The hotel industry suffered some of the most blistering financial setbacks during the pandemic and is facing a longer recovery than most other sectors. But when it comes to the latest federal relief package, they’re feeling left out, industry leaders said last week at a forum hosted by the (AZTLA). 

While restaurants and the airlines received designated relief in the legislation, the hotel industry barely received a mention. The oversight is likely due to misconceptions about the industry, they said. 

“Because there are big names on top of these hotels like a Best Western or a Marriott, people think they are global operations that own and operate all these hotels and that they’re public and they really haven’t been hurt by all this. But the reality is that the industry is made up of small business owners very similar to the restaurant industry,” said Chip Rogers, president and CEO of the American Hotel & Lodging Association, who spoke at the forum. 

The event, entitled, Road to Recovery for the Hospitality Industry, is the first in a new series called Tourism Talks in 2021 to update members, elected officials and community members on issues important to the industry. More than 200 people including elected officials tuned in.

Travis Cutler, director of state government affairs for Marriott International and David Kong, president and CEO of Best Western Hotels & Resorts, were also featured speakers. hosted the forum. Kim Sabow, president and CEO of AZTLA, moderated. 

The speakers said state and national lawmakers need to be set straight about the devastation to hotels that employ workers in almost every community in America. 

Kong said that it’s been distressing to see the “tremendous pain and suffering” hotel and franchise owners and their families have experienced over the past year.

“I just wish government officials and Congress, in particular, would realize we are Main Street, not Wall Street,” Kong said.   

Recovery for industry to take three or more years 

While hotel operators are starting to “see the light at the end of the tunnel,” it is projected to take until 2024 or 2025 for the industry to fully recover, Sabow said.  

“Twenty-twenty was the worst year on record for the hotel industry. Covid-19 wiped out 10 years of job growth. It has hurt our communities and decimented our workforce,” she said. “With record low occupancy, the industry surpassed one billion unsold room nights for the first time in history.”

Leisure travel has helped keep the lights on for some, but business travel, which accounts for 60 to 65 percent of all revenues for the industry, is nowhere near recovering. It’s down 85 percent from where it was two years ago, she said. 

Arizona lost $12 billion in direct visitor spending 

In Arizona, where tourism is a key industry, the losses have been “staggering,” Sabow said. 

Tourism was the number one export industry in Arizona before the pandemic. In 2019, 46.8 million people visited Arizona, collectively spending $25.6 billion in the state, according to the Arizona Office of Tourism. 

Over the past year, direct visitor spending dropped $12 billion, Sabow said. During the height of the pandemic, the hospitality sector lost nearly 50 percent of jobs. Hotel revenue losses amounted to $1.3 billion. State and local governments missed out on $300 million in tax revenue. 

Call to national, state elected leaders 

Sabow and the other speakers encouraged attendees to contact their state and national representatives, to remind them that the industry is made up largely of small businesses.  

They are recommending that hotels receive 25 percent of the $350 billion the recent federal stimulus package, the, that is being allocated to U.S. territories, states, and local and tribal governments.

Currently, the rescue plan mentions tourism and travel but it does not mention hotels specifically, said Cutler of Marriott. 

“It’s important we are vocal about the fact that that’s in there and making sure that (elected leaders) know it’s in there,” Cutler said. 

He recommends that hospitality advocacy groups follow the lead of a few other states like Maryland and put together “turnkey relief templates” for states that lay out criteria for grant eligibility and other procedures for the hotel industry. 

“We really need to be proactive in offering relief concepts and ideas that are packaged and ready to go for these state lawmakers and decision makers as they are evaluating what to do with what they’re allocated,” Cutler said.

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“This incredible victory comes after years of bipartisan support and tireless leadership from long-term and recent champions in both the House and Senate, and reminds us that conservation of our shared outdoor spaces is something we can all come together on.“

Jamie Williams, president of The Wilderness Society

President Donald Trump signed long-awaited legislation last week to funnel billions of dollars into America’s national parks to address a massive backlog in repairs, and to make them “greater than they have ever been before.”

