FY2010 Federal Per Diems Announced
Changes Reflect Weak Economy
Some examples of lodging changes for this year include:
- Phoenix/Scottsdale, Ariz., for the Maricopa Co. area mid-season: down $120 from FY09’s $122
- Miami, Fla., for the Miami-Dade area mid-season: up $128 from FY09’s $121
- Chicago, Ill., for the Cook and Lake Cos. area high season: down $205 from FY09’s $218
- New York City (Manhattan) high season: down $340 from FY09’s $360
- Kansas City, Mo., for the Jackson, Clay, Cass and Platte Co. areas: unchanged at $107
- Las Vegas, Nev., for the Clark Co. area low season: up $109 from FY09’s $105
- Cincinnati, Ohio, for the Hamilton Co. area: up $115 from FY09’s $112
- Seattle, Wash., for the King Co. area: up $159 from FY09’s $158
The nation’s economic downturn has affected per diem lodging rates in many localities, but overall the majority of locations did see an increase or no change in per diem lodging rates.
According to GSA, there will be a slight increase of 0.6% of the estimated lodging costs compared to FY2009. In contrast, the previous three years (FY2007-09) had an estimated average increase in lodging costs of 6.8%. In FY2010, there are about 400 areas that have per diem rates higher than the standard CONUS rate.
The standard Continental U.S. (CONUS) per diem rate for lodging, which applies to destinations that are not specifically listed on the FY2010 per diem rate schedule, remains the same as last year at $70 per night. GSA reviews the CONUS rate every three years and continues to use market data provided by Smith Travel Research to establish per diem rates. The last adjustment was for fiscal year 2008, which increased the lodging rate that had been in effect since 2005.
GSA noted in its Sept. 24 release that besides updating the lodging rates for all nonstandard areas, the meals and incidental expenses (M&IE) will increase by $7 for each of the six M&IE tiers, resulting in a $5 increase for meals and a $2 increase (from $3 to $5) for incidental expenses.
The complete FY2010 rates can be viewed on the Internet at the GSA's per diem Website, .
Although federal per diem rates cannot formally be appealed by business representatives, the federal government’s General Services Administration (GSA) does have the ability to review and modify the rates. Accordingly, AH&LA is advising members who believe their localities may be undervalued in the FY2010 per diem rate schedule with a number of helpful suggestions which can be found within this past AH&LA Advisory.
Serving the hospitality industry for nearly a century, the American Hotel & Lodging Association (AH&LA) is the sole national association representing all sectors and stakeholders in the lodging industry, including individual hotel property members, hotel companies, student and faculty members, and industry suppliers. Headquartered in Washington, D.C., AH&LA provides members with national advocacy on Capitol Hill, public relations and image management, education, research and information, and other value-added services to provide bottom-line savings and ensure a positive business climate for the lodging industry. Partner state associations provide local representation and additional cost-saving benefits to members. For more about AH&LA, visit www.ahla.com.
Phone: +1 (202) 289-3122