New Study Reveals Tax Reform Could Boost Hotel Industry by $131.7B
November 10, 2017 1:20pm
Analysis Shows Hotels, Employees, Travelers All Benefit From Tax Reform
WASHINGTON (November 10, 2017) – As tax reform legislation moves through Congress, a new economic impact study found that tax cuts could generate $131.7 billion in economic activity for hotels and related industries over the next 10 years.
On behalf of the American Hotel & Lodging Association (AHLA), Oxford Economics analyzed the impact of tax policy changes that would result in a tax cut of $1.5 trillion over 10 years, which they believe will cause real GDP growth to accelerate to 3.0% in 2018.
The results show that tax cuts will stimulate the economy and are expected to generate a boost to hotel industry operations, cause additional guest spending at restaurants and stores in the travel destination, and increase hotel capital investment—all benefitting the broader national economy.
“With tax reform moving through Congress and becoming closer to a reality, we are pleased to see the potential for significant financial benefits to the industry, and the U.S. economy,” said Katherine Lugar, president and CEO of AHLA. “From hotel operations, to our industry’s employees, to consumers enjoying their favorite travel destinations, tax reform enables further opportunity for financial growth and prosperity.”
Under this tax cut scenario, consumer and business travel are both expected to increase. Direct hotel guest spending, both onsite and through ancillary spending such as local restaurants, stores, and attractions, would be $57 billion higher over the next five years.
To meet this increased demand, businesses would hire new employees and add more shifts for existing ones, and increase their capital investment. This would generate $22.3 billion in additional wages and salaries for U.S. workers—equivalent to the annual compensation of 94,700 employees for five years. It would also increase state and local tax revenues by $3.9 billion. The total economic impact of this tax scenario is projected to be $131.7 billion.
Lugar praised Congress for its commitment to reforming U.S. tax policy and creating a pro-growth tax environment that will benefit the hotel and lodging industry, its employees, and American consumers.
“It’s particularly critical as three out of every five hotels in industry are made up of small businesses, many independently or family owned. Tax reform will go a long way in benefiting these individuals, as well as their employees and guests,” said Lugar.
“We are pleased Congress has taken the next step toward enacting smart and effective tax reform that will allow businesses, families, and individuals to succeed. AHLA advocates for policies that enable hotels to operate on a level playing field and that empower business growth, competitiveness and entrepreneurism. We look forward to working with Congress and the Administration before the proposal becomes law to ensure that the final details support continued growth for our industry and the broader economy.”
Click here for the full study.
american hotel & lodging association,
Serving the hospitality industry for more than a century, the American Hotel & Lodging Association (AHLA) is the sole national association representing all segments of the 8 million jobs the U.S. lodging industry supports, including hotel owners, REITs, chains, franchisees, management companies, independent properties, bed and breakfasts, state hotel associations, and industry suppliers. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support, and educational resources for an industry that advances long-term career opportunities for employees, invests in local communities across the country and hosts more than one billion guests’ stays in American hotels every year. AHLA proudly represents a dynamic hotel industry of more than 54,000 properties that supports $1.1 trillion in U.S. sales and generates nearly $170 billion in taxes to local, state and federal governments. Learn more at www.AHLA.com.
Contact: Jennifer Myers
Study Reveals 'OTA Premium': Travelers Who Book Through OTAs Stay Longer, Spend More During Trips
Hotel Industry Partners With Pearson to Offer Debt-Free College Degrees to Employees
AHLA Responds to Airbnb Plus & Boutique Program Announcement
Meetings & Events Industry Releases New Economic Impact Data
AHLA Praises U.S. House of Representatives for Vote to Strengthen ADA
AHLA's President and CEO, Katherine Lugar, Releases Statement on President Donald Trump's State of the Union
ALIS Names the 2018 Award Winners for Developments, Single Asset Transactions and M&A of the Year
AHLA’s Financial Management Committee Issues Guidance for the New Revenue Recognition Standards
AHLA President Lugar Highlights Hotel Industry Economic Impact on Nation's Cities at U.S. Conference of Mayors
AHLA Announces 2018 Officers & Board of Directors Slate
AHLA Promotes Brian Crawford to Vice President and Department Head of Governmental Affairs
AHLA Applauds Final Passage of Tax Reform Legislation
AHLA Releases Statement Following Historic Tax Reform Legislation
AHLA President and CEO Katherine Lugar's Statement on Senate Passage of Tax Reform Legislation
Hotel Innovators Educate Lawmakers on Capitol Hill, Urge Support for Stop Online Booking Scams Act
AHLA and the Better Business Bureau Team Up to Fight Online Hotel Booking Scams
AHLA Celebrates National Apprenticeship Week by Launching Program and Giving $50,000 Grant
AHLA Praises House for Passing Tax Reform
Hotel Industry Teams Up With World Wildlife Fund and The Rockefeller Foundation to Reduce Food Waste
AHLA Presents $500,000 Youth Grant to Community-Based Organizations to Open Career Pathways in High-Demand Markets
Please login or register to post a comment.