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Mindy PoderEditor-in-Chief

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The End of Coronavirus Relief Talks Bodes Poorly for Travel Industry

Oct 06, 2020
nostimulustravelindustry
Half of all travel-supported jobs will be lost by December without government relief.
Credit: 2020 Kawee/stock.adobe.com

Today, President Donald Trump instructed his representatives to stop coronavirus relief negotiations until after the U.S. presidential election.

Roger Dow, president and CEO of U.S. Travel, called the decision “woefully shortsighted.”

"Hardworking Americans whose livelihoods depend on travel and tourism cannot wait until after the election for relief,” Dow said in a press release. “The reality is that small businesses in every pocket of America are shuttering — they needed relief months ago, which has been made clear week after week. On behalf of America’s travel workers, we are disheartened in the extreme that Congress and the administration failed to reach agreement on the relief this industry so desperately needed, despite clear evidence of mounting harm.”

Against this backdrop of human suffering, extraordinary job loss and millions of small businesses closing, the administration deciding to abandon relief negations is reprehensible.

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The American Society of Travel Advisors (ASTA) said that “our own government is shirking responsibility and playing an active role bringing the travel industry to its knees."

"Against this backdrop of human suffering, extraordinary job loss and millions of small businesses closing, the administration deciding to abandon relief negations is reprehensible," ASTA said in a response to TravelAge West. “All businesses in the country have been impacted by COVID-19 in one way or another, but few sectors have been as hard hit, or face a longer road to recovery, than the travel agency industry."

According to U.S. Travel, new data from Tourism Economics shows that, without immediate aid, 50% of all travel-supported jobs will be lost by December — an additional loss of 1.3 million jobs. ASTA research shows that nine out of 10 travel advisors are suffering an income loss of at least 75%, even when accounting for CARES Act relief.

"All told, 73% of ASTA members predict they will be out of business in six months or less if current conditions hold and additional federal relief is not provided," ASTA said. "Travel advisors cannot wait for additional federal aid to come in December 2020 or March 2021. We can no longer avoid the conversation surrounding the fact that our own government is not helping where it can and should." 

Prior to the pandemic, travel supported 11% of all jobs.

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American Society of Travel Advisors
www.asta.org

U.S. Travel Association
www.ustravel.org

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