Our Industry's Future is at Risk - Pure MI is the Key!

The State of Michigan has set aside only $5.4 million for Pure Michigan for the new fiscal year which begins on October 1st. If that doesn’t change, Travel Michigan will be forced to issue three press releases.

• The first, issued in mid-September will announce the cancellation of the Pure Michigan fall campaign.

• In mid-October a second release will be issued announcing the cancellation of all Pure Michigan winter ads.

• And if the Legislature fails to act prior to December 31st, Travel Michigan will announce the end of the national campaign and the collapse of Pure Michigan from 13 regional markets to just a handful.

At that point, our industry will be forced to almost exclusively rely on the Michigan resident base for tourism outcomes. However, with a loss of over 1 million jobs, that base can no longer generate revenues as it did in the past.

How can this be avoided?

• Help us raise the funds necessary to fight for full funding by supporting MLTA’s Government Affairs Golf Outing. Register to play or sponsor a hole by clicking here!

• Register to attend the Michigan Lodging and Tourism Legislative Conference (co-sponsored by the Michigan Snowsports Industries Association) on Wednesday, September 22nd at the Radisson Hotel, Lansing.

• View brief videos which explain three special MLTA initiatives designed to help our industry win full and permanent funding for Pure Michigan.

We intend to do everything possible to win this fight. Please help provide the manpower and resources necessary to prevail. As always, we are stronger – together!

Pure Michigan Campaign Brings Home Record Four Mercury Awards!

Please see text of press release issued by Travel Michigan below.

CONGRATULATIONS TRAVEL MICHIGAN!

This is pretty much unparalleled - We've never heard of a single state winning so many awards in one year!

This will generate great momentum as we work to win full and permanent funding for Pure Michigan either in September or in lame duck!

Steve Yencich, CAE
President/CEO, Michigan Lodging and Tourism Association




For Immediate Release Contact: Dave Lorenz, 517-243-3073
August 11, 2010 Kirsten Borgstrom, 517-331-3433

Pure Michigan Campaign Wins Top Awards
US Travel Association Honors Pure Michigan with Four Awards

Lansing, MI - And the winner is.Pure Michigan, the state of Michigan's official travel and tourism campaign. The Pure Michigan campaign brings home a record four Mercury Awards, Best State Tourism Television Commercials, Best State Tourism Radio Commercials, Best State Tourism Co-op (Partnership) Program, and Best State Tourism Welcome Center Program, from the recent ESTO Conference.

"We are absolutely thrilled and honored to receive four Mercury Awards, in recognition of the Pure Michigan campaign, from our colleagues and competitors within the tourism industry," said George Zimmermann, Vice President of Travel Michigan, a business unit of the Michigan Economic Development Corporation.

These four awards join the other Mercury Awards the campaign has already received including Best State Tourism Advertising Campaign (2007), Best State Tourism Television Commercials (2007), and Best State Tourism Radio Campaign (2008), Best State Tourism Radio Advertising (2009) and Best State Tourism Niche Marketing (2009).

The Pure Michigan tourism campaign ran national for the second year on cable channels including: Golf Channel, Travel Channel, A&E, Bravo, Style, Fine Living, HGTV, Food Network, TLC, E!, DIY Network, CNN, MSNBC, CNBC and Fox News. Due to reduced funds adjustments were made to the regional and in-state campaigns.

"There are millions of Americans who know little or nothing about the vibrancy, heritage, culture, arts and entertainment in our great cities, our sandy beaches and stunning overlooks along America's longest fresh-water coastline, or the majesty and recreation in our 19 million acres of magnificent forests," Zimmermann said. "The Pure Michigan campaign is designed to introduce to the nation the attributes that make Michigan such a popular and unique destination."

The inaugural Pure Michigan national advertising campaign in 2009 motivated 680,000 new trips to Michigan from outside the Great Lakes region and resulted in more than $250 million being spent at Michigan businesses. For every dollar spent on the Pure Michigan national campaign, new visits to Michigan stimulated by that advertising generated $ 2.23 in new state tax collections.

The Mercury Awards is a program created by the National Council of State Tourism Directors to recognize its members for excellence and creative accomplishment in state tourism marketing and promotion, and to inspire the continued development of truly imaginative and exciting destination marketing and promotion programs.

The Birmingham, Michigan office of McCann Erickson developed the strategy and creative for the Pure Michigan campaign. The campaign is intended to entice out-of-state travelers about one place that still feels magic, mythic, authentic, untamed, unspoiled, uncompromised, timeless and true. The Pure Michigan campaign can be viewed/listened to online at michigan.org/travelads.

Travel Michigan, a division of the Michigan Economic Development Corporation, is the State of Michigan's official agency for the promotion of tourism. Travel Michigan markets the state's tourism industry and provides valuable visitor information services. For Michigan travel news and updates, go to michigan.org.

