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Roger Dow: Aggressive Federal Intervention Needed for Travel Industry

Roger Dow asks Aggressive Federal Intervention
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As the virus continues to wreak havoc on society, the situation in the U.S. travel industry is only getting worse.

Spikes in COVID-19 infections and subsequent re-closures in several U.S. states are certain to further delay a rebound in travel, which supported employment for one in 10 Americans before the pandemic but has since lost more than half of its 15.8 million related jobs.

The industry is now on track to shrink by $1.2 trillion by the end of the year. It is clear there can be no economic recovery without a recovery in the travel industry. 

Following the new round of coronavirus-related economic closures and fresh data that Americans are as wary as ever of traveling, the devastated U.S. travel industry on Friday submitted to Congress and the administration its policy requests for the next coronavirus relief package.

The slate of proposals includes measures to help travel employers survive the worst of the downturn; assistance with health-related necessities such as robust sanitation and personal protective equipment; and, eventually, incentives to get Americans safely traveling again when a reopening is fully possible.

According to the weekly survey by Destinations Analysts, the percentage of poll respondents who say they will travel this fall has slid to 36%, down from 50% in early June.

U.S. Travel Association President and CEO Roger Dow said, “Travel businesses could not possibly have prepared for this level of catastrophe, and there’s no telling how many of the eight million jobs we’ve lost so far will remain gone for good without aggressive federal intervention to keep the industry on life support.

“Travel companies have worked hard to retain their workers, but most have had zero revenue coming in for four months now, and if they’re forced to close they won’t be around to rehire anybody even when travel is able to resume.

“Our asks of Congress are big because the problem is massive, and is only growing right before our eyes.”

Travel industry legislative requests include:

  • Extend the Payroll Protection Program (PPP) until the end of the year; expand eligibility to destination marketing organizations (DMOs)—both non-profit and quasi-governmental entities that conduct economic development; increase the amount of the loan; and allow for a second loan. In any transition to a longer-term solution, DMOs and other non-profits should be included.
  • Provide up to $10 billion in federal grants to promote safe and healthy travel practices, which are crucial to the resumption of travel.
  • Provide temporary and targeted liability protections for travel businesses to reopen.
  • Create temporary tax credits and deductions, including: a tax credit to encourage Americans to travel at the right time; a tax credit to restore activity in the business meetings and events sector, including conventions and trade shows; increase the deductibility of business and entertainment expenses; and a tax credit to help businesses of all sizes offset the cost of mitigating the spread of COVID-19, including the cost of structural barriers and personal protective equipment.
  • Enhance the Employee Retention Tax Credit to increase business’ ability to retain and rehire workers.
  • Support airports.

Dow emphasized that government action alone will not move the nation closer to recovery.

“In order for jobs to be able to return, everyone needs to be wearing masks in public,” Dow said. “It is so very clear that masks and other good health practices are absolutely critical to dissipating the health crisis and making an economic rebound possible. The country’s collective record on this needs to improve, or the pain will only go on longer.”

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