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Check out Governors’ conversation with travel and tourism industry leaders about the industry’s economic activity and job creation.
At the NGA Summer Meeting, Governors met with key tourism and travel industry leaders to discuss how the industry will continue to recover from the Covid-19 pandemic. The discussion focused on the industry’s significant economic impact on states, businesses and individual Americans.
with the chairman and Arkansas Governor Asa Hutchinson opened the plenary by noting how the vital travel and tourism industry generates billions of dollars in economic activity and tens of thousands of jobs in our economy. Beyond the economic impact, however, getting out there and exploring the 55 states and territories offers all kinds of benefits. It improves mental well-being, stimulates curiosity and generates goodwill.
Tori Emerson Barnes, executive vice president of public affairs and policy at the US Travel Association, moderated a discussion with panelists:
- Amir Elon, President and CEO, Partner, Longwoods International;
- Al Hutchinson, President and CEO, Visit Baltimore;
- Keiko Matsudo Orrall, Executive Director, Massachusetts Office of Travel and Tourism; And
- Chris Thompson, President and CEO, Brand America.
The panelists provided insight into how the industry will continue to recover after a significant downturn due to the Covid-19 pandemic. In terms of international travel numbers, for example, current projections show that the United States will not return to its 2019 international visitor numbers until 2025, the panelists explained. The industry’s resilience and many positive trends, including increased consumer demand for travel and return and job creation. The panelists also outlined some of the trends related to Americans’ travel preferences and concerns, with most travelers’ concerns about Covid safety being overshadowed by concerns related to inflation, higher gas prices and air travel problems.
Governors discussed the many challenges and opportunities they are seeing in their states and territories.
Puerto Rico Governor Pedro Pierlusi said the state’s tourism industry “had a record last year… believe it or not, in the middle of the pandemic, and this year we’re doing even better.” The governor shared how Puerto Rico decided to target the American Rescue Plan Act (ARPA) funds for hotels. Puerto Rico has a Destination Marketing Organization (DMO) and Governor Pierluci said, “We are targeting ARPA funding to double our DMO funding. In Puerto Rico, this DMO called Discover Puerto Rico was created many years ago… it consistently promotes Puerto Rico… and I tell my buyers to consider it. [utilizing a DMO] Because it works.
Maine Governor Janet Mills shared examples of successful ways Maine has helped tourism industry workers explore health and safety standards implemented during the pandemic to help workers and tourists. “One thing we’ve done is use our community colleges to put together a three-week training program for safety health and safety purposes where people who work in the hospitality industry … are trained in safety measures and sanitation,” Governor Mills said. He said. The governor also said that while Maine has yet to return to the tourism numbers seen in 2019, “tourist spending is much higher than it’s ever been.” The governor also warned that Maine and other states are facing a “labor shortage that is becoming a major constraint on the industry’s labor supply.”
New Hampshire Gov. Chris Sununu echoed concerns about workforce housing challenges, sharing that young people want to work but “can’t afford it.” They have no place to live. They don’t want to drive an hour to work in a hotel.” Governor Sununu says the rise of the vacation rental by owner (Vrbo) industry has created a “major economic shift” in an industry he believes needs to be addressed.
Massachusetts Governor Charlie Baker also expressed concern about the housing shortage affecting Massachusetts’ tourism industry, saying, “We’re starting to build housing in different places and housing on the Cape specifically to support people who are working because they have nowhere else to go.”
Governor Doug Burgum of North Dakota He discussed some of the unique issues faced by the 13 states that share a border with Canada, including the challenges of a reduced workforce at border crossings, which makes it difficult for Canadians to visit the United States for travel or other economic engagement. Governor Burgum also said that “one of the things I see in our state is that the tourism business is not providing enough technology” and “there are technology solutions that reduce the need for labor that we need…and we’re pushing in North Dakota to drive equal automation tax credits for the service industry.
Watch the full session:
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