McCann's midwest office in Birmingham, Michigan creates advertising and integrated marketing communications for Travel Michigan; Saab Automobile USA; General Motors Corporation (Corporate Advertising); Chevrolet Global; Colonial Williamsburg; Michigan Credit Union League; and a variety of other clients. McCann Worldgroup is the world's largest multinational advertising agency system, with operations in 131 countries. It is part of the Interpublic Group of Companies, Inc. (NYSE: IPG). To find out more about McCann Erickson, visit its Web site at www.mccann.com.

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National Exposure for Pure MI in USA Today!

Click here to see the article appearing in today's USA Today about our state's tremendous Pure Michigan campaign.

Right now, Pure Michigan's budget for 2011 is just $5.4 million. We must work together to get a vote on full and permanent funding ($30 million) for Pure Michigan.

You can help by simply cutting and pasting the link to the article and emailing to candidates for state office in your area. Or put the link on the candidate's Facebook page for others to see.

Spread the word and help us make Pure Michigan a part of the campaign conversation. The more Pure Michigan is talked about, the better our chances will be!

http://www.usatoday.com/news/nation/2010-08-09-1Astateimage09_CV_N.htm

Webinar: DOL Audits Targeting Hotels - Offered free to all MLTA-AH&LA Members!

MLTA is pleased to announce the availability of a webinar (free to all dual MLTA/AH&LA member Properties) to help you deal with the upcoming U.S. Department of Labor audits targeting all lodging properties nationwide.

If your property has 51 rooms or more and you’re a member of the MLTA, you are also automatically a member of the AH&LA. The webinar is free.

If your property is 50 rooms or less membership in the AH&LA is optional. If you pay $255 in dues, you’ve opted for state (MLTA) membership only. If you pay $370, you have opted for dual MLTA/AH&LA membership. The webinar is free.

If you are not a member of MLTA, the cost of the webinar is just $99.
Learn how the Department of Labor’s (DOL) new regulations will impact you and your property during this Webinar:

Labor Department Targeting Hotels for Audits: Be Prepared Webinar

Wednesday, July 28
2-3:30 (EDT)

Free for members; $99 for nonmembers

Newly enacted regulatory strategies by the federal government are targeting hotels and their employees, that could lead to increased federal enforcement actions, class and collective action lawsuits, and union organizing should the industry not live up to these new standards.

Learn how to comply and make sense of the recently-announced "Plan/Prevent/Protect" regulatory and enforcement initiatives by the U.S. Department of Labor (DOL) during this practical Webinar.

Topics include new challenges and best practices around:

• How your property will be impacted by increased enforcement• H-2B seasonal visa holders

• Safety and health initiatives, including ergonomics

• OFCCP audits

• Wage and hour investigations, including exempt status and independent contractor classification

Presented by national law firm Ogletree, Deakins, Nash, Smoak and Stewart, P.C., you’ll hear from a panel of labor attorneys who work with AH&LA members on an ongoing basis and can answer your toughest questions.

Register online or by downloading this form.

Please direct any questions to Tara Allen at tallen@ahla.com or (202) 289-3171.

If you’d like to join MLTA and AH&LA contact Steve Yencich at our Lansing office via phone at 517.267.8989 email stevey@milodging.org or click here to join us today!

Multiple State/Federal Legislative/Regulatory Issues Threaten your Lodging Property

In recent weeks, multiple threats to your property have arisen from both the state and federal government. Things are moving quickly enough that we thought we should inform you in as concise a manner as possible.

1. 911 Multiple Phone Line Regulations

MLTA is involved in the draft rules-making process towards regulations requiring all end users with multiple phone lines (hospitals, dormitories, apartments, hotels, retirement homes, etc) to have systems which show the specific location (room number) of any 911 call going into a dispatch center. The statute and corresponding rules must take effect no later than December 31, 2011. Left untouched, these regulations could force every property with a phone system older than 2007 to replace those systems or face up to $10,000 in fines.

MLTA will be requesting an exemption to these requirements for any lodging property which has technology that already notifies the front desk of the location (room number) of any 911 call going out from the building. We’ll also ask for an exemption for any existing phone system that lacks the technology to handle such an enhanced 911 call. Such properties would be required to comply the next time they replace their phone system.

2. State Audits for Sales Tax Charges for Room cleaning under two Circumstances (Smoking & Pet Dander)

The State is taking the position that sales tax should be assessed by any hotel for cleaning of rooms that have been smoked in, or in which an unauthorized pet was kept. At this point we’re aware of only one hotel that is facing an audit for these services. The hotel had not assessed sales tax for what they thought were “services.” State Treasury is taking the position that the use tax already covers a number of cleaning and maintenance services that are automatically provided any hotel guest, (i.e. housekeeping, plumbing, HVAC repair). Under a worst case scenario the hotel could owe the state four years of back taxes. This could have industry-wide implications.

3. State Audits for Proper Documentation provided by Charitable Organization not charged Sales/Use Tax

The State and federal government are both strapped for cash and are taking a much more aggressive stance in enforcement of existing tax laws and regulations. It appears likely that State Treasury is going to more zealously enforce requirements for proper documentation of charitable groups that held events or function at properties in which they were not charged sales/use tax. If audited, a hotel lacking proper documentation on file from the 510(c)(3) organization, could find itself in the position of owing up to four years of sales and use tax under such scenarios. This could have even greater industry-wide implications.

