U.S. Travel Pushes for Relief for Destination Marketing Organizations
April 21, 2020
One-third of all jobs lost in the U.S. due to COVID-19 were lost in the travel industry, and the country is experiencing a total impact nine times greater than the 9/11 attacks, according to a new report by the U.S. Travel Association and analytics firm Tourism Economics.
Declines in travel are projected to cause 8 million jobs to be lost (out of 24 million for the entire U.S. economy) by the end of this month, according to the report. Travel spending losses are also on track to top half a trillion dollars by the end of 2020.
While the news is devastating from all angles, industry organizations are working hard to bring relief. For example, U.S. Travel is urging Congress to take the following actions:
Appropriate an additional $600 billion for the Payment Protection Program and extend the coverage period through December 2020.
The PPP is currently slated to expire on June 30. The economy will not realistically be in recovery by then, according to U.S. Travel officials, and the initial round of funding is expected to run out in just a few weeks.
Revise the PPP maximum loan calculation to 8x a business' monthly outlays, and allow it to cover both payroll and non-payroll expenses.
Currently the formula is 2.5x and covers payroll only, not other expenses — inadequate for immediate needs.
Expand eligibility for the PPP.
They are seeing to expand eligibility to DMOs that are classified as 501(c)(6) non-profits or "political subdivisions" of their local governments, as well as to small businesses that operate multiple locations (with fewer than 500 employees per location).
Destination marketing organizations are a key focus for U.S. Travel. Last week, more than 80 U.S. House members from both sides of the political aisle signed onto a letter urging congressional leaders to provide relief for DMOs whose funding has been crippled by the coronavirus crisis.
This effort is greatly needed, as many DMOs were unintentionally left ineligible for coronavirus relief funding under the PPP because of their non-profit or quasi-governmental status. Industry officials agree these organizations will be critical in driving convention, meeting and visitor traffic back into their respective destinations once the worst of the health crisis is behind us.
“Travel simply will not be adequately prepared to help lead the recovery without the work of destination marketers, which are critical engines of economic development in their states, cities and regions,” said U.S. Travel Association President and CEO Roger Dow.
Read more about U.S. Travel’s efforts to enhance PPP here.
Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.
Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.
Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.
The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.
MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.
MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.
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