U.S. Travel Pushes for Relief for Destination Marketing Organizations
April 21, 2020
One-third of all jobs lost in the U.S. due to COVID-19 were lost in the travel industry, and the country is experiencing a total impact nine times greater than the 9/11 attacks, according to a new report by the U.S. Travel Association and analytics firm Tourism Economics.
Declines in travel are projected to cause 8 million jobs to be lost (out of 24 million for the entire U.S. economy) by the end of this month, according to the report. Travel spending losses are also on track to top half a trillion dollars by the end of 2020.
While the news is devastating from all angles, industry organizations are working hard to bring relief. For example, U.S. Travel is urging Congress to take the following actions:
Appropriate an additional $600 billion for the Payment Protection Program and extend the coverage period through December 2020.
The PPP is currently slated to expire on June 30. The economy will not realistically be in recovery by then, according to U.S. Travel officials, and the initial round of funding is expected to run out in just a few weeks.
Revise the PPP maximum loan calculation to 8x a business' monthly outlays, and allow it to cover both payroll and non-payroll expenses.
Currently the formula is 2.5x and covers payroll only, not other expenses — inadequate for immediate needs.
Expand eligibility for the PPP.
They are seeing to expand eligibility to DMOs that are classified as 501(c)(6) non-profits or "political subdivisions" of their local governments, as well as to small businesses that operate multiple locations (with fewer than 500 employees per location).
Destination marketing organizations are a key focus for U.S. Travel. Last week, more than 80 U.S. House members from both sides of the political aisle signed onto a letter urging congressional leaders to provide relief for DMOs whose funding has been crippled by the coronavirus crisis.
This effort is greatly needed, as many DMOs were unintentionally left ineligible for coronavirus relief funding under the PPP because of their non-profit or quasi-governmental status. Industry officials agree these organizations will be critical in driving convention, meeting and visitor traffic back into their respective destinations once the worst of the health crisis is behind us.
“Travel simply will not be adequately prepared to help lead the recovery without the work of destination marketers, which are critical engines of economic development in their states, cities and regions,” said U.S. Travel Association President and CEO Roger Dow.
Read more about U.S. Travel’s efforts to enhance PPP here.
Partner Voices
Overview:
The award-winning Orange County Convention Center (OCCC) goes the extra mile to make every day extraordinary by offering customer service excellence and industry-leading partnerships. From their dedicated in-house Rigging team to their robust Exhibitor Services, The Center of Hospitality brings your imagination to life by helping you host unforgettable meetings and events. With more than 2 million square feet of exhibit space, world-class services and a dream destination, we are committed to making even the most ambitious conventions a reality.
In October 2023, the Orange County Board of County Commissioners voted to approve allocating Tourist Development Tax funding for the $560 million Phase 5A completion of the OCCC. The Convention Way Grand Concourse project will include enhancements to the North-South Building, featuring an additional 60,000 square feet of meeting space, an 80,000- square-foot ballroom and new entry to the North-South Building along Convention Way.
“We are thrilled to begin work on completing our North-South Building which will allow us to meet the growing needs of our clients,” said OCCC Executive Director Mark Tester. “As an economic driver for the community, this project will provide the Center with connectivity and meeting space to host more events and continue to infuse the local economy with new money and expanding business opportunities.”
Amenities:
The Center of Hospitality goes above and beyond by offering world-class customer service and industry-leading partnerships. From the largest convention center Wi-Fi network to custom LAN/WAN design, the Center takes pride in enhancing exhibitor and customer experience.
The OCCC is the exclusive provider of electricity (24-hour power at no additional cost), aerial rigging and lighting, water, natural gas and propane, compressed air, and cable TV services. Convenience
The Center is at the epicenter of the destination, with an abundance of hotels, restaurants, and attractions within walking distance. Pedestrian bridges connect both buildings to more than 5,200 rooms and is within a 15-minute drive from the Orlando International Airport. The convenience of the location goes hand-in-hand with top notch service to help meet an event’s every need.
Gold Key Members
The OCCC’s Gold Key Members represent the best of the best when it comes to exceptional service and exclusive benefits for clients, exhibitors and guests. The Center’s Gold Key memberships with Universal Orlando Resort, SeaWorld Orlando and Walt Disney World greatly enhance meeting planner and attendee experiences offering world-renowned venues, immersive experiences and creative resources for their events.
OCCC Events:
This fiscal year, the OCCC is projected to host 168 events, 1.7 million attendees, and $2.9 billion in economic impact.
The Center’s top five events during their 2022-2023 fiscal year included:
AAU Jr. National Volleyball Championships 2023
200,000 Attendees
$257 Million in Economic Impact
MEGACON 2023
160,000 Attendees
$205 Million in Economic Impact
Open Championship Series 2023
69,500 Attendees
$89 Million in Economic Impact
Sunshine Classic 2023
42,000 Attendees
$54 Million in Economic Impact
Premiere Orlando 2023
42,000 Attendees
$108 Million in Economic Impact
Add new comment