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.

Add new comment

Partner Voices
  MGM Resorts is renowned for its exceptional service and diverse venue options across Las Vegas, Detroit, Springfield, National Harbor, Biloxi, and Atlantic City, providing flexible spaces for meetings of any size. Beyond these offerings, MGM Resorts distinguishes itself through a strong commitment to social responsibility and sustainability, making it an ideal choice for your next meeting.  At the core of MGM Resorts' company values is its platform, "Focused on What Matters," dedicated to meeting customer needs while advancing socially responsible practices. This commitment is evident in several key areas:  Protecting Natural Resources  MGM Resorts is home to industry-leading recycling, renewable electricity and water conservation programs. Some highlights include a cogeneration power plant at ARIA, producing ultra-efficient electricity; one of America’s largest contiguous rooftop solar arrays atop the convention center at Mandalay Bay; and onsite wells that provide water for the celebrated Fountains of Bellagio, avoiding reliance on precious Colorado River water. These efforts and many more save on natural resources while boosting attendee satisfaction.  Committed to Community  Always striving to be good neighbors, MGM Resorts works to avoid food waste and combat food insecurity with the Feeding Forward program. In partnership with local food banks, they safely divert unserved food to food insecure members of the community. Since 2016, over 5 million meals have been provided, highlighting MGM Resorts' commitment to minimizing food waste and addressing community needs.  MGM Resorts supports clients in their responsible-meetings efforts, not only with efficient venues but also waste-reducing décor and signage; sustainable food and beverage options; and outreach to help planners communicate sustainability efforts to attendees. What’s more, they offer a Mindful Meetings series that puts attendee wellness first—through fitness and mindfulness activities, and in give-back events with local charity organizations.   Fostering Diversity & Inclusion  To MGM Resorts, a diverse and talented workforce is essential to success. By cultivating innovative strategies that consider multiple perspectives and viewpoints, the company creates an inclusive workplace culture that benefits its employees and community. MGM Resorts takes pride in being a welcoming home for veterans, individuals with disabilities, people from diverse backgrounds, LGBTQ+ community members, and more. This commitment to inclusion is reflected in the company's recruitment and hiring practices and its social responsibility initiatives. From the workplace to the community, MGM Resorts' commitment to diversity, equity and inclusion remains unwavering, and its efforts continue to create a more equitable and sustainable world for all.  MGM Resorts offers unparalleled service and venue options while standing out for its proactive approach to sustainability and community engagement. Choosing MGM Resorts for your next meeting means aligning with a company that values social responsibility, efficiency, and attendee satisfaction, ensuring a meaningful and impactful event experience.