Congress Takes Up Bill Designed to Bring Back Travel and Events

February 26, 2021
Congress Takes Up Bill Designed to Bring Back Travel and Events

A bipartisan bill to provide a much-needed jolt to the travel and hospitality industries reached the U.S. Senate floor Thursday. Dubbed the Hospitality and Commerce Job Recovery Act, the legislation proposes tax incentives to reimplement meetings and events programs and other related services that would bring back millions of jobs lost during the pandemic.

Highlights include:

  • A temporary business tax credit to revitalize business meetings, conferences and other structured events.
  • A temporarily restored entertainment business expense deduction to help entertainment venues and performing arts centers recover.
  • An individual tax credit to stimulate non-business travel.
  • Tax relief for restaurants and food and beverage companies to help restore food service jobs and strengthen the entire American food supply chain.

Sens. Catherine Cortez Masto (D-NV) and Kevin Cramer (R-ND), the same senators who issued a recent amendment benefiting the industry, are sponsoring the bill, along with Reps. Steven Horsford (D-NV), Darin LaHood (R-IL), Tom Rice (R-SC) and Jimmy Panetta (D-CA).

 The travel and hospitality industries have disproportionately been ill-affected by COVID-19. Almost four in 10 U.S. jobs lost in 2020 are in the leisure and hospitality sector, according to the U.S. Travel Association. The economy has lost half a trillion dollars in travel-related spending last year—10 times the negative economic impact of 9/11, the association adds.

 “The evidence is abundantly clear: there will not be a U.S. economic recovery without a travel recovery, and travel cannot recover without strong and innovative policy assistance,” said USTA President and CEO Roger Dow in a statement.

 The bill’s progress is the second positive sign among government agencies that help is on the way. The Centers for Disease Control and Prevention this week moved hotel workers up to stage 1c of vaccine distribution. “ 

“Travel and tourism are critical drivers of the American economy, and while travel demand has hit record lows, ensuring hotel employees are prioritized during the vaccine rollout will help keep both employees and guests safe when it becomes safe to travel and resume meetings and events once again,” noted Chip Rogers, president and CEO of the American Hotel & Lodging Association.

Both pieces of news add to the momentum the events industry seems to be attaining. As vaccine distribution advances, several shows have occured in-person and anecdotal evidence suggests booking is rising.

Almost immediately upon the Hospitality and Commerce Job Recovery Act’s introduction, USTA issued a letter signed by more than 80 events-related organizations — including CVBs, hotel chains, vendors and industry associations — backing its passage.

“As the broader travel and hospitality industry continues to do its part to provide a safe and healthy environment for its workers and guests—we look to Congress to help put in place the policies needed to facilitate a quick and sustainable economic recovery, ensuring a better and brighter future for all travel workers,” the letter reads.

A similar bill failed last fall, but a new administration and several additional months of a stagnant economy may tip the scales this time around.

“For months we have been urging Congress to provide stimulus for travel demand in addition to the relief this industry so badly needs, and we thank the sponsors for advancing this bill that would do so much to spur recovery,” Dow said.

 

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Overview: The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality. In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way. “We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.” Amenities: The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.  The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need. Gold Key Members The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events. OCCC Events: This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.  The Center’s top five events during their 2022-2023 fiscal year included:  AAU Jr. National Volleyball Championships 2023 200,000 Attendees $257 Million in Economic Impact MEGACON 2023 160,000 Attendees $205 Million in Economic Impact Open Championship Series 2023 69,500 Attendees $89 Million in Economic Impact Sunshine Classic 2023 42,000 Attendees $54 Million in Economic Impact Premiere Orlando 2023 42,000 Attendees $108 Million in Economic Impact