Exec: Encouraging Diversity Can Help Bottom Line

by Richard N. Velotta

LAS VEGAS -- A new program providing benefits to same-sex partners of MGM Mirage employees has been accepted by fewer than 100 of the company's 40,000 workers. But the head of the company's diversity program says having the benefit available may be the difference in a recruitment battle with a competitor.

Punam Mathur, vice president of community affairs at MGM Mirage, said several new benefits were introduced to employees in July, including the same-sex domestic partner benefits and a long-term care benefit for parents of employees.

But federal tax codes don't recognize domestic partnerships and can result in a higher tax bill for people who take the benefit, Mathur said.

Mathur addressed diversity issues in a presentation on the closing day of the three-day Governor's Conference on Tourism at the Reno Hilton.

About 600 people attended the annual event that included presentations on tourism issues and motivational speakers. The gathering also is a networking event for dozens of rural tourism professionals from across the state.

Mathur, a frequent presenter on diversity issues, said developing a diversity program makes sense for a company's bottom line because minority guests are likely to have a more enjoyable experience when they are hosted by a staff that is reflective of their own culture.

She explained that various minority groups have specific travel characteristics that make them desirable customers.

For example, she said blacks generally attend more conventions than any other ethnic group, Hispanics are the largest minority group and have an increasing level of income, Asians are the freest-spending minorities and gay travelers are the most loyal to a brand. She also noted that Las Vegas is the

No. 1 leisure destination for both Hispanic and Asian travelers. Mathur said the Las Vegas Convention and Visitors Authority has conducted research on the spending habits of minority guests and found that Asians on average spend $319.37 per trip after transportation and lodging, blacks spend $315.06 and Hispanics spend $299.34. Caucasians, she said, spend just $249.33.

To attract minority guests, MGM Mirage has embarked on a plan to have a workforce "that is more reflective of the America in which we do business."

In 2003 the company had minority representation in its labor pool of 52.5 percent, up from 51.7 percent a year ago, and the number of minority management was at 29.6 percent in 2003, up from 28 percent from the previous year.

Mathur said MGM Mirage's advertising program is becoming more sophisticated. She said while it once was a goal to present ads a variety of minority faces grouped together, the company is now more interested in presenting a more realistic setting.

"The reality is that people are going to socialize with other people they are comfortable with," Mathur said. "It's not like you have this rainbow of people together as a group. The realistic scenario is that you may have several groups of various colors together."

To provide a comfortable environment for many groups is the goal, she said.

"Is that diversity?" she asked. "No, that's just good business."