No industry will be unaffected by the COVID-19 Pandemic. Some will experience setbacks and others will be utterly devastated. Many of our clients are in the tourism and hospitality sector so we are keenly attuned to that industry. There is no way to sugarcoat it – They are being hit very hard. You don’t have to work in tourism to know that. It’s been widely covered in the media.
Not only does the travel industry support a lot of jobs, it also generates a lot of state and local taxes such as lodging, meals, sales and ticket taxes on concerts and special events. When tourism slows, it impacts the revenue to local governments, which generally run on lean budgets anyway. The ripple effect could be felt by many municipal departments for a long time to come.
The loss of tourism-generated revenue should serve as a stark reminder of not only the good times when people were vacationing and hotel occupancy was good, but of how there is always room for improvement and growth. The travel and hospitality industry that has been so hard hit also has the potential to play a huge role in the recovery. Entire communities are suffering economically. Now, more than ever, tourism promotion needs to be viewed as an investment and not merely another line-item expense on a municipal budget. The communities that understand that will reap the rewards.