July 26, 2013 – Washington, D.C. – Traveling for meetings and conferences is vital to making government more efficient and effective, according to a new study conducted by Rockport Analytics for the U.S. Travel Association. In contrast, cancelling government participation in key events carries significant costs and undermines important functions of government.
“The Value of Government Meetings” report, a comprehensive study of the benefits of government meetings and events, is the first to evaluate the impact of sweeping cuts made to federal and state government travel budgets on the public and private sectors.
“Public agencies at all levels of U.S. government have made deep cuts to travel and meetings budgets in recent years,” said Jon Gray, vice president of research & insight, Rockport Analytics, LLC, who conducted the 2013 study. “Our research found that these across-the-board cancellations offer short-term savings at a much greater long-term cost.”
The report highlights the significant impact of the cancellation of the 2013 Military Health System Conference, an annual training event for several thousand military medical personnel. The study found that due to replacement costs and lost revenue, the event’s cancellation will ultimately cost the government more than $800,000.
Similarly, the decision made by NASA to pull out of the April 2013 National Space Symposium – the world’s premier international space exploration and policy event — had its own negative consequences.
“Some 30 nations are represented at our symposium,” said Elliot Pulham, CEO of the National Space Foundation, a private organization that runs the annual conference. “Important international partnerships are jeopardized, important international programs are placed at risk, and the U.S. government places serious strain on relationships with countries around the world when it does not attend.”
Additional key findings from the report include:
- Spending on government meetings and event operations in 2011 was significantly lower than that of the private sector – an average of $173 per delegate, per day, compared to $339 for the private sector.
- Nearly three-quarters (74%) of private-sector executives said that having government employees present at meetings and events added value to their firm through knowledge transfer.
- A strong majority of government supervisors (89%) believe that government meetings and events benefit citizens. And 85 percent of government respondents agreed that meetings and events added value to employee development and training.
- The savings and efficiencies of bringing the public and private sector together are lost when conference attendance is cancelled, necessitating numerous duplicate meetings at a greater net cost.
- Government travel for meetings and events had a total economic impact of $24.4 billion in 2011, supported 343,800 U.S. jobs and $14.5 billion in U.S. wages, and contributed $5.5 billion in tax revenue.
“We hope these new findings will encourage congressional leaders to re-evaluate proposals to drastically cut government travel budgets across the country,” said Roger Dow, president and CEO of the U.S. Travel Association. “When conducted responsibly, federal workers who travel for conferences and meetings deliver important services and real value to our nation.”
“Rhetorically, few could argue with the goal of curbing abuses. Substantively, however, we must take great care not to create more problems than we solve,” Dow said. “Striking the right balance is the key.”
Click here for a fact sheet on the economic impact of government meetings.
Click here for a fact sheet on the value of government meetings.
About Travel Effect
Travel Effect is a campaign of the U.S. Travel Association, the national, non-profit organization representing all components of the travel industry that generates $2.0 trillion in economic output and supports 14.6 million jobs. U.S. Travel’s mission is to increase travel to and within the United States. For more information and the full survey findings, visit www.traveleffect.com.
Rockport Analytics LLC examined the economic contribution made by both government meeting travel reimbursements and government-sponsored meeting operations expenses for 2011, and estimated government meeting expenditures for all 50 states and the District of Columbia primarily using the TNS TravelsAmerica Study and the Convention Industry Council’s Economic Significance of Meetings Study.
Rockport Analytics fielded two online surveys from December 18, 2012 through January 4, 2013. Respondents included nearly 600 corporate executives and senior government decision-makers that attended or sent a staff member to a meeting or event in the past 12 months, located more than 50 miles from home.