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Report: COVID-19 Causes $17B Loss in State & Local Tax Revenue from Hotels in 2020
As a result of the drop in travel demand from COVID-19, state and local tax revenue from hotel operations nationwide will drop by $16.8 billion in 2020, according to a recent report from the Washington D.C.-based American Hotel & Lodging Association.
Hotels can serve as an economic engine for communities of all sizes, and support job creation, small business opportunities and economic activity in states and localities where they operate. Hotels also generate significant tax revenue for states and local governments to fund a wide array of government services. In 2018, the hotel industry directly generated nearly $40 billion in state and local tax revenue across the country.
“Getting our economy back on track starts with supporting the hotel industry and helping them regain their footing,” said Chip Rogers, CEO at the American Hotel & Lodging Association. “Hotels positively impact every community across the country, creating jobs, investing in communities, and supporting billions of dollars in tax revenue that local governments use to fund education, infrastructure and so much more. We expect it will be years before demand returns to peak 2019 levels.”
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