Economy, not war, hinders hospitality

The threat of war against Iraq did not affect the decision-making process of corporations that spend on hospitality, according to one industry veteran.

"The economy already did," said Roe Faraone, president of Chicago-based Ideas for Corporate Entertainment, which has numerous large corporate clients, such as Sony and Sprint, and has arranged for several hundred people to attend the Masters next month.

"It's the tangibles that affect decisions, the economy much more than foreign policy," she said.

Faraone pegged the dip in hospitality spending because of the economy at "something less than 25 percent." But she said her firm helped make up the difference by adding several second-tier clients in the banking industry after some larger banks had lowered their hospitality spending this year.

"People are still looking to get a leg up on the competition," she said.