ASSOCIATION PROFILE: Washington State Hotel & Lodging Association
Interview with Jan Simon, President & CEO

Q: Tell us about the WSH&LA
The Washington State Hotel & Lodging Association (WSH&LA), incorporated in 1920, is a non-profit trade and professional association dedicated to ensuring the growth and success of the Washington State lodging industry. From our offices in Seattle, WSH&LA serves 600 members, representing more than 40,000 rooms from across Washington State and more than 125 allied members. Among the benefits it offers members are legislative, legal, and regulatory representation, discounted bankcard and printing services, ad discounts, health and dental insurance as well as industry analysis reports.

Q: What benefits will the new tourism commission provide?
Previously Washington had a tourism office run by the state and there was a disconnect with the tourism industry and the marketing the state did. The state marketing function was also poorly supported with investment. Washington had the dubious distinction of having the least government funding for tourism promotion of the 13 western states and BC. While the average state tourism budget is $13.6 M, Washington’s budget has been just $3.5 M. With the new commission, additional funds will be transferred to the tourism commission. It will be overseen by bodies of tourism professionals and quasi government.
The tourism commission will develop, approve, and deliver a state-wide marketing plan and strategic plan. With the commission, public funding will be increased by up to an additional $4.5 M. However, this money is coming from dollars that have been allocated to go to the Washington State Convention and Trade Centre. Previously they had about that amount of money more than they’ve needed so that money was swept into general funds. However, before that money is transferred to the commission, the Convention and Trade Centre must keep enough capital funds to maintain it as a world class facility. Another caveat is that in 2009 the money needs to be matched by 50% with private dollars, and in 2011, 100% of funds have to be leveraged with private dollars.
The commission will be a 19-member committee with 3 people from the lodging industry, 3 from non-profit DMOs, 3 from arts, entertainment, attractions or recreation, 4 from private industry, 4 legislative members, the chair of the Washington Convention & Trade Centre, and a representative from Community Trade & Economic Development. 

Q: Describe the change to the hotel and motel tax
A change was recently made to the hotel and motel tax so it can now be used for operating special events and festivals not just marketing them. In the past the tax could also only be used by facilities that were owned in whole or in part by a public entity, but now the tax can be used for private non-profit organizations, so the association fears there will be more abuse of the tax due to that change. One hotelier advised the association that his jurisdiction used the money to build sidewalks. WSH&LA is working with the state auditor’s office to ensure that funds will be used for marketing. The auditor said that when a lodging committee makes a recommendation and the municipality doesn’t abide by that then they will audit it. There should be a really good reason to use those funds for operations.

Q: What are the biggest challenges that hoteliers in Washington State face?
Hoteliers face a lot of human resource issues. Employees are younger so grooming and promoting GenY staff is challenging. Understanding what motivates a younger workforce is important and teaching good work habits to a population that is different than their managers is challenging. Moving people into management and middle management is another issue. How do you train them and keep them productive and contributing to the organization?
We conducted a revenue management seminar last week and had attendance of over 90 people. Even though occupancy is solid there’s always room for improvement. As per Wolfgang Rood Hospitality Consulting in Bellevue, WA, in 2006 the average occupancy statewide was 53.1% in 2005 and 68.9% in 2006 and ADR increased by 9.3%.

Q: Are you facing a labour shortage? If so, how are hotels dealing with it?
Getting and retaining good staff is an issue. The unemployment rate is at 4%. The American Hotel & Lodging Association is working on immigration programs to allow people to come into the country to do jobs that Americans don’t want to do. 
[Another strategy is] promoting good back of the house staff, but do you empower staff to move from the back of the house to front of the house? Hotels also have to address language issues – one hotel has staff speaking 15 languages.

Q: How do you anticipate that changes to passport requirements will affect the tourism industry?
It will be a real education process. With the 2010 Olympics coming we hope to pull people to do a two nation vacation. In the process of addressing [this issue] to make the borders more friendly and expedite the border crossings, we are looking to the state tourism office and the American Hotel & Lodging Association. The Olympics helps to force the issue and get other government agencies involved to capitalize on it for the state’s economy. 

Q: How does the new hotel liquor license benefit hotels?
Under the old liquor license, hotels had to operate a restaurant license as well. However, a lot of hotels are now contracting out restaurants and just retaining banquet and room service functions. With the new law they can contract out the restaurant. It also licenses the whole facility so guests can consume alcohol throughout the hotel. Minors will be allowed in those areas as long as the prime use of that area isn’t the service of liquor (e.g. hotel lobbies can have a service bar and they can serve liquor at poolside).