calls to
delay finalizing the rules.
The DOL announced its intent to update the FLSA - which has
not been meaningfully updated in more than five decades - in
April of last year by creating new duties tests and salary thresholds
that would revise the rules governing which employees may be considered
exempt from overtime. In response, AH&LA filed comments
in support of the overall proposal to update the FLSA, but expressed
the industry's concerns over specific provisions that could be overly
burdensome for hoteliers.
Efforts were made in the U.S. House of Representatives and the U.S.
Senate, through amendments to the Departments of Labor, Health and Human
Services, and Education, and Related Agencies Appropriations Act, to
prohibit the DOL from moving forward on its plan to modernize and clarify
the FLSA regulations governing exempt employees. AH&LA, backed by calls and letters to Capitol Hill
from many of our 11,000-members, helped ensure that the amendment was
removed from the final version agreed to by the conference committee
and ultimately passed by the House and Senate.
For more information on the proposed changes, see AH&LA's April
7, 2003, Governmental Affairs Advisory (Overtime Rules May Change Under Labor Department Proposal),
July 9, 2003 Executive Correspondence to the Department of Labor (AH&LA Comments on Labor Proposal to Update Fair Labor Standards Act),
or contact Kevin Maher, AH&LA vice president for governmental
affairs, at 202-289-3147 or kmaher@ahla.com.
[Back To Top]
Senate Takes Final Step - Omnibus Appropriations
Act of 2004 Passes
Today the Senate passed the conference report to the Omnibus Appropriations
Act of 2004, thus clearing the bill for signature by the President.
Unfortunately, this action by Congress means the rescission of
$40 million in previously appropriated funding for the international
destination marketing program overseen by the U.S. Department of Commerce.
Last year, led by Senator Ted Stevens (R-Alaska) and urged forward
by AH&LA's strong lobbying efforts, Congress passed and the President
signed into a bill which provided $50 million to be used by the U.S.
Department of Commerce to promote international travel to the United
States. The U.S. Travel and Tourism Promotion Advisory Board,
which includes several AH&LA-members, was then established to advise
the Secretary of Commerce on how to most effectively use the funds.
The rescission of the travel and tourism promotion funds was done without
the support of Senate Appropriations Committee Ted Stevens (R-Alaska),
Senate Minority Whip Harry Reid (D-Nevada), House Appropriations Committee
Chairman Bill Young (R-Florida) and many other allies of the travel
and tourism industry. Due to the fact that the rescission provision
was included in a non-amendable conference report - one that contained
long-delayed annual funding for 7 of the 13 annual appropriations bills
needed to operate the federal government - it was impossible to
remove the language, despite the vigorous efforts of the aforementioned
members of the congressional leadership and AH&LA.
AH&LA has received assurances, however, from Members of Congress
and the Executive Branch that they will seek the first available legislative
opportunity, including either a supplemental appropriations measure
for this fiscal year or the regular Departments of Commerce, Justice,
and State, the Judiciary, and Related Agencies Appropriations bill for
fiscal year 2005, to restore this vital funding.
AH&LA is working with congressional allies to restore full funding
for this very important international marketing initiative on the next
available legislative measure and will continue to keep you updated
on our efforts.
[Back To Top]
Shawn McBurney to Serve as Vice President for
Governmental Affairs
The American Hotel & Lodging Association (AH&LA) recently added
former presidential-appointee Shawn McBurney as the newest member of
its governmental affairs department. Mr. McBurney will serve as
a Vice President for Governmental Affairs.
McBurney is a familiar face to Washington insiders, having been deeply
involved in Washington politics for more than a decade. After
spending much of his career serving on Capitol Hill and heading up the
governmental relations department of one of Washington's largest and
most respected advocacy organizations, McBurney joined the United States
General Services Administration (GSA) in 2001 as Associate Administrator
of Congressional and Intergovernmental Affairs, and was subsequently
appointed by President George W. Bush to the position of Senior Advisor
at GSA.
Prior to his time in Washington, McBurney gained extensive experience
in the commercial and industrial real estate industry in his home state
of California, giving him unique insights into many of the security
and commercial property issues that impact the lodging industry.
"We are pleased to have Shawn McBurney as the newest member of
AH&LA's governmental affairs team" said Jack Connors, AH&LA
executive vice president for public policy. "Shawn's experience
and knowledge of Washington politics give him the tools needed to be
a valuable asset to AH&LA and to the lodging industry."
[Back To Top]
FLSA Proposal Expected to Move Forward
AH&LA Lobbying Efforts Yield Results in Conference
Committee
Following months of extensive lobbying by the American Hotel & Lodging
Association's (AH&LA's) governmental affairs department, House and
Senate Conferees have agreed to remove certain provisions from the Omnibus
Appropriations Bill that would have halted the U.S. Department of Labor's
(DOL's) proposal to update the overtime rules of the Fair Labor Standards
Act (FLSA) - rules that have not been meaningfully updated in more
than five decades. The U.S. House of Representatives passed the
legislation before adjourning for the year, with the U.S. Senate expected
to take action early in 2004. AH&LA strongly supports efforts
to make changes that will prevent many lawsuits that originate because
of unclear and confusing overtime regulations.
