U.S. taxpayers are outraged by the actions of large banks and corporations in the wake of the federal bailout. This outrage has led to a wave of legislation demanding greater accountability and assorted limits on everything from executive pay to operation expenses. This is as it should be.

However, this new era of transparency and accountability could come at great cost to Hawai'i's economy, more so than in any other part of the country. It is important for us as Hawai'i residents to temper our indignation and understand the likely, and currently unfolding, ramifications before taking a stand on these tough issues.

Public anger was stoked by revelation after revelation of continued corporate excess. A CEO of Merrill Lynch, in the midst of a company failure, spent $1.2 million to redecorate his office just before they merged with Bank of America.

Citigroup had plans to buy a $50 million luxury jet after they had already received $45 billion dollars in Troubled Assets Relief Program (TARP) money. Executives of the big three automakers flew to a Congressional hearing in separate private jets to ask for bailout money. Top executives for AIG spent a week at a St. Regis resort and spa in California less than a week after receiving their $85 billion bailout. Northern Trust sent hundreds of its employees and clients to the Northern Trust Open golf tournament after receiving $1.5 billion in TARP money. Merrill Lynch and Bank of America are under investigation for handing out a combined estimated $10 billion dollars worth of bonuses just before taking $45 billion worth of TARP money.

The outrage has not gone unheard. The U.S. Treasury Department's "Fact Sheet" for the Financial Stability Plan acknowledges the "major and legitimate source of public frustration and even anger"over whether "assistance was being provided solely for the public interest and a strong economy, rather than the private gain of shareholders, bondholder or executives."

The accountability, however, will reportedly go beyond the monitoring of executive compensation. On Jan. 6 Sen. Diane Feinstein, along with Senators Snowe, Lieberman, Boxer, and Nelson, presented S. 133. This accountability legislation includes guidelines for TARP recipients restricting amongst other things, the "hosting, sponsorship or payments of conferences and events" the "use of corporate aircraft, travel accommodations and travel expenditures" and "expenses related to entertainment, holiday parties, employee recognition events, or similar ancillary corporate expenses."

Congressional hearings into the excesses of corporate greed are filled with hot-button words like "luxury" and "resort" and "spa" and "pampered."

These are all keywords that define the hospitality industry in Hawai'i, words that we have hung our hat on, words on which we have based the bulk of our economy. We are islands in the tropics, a minimum 5 hour flight from the Mainland. That corporate travel here would be seen as excessive is inescapable.

Legally, the restrictions are limited to TARP recipients, but reports are already coming in of corporations, even those that do not plan on receiving economic assistance, canceling conferences and legitimate incentive programs for fear of coming under scrutiny.

If this trend towards austerity continues, the jobs we have already lost due to the economic downturn — bellmen, housekeepers, chefs, concierges, front desk agents, reservationists, waiters, valets, hula dancers, massage therapists, retail clerks, groundskeepers, bartenders, security guards — will continue to multiply exponentially even if the economic stimulus package works. If this trend continues, business-based tourism will come to a halt, with no relief in sight, and Hawai'i will be brought to its knees.

Leaders from organizations representing the travel industry have already developed guidelines on acceptable business travel practices governing meetings, events and incentive/recognition travel in an effort to forestall controversy and comply with expectations of corporate accountability, but these do little to stop the current trend. A semblance of reason must be injected into the debate. Meetings, conferences and incentive outings are a legitimate means of educating, invigorating and motivating the people who drive the economy.

Cities like Honolulu, Las Vegas, Denver and Miami Beach must speak up in defense of the hospitality industry. Hawai'i must speak up in defense of Hawai'i.

We must let the lawmakers know that we applaud their efforts to save the economy, but that saving jobs means saving jobs in hospitality as well as in any other industry. After all, we are taxpayers too.

Ronald D. Rodriguez is a Honolulu resident and works in the hotel industry. He wrote this commentary for The Advertiser.