Tag Archives: Military

Hospitality Industry Management Update: “Cuts to Per Diem Rates Could Mean Less Business for Hotels”

However, not only does this policy penalize the men and women who ensure our national security on a daily basis,perdiem but it also threatens to erode the morale of the workforce and will mean less business for hotels and firms that cater to federal travelers. These same companies are extremely supportive of our military and veteran communities, and they too will face negative effects of this policy.

As Congress and the Administration make decisions on how to reduce fiscal spending, there is a basic set of principles they must follow to make sure the policies enacted are fair and balanced. While cuts in spending are guaranteed to have an adverse effect on at least one group or geographical area, a 2014 policy on per diem rates for military personnel and defense civilian employees who receive temporary duty assignment (TDY) for long-term periods failed to be either fair or balanced. It affected service members and defense personnel in my home state of Hawaii to a far greater extent than the small amount of savings it contributed to the budget. That is why I made it my top priority in the 2016 National Defense Authorization Act and was successful in including the provision in the bill that reversed this ill-thought-out policy.

Defense spending heavily supports Hawaii’s economy—nearly 20 percent, according to a study by the RAND Corporation. This economic contribution falls second only to our tourism industry, which adds approximately $14 billion to the state’s gross domestic product every year. Therefore, dedicating support to preserve and enhance these industries is a top priority for any politician representing the state. Reversing policies with unintended consequences that negatively affect these industries, along with the almost 20,000 Department of Defense civilian employees in the state, also should take
top consideration.

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