Hotel Asset Managers Association October 2010

2010 Elections – anti-incumbent wave Obama Administration –Healthcare, immigration - out of touch with desire of voters (jobs) –BP Oil spill – seen as reflection on competency Themes –Government takeovers – out of control –Rise of Tea Party/Independents – rise in frustration –Voters impatient (vote swings are shorter in duration) –UNCERTAINTY Polls –Direction of Country (Wrong 60.4, Right 33.6) –House (D 190 – R 207) –Senate (D 48 – R 47) 5 toss up POLITICAL UPDATE

Tourism (TPA, AZ Boycott, BP Oil Spill) Online Hotel Booking Tax Per Diems EFCA and the Labor Agenda Healthcare (covered by panel) Americans with Disabilities Act Immigration MAJOR ISSUES

Travel Promotion Act signed into law by President Obama on March 4 th Public-private partnership to explain U.S. security policies, attract millions of international visitors through new ad programs $10 fee from incoming Visa Waiver countries and “in kind” travel industry contributions funding program Bill provides $20 million in start-up funds over 3 years. Travel Corporation Board to be announced in Early September Next steps: September 8, 2010 – DHS started collecting the ESTA fee to fund the Corporation TPA Board announced MAJOR ISSUES Travel and Tourism

Arizona Boycott - Hospitality industry employs 52,000 people AH&LA President & CEO Joe McInerney sent opposition letter to Washington, DC council when they threatened a city-wide boycott of Arizona – resulted in council backing down AH&LA held Summer Summit in Scottsdale, AZ, sent out a press release and has done interviews on this issue. BP Oil Spill Disaster AH&LA working with Alabama, Louisiana, New Orleans City and Florida associations Working with legislators - participated in Congressional hearings Updated the AH&LA website with information for our members Working with US Travel Association with their Roadmap to Recovery MAJOR ISSUES Travel and Tourism

MAJOR ISSUES Online Hotel Booking Tax

Cities and states suing online travel companies (OTCs) Consumer class-action lawsuits filed against OTCs Cases decided on wording of ordinances and laws Many cases decided in favor of OTCs Ordinances that compel “hotel operator” MAJOR ISSUES Online Hotel Booking Tax

“Internet Travel Tax Fairness Act” (ITTFA) Preempts state and local tax authority and limits tax to discounted rate Mandates that traditional travel agents would enjoy preferential tax treatment Specifically bans hotels from utilizing new tax category MAJOR ISSUES Online Hotel Booking Tax

States/localities look to hotels to make up for lost revenue Makes hotels vulnerable to tax on revenue not received Places hotels at competitive disadvantage OTCs protected from full tax where hotels will continue to pay full tax Can undercut hotels in final price of room (even when room rate is equal) MAJOR ISSUES Online Hotel Booking Tax

AH&LA has led fight against ITTFA Built coalition with state and local governments, HAMA, DMAI, AAHOA, NABHOOD, IFA etc. AH&LA hired Venable tax counsel and will launch a PR campaign Support for OTCs from Sen. Reid (D-NV), Ensign (R-NV), Wyden (D-OR), Baucus (D-MT) OTCs face legislative opposition if their measure was put to a vote Met with OTCs to suggest non-legislative alternative, but were turned down MAJOR ISSUES Online Hotel Booking Tax

FY2011 per diem rates averaged a 5.73 % reduction nationwide Rates based on data gathered May 2009 – April 2010 (rates low) Reviews and changes of rates possible Federal agency must contact GSA, lack of rooms at rate GSA reviews 2010 data and issues new rate in April Hoteliers should work with federal agencies in their area AH&LA can assist Schedule meetings in Washington, DC with GSA AH&LA website has per diem info and tips Contact Shawn McBurney, (202) MAJOR ISSUES Per Diem Rates

Employee ‘Forced Choice’ Act AH&LA’s efforts through Coalition for a Democratic Workplace (CDW) have made issue toxic and a political liability Little time and few vehicles left during this Congress Danger still exists during lame duck CDW Coalition will continue to monitor issue and provide updates on the regulatory side MAJOR ISSUES Card Check

MAJOR ISSUES NLRB National Labor Relations Board Wilma Liebman (D) – Current Board Chair, Term expires in 2010 Brian Hayes (R) – Only remaining Republican member, Term expires in 2012 Craig Becker (D) – Recess appointed, Term expires in 2011 (former assoc gc AFL- CIO) Mark G. Pearce (D) – Recess appointed, Term expires in 2013 Why this matters: As card check legislation looks unlikely, NLRB is backdoor for organizing AHLA through CDW will be following these developments Evidence: NLRB will revisit 2007 Dana Corp. ruling Currently allows workers to vote out via secret ballot a union that was recognized through the card check process

Department of Labor – regulatory & enforcement activity –DOL’s “Plan Prevent and Protect” policy Identify hazards and implement plan w/ employees Identify person responsible Provide plan to employees to help monitor –OFCCP Audits of Hotel Headquarters and properties –OSHA Investigations Study – task force to respond –H2B Investigation of Hotels and new regulations –AHLA hosted webinar (over 400 registered) and has online resources at MAJOR ISSUES DOL Enforcement

ADA signed July 26, 1990 – This year is the 20 th Anniversary Title III of the ADA applies to commercial facilities (i.e, hotels) Department of Justice announced significant changes to the ADA, including: Reconfigurations to accessible guest room bathrooms Changes how reservations for accessible rooms are handled & guaranteed Expands accessibility to employee work areas Adds requirements for recreational and exercise facilities, play areas, pools, spas and golf facilities AH&LA activity includes: Hired ADA Counsel, formed multiple committees, held meetings with regulators, filed comments at every stage of regulatory development Webinars on new ADA regulations – October 14 th (see Crafting industry response to newly proposed rules to cover furniture, equipment and web sites MAJOR ISSUES Americans with Disabilities Act

Sen. Charles Schumer (D-NY) and Sen.Lindsay Graham (R-SC) led initial effort; Graham withdrew support Majority Leader Reid (D-NV), Sen. Schumer (D-NY) and Robert Menendez (D-NJ) drafted new “framework” with no bipartisan support Unlikely to be completed in an election year, Arizona complicating issue H2B workers Difficult requirements in the new legislation US Department of Labor also rewriting regulations DOL investigation of Hospitality industry’s use of H2B workers MAJOR ISSUES Immigration Reform

HotelPAC Keeping Friends in the Business

March , 2011 Washington DC Legislative Action Summit

Marlene Colucci Executive Vice President for Public Policy (202) CONTACT INFORMATION

HotelPAC Fundraising Breakdown

AH&LA Activity on Health Care Reform Health Care web page for information AH&LA Healthcare Webinars Series Partner with law firm of Seyfarth, Shaw and others; Webinars on various topics (general, franchisees/small business; impact on collective bargaining, etc) Regular communications to AH&LA members letting them know effects of reform Follow up lobbying on future legislative and regulatory issues. MAJOR ISSUES Health Care Reform