Thursday, February 5, 2009

Wall Street, Junkets and Hotels

One interesting thought came to mind while reading this WSJ piece: what effect will the cancellation of all these Wall Street, banking and related conferences at resorts and other locations have on revenues in the hotel industry? Is it time to look for vacation bargains?


CountingSheep said...

I think the hotels are trying to hold prices and sacrifice occupancy. After 911 prices were cut and it took years to get them back.

The cruise lines are making deals I think.

David Stejkowski said...

Indeed they are. I have heard about 90 Day Ticker but have never booked a cruise thee or anywhere.

CountingSheep said...

I see that Democratic and Repubican leaders did not scale back on their retreats.

I did not really have too much of a problem with the bankers having them. We need to keep the hotel workers employed. I far prefer that to helping the Palistinians rebuild.

CountingSheep said...

I was a Wayne Root supporter in the campaign season and voted Barr/Root in the general. Therefore I admit my bias. But I thought his commentary today was pretty good.

American Business Has Sold Its Soul to the Devil
Exhibit A:
Obama Warns Companies Not to Book Events in Las Vegas

Wayne Allyn Root - 2008 Libertarian Vice Presidential candidate

Government is filled with people who couldn't get a job in the
private sector. Why on earth would we put them in charge of
our economy? If they knew anything about running a business,
they'd be running one.

George W. Bush was a failure at virtually everything he ever did
in the business world- except buying the Texas Rangers. He
succeeded because of his family connections and wealth.

Then Bush proved his lack of business skills by running our
country into the ground, ruining our economy, and increasing
our national debt dramatically.

Did we learn our lesson? Heck no.

We followed Bush up with the only guy on earth who knows less
about business- Barack Obama. The new President may be an
eloquent speaker, but he knows ZERO about business- unless
you think protesting 'racism' is a business.

With all due respect to Al Sharpton and Jesse Jackson, who
turned protesting racism into a lucrative business, it bears no
resemblance to running the United States economy.

Obama believes spending trillions and wasting trillions on pork,
handouts and entitlements to reward his voters is the way to
end a depression. He believes bigger government and bigger
spending is the way to create jobs- even though in his entire
life, he has NEVER before created a job.

He believes driving the national debt to ever-higher levels is how
to avoid bankruptcy. He believes in times of economic crisis,
instead of tightening the budget, we should spend irresponsibly.

He believes that handing out government jobs is the way to
improve the economy- even though federal spending on salaries
is a major reason for this crisis in the first place.

We've handed power to a man ignorant of the simple rules of
economics. That's no surprise to me. After all, he was my
classmate at Columbia University. Barak Obama studied
political science, but never took a business or economic
course in his life. No wonder a man that stars at politics, can
fail so miserably at running an economy. I attended those same
political science classes at Columbia University. Never was
running a business or economics discussed.

We are now in serious trouble folks.

Government makes no sense when it comes to running a
business. Take Obama's comments Tuesday where he said
companies taking taxpayer money shouldn't hold meetings
in Las Vegas. Result? Multiple cancelled Vegas meetings
and conventions just hours later.

So now Obama knows how and where businesses should spend
their money? Mark my words, he will micromanage from the
White House.

Obama doesn't understand Las Vegas is the symbol of America
across the world. It's the convention and meeting capital of
America. It's also the tourist capital of America.

USA Today has called Las Vegas “the economic engine of
America.” That could be why Nevada has been the fastest
growing state in America for 20 of the last 22 years. That could
be why the Census Bureau predicted recently Nevada would
remain the single fastest growing state in all of America for the
next 25 years. Yet, Obama expects corporations to cancel their
trips, meetings and conventions in Las Vegas? Obama wants to
jumpstart the U.S. economy by ruining Las Vegas' economy?

As a result, Goldman Sachs cancelled a 3-day business
conference in Las Vegas. They moved it to San Francisco.
Here's a great example of common sense and wisdom - the
average hotel room rate in Las Vegas is $274 per night; in San
Francisco the average room rate is $361.

The cost of almost everything else is higher in San Francisco.
But the more important issue isn't wasted dollars- it's freedom.
Don't executives have the right to hold meetings and conventions
where-ever they choose? Don't companies have a right to reward
their best employees and biggest producers with expensive trips
to desirable places like Las Vegas? Isn't that how you motivate
employees, thereby creating more sales and higher revenues?

Obviously that's not the case with politicians running the show.
This is what you get when you sell your soul to the devil!

Government runs your life; runs your business; micromanages
every decision; and makes horrible and costly decisions based
on politics and public perception- not the realities of economics.

What if cancelling a Las Vegas event costs a company an extra
million dollars (or two) in cancellation fees? What if switching
from Las Vegas to New York or San Francisco costs millions
more in higher hotel room and airfare rates?

What if this decision, multiplied thousands of times throughout
across corporate America, costs the American economy billions
of dollars? What if the tourism industry is ruined as corporations
cancel all their conventions because they are afraid of what
Obama will say? How many millions of jobs will be lost?

What if thousands of middle-class Las Vegas hotel service
union employees lose their jobs as a result of Obama's edict?
What if hundreds of cabdrivers lose their jobs? What if hotels
in Las Vegas go broke? What about the investors, banks,
hedge funds and shareholders who will lose their investments
in those hotels? Doesn't that affect the American economy?

What if hotels across the country go under because companies
are afraid to spend money rewarding their best employees-
because of Obama's edict and public perception? What if that
destroys motivation and as a result sales go down? How will
that affect the economy? If we all stop going to Las Vegas, or
spending money on tourism or conventions, what happens to
the economy? Does government ever think of these things?
Does government ever think before it speaks?

It's no wonder that everything government touches fails. Do you
like the way Amtrak is run? How about the DMV? Anyone
bound out of bed in the morning excited to get to your
appointment at the DMV? Do you love dealing with the IRS?
How about welfare- anyone out there think welfare has been
run well? Anyone proud of the way our returning wounded
warriors were treated by Walter Reed Hospital?

This is what happens when government has too much power.

Our government is filled with people who know nothing about
business and less about economics. Often it's filled with
bureaucrats who couldn't get a job in the private sector.

The CEO's of American business are learning a valuable lesson.
In the long run it will be a profitable lesson. In the short term it
will prove disastrous.

The lesson? Never accept a penny from government.

It's the same lesson welfare recipients across the country
should have learned long ago. Once you're dependent on
government, it's near impossible to break the deadly addiction.

It comes with strings - dangerous and deadly ones. Once you
open that door, you have Big Brother as the boss calling the
shots for you and your business. Now many of the biggest
banks and companies on Wall Street are stuck with Obama
as an unwanted partner. The gang that can't shoot straight
is now in charge of American business. God help us all- we
have sold our souls to the devil.