The recession has had left few individuals, businesses, and cities untouched, but cities such as San Francisco which are dependent upon on tourism, business travel, and conventions to support the local economy through spending and taxes, have begun to really feel the impact of the sudden business spending halt. In recent weeks, the drop off has become glaringly apparent in business travel as companies have all but ceased sending employees on any trips no matter how legitimate, necessary, or part of their usual spending routine. Companies fear the backlash that might befall them as has been waged upon Northern Trust just recently. Firms don’t want to take any risk of being viewed as frivolous big spenders.
The media attention of all the bailed-out firms and the subsequent exposure of loose spending habits on bonuses and perquisites, and junkets have prompted even conservative companies to eschew almost all but the very essentials in spending. San Francisco leaders are determined to inject some sense back into the corporate mindset so that the city’s economy doesn’t suffer from the affects of extreme spending recoil. A group of fifty civic leaders from numerous cities, and led by San Francisco, were in Washington DC this week to urge Congressional delegates to throttle back on their rhetoric over business spending because it is bleeding over and compromising even sensible business dealings in the process and stifling economies, national and local. The group is also asking Congress to not only soften their ire in speeches, but also asking that they be sure to be cautious about the effects that their efforts might have on standard business travel when they react too harshly designing restrictions over their bail-out restrictions, stimulus efforts, and ongoing oversights.
The cities are hoping to be the voice of reason so that responsible spending is actually encouraged, a necessary aspect of returning the economy to a healthy state. Places like San Francisco would like to see businesses which would normally travel for business meetings, conventions, and their general various businesses’ needs, do so without the current glare of their every move being overly and unnecessarily scrutinized. The knee-jerk reaction to some extravagant spending of the few should not continue to harm the many as a result. San Francisco would like to see business travelers return to the hotels, convention goers fill the Moscone Center, SFO destined airlines filling their flights, and San Francisco tours shuttling their visitors around the city once again. Their plea is for sensibility over stifling overreaction.