“The legislation I’m signing today builds on my administration’s unwavering commitment to conserving and — the grandeur and the splendor of God’s creation,” Trump said in signing the bill Aug. 4. “This is truly God’s creation.” 

Strong bipartisan support finally pushed forward the measure, called the Great American Outdoors Act, which became law Aug. 9. It provides funding to address the $11.6-billion backlog in repairs and maintenance at national parks and monuments, according to the National Park Service. It also provides up to $1.9 billion a year for five years — at little or no cost to taxpayers — for grants to states and tribes to develop outdoor recreation areas, conserve habitat and protect forests. 

Long-awaited investment for Arizona’s national parks 

Arizona is among the most affected by repair backlogs. As of 2018, it had a maintenance backlog totaling $595.1 million, including $313.9 million in needed repairs at Grand Canyon National Park, $91 million at Lake Mead National Recreation Area, and $48 million at Petrified Forest National Park, according to the park service. 

The act is expected to benefit all of Arizona, but particularly rural areas that derive  revenue from visitors to places like the Grand Canyon, the country’s second most popular national park. Last year, 5.97 million people enjoyed the canyon’s 277-mile long view.

Less reliance on taxpayer dollars

The contains two pieces. First, it establishes a fund to direct nearly $10 billion over five years into maintenance projects, repairs, and upgrades to national parks, monuments and historic sites. The fund, the National Parks and Public Land Legacy Restoration Fund, will receive much of its funding from federal revenues generated from the development of oil, gas, coal, or alternative or renewable energy on federal lands and waters. 

Second, the act makes permanent the popular Land and Water Conservation Fund (LWCF). The fund allocates $900 million a year for grants to states and tribes to acquire and develop public parks and recreation areas and protect habitat and forests, without dependence on tax dollars. LWCF draws its money from royalties of companies drilling for oil and gas on the publicly-owned Outer Continental Shelf, according to the U.S. Department of the Interior. 

Funding will be divided between the National Park Service, U.S. Forest Service, U.S. Fish and Wildlife Service, the Bureau of Land Management and the Bureau of Indian Education. 

National parks boost economies in rural areas 

The Act is predicted to create over 100,000 jobs nationwide and help clear the maintenance backlog on public lands.

It’s also expected to provide a much needed boost to economies in rural and tribal areas, according to Arizona’s two U.S. senators, Kyrsten Sinema (D) and Martha McSally (R), who were co-sponsors of the bill.

“Arizona is home to diverse public lands and outdoor recreation which draw millions of visitors from across the nation and world,” Arizona Lodging and Tourism Association President and CEO Kim Sabow said. “Our national, state and local parks, trails and public lands are a critical economic driver for communities.”

Before the pandemic, outdoor recreation in the state ge201,000 direct jobs, $21.2 billion in consumer spending, $5.7 billion in wages and salaries, and $1.4 billion in state, county, and local tax revenue annually, according to the Outdoor Industry Association.

Endorsed by businesses, conservation groups

The Great American Outdoors Act was endorsed by the U.S. Chamber of Commerce, the Arizona Chamber of Commerce and Industry, hundreds of , and more than 800 conservation , including the Backcountry Hunters and Anglers of Arizona, Arizona Sportsmen for Wildlife Conservation, Arizona Trail Association, and more.

“Passage of the Great American Outdoors Act ensures a needed economic shot in the arm for rural Arizona by investing millions in infrastructure upgrades at Arizona jewels like the Grand Canyon and Lake Mead,” Arizona Chamber President and CEO Glenn Hamer said. Members of Arizona’s congressional delegation who championed the bill included House Natural Resources Committee Chair Raúl Grijalva.

An expanded LWCF will, among other things, mean more opportunities to preserve green spaces in currently low-income and “park-poor” communities, Grijalva said. 

“This is truly an investment in our children, our environment and our quality of life, and that’s why we’re seeing such bipartisan support in Congress,” Grijalva said when the bill was passed. “With climate change advancing around the country, this couldn’t come at a better time.”

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