As Long Island hotels brace for losses of more than $ 224 million, U.S. Representative Suozzi’s co-sponsors plan to provide targeted relief to struggling hotel workers.
Long Island hotels are expected to lose $ 224 million in business travel revenue in 2021, down 62.1% from 2019 levels, according to a recent report by the American Hotel & Lodging Association (AHLA) and Kalibri Labs. New York City hotels stand to lose more than $ 5.07 billion, while hotels across the country are expected to end 2021 down more than $ 59 billion in business travel revenue from 2019, after losing nearly $ 49 billion in 2020.
The new analysis follows a recent AHLA investigation, which found that most business travelers cancel, cut back and postpone their trips amid lingering concerns over COVID-19.
To extend a lifeline to hotel workers and provide the help needed to survive until travel returns to pre-pandemic levels, U.S. Representative Tom Suozzi (NY-03) co-sponsored Sava Hotel Jobs Act, a law currently before Congress that would direct 100% of its funding to keep hotel employees on payroll.
Business travel, which includes companies, groups, government, and other commercial categories, is the hospitality industry’s main source of revenue and is not expected to reach pre-pandemic levels until 2024. The Lack of business travel and events has major repercussions on employment, and underscores the need for targeted federal relief, such as the Save Hotel Jobs Act.
Hotels are expected to end 2021 down nearly 500,000 jobs from 2019, including more than 44,000 jobs lost in New York. For every 10 people directly employed in a hotel property, hotels support an additional 26 jobs in the community, from restaurants and retail to hotel supply companies, meaning nearly 1.3 million more jobs supported by hotels are also under threat across the country, unless Congress acts.
AHLA President and CEO Chip Rogers praised Representative Suozzi for co-sponsoring this essential legislation to support hotel workers.
“We would like to thank Representative Suozzi for supporting our workforce during one of the most difficult years on record,” said Rogers. “While many other hard-hit industries have received targeted federal relief, the hospitality industry has not. We need Congress to pass the bipartisan Save Hotel Jobs Act so hotels can retain and rehire their employees until travel demand, especially business travel, returns to pre-pandemic levels. . “
Despite being among the hardest hit, hotels are the only segment of the hospitality and leisure industry still receiving direct assistance. That’s why AHLA and UNITE HERE, the largest union of hotel workers in North America, joined forces to call on Congress to pass the bipartisan Save Hotel Jobs Act introduced by Senator Brian Schatz (D -Hawaii) and representative Charlie Crist (D- Florida.). The Save Hotel Jobs law would provide essential support to hotels and their workers during this crucial time. Key provisions include:
Support hotel workers: Direct wage subsidies will be used for wage expenses and worker benefits. The legislation would also require beneficiaries to grant redundant workers recall rights to ensure those who lost their jobs at the hotel due to the pandemic can return to work.
Allow tax credits tailored to workers: offers a personal protective equipment tax credit to promote worker safety measures, which would allow a payroll tax credit for 50% of associated costs the purchase of personal protective equipment, technology designed to reduce the impact of the pandemic, increased testing for employees and improved cleaning protocols that do not negatively impact the level of work of the housekeeping staff.