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The U.S. Travel Association called a nearly $1 trillion, pandemic-era economic relief bill “desperately needed,” but it said the travel industry will need more.
“Washington is delivering a huge holiday gift to U.S. businesses and workers after an incredibly challenging year,” CEO Roger Dow said in a statement. “It’s been a difficult road to get another round of much-needed legislative relief moving in Washington. The agreed-upon provisions will give many suffering businesses a bridge to 2021.
“More will be needed to restore the 4.5 million travel jobs lost in the travel and tourism industry, but the process that produced this agreement is hopefully a positive sign for what will be possible to achieve in the next Congress,” Dow said. “We urge swift action on this important legislation.”
The agreement, announced by congressional leaders Sunday, would establish a temporary $300 per week supplemental jobless benefit and a $600 direct stimulus payment to most Americans, according to the Associated Press.
Another round of Paycheck Protection Program (PPP) funds expands eligibility to non-profit organizations, including destinations management organizations that promote travel and tourism and were left out of the first round.
“We welcome the fact that Congress has finally done its job and provided new relief to distressed sectors of the economy, including a number of provisions ASTA and its members have been advocating for since April like the ability for hard-hit companies to apply for an additional PPP loan,” ASTA CEO Zane Kerby said in a statement.
But Kerby reiterated that “more support for our members beyond this bill will absolutely be needed.”
For the hospitality sector, one of the bill’s biggest highlights is the PPP loans, which Chip Rogers, president and CEO of the American Hotel & Lodging Association, said would “help thousands of hotels stay open and retain employees.
The federal government kicked off its initial round of PPP loans in early April, but the program, intended to incentivize small businesses to keep workers on payroll, was unable to keep pace with demand and was viewed by some critics as ineffective.
The PPP’s next round will feature enhanced terms, with loans increasing in size from 2.5 times payroll to 3.5 times payroll. PPP loan expenses will also be tax-deductible.
Hotels are similarly poised to benefit from a one-year extension of Troubled Debt Restructuring relief, which enables banks to continue working with borrowers to gain additional forbearance and debt relief, as well as an expanded employee retention tax credit.
The bill includes $16 billion for airline employees and contractors, $2 billion for airports and $1 billion for Amtrak.
Airports Council International-North America CEO Kevin Burke said the funding “will provide much-needed temporary relief to airports already forced to make tough financial decisions in order to maintain their critical operations during a global pandemic that dramatically depressed passenger traffic and revenue.
“We look forward to our ongoing collaboration with Congress and the incoming Biden administration to restore an industry that supports 2.7 million jobs and is vital to the country’s transportation network and economic health.”
Source: travelweekly.com
