Arizona U.S. Senator Kyrsten Sinema (D) hosted a roundtable with Arizona tourism and hospitality leaders last week to discuss Covid-19’s impacts on the industry and legislation to help bring the state back as a top travel destination. 

Participants included executives from many of the most renowned resorts that attract high-dollar tourists and business travelers to the state. Several said one of their top concerns is finding workers due to the pandemic shutdowns last year. Employees went on to find other jobs or are on unemployment.

Many small operators were left behind in the various federal relief packages, said Kim Sabow, president and CEO of the , which acts as the voice of tourism in the state. 

Top concerns: labor, relief, wages, taxes 

Sinema held the roundtable to hear about concerns and update industry leaders on legislation designed to help tourism recovery and discuss other measures that may be needed. 

“As Arizona recovers from the pandemic, we’re identifying long-term solutions with tourism industry leaders to fuel jobs, expand opportunities, and ensure Arizona continues to be a top tourism destination,” Sinema said.

Hotel industry shook hard by pandemic

Tourism advocates told Sinema that many hotels, particularly smaller operators, are struggling financially and need targeted relief written into the recent federal $1.9 trillion stimulus package, the .  

Hotels lost 50 percent of their workforce at the height of Covid-19. Arizona also lost $12 billion in visitor spending last year, Sabow said. Of that, $1.3 billion would have been hotel revenues, producing about $300 million in state tax revenues. 

“We have endured the worst crisis of the globe, and particularly, that this industry has ever faced, wiping out 10 years of job growth,” Sabow said. 

Sinema’s bipartisan legislation to aid tourism 

Sinema, who is a member of the that oversees tourism, listened to the concerns and promised to use the information to continue to work on the industry’s behalf. 

Sinema has made bipartisanship her goal, working across the aisle to get meaningful legislation passed, she said. 

Here’s some of the most recent legislation Sinema introduced or co-sponsored to aid the tourism industry in recovery:  

• The new , which requires the U.S. Commerce Department to study the pandemic’s impact on the travel and tourism industry and submit recommendations to ensure a robust recovery.

• The bipartisan Restaurant Rescue Plan fund, which Sinema co-sponsored with Republican Senator Roger Wicker, is up and running, and its is open for applications. The fund will provide structured grant relief to Arizona’s local and independent restaurants. 

• Sinema recently introduced the bipartisan with Republican Senator Rob Portman. Their bill allows businesses and nonprofits to receive a quarterly tax credit to offset 50 percent of COVID-related costs related to PPE, cleaning and sanitization, and reconfiguring workplaces — such as installing plexiglass.

• Travel Destination Marketing Organizations were eligible for the loans in the December COVID-relief law.

• This legislation created a $15 million fund to provide relief to the entertainment industry like nightclubs, theaters and concert halls.

Stance on issues important to business

After the roundtable, Sinema answered questions about her stance on issues important to business and industry including the minimum wage, the fate of the filibuster and proposed legislation that could upend right-to-work laws in Arizona and the U.S. 

Here’s what she had to say:

Minimum wage legislation in the works 

Currently, Democrats are pushing to increase minimum wage to $15 an hour over the next few years, which many industry sectors oppose, particularly hotels and restaurants that rely on lower wage, entry-level workers. With a percentage of Americans calling for a wage hike, Sinema said she and Republican Senator Mitt Romney are working together to find a solution.  

“We’re working on a reasonable compromise that can sustain a strong business climate,” she said. 

No action on PRO Act 

When asked about her stance on the PRO Act, which would overturn Arizona’s 75-year-old right-to-work law, Sinema said she is not a co-sponsor and has doubts about the legislation ever moving forward. 

“The measure not has not come up for a vote, if ever, so I’m continuing to look into the concerns of folks in Arizona,” she said. 

Wait-and-see on corporate tax hike 

As far as Biden’s proposal to increase federal corporate income taxes, Sinema said there have been no bills introduced at this time to do so. But as both houses piece together a major infrastructure bill, there will be a process involved to calculate how to pay for it, Sinema said. 

Filibuster needs to stay 

Another proposal to eliminate the filibuster, which would allow a political party to pass bills with a 51-vote simple majority.

Sinema has long opposed elimination of the rule, saying it is a critical tool for forcing compromise, which is needed right now. 

“The filibuster ensures that congressional members have to work to find common ground. The filibuster is designed to bring senators together to find bipartisan compromise, to bring folks from different perspectives together to find commonality,” she said. “When the Senate is broken, the solution is not to get rid of the rule, the solution is to change our own behavior.”

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As the last days of the year on the congressional calendar tick away, Arizona’s travel and tourism industry is in desperate need of relief. 

Since the onset of the COVID-19 pandemic—which effectively grounded global travel and crippled Arizona’s local tourism economy—the U.S. has lost direct travel jobs and due to decreased travel spending. In Arizona alone, we have lost nearly 40% of hotel jobs and have lost $10 billion in visitor spending in the first six months of 2020 alone. 

The situation for this once-healthy economic segment grows more dire every day. By the end of December, that 50% of all travel-supported jobs will be lost—an additional loss of 948,000 jobs and a total loss of 4.5 million direct travel jobs. Further, more than half (55%) of all small travel businesses in the U.S. are at risk of either taking longer than six months to recover or never recovering—all but ensuring a nationwide economic recovery will be impossible without relief for the travel and tourism industry. Arizona’s travel and tourism industry simply cannot wait any longer. 

