What the Meetings and Events Industry Can Learn from RFRA

April 23, 2015

Recently, we saw the rise and fall of Indiana’s now infamous Religious Freedom Restoration Act (RFRA). What began as a quiet, state-level policy soon erupted into the most hotly-contested debate in the United States.

RFRA initially specified that government could not "substantially burden" a person's ability to follow their religious beliefs, unless there was a compelling interest in imposing that burden or government could do so in the least restrictive way. For many, the legislation left too many possibilities for legalized discrimination against the LGBT community.

Guided by the belief that everyone should be able to conduct business free from discrimination, leaders across the country stepped up to champion an alternative way forward – demanding equal treatment for all, with no exception.

Calls to immediately suspend business travel, conferences and conventions placed pressure on Governor Mike Pence and the Indiana state legislature and threatened a heavy blow to their public support, political capital and economic growth. Critics of RFRA helped force a much needed policy change in a remarkably short time. Their work is to be applauded, although, it came at a price.

The services provided by the meetings and travel industry often go unnoticed, but as members of our industry know very well, the economic impact is unmistakable.  Indianapolis' tourism and convention business is estimated to have a $4.4 billion annual economic impact with some 75,000 jobs. Nationwide, the meetings and travel industry contributes more to national GDP than the air transportation, motion picture, sound recording, performing arts and spectator sport industries. Our industry creates hundreds of thousands of jobs and generates billions of dollars in revenue, supporting communities across the country.

Boycotts like the ones we saw in Indiana have unintended consequences for local communities, who count on in-person meetings, events, conferences and conventions to sustain themselves. Local businesses were not the targets in this case, but they were certainly caught in the cross hairs.

We are mindful of the local economic impact when a meeting is cancelled because we know that hosting an event, convention or trade show stimulates a region’s economy by bringing in new visitors, who stay in area hotels, eat in local restaurants, shop in neighborhood stores and bring new revenue to the destination.

Experiencing a destination first hand is the best marketing tool for a community. While at a meeting, attendees have the opportunity to explore a destination and those experiences often influence their decision to come back – whether for business or leisure travel.

With the potential for RFRA to emerge as an issue in more than a dozen other states, it may now be time to ask whether it is fair to leverage local businesses in order to win political battles.

As Leonard Hoops, president and CEO of Visit Indy pointed out in a statement opposing the initial act: “Indy is open for business to all. The passage of the state’s RFRA did not change who we are overnight, or the fact that our community values and appreciates all of our guests.”

The issue in this case was with politicians, not local businesses.

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MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.    Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.    Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.   The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.    MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.     MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.