Military Ranks High for Generating Hospitality Business
from the San Diego Business Journal (May 28, 2012):
…Hotels, for instance, cater to business travelers who come to San Diego County to meet locally with defense contractors, the military and other government agencies, and travel tied to military bases plays a role in tourism efforts.
“Anything that impacts military spending could have a massive impact if it reduces the number of people who have to come to San Diego,” said Robert Rauch, president of locally based hospitality consulting firm R.A. Rauch & Associates Inc.
…Rauch noted that a large number of military and government personnel, as well as civilian contractors working for the military in areas like ship-building and information technology, visit the San Diego region regularly. Many work for the military on a project basis, and their local stays are for extended terms — several weeks or months.
In addition to spending directly at hotels — at the government-approved rate of $133 nightly for the San Diego market — those contractors visit local restaurants, stores and tourist venues during their stays.
Rauch owns two Hilton-branded hotels in Carmel Valley and operates other local properties on behalf of clients. While he doesn’t see major hits coming in 2013, he said he is wary about potential future federal cuts down the road that could curtail local defense contracting and impact the ripple business it creates.
