States and cities will see a $16.8 billion drop in tax revenue from the hotel industry this year, the American Hotel & Lodging Association projected.
The tax losses stem from the severe revenue drop hotels have experienced as occupancy rates are lower than what the industry experienced after 9/11, according to Chip Rogers, the association’s CEO and president.
“The impact to the travel sector [is] nine times worse than 9/11 … we expect it will be years before demand returns to peak 2019 levels,” he said when announcing the report.
In an effort to raise occupancy rates, some hotels are promoting “staycations” to locals.
With coronavirus lockdowns easing, people want to leave their homes for a vacation but are apprehensive about travel to distant locations that require mass transit. Hotels are hoping to seize this opportunity by inviting people within driving distance to rent a room.
Travel organizations such as Five Star Alliance promote staycations in the D.C. area for “when you need a vacation spent close to home.”
Regency Hotel Management, which provided guidance to vacation properties, promotes staycations by referring to them as “backyard getaways.”
Westgate Resorts provides “Staycation Deals for 2020” to up their occupancy rates.
Much like the hotel sector, the entire travel industry is suffering from the havoc wreaked by the pandemic. Total travel spending is projected to drop 45% this year, according to the U.S. Travel Association.
