AH&LA's President Joe Mcinerney Updates - March, 5 2002

The impact of this year's LAS was apparent immediately. During the LAS, attendees encouraged Congress to set up a fund to promote travel within and to the United States. Such a program disbursing federal funds to supplement existing state tourism promotion expenditures would significantly leverage state efforts. One legislative vehicle that would provide $100 million in funding for travel marketing is The American Travel Promotion Act (H.R.3321), [add link to Advisory on American Travel Promotion Act] introduced by Rep. Mark Foley (R-Fla.). LAS attendees convinced eight Representatives to sign onto the bill as cosponsors in just one day, which nearly doubled the number of cosponsors. More cosponsors are expected soon thanks to the concerted efforts of LAS participants. In addition, Chief Deputy Whip Rep. Roy Blunt is a cosponsor of Rep. Foley's bill. This is very significant, because in his position as chief deputy whip, Rep. Blunt's major duty is counting votes to assess whether legislation has enough support to pass the House, and Rep. Blunt will move up to become the whip in the next Congress.

Attendees also lobbied their Members of Congress to increase the business meal and entertainment tax deduction to 100 percent [add link to business meal issue brief]. The allowable deduction for business meals and entertainment was reduced from 80 to 50 percent by congressional action in the mid-1990s.

The lodging industry continues to view this tax law change as a constriction on its ability to grow and provide an increasing number of new jobs. Furthermore, businesspeople have traditionally used hotel restaurants as informal places of conducting business. For some businesses, the restaurant table is their only conference table. The federal government should not unduly hinder business productivity by treating these legitimate business expenses differently from all other legitimate business expenses.

LAS attendees encouraged Congress to restore the spousal travel tax deduction to 100 percent. Past congressional action eliminated the deduction for spousal travel expenses. The lodging industry believes this restriction causes fewer people to travel thus inhibiting the industry's goals to grow and provide new jobs.

Allowing a deduction for a spouse to travel on a business trip is a family friendly policy, encouraging not only spouses, but also children to travel. Such a policy would be especially welcome by family members whose jobs involve a great deal of travel.

Full deductibility would sell more hotel rooms and airline seats and boost attendance at conventions and other business meetings held at lodging properties. The policy also would increase the number of days people are able to travel on business as well as allowing businesspeople—especially middle-income taxpayers—to add family vacation time onto business trips. The restoration of this tax deduction would benefit the lodging industry and the entire economy.

It is estimated that a restoration of the deduction would cost approximately $20 million per year. Given the increase in economic activity the deduction would generate, the resulting economic growth would be much greater than the cost.

AH&LA's governmental affairs department will continue the work of this year's LAS attendees and fight for these initiatives on Capitol Hill.

Finally, I hope to see many of you at our Annual Conference & Leadership Forum, April 3-4 in Philadelphia. This year's theme, "Leadership, Unity, and Growth" is the perfect description of the conference's 12 educational seminars, which cover topics such as executive leadership, human resources, environmental issues, insurance issues, sales and marketing, and technology. In addition, you'll hear from former New York Police Department Commissioner Bernard B. Kerik, Tom Brokaw, and Horst Schulze. To register via the Internet, visit . Get additional conference information at .

Thank you and God Bless America.

Joe Mcinerney