General Services Administration Will Not Alter Calculating Method for Lodging Per Diems
August 13, 2012
In good news for the travel industry, the U.S. General Services Administration has decided to not change the calculating method for lodging per diems that the U.S. Travel Association said would cost the industry $885 million in revenue and thousands of American jobs.
In a statement released by USTA, Roger Dow, the association’s president and CEO, said,
“Thanks to the joint advocacy efforts of travel industry associations, local hotel owners, national lodging chains, destination marketing organizations and many others, we were able to defend against a policy proposal that would have cut federal lodging per diem rates by roughly 30 percent.”
He added, “The GSA was considering this drastic change as part of a government-wide initiative to reduce federal conference and travel spending. Instead, the GSA decided to freeze lodging per diem rates at current levels for the upcoming fiscal year.”
USTA worked with the American Hotel & Lodging Association and the U.S. Chamber of Commerce, among others, to send letters to Capitol Hill and meet with members of the administration to express concerns about the proposed change in lodging per diem calculations.
The proposed change in per diems were likely a direct result of a GSA scandal earlier this year that involved spending more than $800,000 on an event in Las Vegas.
Congress demanded answers and there were subsequent calls to severely limit the amount of events government employees could attend that would have a dramatic impact on the travel and meetings industry.
As a result, USTA, as well as other industry associations such as the American Society of Association Executives, sent out calls to action for people within the industry to contact their local congressperson.
In addition, according to Dow, state travel associations and destination marketing organizations from across the nation hosted roundtables with government officials to discuss the importance of federal travel.
All of these efforts worked that led to the freeze on the lodging per diem, but Dow said there were more challenges ahead.
“Federal agencies face 30 percent cuts to their travel budgets and government conferences remain under intense scrutiny,” he added.
Dow said, “But the per diem debate provides a valuable lesson on what we can accomplish when we speak with one voice.”
Partner Voices
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.
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