To ensure these businesses can remain open and keep workers on the payroll, Congress must act immediately. While there’s great need for a larger, comprehensive relief package to support all segments of the U.S. travel and tourism industry, we are asking—at the very least—for a targeted relief package now to provide immediate support. Such a relief package should include provisions to extend and expand the Paycheck Protection Program (PPP) to include 501(c)(6) and quasi-governmental destination marketing organizations and allow for a second draw on PPP funds, and to extend the Coronavirus Relief Fund through the end of 2021. 

Travel and tourism is the backbone of our community, supporting more than 360,000 jobs and contributing $3.78 billion in tax revenue pre-pandemic. Tax revenue from tourism spending is essential to funding vital public services in our community such as firefighters, police officers and public-school teachers. Funding for these essential services and others will be jeopardized if small travel industry businesses do not get the support they need and are forced to shut their doors. 

Arizona’s travel and tourism industry is what gives our state its unique character. The small businesses, attractions, restaurants and shops in Arizona contribute so much to the cultural fabric of our community. From the majestic sights of the Grand Canyon to Tombstone’s iconic OK Corral, Arizona is a top destination for travelers. 

There is not a moment to lose. Congress must come together—immediately—to provide relief to small travel businesses to ensure the industry is prepared to help power a nationwide economic recovery. Arizona’s travel industry businesses and workers are counting on it.  

Kim Sabow is president and CEO of the Arizona Lodging and Tourism Association.

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Before the coronavirus, Arizona’s tourism industry saw four years of record-breaking growth, with 2019 the most successful yet, according to the Arizona Office of Tourism’s (AOT) annual economic report released Wednesday. 

Visitors to the state last year generated $70 million a day, or more than $25 billion for the year. Job numbers and tax revenues supported by tourism reached new highs. Visitors from Mexico, the state’s top international market, spent more than $3 billion. 

2019 ARIZONA VISITATION DATA AT-A-GLANCE

Total Overnight Visitation: 46.8 million (Up 2.8 percent from 2018)
Visitor Spending: $25.6 billion (Up 4.7 percent) 
Tax Revenue: $3.78 billion (Up 4.2 percent)
Jobs: 194,300 (Up 1 percent)
Earnings: $7.7 billion (Up 3.7 percent)

These and other data were released Wednesday during the annual Governor’s Conference on Tourism. The conference also featured strategies for the industry’s recovery from the pandemic. 

“While we’re very focused on the recovery of our industry during the next year, this 2019 data helps reinforce the critical role a strong tourism industry plays in Arizona’s economic re-energization,” said Debbie Johnson, director of the AOT. 

About 850 people from the state’s travel and hospitality industry tuned in virtually to attend the event. 

New marketing tactics helped showcase the state

Arizona’s stellar year for tourism in 2019 was the result of a great economy but also new approaches to marketing, Johnson said.  

“Instead of a single straight message, now we talk about the seasonality in our state. We have such geographic diversity. In March, you can ski in Flagstaff in the morning and then come down to the Valley and golf in the afternoon.”

Financial free fall for industry in 2020 

Attendees also got a snapshot of how the industry is faring in 2020. Revenues are down significantly in all sectors, according to compiled for the AOT. 

For example, average daily revenue for lodging was down 14 percent in June compared to last year and down 10 percent for the year so far. Airport traffic saw an 85 percent drop in May and is down 47 percent for the year. 

Tax revenues also are suffering. In 2020, the loss of tourism revenue is expected to create a $284 million net loss to the state’s general fund.

Celebrating last year’s success 

There was some solace in reflecting on last year’s success at the conference, Johnson said. In 2019, visitors spent a record $25.6 billion, up 4.7 percent over 2018. 

Here are some key takeaways from 2019 data: 

Industry supported more than 360,000 jobs in Arizona

Spending by Arizona visitors directly generated a record 194,300 tourism industry jobs last year. When combined with indirect and induced employment, the travel industry-supported 361,300 Arizona jobs.

Record tax revenues from tourism

Record visitor spending generated another milestone — a record $3.78 billion in combined local, state and federal tax revenue. That reduced the annual tax burden by $1,400 for every Arizona household.

International visitor numbers up

Last year, Arizona welcomed 6.1 million international overnight visitors, an increase of 3.8 percent over 2018. Visitor volume increased 5.2 percent from Mexico, the state’s top international market, with 4 million overnight visitors. Arizona’s top five overseas visitor markets were Germany, the United Kingdom, France, Japan and China.

Strategic recovery plan for tourism

The AOT also unveiled its Tourism Strategic Recovery Plan at the event that offers specific tactics and to help destinations and communities recover from the pandemic.   

Presenters spoke about different strategies for recovery as travel becomes safer to attract visitors to outdoor destinations, metro Phoenix and Tucson, and rural and tribal areas. 

Suggestions for industry marketing efforts recommend a three-step strategy for recovery:

-First, market directly to Arizonans for vacations and weekend getaways within the state while travel remains restricted. To help get the word out, the AOT launched a new campaign in May to encourage residents to visit outdoor and scenic destinations across the state.  

-Second, reach out to visitors that live within six hours of Arizona’s favorite destinations.  

-Finally, focus on marketing to target cities like Denver, Dallas and Chicago once air travel is considered safe again.   

For now, there are no plans to market to the international market, Johnson said. But there is hope that the market can return in 2021.

New Leave No Trace partnership to protect scenic views  

During the conference, AOT also had a presentation on it’s new partnership with, whose mission is to educate visitors about sustainable tourism practices. The full report and a video of the conference and all the sessions will become available over the next week at: .

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