"Congress has done a great job of killing the resort hotel business with the way they've criticized the number of financial firms from having conferences," Loews Corp. Chief Executive Officer James Tisch said in a conference call with investors this week.From Marriott On The Move:
Hotels everywhere are feeling the repercussions from companies canceling functions because they fear the scrutiny. In this economy, Marriott made cuts where we've had to, while trying to preserve a great guest experience in all of our hotels. We have done our very best to keep our people employed but it's not always possible. In some locations, our hotels are the major employer.
A good example is the Ritz-Carlton, Half Moon Bay, just outside of San Francisco. This resort has been especially hard hit by group cancellations. In just the past four months, 32 different groups have canceled plans for retreats, educational seminars, and incentive meetings. As a result, some very good, hardworking people are now unemployed.