IAHI AND IHG Lobby Capitol Hill with the Largest Attendance at AH&LA Legislative Action Summit

Industry Leaders Are On Top of Today’s Hottest Political Issues

IAHI, The Owners’ Association of InterContinental Hotels Group (IHG), and IHG recently took part in the American Hotel & Lodging Association’s (AH&LA) Legislative Action Summit with the most representatives of any lodging organization attending the event.

Executives from IAHI and IHG were present for the AH&LA-sponsored White House Briefing with Administration leaders that included The Honorable Andrew Card Jr., Chief of Staff to the President; The Honorable Frances Fragos Townsend, Assistant to the President for Homeland Security and Counterterrorism; The Honorable Allyson Ho, Special Assistant to the President for Domestic Policy; and The Honorable Candi Wolff, Assistant to the President for Legislative Affairs.

The IAHI leadership team, franchisees, and IHG executives also attended a special briefing with Jefferson Government Relations, a Washington, D.C. public policy firm that represents the interests of IHG and IAHI. This event was held in conjunction with the Summit.

“Our members are concerned about the issues facing the hospitality industry, and it is important for us to engage in dialogue with key policy makers who make decisions that can affect our businesses,” says David Hart, IAHI Chairman and president and chief executive officer of Hart Hotels, Inc. in Buffalo, New York. “While we are always proactive in this area as an owners’ association, our participation in the AH&LA Legislative Action Summit gives us an even greater voice and presence on Capitol Hill.”

And, Steve Porter, IHG President, The Americas, and Chairman of the AH&LA Government Affairs Committee, adds: “By presenting a unified voice to our nation’s leaders, we communicate the size and economic impact of our industry and have a much greater opportunity to effect positive change for our businesses.”

Here is a comprehensive update on today’s most probing political issues impacting the entire hospitality industry and franchisees, including IAHI’s and IHG’s views:

Americans with Disabilities Act Accessibility Guidelines (ADAAG)

Potential costly changes to the ADA Accessibility Guidelines would require that 50 percent of hotel guest rooms have accessible communication features, an increase from 0.5 percent. These new rules would only apply to the renovation process. However, since it is unclear in the guidelines what constitutes a renovation, even the simplest of enhancements to a guest room would be included – increasing the cost to comply with the new guidelines.

IHG and IAHI have taken the lead in alerting Congress to this issue and the industry’s concerns. We will continue to work with the AH&LA to ensure that the Justice Department accurately evaluates the cost of implementing such a rule and its effect on the lodging industry.

Estate Tax Reform

The 2001 tax cut package called for the complete removal of the estate tax in 2010. However, because of a provision in the law, this repeal would reverse in 2011 if no further Congressional action is taken. This means the tax would revert to its pre-2001 levels: a 55 percent tax on all estates valued at over $1 million. Legislation has been introduced that would make the tax repeal permanent, but this may not ultimately be approved.

One preliminary proposal would increase the estate exemption to $10 million, and reduce the estate tax rate to match rates on capital gains and dividends, which is currently 15 percent.

IHG and IAHI contend that small businesses, such as those owned by franchisees, would be damaged financially by the estate tax. We will continue to work with policy makers to create solutions that minimize the estate tax’s negative economic effects on franchisees and all entrepreneurs.

Homeland Security

Under the rules of the Western Hemisphere Travel Initiative, by the end of this year, all air and sea travelers arriving in the United States from Canada, Mexico, the Caribbean, Bermuda, and South America would be required to show passports or other secure documents. By the end of 2007, all land travelers from Canada and Mexico will be required to do the same.

To offset potential negative effects on tourism from this initiative, we have urged the Federal government to consolidate both deadlines to the end of 2007. This would eliminate confusion and prevent backlog in passport processing.

Also proposed is a new PASS card system as acceptable identification for individuals who live and work near the U.S. border and make frequent crossings. This would be particularly efficient and welcoming for Canadian citizens who work in thousands of northern U.S. hotels and pass through the border each day. The IAHI and IHG will continue to support this proposal and show its relevance to the entire hotel and travel industry.

Immigration Reform

A recently passed U.S. House of Representatives bill would require employers to perform background checks on all their workers to verify their eligibility to work in the U.S.

Hotel franchisees need a sensible immigration policy that maintains a secure border and allows for the employment of immigrants without hardship. As a member of the Essential Worker Immigration Coalition, IHG will work toward this effort and ask franchisees to provide examples of problems they have encountered with respect to labor shortages and problems faced in finding workers.

“All of these issues and others will continue to be on the forefront of both IHG’s and IAHI’s lobbying efforts on behalf of all of our franchisees,” Hart adds. “As the industry’s most established owners’ association, this is one of the greatest services and benefits that we can provide to our members.”