The DOL announced its intent to update the FLSA in April of this year
by creating new duties tests and salary thresholds that would make clear
the rules governing which employees may be considered exempt from overtime.
In response, AH&LA filed comments in support of the overall proposal
to update the FLSA, but expressed the industry's concerns over specific
components that could be burdensome for hoteliers.
Efforts were made in the House and Senate, through amendments
to the Departments of Labor, Health and Human Services, and Education,
and Related Agencies Appropriations Act, to prohibit the Department
of Labor from moving forward on its plan to modernize and clarify the
FLSA regulations governing exempt employees. AH&LA, backed
by calls and letters to Capitol Hill from many of our 11,000-members,
helped ensure that the amendment was removed from the final version
agreed to by the conference committee.
For more information on the proposed changes, see AH&LA's April
7, 2003, Governmental Affairs Advisory (Overtime
Rules May Change Under Labor Department Proposal), July 9, 2003
Executive Correspondence to the Department of Labor (AH&LA
Comments on Labor Proposal to Update Fair Labor Standards Act),
or contact Kevin Maher, AH&LA vice president for governmental affairs,
at 202-289-3147 or kmaher@ahla.com.
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Budget proposal increases homeland security funds
President George W. Bush's $2.4 trillion budget
proposal includes roughly a 10% increase in homeland security. The TSA
will see a $900 million budget increase for airport screening purposes.
USA
TODAY
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A different kind of economic recovery
In past periods of economic recovery, the
Federal Reserve has moved to raise interest rates to stave off inflation.
But with inflation hovering around 1% and job creation lagging behind
the rest of the economy, the Fed is not expected to raise interest rates
anytime soon. The
New York Times
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Senators offer their own immigration plan
Sens. Tom Daschle, D-S.D., and Chuck Hagel, R-Neb., announced their
joint immigration proposal, which calls for a reduction in the amount
of time it takes to reunite family members and some labor protection
for immigrants. Both this proposal and the one from President George
W. Bush face an uphill battle due to economic and security concerns.
Contra
Costa Times (Walnut Creek, Calif.)
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Senators Seek Sept. 11 Commission Extension
Legislation will be introduced to extend the
work of the commission investigating the Sept. 11 terrorist attacks
by the commission's original sponsors, Sens. John McCain, R-Ariz., and
Joseph I. Lieberman, D-Conn. The White House and Republicans in Congress
want to stick to the original deadline of late May. The
New York Times
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Mortgage Rates On The Rise
The rates on 30-year and 15-year fixed mortgages pushed higher this
week following the Federal Reserve's decision to drop its prediction
that interest rates would remain low for a while longer. Freddie Mac
says 30-year mortgage rates were up .04% to 5.68% this week, while 15-year
mortgages rose slightly from 4.95% to 4.97%. USA
TODAY/Reuter
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Fed Leaves Interest Rate Alone, But Opens Door
For Raise
The Federal Reserve announced yesterday it will leave the short-term
interest rate at its current 45-year low of 1%, but didn't reiterate
its intention to leave rates low for a "considerable period,"
causing investors to speculate an increase may be on the way. A top
Lehman Brothers analyst called the language a "baby step"
toward a rate increase. The
Washington Post
Analysis: Despite the change in the Fed's
phrasing, a BusinessWeek analysis says the lack of inflation and demand
for corporate credit will likely keep rates low for "some time,"
and the Fed changed its language to gain some leeway. BusinessWeek
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Senate Passes Pension Bill
A pension reform bill good for two years was passed by the Senate yesterday.
The legislation may face opposition from the White House. The
New York Times
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LE Forecasts Hotel Supply Declines
for 2004-05
LE is reporting in its year-end 2003 Guidance Memorandum to Wall Street
analysts and corporate clients that New Guestroom Supply Additions for
both '04 and '05 are expected to be below '03 levels, good news for
the Industry since guestroom demand, occupancy, average daily rate (ADR)
and room revenues should improve rapidly as the economy accelerates
forward against this backdrop of falling supply.
For the complete news release go to: http://www.lodgingeconometrics.com/pressrelease
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Learn about dramatic work place changes within
the hotel business
Attend Littler Mendelson's Hospitality Industry Employer Forum on March
31 in Phoenix, Ariz. AH&LA Executive Vice President of Corporate and
Member Relations Bill Hanley is among the industry experts joining top
attorneys to discuss topics and trends that are important to today's
hospitality employers. This program precedes Littler Mendelson's 21st
annual National Employer Conference, April 1 and 2. Click
here for more information and to register.
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AH&LA offers online career center for U.S. lodging
industry
The
AH&LA Career Center, powered by Hcareers, features the nation's
largest searchable, online database of candidates and job openings tailored
specifically to the lodging industry. AH&LA members receive a special
20% discount on Hcareers.com services. Click
here for information on this AH&LA member discount.
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Order Hospitality Products Today
Purchasing EI products is easier than ever! And AH&LA members receive
a 20% discount on most products. Click
here to see featured products.
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