Las Vegas is trying to fight back at President Obamas warning to companies that received bailout money “can’t go take a trip to Las Vegas or go down to the Super Bowl on the taxpayers dime” Both resorts have been giving interviews angry about the Presidents claims.
What lawmakers don’t understand is this type of criticism will cost our country thousands of jobs. Las vegas already has been hit hard by the recession and this is a huge blow to the convention and meetings industry.
Where I understand why President Obama said this he does not obviously see the trickle down effect meetings and conventions have. From a company like mine to the bell staff, cab drivers that depend on these types of conventions in Vegas. Insurance and financial services plus auto companies are getting scared. Goldman sacs moved and event to San Francisco recently from Las Vegas, American International Group, Inc and Wells Fargo, Citigroup Inc Primerica have canceled events. Companies like Wells Fargo have just acquired Wachovia banks. How are they suppose to make this merger work? Have virtual meetings? Do it by email? They go to Vegas because they can handle large groups.
So moving these meetings is more expensive and the still will be paying cancellation fees for hotels etc. So they are more paying money. The Goldman Sacs cancellation charge was nearly 600k. So they are paying cancellation fees so they do not get bad press when going to Las Vegas. A city built to handle all sized conferences. This is just bad business. The companies just do not want to come under fire and somehow it is indulgent to go to Las Vegas all of a sudden.
Las Vegas has invested billions of dollars to build facilities and meeting space to fill its 140,000 hotel rooms on weekdays with corporate travelers, marketing itself as the most affordable and accessible destination.
The city was built to accommodate the biggest industry events.
These meetings President Obama needs to understand run our country. How can an automobile company introduce their new car to thousands of dealers? How can tech companies introduce their new products and explain how they work to their dealer network?” Jobs are being lost as companies fearing government scrutiny cancel functions now.
Serious business takes place in Las Vegas.
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Not sure you convinced me. Las Vegas is a victim of its own promotion campaign as an area of sin and oppulence. you can’t blame others for sunddenly believing the hype.
While Las Vegas surely will hurt – and your cancellation fee examples are good in the short-term – there are frankly a lot of meetings that really don’t need to take place, period’s nothing that can’t be done where most of a company’s employees are – or hey, use technology and have a teleconference.
Want an inspiring speaker – put him or her on YouTube or get them from there.
Hey Temple-
Thanks so much for the comment. Actually I do understand why President Obama and the government has this knee jerk reaction to Las Vegas. It is a huge problem for the events and meetings industry as a whole. Turning to teleconferences and technology is an option but nothing beats face to face meetings to get real work done. Of course I am biased owning a Production company. Plus I have family directly effected by the economic downturn in Las Vegas. We need to build confidence in our country and spend those dollars get them back into the economy. I wonder what types of meetings are you talking about that do not need to take place?
Thanks again for reading the Blog.
Mike
You raise a good point about the cancellation fees — why is that not considered wasteful spending? At least by holding a meeting they are getting return on their investment. By canceling, they might as well open a window and throw out bags of cash! My advice to companies: Keep on meeting, in whatever fashion you can afford. Don’t let the government take away our freedom to gather like minds together for the exchange of ideas!
Marlys-
I so agree. Of course some abuses of meetings has occurred but in what form of business is their not some bad apples? Overall it is critical that we keep meeting to get our economy rolling again. Thanjs so much for the comment.
Mike
Mike you are correct not just in business are there bad apples, but overall human population there are bad apples. One percent of the population abusing the opportunity to do business and have fun does not represent the industry as a whole. President Obama have it all wrong. He does not see that even in his own organization in DC have people holding positions with power abusing and taking advantage of it. I’m all for democracy, but Obama have really taking it too far by targeting a specific city and specific companies. Bad example for a president to lead his country by. Cities like Hawaii and Las Vegas who’s counting on meetings and conferences to bring in the cashflow to keep the city strong will hurt the most in the long run.
Zulay