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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