CEO DATELINE - Hotel association predicts industry will lose half-million jobs this year without direct federal aid
CEO DATELINE - Hotel association predicts industry will lose half-million jobs this year without direct federal aid
- May 4, 2021 |
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Kathryn Walson
Without action by Congress, hotels are expected to end the year down 500,000 jobs, according to a statement released Monday by the American Hotel & Lodging Association. The group said an additional 1.3 million hotel-supported jobs are also in jeopardy.
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Hotels are the only major hospital and leisure segment yet to receive direct federal aid, the statement said. Airlines have received $40 billion in targeted federal funds; live events, $16 billion; and restaurants, $28.6 billion, according to AHLA.
The association joined forces with UNITE HERE, the largest hospitality workers union in North America, to advocate for the Save Hotel Jobs Act. The bill was introduced April 28 by Sen. Brian Schatz (D-Hawaii) and Rep. Charlie Crist (D-Fla.). The legislation would provide new grants and tax credits to hotels, including up to three months of full payroll.
"The Save Hotel Jobs Act will provide critical support to hotels and their workers during this crucial period," Chip Rogers, CEO of AHLA, said in a statement. "We need Congress to pass the Save Hotel Jobs Act to help hotels retain and rehire employees until travel demand, especially business travel, begins to come back."
The leisure and hospitality industries have lost more than 3.1 million jobs during the pandemic and represent a third of all unemployed persons, according to Bureau of Labor Statistics data cited by the association.
Business travel—the hotel industry's largest source of revenue—is not expected to resume until the second half of this year. And business travel's return will be gradual: Full recovery is not expected until 2024, according to AHLA.
The hotel crisis has been especially devastating in urban areas and has hurt minority communities, AHLA said. New York City has seen one-third of its hotel rooms—more than 42,000—shuttered during the pandemic; 200 hotels in the city have permanently closed.
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