Dear Industry Friends & Colleagues,

In the two weeks since the terrorist attacks of September 11, our nation's emotional scars have slowly begun to heal, however, the economic effects of this national crisis continue to reverberate.  

As you are undoubtedly aware, the lodging industry, along with the panoply of travel and tourism, is suffering terrible financial losses as a result.
 

For the week of September 9-15, Smith Travel Research estimates lodging's loss at approximately $45 million a day.  Though staggering, our industry should be heartened by the relief package President Bush signed over the weekend, granting U.S. airlines an immediate $5 billion with an additional $10 billion in loan guarantees. We at the American Hotel & Lodging Association gave our full support to our friends at the airlines for the

Joseph A. McInerney, CHA President/Chief  Executive Officer

In other governmental affairs developments, we continue to closely monitor events in Washington. Currently, Members of Congress and the President are hesitant to pass any more industry-specific economic aid measure.  AH&LA has learned through private meetings with our congressional allies that the airlines were the priority due to the national security aspect of that industry and that the timing is not right to go forward publicly with any specific lodging industry requests.

In advance of the congressional action approving the airline industry's stimulus package late Friday night, members of AH&LA's governmental affairs department met with certain Members of Congress and their senior staff members and had conversations with senior Bush Administration officials regarding the extreme difficulties our industry faces.  In fact, during debate on the airline relief package, Rep. Dave Weldon (R-Fla.) made the following comments, at our request:

Mr. WELDON of Florida. Mr. Speaker, I rise encouraging all my colleagues to vote for this rule, which allows same day consideration, and then the subsequent rule on the bill, and certainly passage of the final bill. 

This is the first bite of the apple. There have been a number of Members who have risen who want to do more. We are going to have plenty of opportunity to do more, but we are clearly in a crisis situation right now. 
  
I know the impact of this issue in the State that I represent, Florida, is gigantic. We have hotels in Florida that are virtually empty, rental car fleets that are virtually at a standstill, theme parks and other tourist attractions that are empty. We are going to be seeing layoffs in a lot of other industries, and all of the myriad other issues, airline safety, fair treatment for employees, we are going to have an opportunity to take those issues up. 

As to the Congress, the immediate concern is for the workers who have been laid off from the airlines and related service industries.  Efforts to extend their medical and other benefits were prominent in the House debate on the airline stimulus package and the reason there were 54 votes in opposition to even that measure when such provisions were not included in the final bill.   

AH&LA is working on a combined effort between labor and management of the hotel industry to proceed together in pursuit of any stimulus package that is economically feasible and politically viable. 

As to the Administration, it appears President Bush will follow the advice of Chairman Greenspan and Secretary O'Neill and go slow on ANY economic stimulus package, either macro or industry specific.  Top White House officials have told AH&LA that the President is aware of the difficulties in our industry, and he did reference our industry in his weekly radio address last Saturday.

As you can discern, the situation remains very fluid. 

We are also working as coalition partners with the Travel Business Roundtable (TBR) and the Travel Industry Association of America (TIA) on strategizing ways to help travel and tourism in both the political and general public arenas.  Both organizations are hosting meetings this week in Washington, and AH&LA will be at the table with its sleeves rolled up and ready to work.  

Additionally, I made the announcement last week about our own "kitchen cabinet" of lodging executives, including the CEOs of nearly every major hotel company in the country.  This group is "at the ready" to assemble in the coming weeks.  This esteemed group of business men and women will help guide and direct AH&LA in its leadership strategy moving forward.  A complete list of cabinet members follows this letter.

Finally, I want to again stress the importance of your attendance and participation in the International Hotel/Motel & Restaurant Show and our own Fall Conference November 10-13 in New York City.  It is up to our industry to "lead by example" and show America and the world that we will not give up our lives to terrorism.  Please, I urge you to keep your commitment to this important annual event.  For information about the show and other related details mentioned in this update, visit us at www.ahla.com.
 

Thank you and God bless America.

Sincerely,
Joseph A. McInerney, CHA
President & CEO