CEO DATELINE - Travel groups forecast massive unemployment without government intervention
CEO DATELINE - Travel groups forecast massive unemployment without government intervention
- March 18, 2020 |
- Walt Williams
The decreased travel caused by the coronavirus pandemic could eliminate 4.6 million travel-related jobs this year unless the government takes steps to help businesses survive, the U.S. Travel Association said Tuesday.
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U.S. Travel is only one of several associations warning of dire consequences for the industries they represent unless the current economic crisis is mitigated through government intervention. Still, the travel industry is seeing immediate impacts as a result of the restrictions placed on travel and large gatherings.
"This situation is completely without precedent," U.S. Travel Association CEO Roger Dow said in a statement. "For the sake of the economy's long-term health, employers and employees need relief now from this disaster that was created by circumstances completely out of their control."
Travel-related businesses employ 15.8 million Americans, with 83% of travel employers being small businesses. The analysis—conducted for U.S. Travel by Oxford Economics—projects losses across all sectors of the travel industries, including transportation, lodging, retail and restraurants.
Total spending on travel in the U.S, is projected to plunge by $355 billion for the year, or 31%, according to analysis. U.S. Travel noted that is more than six times the impact of the Sept. 11 terrorist attacks.
Other travel-related associations are forecasting similar losses:
- The American Hotel & Lodging Association said U.S. hotels have already lost $1.5 billion in revenue for the year. As a result, 1 million direct jobs in the hotel industry—or nearly 3.9 million total jobs when factoring in related industry sectors, like restaurants—have either been eliminated or will be eliminated in the next few weeks.
- The American Bus Association estimates the motorcoach industry will lose $8 billion in the next five months. If the current situation lasts into August, then "it is very unlikely the businesses or transportation network will be able to return to pre- COVID-19 levels of operation over the next year."
- The American Gaming Association said 60 percent of all casino employees have been hit by casinos that have been shuttered due to the coronavirus.
U.S. airlines through their trade group, Airlines for America, haves asked for $60 billion in assistance to help them survive the plunge in passengers. U.S. Travel is asking for $150 billion in overall relief for the travel sector, including the establishment of a Travel Workforce Stabilization Fund and Emergency Liquidity Facility for travel businesses.
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