Senator Harry Reid (D-NV) has managed to rescue Orlando and Las Vegas from a federal travel blacklist which prohibits government meetings and conferences in liesure oriented cities.

Sen. Harry Reid & Rahm Emanuel

An exchange of letters between Senate Majority Leader Harry Reid and White House Chief of Staff Rahm Emanuel clarifies the White House position on the subject, and will from now on serve as a guideline for any federal agency scouting for a meeting or conference destination.

In his letter to Rahm Emanuel, Senator Reid said that “Over last few months, several Las Vegas businesses have been told that Las Vegas facilities would not be considered as a travel destination for government meeting or convention travel because Las Vegas is also vacation and leisure destination. For example, in one case, a Federal Bureau of Investigation (FBI) conference was relocated from Las Vegas to another city on the order of the FBI Director on this basis. We are aware of similar action being taken by the General Services Agency and the Bureau of Indian Affairs.”

In response, Emanuel wrote back that he agrees “federal policy should not dictate the location where such government events are held.” Emanuel also clarified that the White House view of government travel is not focused on specific destinations, but on the justification for and the cost/benefit ratio of the individual exercise.

This means that from now on, meeting planners for federal agencies will no longer be able to cite federal policy and White House instructions as an excuse for cutting out hot leisure destinations from consideration.

But it won’t be easy to convince hide-bound bureaucrats at federal agencies that the White House really means it. According to Geoff Freeman, Senior VP, U.S. Travel Association, this travel blacklist of prominent leisure destinations by federal agencies including Justice, Agriculture and Homeland Security is fueled by directives coming from “the highest levels within these agencies.”

It’s one thing to overturn a written policy memo with another one. It’s a completely different matter trying to change the mindsets of dozens of federal officials. One thing that would do the trick is if President Obama would himself say something about it, which would help nullify the impact of his statement earlier this year when he said “you can’t go take a trip to Las Vegas or go down to the Super Bowl on the taxpayer’s dime.”

That statement was made when people were mad about excessive spending by top executives of bailed out banks, and resulted in a virtual meltdown in the meetings industry, and hotels in Orlando and Las Vegas have been in free-fall since then.

The situation now is very much different and some political cover is needed to repair the damage, but don’t hold your breath for any more help on this matter from the White House. Sen. Harry Reid, though, needs to be commended for trying to help resuscitate his state’s travel industry.

Orlando’s hospitality industry is gearing up for some shock and awe. D-day is Oct 1, 2009, when Hilton unleashes the awesome power of it’s Bonnet Creek Resort development.

Hilton Bonnet Creek Resort

Bonnet Creek is the most sought after and ideally located property in Orlando, surrounded on three sides by the Walt Disney World Resort, with Epcot and Downtown Disney as neighbours, 20 minutes from Orlando International Airport.

And in the midst of this 482 acre paradise with it’s own wildlife and wetland preserve, Hilton has built two magnificent properties – Waldorf Astoria Orlando and Hilton Bonnet Creek.

That’s 1497 guest rooms and suites, 150,000 square feet of meeting space, three ballrooms totalling 71,400 sq ft, a spectacular convention center, a Rees Jones-designed Waldorf Astoria Golf Club with a stunning 18-hole golf course, a 24,000 sq ft Waldorf Astoria Spa by Guerlain, and a private island retreat.

The Waldorf Astoria Orlando – the first Waldorf Astoria outside of New York City – offers 497 deluxe rooms and suites, signature Waldorf Astoria food and beverage establishments, a formal swimming pool with private cabanas, recreation pool, and a 4000 sq ft fitness center. And use of the resort facilities mentioned above.

Hilton Orlando Bonnet Creek Pool & Waldorf Astoria Orlando Bedroom

The Hilton Orlando Bonnet Creek is twice as big, with 1000 rooms and suites (36 Hospitality Suites and 2 Presidential Suites), six distinct dining options, and a two-acre lagoon-style pool. Its outdoor venues include Bonnet Creek Island, a private retreat ideal for cocktails or storybook weddings.

In addition to this, Hilton’s first wave hits Orlando one month early in September, in the form of the 1,400 room Hilton Orlando next to the Orange County/Orlando Convention Center.

The hotel is the first one to be connected directly to the convention center, and offers 200,000 sq ft of meeting space and services on two floors including a 50,000 square foot Orlando Ballroom, a 30,000 square foot Orange Ballroom and 21 meeting rooms, 9 boardrooms, registration areas and a complete and accessible business center.

That makes for a total of three hotels with 2897 rooms, all the resort and meetings facilities, plus the enviable locations.

It would be hard to find such a massive launch, even in Vegas. And unlike Vegas, both the Bonnet Creek resort and Hilton Orlando have an aura of success and seem to be teflon-coated against the economic downturn. While other new hotels and resorts struggle to stay afloat, Hilton is heading for a takeover of Orlando’s hospitality industry.

Hilton has had a torrid time these past few months, what with the criticism over the mismanaged shift of their corporate headquarters from Beverly Hills to Fairfax, VA, and the legal and PR fallout over the Denizen fiasco. But with the opening of Bonnet Creek, all that pain goes away, and Hilton will be back on it’s game.