Covid-19 downturn costing USD17 billion in lodging taxes
The near collapse of the hotel industry over the past few months is badly affecting state and local coffers.
The sharp decline in travel has led to an estimated $17 billion less lodging tax revenues.
That’s the conclusion from a study by Oxford Economics on behalf of the American Hotel & Lodging Association.
Hardest hit are tourism and business travel hotspots California, Florida, New York and Nevada.
"These taxes are a significant source of revenue for schools, public safety departments and other services," said Chip Rogers, chief executive officer of the American Hotel & Lodging Association, which commissioned the research.
"Local government have used hotels as a significant source of revenue and that’s a challenge if hotels aren’t operating fully."
The $17 billion shortfall doesn’t include the extra spending by hotel guests within communities such as shopping and dining, which also generate tax revenues.
The study estimates a financial hole for California’s local authorities at a combined $1.9 billion and $1.3 billion in New York and Florida.
Hotels positively impact every community across the country, creating jobs, investing in communities, and supporting billions of dollars in tax revenue," Rodgers added.
Rodgers says the effect of Covid-19 on hotels has been nine time worse than 9/11.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Strike action set to cause travel chaos at Brussels airports
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent