CEO DATELINE - Association: Travel industry to lose 1 in 3 jobs
CEO DATELINE - Association: Travel industry to lose 1 in 3 jobs
- April 21, 2020 |
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Walt Williams
One in three U.S. travel industry jobs will be lost by the end of April as a result of the COVID-19 pandemic, with total industry losses likely to exceed $500 billion by the end of the year, the U.S. Travel Association said Monday.
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A new report commissioned by U.S. Travel found the travel industry is experiencing a total impact from the pandemic that is nine times greater than the impact of the Sept. 11 terrorist attacks in 2001. Some 8eight million industry jobs will be lost by the end of April, out of 24 million total jobs, according to the analysis. Travel spending losses are on track to top half a half-trillion dollars by the end of 2020.
As a result, U.S. Travel is pushing for more federal assistance to help its industry survive the pandemic, including the replenishment of the Paycheck Protection Program, which quickly ran out of money due to high demand.
"The CARES Act was a good start, but the data shows there is still extreme and mounting pain in the American travel industry," U.S. Travel CEO Roger Dow said in a statement. "We're appealing for fixes, the addition of more relief, faster rules and greater flexibility."
U.S. Travel is not the only association sounding alarm bells about the future of the travel industry. The Global Business Travel Association has been conducting regular surveys of business travel professionals that have grown bleaker as the pandemic grows.
In the most recent GBTA survey, released April 8, roughly 69% of respondents said their companies have laid off or reduced staff. At the same time, one in three respondents said their companies had implemented pay cuts and furloughed employees. Nearly 1,000 professionals took party in the survey.
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