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By Kent Larsen
Marriott Asks Congress for Travel Tax Credit
WASHINGTON, DC -- Marriott International CEO and LDS Church member
Bill Marriott Jr. testified before the Senate Commerce Committee's
Tourism Subcommittee on Friday that the travel industry needs support
after the September 11th terrorist attacks on the World Trade Center
and the Pentagon. Marriott argued not for direct federal assistance
to his or any other company, but rather for a tax credit that would
induce travelers to travel again.
When the public abruptly stopped traveling following September 11th,
hotels and other travel services were hit hard by the sudden drop in
demand. Marriott was hit harder than most. The company lost a hotel
in the collapse of the World Trade Center, lost two managers who were
killed in the buildings, and suffered major damage to a second hotel
nearby. Then, reservations at Marriott hotels dropped by 94%
following the attacks. While reservations have rebounded some,
Marriott is still seeing 25% fewer reservations than this time a year
ago, and he testified that both his hotel rates and occupancy are 25%
below last year's levels. Marriott International operates more than
2,200 hotels worldwide under the Marriott, Ramada, Ritz-Carlton,
Renaissance, Courtyard, and five other brand names.
The rest of the hotel industry was hit just as badly. Marriott
estimated that half the 2 million hotel workers in the U.S. have
either been laid off or had their hours cut to part-time schedules.
"Many hotels will not make their debt service payment," Marriott told
the committee, "We don't know how we're going to get through the next
few
months."
Marriott testified in support of the Travel America Now Act of 2001,
sponsored by Arizona Republican Senator John Kyl and Georgia
Democratic Senator Zell Miller, which would give U.S. taxpayers
traveling before year's end a tax credit of up to $500 ($1,000 for
couples filing jointly). "We are not asking for a bailout," Marriott
said. "I know that many members of Congress do not like tax credits,
but they can be effective when used prudently and cautiously."
Marriott was joined in his testimony by fellow hotel executives
Marilyn Carlson Nelson, CEO of Carlson Companies, Inc. of
Minneapolis, which operates 540 hotels and Jonathan Tisch, CEO of
Loews Corp.'s hotel division and head of the Travel Business
Roundtable. The committee also heard from Washington DC Mayor Anthony
Williams, who estimated the capital would lose 24,000 jobs and $750
million in the next six months from the travel industry downturn, and
from Senator Hillary Rodham Clinton, who stressed that the New York
City economy, heavily dependant on tourism, and the upstate New York
economy will both suffer from a lack of visitors. "Very few people
are coming," Clinton testified.
But the case for the bill, which is given little chance for passage,
was hurt by the absence of Stephen Bollenbach, CEO of Hilton Hotels
Corp. Bollenbach declined to attend a meeting with Commerce Secretary
Don Evans last month that Marriott, Marilyn Carlson Nelson and Tisch
attended and he opposes any kind of federal assistance, "He thinks it
is inappropriate to ask for financial assistance," said Hilton
spokeswoman Kathy Shepard on Friday. "We don't need the money. Hotels
are not going to be closing. We're still going to survive."
But Marriott's testimony emphasized that the attacks couldn't have
come at a worse time, "September and October are the best months for
business and convention travel. We have lost all of the profit that
these months usually provide." And John Wilhelm, president of the
Hotel Employees and Restaurant Employees International Union
emphasized that the employees are hit hardest of all, "This is not
just a New York or Washington, D.C. problem," Wilhelm said.
Sources:
Marriott urges passage of travel tax credit
Business Week (Reuters) 12Oct01 B2
Tourism execs make pitch for help reviving travel
Charlotte NC Observer (Knight Ridder) 13Oct01 B2
By Cassio Furtado: Knight Ridder
Lawmakers urged to allow short-term tax credits to individuals
Travel Industry Intensely Lobbies Washington for Travel Tax Credit
FOX News (Reuters) 12Oct01 B2
By Doug Young
Travel industry seeks aid
Las Vgas NV Review-JournalO 13Oct01 B2
By Christine Dorsey: Donrey Washington Bureau
Officials ask Congress for tax breaks to stimulate tourism
Tourism Leaders Appeal for Economic Incentives to Aid Industry
Orlando FL Sentinel 13Oct01 B2
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