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Arizona鈥檚 Travel and Tourism Industry Is Running Out of Time: We Need Relief Today

As the last days of the year on the congressional calendar tick away, Arizona鈥檚 travel and tourism industry is in desperate need of relief. 

Since the onset of the COVID-19 pandemic鈥攚hich effectively grounded global travel and crippled Arizona鈥檚 local tourism economy鈥攖he U.S. has lost direct travel jobs and due to decreased travel spending. In Arizona alone, we have lost nearly 40% of hotel jobs and have lost $10 billion in visitor spending in the first six months of 2020 alone. 

The situation for this once-healthy economic segment grows more dire every day. By the end of December, that 50% of all travel-supported jobs will be lost鈥攁n additional loss of 948,000 jobs and a total loss of 4.5 million direct travel jobs. Further, more than half (55%) of all small travel businesses in the U.S. are at risk of either taking longer than six months to recover or never recovering鈥攁ll but ensuring a nationwide economic recovery will be impossible without relief for the travel and tourism industry. Arizona鈥檚 travel and tourism industry simply cannot wait any longer. 

To ensure these businesses can remain open and keep workers on the payroll, Congress must act immediately. While there鈥檚 great need for a larger, comprehensive relief package to support all segments of the U.S. travel and tourism industry, we are asking鈥攁t the very least鈥攆or a targeted relief package now to provide immediate support. Such a relief package should include provisions to extend and expand the Paycheck Protection Program (PPP) to include 501(c)(6) and quasi-governmental destination marketing organizations and allow for a second draw on PPP funds, and to extend the Coronavirus Relief Fund through the end of 2021. 

Travel and tourism is the backbone of our community, supporting more than 360,000 jobs and contributing $3.78 billion in tax revenue pre-pandemic. Tax revenue from tourism spending is essential to funding vital public services in our community such as firefighters, police officers and public-school teachers. Funding for these essential services and others will be jeopardized if small travel industry businesses do not get the support they need and are forced to shut their doors. 

Arizona鈥檚 travel and tourism industry is what gives our state its unique character. The small businesses, attractions, restaurants and shops in Arizona contribute so much to the cultural fabric of our community. From the majestic sights of the Grand Canyon to Tombstone鈥檚 iconic OK Corral, Arizona is a top destination for travelers. 

Kim Sabow

There is not a moment to lose. Congress must come together鈥攊mmediately鈥攖o provide relief to small travel businesses to ensure the industry is prepared to help power a nationwide economic recovery. Arizona鈥檚 travel industry businesses and workers are counting on it.  

Kim Sabow is president and CEO of the Arizona Lodging and Tourism Association.

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