Impact of Covid-19 on Travel Industry Nine Times Worse Than 9/11, Says USTA
U.S. Travel Association calls for much broader paycheck protection coverage >>
by: Harvey Chipkin
The impact from the Covid-19 epidemic is nine times greater than from the 9/11 attacks, according to the U.S. Travel Association and Tourism Economics, which said that a third of all jobs lost in the US are travel industry connected. By the end of April, declines in travel will cause eight million jobs to be lost out of approximately 24 million for the entire US economy, according to the report. Travel spending losses are on track to top half a trillion dollars by the end of 2020. Roger Dow, CEO, said the CARES Act was a good start, “but the data shows there is still extreme and mounting pain in the American travel industry.” Overall travel spending last week plunged to $2.9 billion – an 85% drop since the first week of March and 87% lower than the same week in 2019. U.S. Travel called for expanded eligibility for the Paycheck Protection Program (PPP); adding $600 billion for the PPP; extending the coverage period through Dec. 2020; revising the PPP maximum loan calculation to eight times a business’s monthly outlays; and allowing it to cover both payroll and non-payroll expenses.
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