Slumping Convention Business Cuts into 401(k) Match

Atlanta Convention&Visitors Bureau announced Friday it will cut contributions to employee 401(k) and profit-sharing plans for the year to make up for an expected $600,000 shortfall of revenue caused by slumping hotel occupancy.

No job cuts or furloughs are being made at this time, ACVB President and CEO William Pate said, but personnel cuts are possible if the economy and hotel/motel tax collections continue to decline, according to the Atlanta Business Chronicle.

Pate said the bureau expects to save $400,000 this year by ending its matching contributions to employee retirement and profit-sharing plans, according to the report. Pate informed ACVB’s 74 employees of the changes in a Friday afternoon staff meeting, according to the Atlanta Journal-Constitution.

The bureau, which is charged with selling Atlanta globally as a business and leisure travel destination, said the cuts will not affect its programming capacity. Hospitality is an $11.4 billion economy driver for Atlanta, responsible for about 230,000 jobs.

The 401(k) match cut is the latest in announcements from many companies (see “Another Casino Operator Craps out on Match“).