“Travel and Tourism: A Small Business Angle.”
Chairman Brat, Ranking Member Evans, and distinguished members of the Subcommittee, thank you for the opportunity to testify before you today. It is an honor to appear before
My name is
I also serve as the national Vice Chairwoman of the
II. Economic Impact of the Travel and Tourism Industry
Thank you for convening this hearing on the travel and tourism industry. It is particularly fitting to have this discussion during
Our industry is one of the major factors driving economic expansion, job creation, exports, and prosperity in
I am very pleased to report that the economic condition of the America's travel and tourism sector is strong and trends indicate a positive future. Many of the economic factors that are hallmarks of success in the travel industry, including low unemployment, and high business and consumer confidences, are also indicative of a healthy national economy.
According to the
Domestic travel, which accounts for 80 percent of all travel spending, n4 rose by 28.7 million trips, a 1.3 percent increase in 2017, and leisure travelers are the principal drivers of the industry. n5 In the lodging sector, the "[T]otal
III. Small Business Contributions
For small business owners like the vast majority of AAHOA members, this is amazing news! Small businesses account for 83 percent of companies in the industry n8 and we are both driving and seeing the benefits of a robust economy and thriving travel sector. In addition to the economic benefits travel and tourism businesses contribute to their communities, small business owners are directly responsible for creating jobs, training employees, and reinvesting capital locally. In fact, "the number one small-business employer in
IV. Important Issues Facing the Industry
While the outlook for small business owners in the travel sector and the industry as a whole is strong, some challenges and opportunities remain. One of our biggest concerns centers on increasing gas prices. As domestic leisure travelers comprise an overwhelming majority of the travel market, increases in fuel prices for automobiles and airplanes could increase costs and negatively impact the ability for people to travel, affect their chosen destinations, or shorten the duration of their visits. History has shown us that increases in gas prices limit available discretionary income and consumers cut back on some activities including travel.
Another area we are watching closely is the trend of international arrivals to
International visitors to
As a corollary to
Finally, as I meet with hoteliers and hospitality professionals around the country, one issue we discuss frequently is the importance of the new tax law on small businesses. Small business confidence is growing and we are able to create new jobs, hire new employees, increase wages and benefits, make capital improvements, purchase new properties, and expand our businesses. Small business owners thrive when there is certainty in economic conditions and are reserved when there is ambiguity in circumstances. Economic uncertainty breeds hesitation and hinders growth; however, when small businesses can count on clear and consistent tax policies that prioritize their needs, they prosper. I urge you and your colleagues to make tax relief for small businesses permanent in the years to come to help ensure a thriving economic outlook for America's travel and tourism industry.
V. Conclusion
Chairman Brat, Ranking Member Evans, and members of the committee, thank you for inviting me to share my perspectives on the outlook of America's travel and tourism industry. We have many reasons for optimism and we have seen considerable growth recently. In order to sustain this trend, I am hopeful our leaders will continue to appreciate the value our industry brings to the country and local communities. I am grateful to you all for your leadership and wish you a very happy
Thank you.
n1 "Travel Trends Index."
n2 "
n3 "Travel and Tourism: Economic Impact 2018,
n4 "Travel and Tourism: Economic Impact 2018,
n5 "Domestic Travel Market Report, 2017."
n6 Harpaz, Beth. "Trump slump? International arrivals data may be wrong."
n7 Hoisington, Alicia."Continued growth still in the forecast for the hotel industry in 2018."
n8 "
n9 "Travel: America's Unsung Hero of Job Creation."
n10 Mohn, Tanya. "Surprise Career is 'Unsung Hero.'" Forbes.
n11 "Travel: America's Unsung Hero of Job Creation."
n12 "
n13 Jainchill, Johanna. "Slump in overseas visitors, the curse of a strong dollar."
n14 "Data Suspension FAQs."
n15 "The Return on Investment of Brand
Read this original document at: https://smallbusiness.house.gov/UploadedFiles/5-8-18_Panwala_Testimony.pdf
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