Our association counsel is preparing a concise memo, summarizing these two issues (numbers 2 and 3) along with possible remedies which we’ll provide to all MLTA member properties.

4. Federal Audits of all Lodging Properties by Department of Labor

This was previously outlined in a grassroots email issued last week which can be read by clicking here.

5. Possible Anti-Trust Exposure arising from Industry Practice of “Call Arounds.”

This was outlined in an email transmitted last week which can be reread by clicking here.

Such issues all hitting at the same time threaten to overwhelm our small staff and ability to keep up. The membership and support provided by your property strengthen our ability to effectively represent your interests as we tackle these important issues.

Connecticut Attorney General shuts down Industry Practice of "Call Arounds"

It’s a common practice in some destinations across the country whereby hotel staff will call other properties to check occupancy levels and rates. However, MLTA recently learned that such “call arounds” are coming under increased scrutiny by a variety of state attorneys general.

The AGs believe such phone calls can be “a potentially anticompetitive practice in which competing hotels exchange current room rate and occupancy information that can be used to fix prices.” Such activities can be judged to be a per se’ violation of state or federal anti-trust laws.

Here’s an excerpt from recent news article in which Connecticut Attorney General, Richard Blumenthal, characterized his action as "a wake-up call to the entire hotel industry -- signaling that ‘call-arounds’ to set room prices are illegal and must be stopped."

Read the entire article by clicking HERE.

You can also read the actual press release issued by Connecticut’s Attorney General to learn more.

MLTA suggests that you proceed with caution if you are considering engaging in this practice. While we understand that this practice might be legal, and under certain circumstances is clearly legal, we believe that it can create serious risks and that it is inadvisable to engage in this practice without the advice of legal counsel.

In short, when dealing with state or federal anti-trust laws, it is better to be safe than sorry!

GRASSROOTS ALERT! Lodging Industry Targeted By Department of Labor

Lodging Industry Targeted By Dept. of Labor
Urge Your Members of Congress to Demand End to Assault

Washington, D.C., June 21, 2010 – The American Hotel & Lodging Association (AH&LA) and the Michigan Lodging and Tourism Association have learned that the U.S. Department of Labor (DOL) is planning an initiative that specifically targets every hotel, motel and resort in the United States for audits by the department’s Wage and Hour Division. This is a federal threat arising from Washington DC.

Without contacting AH&LA or providing any justification, DOL has labeled the lodging industry as a “high-risk industry” where violations of federal wage and hour laws are most likely to occur. The department has chosen to consider employees in the lodging industry as “the most vulnerable workers” in the country. As a result, you will be subject to a DOL audit, covering all of your employees.

Despite the lack of contact by DOL, AH&LA learned of the department’s plans and is currently seeking more information from DOL on why the actions are being taken and attempting to further inform the department about the true nature of our industry and its practices.

We need you to contact your members of Congress today.

They need to hear from as many hoteliers as possible that these actions by the Department of Labor are not justified and that they need to contact the department on your behalf to insist that they be stopped.

It only takes two minutes to make a huge difference.

MLTA members with 51 rooms or more are automatically members of AH&LA and can immediately proceed to AH&LA’s grassroots website. Hoteliers can contact their House and Senate lawmakers by taking action through AH&LA’s hotelLOBBY grassroots Website. You can quickly send your legislators a short message stating your strong opposition to DOL’s actions and asking them to help.

MLTA members with 50 rooms or less are not automatically members of the AH&LA, but can still contact their members of Congress by clicking here. Fill out the form and a dialog box will open in which you can cut and paste the letter below. Even properties that are not members of MLTA should get involved by using the access point in this paragraph and the letter below.

______________________________________________________________________

Dear Representative or Senator (Last Name)

I have learned that the U.S. Department of Labor’s (DOL’s) Wage and Hour Division (WHD) is in the planning stages of a “Hotel and Motel Resort Pilot Initiative.” I understand that DOL has decided without justification to label the lodging industry (along with a few other selected industries) as a “high risk” industry and target hoteliers with audits, penalties, sanctions and other actions.

As a citizen, an employer and voter, I am outraged about this assault. Not only do I provide jobs to many workers, I pay them a good wage and benefits in a good working environment.

Despite the recession which has hit the lodging industry harder than most, I have struggled to keep as many of my employees on the job as possible. In doing so, I comply with all the burdensome federal laws and regulations that are mandated in order to provide those jobs.

DOL’s actions are an outright attack against me and my industry. I urge you to contact the White House and the Department of Labor and demand that they end their attack against the lodging industry and explain why they considered those actions in the first place.

I respectfully request that you please provide me with a copy of your correspondence to the Department of Labor and White House and their responses as soon as possible.


Sincerely,


(Your Name)
________________________________________________________________________

Whether it’s a threat in Lansing, or Washington DC, MLTA and AH&LA have got you covered. But we can do little if you don’t respond.

Unless you want a full blown audit by the U.S. Department of Labor – act today!