April 30 marked the “100 days” milestone for President Donald Trump’s second time period. Thus far, almost each a kind of days has introduced modifications promised on the marketing campaign path that have an effect on tax and commerce coverage, from redrawing maps to bringing again plastic straws and every part in between. Many of those initiatives have an effect on the economic system and workforce relations, and consequently, most features of the lodging trade. AHLA’s job is to maintain our members knowledgeable about present and anticipated modifications and public coverage implications and to tell policymakers about how choices made in Washington are enjoying out at properties and in communities throughout the nation.
Along with speaking weekly with our members via Resort Foyer, we are going to usually distribute crucial data in actual time via our “All Member Word.” If you happen to’re an AHLA member, please join at ahla.com to obtain these necessary alerts.
To tell our advocacy technique, we’re additionally monitoring financial information from a wide range of sources and conducting crucial analysis on impacts to the trade. As an AHLA member, you’ve in all probability seen a survey or two from us in simply the previous few weeks. This data is critically necessary to our mission of informing policymakers and advocating on the trade’s behalf.
These are a number of the most necessary modifications we’ve seen affecting the trade in these first 100 days:
Tax coverage
All through the marketing campaign cycle, President Trump championed the extension of his signature tax plan handed in 2017. For hoteliers, this legislation offered vital tax cuts to small companies, job creators, and actual property traders. It additionally offered a lift for capital investments and incentives for household companies. A lot of these insurance policies are set to run out on the finish of 2025, which might end in an enormous tax hike for America’s hoteliers.
Congressional leaders and the White Home have made extending the 2017 tax legislation a prime precedence for the primary a part of this yr, and AHLA has been actively lobbying for its passage. In his March 6 handle to Congress, President Trump referred to as for making the Tax Cuts & Jobs Act everlasting. This effort is a cornerstone of the congressional agenda. We’re optimistic that Congress will cross the tax aid measure within the coming weeks and supply crucial tax certainty for America’s hoteliers.
Cupboard appointees
Cupboard appointments can have appreciable impression on our trade by setting regulatory coverage that doesn’t require congressional approval however can have an effect on every part: enterprise practices, reporting necessities, workforce relations, and prices and costs. AHLA has applauded the confirmations of quite a few Cupboard officers, together with Secretaries Bessent at Treasury, Lutnick at Commerce, Chavez-DeRemer at Labor, Duffy at Transportation, and Administrator Loeffler at Small Enterprise.
Every of those leaders has a confirmed observe file as a champion of small companies, and all have shared their visions for selling development and robust workforce relations. We look ahead to working with all of them to advance the priorities of our trade.
Tariffs
President Trump’s financial imaginative and prescient has lengthy included an aggressive tariff coverage aimed toward leveling sure commerce relationships and motivating actions from international locations to learn the USA. Among the many earliest actions of his second time period, President Trump initiated tariffs towards Canada, Mexico, and China. He introduced reciprocal tariffs towards many international locations, efficient April 2.
We do count on an preliminary impression on sure services, together with delicate items, development supplies, and provide chains from focused international locations. Business consultants have instructed us that the results shall be felt extra in some areas of the nation and throughout some trade segments. We proceed to debate the info shared by our members with key policymakers and can proceed to observe commerce coverage because it develops.
Federal Spending and Journey. On Feb. 26, the president issued an government order limiting “non-essential” authorities journey, creating a brand new course of for journey approvals, and freezing federal bank card expenditures for federal workers.
These modifications have affected journey from particular person conferences and appointments to bigger conferences and annual occasions throughout most federal businesses and areas of the nation. Whereas to some extent it’s regular for a brand new administration to quickly halt journey pending overview, we’re monitoring the impacts of those modifications and their long-term implications.
Worldwide Inbound Journey
Worldwide journey is a major financial driver for the American economic system and for lodges particularly. Over the previous few months, we’ve seen early indicators of drops in worldwide inbound guests from America’s prime journey companions, together with Canada, Mexico, Europe, and South America. These losses might have lasting impacts on our trade, which continues to recuperate from pandemic-related financial and workforce shortfalls.
Studies have circulated of a possible journey ban for dozens of nations that would not have sure established safety protocols. Whereas most of the international locations on the purported checklist don’t drive vital journey to the USA, any limits on journey might increase combination financial considerations for our trade. We’re monitoring these developments and can hold members knowledgeable of any modifications.
AHLA members could have the chance to debate public insurance policies affecting our trade instantly with members of Congress throughout our annual Inns on the Hill occasion, Could 13-14, in Washington, D.C. This convention is extraordinarily useful not solely to hoteliers as they ship their message, but additionally to the lawmakers who look ahead to these conferences to study in regards to the main-street implications of insurance policies developed in Washington. Efficient authorities will depend on fixed suggestions. AHLA is delivering that suggestions on daily basis, nevertheless it’s all the time strongest from the constituents themselves.
As all the time, we’re grateful for our members’ enter and welcome your ideas and insights. Please make certain to enroll in our supplies and attain out to govaffairs@ahla.com along with your ideas and concepts.
