12/11/2020

Update 12/11/20: Ohio's Travel Industry and the Coronavirus (COVID-19)

Economic Relief Updates

FEDERAL RELIEF BILL WOULD HELP OHIO BUSINESSES AND KEEP JOBS, BUT WHETHER OR NOT IT IS ENACTED REMAINS UP IN THE AIR

Details about the Emergency COVID Relief Act of 2020 have been released. Whether or not this bill can move forward is based largely on agreement between Speaker Pelosi and Leader McConnell. In the meantime, the federal government faces a possible shutdown at midnight tonight if an agreement can’t be reached on a short-term spending bill that would keep government running through Dec. 18.

Many of the relief measures asked for by the tourism industry are included in the current version of the relief package. Some highlights include the following:

$300 billion for small businesses, including the Paycheck Protection Program (PPP), 7(a) loan program and Economic Insurance Disaster Loans

The second round of PPP provides PPP loans, with loan forgiveness, for small businesses with fewer than 300 employees AND a 30% revenue loss in any quarter of 2020
The bill also expands eligibility for destination marketing organizations (DMOs) with fewer than 150 full-time and part-time employees to receive a first PPP loan

$160 billion in funding for state, local and tribal governments, which is similar to the Coronavirus Relief Fund under the CARES Act
Funding for airports, including set asides for airport concessionaires
$2.5 billion for vaccine distribution by the Centers of Disease Control and Prevention and $10 billion for testing and contact tracing

OTA AND OHLA CONTINUE WORK TO RAISE AWARENESS OF OUR INDUSTRY’S DEVASTATION

While we anxiously await Congressional action, OTA and OHLA are ensuring state officials and lawmakers understand the economic impact of COVID-19 and subsequent government mandates have had on our state’s travel and hospitality businesses and jobs. Recognizing that additional state aid will be forthcoming from the federal bill, we are updating a proposal for additional aid for Ohio businesses most impact by the pandemic and government intervention. Our proposal also recommends coordinating a grant-making response with local governments who struggled to identify and to distribute the last round of funding to those businesses most in need.

Economic Impact Updates

$12.5 BILLION HAS BEEN LOST IN OHIO TRAVELER SPENDING TO SUPPORT JOBS

Ohio has lost $12.5 billion in traveler spending to date, based on weekly traveler spending data provided by Tourism Economics. During the week ending Dec. 5, Ohio traveler spending was 45% below last year at the same time with a loss of $257 million. Since September, average weekly losses each month have deepened, indicative of a worsening decline in business. New records in confirmed COVID-19 cases and the re-enactment of policies restricting travel could lead to further declines through the winter travel season.

LOSS IN TRAVELER SPENDING RESULTS IN $1.4 BILLION LESS TAX REVENUE AT ALL LEVELS

When we visit attractions, hotels, retailers and restaurants, we not only spend dollars to support these businesses. The dollars we spend also support federal, state and local governments through taxes that support schools, roads, social service programs, etc. Faced with a $12.5 billion reduction in traveler spending in Ohio alone, this has resulted in losses of $784 million less in federal tax revenues, $367 million less in state tax revenues and $216 million less in local tax revenues.

Travel Research Updates

ABOUT 80% TRAVELED IN 2020, 47% PRIORITIZING TRAVEL IN 2021

Key findings from Destination Analysts fielded Dec. 4-6:

The current state of the pandemic has eroded Americans’ confidence that travel can be done safely.
The gloominess combined with more clarity on timelines for production and distribution appear to have muted some of the strong hope initially felt about a COVID vaccine. The percent who say the recent vaccine developments have made them more optimistic that they can travel safely in the next six months has declined to 46% from 53% three weeks ago.
Americans’ current sentiment has some impact on marketability for travel. Those in a travel readiness state of mind dropped to 53% from 56% in the last week, and those that can be motivated by discounts and price cuts to travel in the near-term dropped to 36% after hitting 40% two weeks ago.
Americans still demonstrate openness to travel messaging. Those that agree that they have lost their interest in travel for the time being dropped to 43% from a high of 50% last week. And after consistently declining for a month, the proportion excited to learn about new, exciting travel experiences or destinations to visit improved to 44%.
About 80% of American travelers took at least one trip in 2020, with an average of 2.9 leisure trips reported.
More than 47% say they will prioritize leisure travel in their personal budget in 2021.
Americans plan on taking about three leisure trips on average in 2021—primarily to cities, small towns and beaches.
They will prioritize, spending time with loved ones, getting away from crowds, enjoying nature, going to new places they haven’t been before, excitement and energy, as well as budget travel will be top.
Well over a third of Americans whose job allows them to telecommute say they are likely to take a “workcation” in 2021. Meanwhile, 29% of Americans who travel with school-aged children say they are likely to take a “schoolcation.”

61% OF AMERICAN TRAVELERS ARE NOT PLANNING TO TRAVEL FOR THE HOLIDAYS

Key findings from Longwoods International's Weekly Study fielded Dec. 2:

As the coronavirus continues to surge, 15% of American travelers have cancelled their holiday travel plans in just the past two weeks.
46% were not intending to travel for the holidays when the survey was fielded
Another 10% of American travelers shifted their holiday travel plans from flying to driving to their destination.
41% of travelling Americans indicated they do not plan to travel until a vaccine is available to them, down slightly from 44% just two weeks ago.
Despite a vaccine on the horizon, 74% of American travelers still expect to change their travel plans in some way due to COVID-19 at some point during the next six months.
Despite all of this, 62% of travelling Americans still indicate that they have travel plans within the next six months, holding steady from two weeks ago.

WHAT OTA IS HEARING

THIS WEEK'S OTA TRAVEL TALKS RUNDOWN

OTA held two virtual listening and discussion sessions this week. Below are just a few of the highlights from these discussions, and OTA will continue to delve into these topics through future discussions and resources:

As an industry, we need to start thinking about whether or not to develop policies mandating the vaccine for employees and volunteers.
Building off what we learned from OTA's marketing webinars this spring, we need to think about messaging during this time in a phased approach. With virus rates increasing and government imposed restrictions and stay-home messaging also on the rise, we may have reverted to Phase One of recovery messaging similar to the spring.
When virus rates are controlled and restrictions eased, business recovery and growth will be limited due to employee shortages. We need to address this now.

You can register for the upcoming OTA Travel Talk(s) using the button below. Registration is free. Open to OTA members only.