According to the latest Tourism Economics report from the U.S. Travel Association, 40% of the country’s excess unemployment is in the leisure and hospitality sector, which had accounted for only 11% of total employment in the U.S. before the coronavirus pandemic.
Many hoped the spring and summer travel seasons would bring about a resurgence in tourism after nearly half of the 16.9 million jobs in leisure and hospitality were eliminated in March and April. However, more than 25% of luxury and hospitality workers still remain unemployed.
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This latest report comes while many Americans are seeking federal relief due to the pandemic, and as the Trump Administration and top Democrats in Congress have found themselves in a stand-off. Disagreements over the overall cost of the next package, the amount of assistance given to state and local governments, and how much to offer in unemployment benefits are all factors that have halted negotiations, according to the American Society of Travel Advisors (ASTA).
The delays have caused frustration to members of the hard-hit travel industry, which will not be able to recover before a package is finalized, according to U.S. Travel.
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“If the primary point of aid from Washington, D.C., is to help U.S. employers and working Americans, then by every objective measure the American travel and tourism industry ought to be right at the top of the priority list,” said Roger Dow, president and CEO of the U.S. Travel Association. “Substantial portions of the travel sector missed out on earlier rounds of relief, and if the next deal doesn’t get done, the acute pain being felt by travel workers is going to extend through and well after the election.”
If the primary point of aid from Washington, D.C., is to help U.S. employers and working Americans, then by every objective measure the American travel and tourism industry ought to be right at the top of the priority list.
President Trump’s recent executive orders, which were signed last weekend, will aim to restore some unemployment benefits with resources from FEMA’s Disaster Relief Fund. An added $400 per week in benefits (previously $600 under the CARES Act) will be provided, with states required to contribute 25% of the funding if they participate in the program. The orders also aim to defer payroll taxes and student loan payments, and to put protections in place for renters.
But travel industry groups such as U.S. Travel and ASTA have laid out additional specific priorities for the next bill, including expanding and enhancing the Paycheck Protection Program; creating temporary tax credits and deductions; providing up to $10 billion in federal grants to organizations such as destination management organizations to promote safe travel practices; and more.
“It is critical that we keep the pressure on Congress,” according to a statement from ASTA. “They need to be hearing from constituents not only about the content of the final bill, but also about the need to come to an overall agreement as quickly as possible. Leaving travel agencies and advisors, among many others, without additional relief during these challenging times is simply unacceptable.”
The Details
American Society of Travel Advisors
www.asta.org
U.S. Travel Association
www.ustravel.org
