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Urban hotels ended January down 66 percent in room revenue compared to last year.
By Forum Staff
The American Hotel & Lodging Association and UNITE HERE, the largest hospitality workers union in North America, recently joined forces to call on Congress to pass the Save Hotel Jobs Act.
The bill, according to AHLA, provides the assistance hotel workers need to survive until travel returns to pre-pandemic levels.
Key provisions of the Save Hotel Jobs Act include:
Supporting Hotel Workers: Direct payroll grants will be utilized for payroll and benefits expenses for workers. The legislation would also require grantees to give laid-off workers recall rights to ensure those who lost their hotel jobs due to the pandemic are able to get back to work.
Allowing Worker-Friendly Tax Credits: Provides a Personal Protective Equipment Tax Credit to promote worker safety measures, which would allow for a payroll tax credit for 50 percent of costs associated with the purchase of personal protective equipment, technology designed to reduce the impact of the pandemic, increased testing for employees, and enhanced cleaning protocols that do not negatively impact the level of work for housekeeping staff.
According to AHLA, the pandemic has been devastating to the hospitality industry workforce. Leisure and hospitality has lost 3.1 million jobs during the pandemic that have yet to return, representing more than a third of all unemployed persons in the United States, according to the Bureau of Labor Statistics. Even more stark, the unemployment rate in the accommodation sector specifically remains 330-percent higher than the rest of the economy.
The crisis has been especially devastating in urban areas. Urban hotels, which are more reliant on business and group travel and more likely to host larger events, ended January down 66 percent in room revenue compared to last year. That does not include the lost revenue from groups, meetings and food and beverage, which contribute significantly to business in these markets. According to recent reports, New York City has seen one-third of its hotel rooms—more than 42,000—wiped out by the COVID-19 pandemic, with nearly 200 hotels closing permanently in the city.
“Every day, hotels are closing for good, and hardworking, loyal employees are sadly being let go,” said Chip Rogers, president and CEO of AHLA. “No industry has been more affected by the pandemic than hospitality. Government-issued travel bans and restrictions, which are meant to slow the spread of the virus, have wiped out 10 years of job growth in our industry. Now, millions of jobs and thousands of businesses are at risk—not just hotels, but the many businesses and workers hotels also support in the community. Congress must step up now to support the hotel industry workforce with targeted relief.”
- Taylor, president of UNITE HERE, added, “Hospitality workers have been devastated by the pandemic, with 98 percent of our members laid off at the peak of the shutdowns and more than 70 percent still out of work today. The Save Hotel Jobs Act will provide important assistance in bringing back good hospitality jobs and making sure that workers who were laid off during the pandemic are recalled back to work.”
