COVID-19 Industry Update - March 19, 2020
Thursday, March 19, 2020
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Posted by: Lenza Jolley
The situation in South Carolina continues to evolve, and we must adjust to practices that keep us safe. We are an industry that thrives on creative solutions no matter how difficult the challenge, and our output has often been the envy of other destinations. I have confidence that we will rely on our creativity to weather this storm and emerge as a better destination.
In an executive order released Tuesday, Governor McMaster ordered all restaurants to suspend on-premises dining beginning Wednesday, March 18. The decision helps maintain social distancing and prevent the spread of COVID-19, for which there is currently no vaccine or cure. Restaurants can continue to offer carry-out and delivery services, however, if they’re set up for that. You can find details at this link.
Governor McMaster's executive order also prohibits gatherings of 50 people or more – inside or outside – to reduce impacts of this virus.
His order provides some relief for our businesses. Working with the SC Department of Revenue, Gov. McMaster has extended the April 15 tax filing deadline to June 1. **Filing and payment of sales and accommodations tax reports that are due on Friday, March 20, are still due. Relief begins with any reports / payments that are due starting April 15.
At SCPRT, state parks are still open. We have closed visitor gathering places like retail shops, nature centers and park offices to maintain social distancing, but will continue to offer services if visitors call a number posted on these facilities.
Welcome centers also are open. The lobby, however, will remain closed, but information from the lobby can be accessible to people who call a number posted on center doors.
The state’s lodging report for March 8-14 shows a decrease in hotel occupancy of about 17.2% compared to the same time period last year. With travel restrictions and other barriers, we expect a steeper decline in next week’s report.
The U.S. Travel Association continues to influence public policy in Washington that will help the industry recover. They have circulated in both chambers of Congress an impact statement as well as a list of policy recommendations to address the COVID-19 impact. Some of those policy suggestions are:
- Grants to protect the travel workforce: Provide direct grants to keep workers in their jobs and provide compensation for economic losses incurred in the interest of public health.
- Loans to stabilize business operations: Provide travel-dependent businesses and nonprofits with zero interest, unsecured lines of credit from the U.S. Treasury Department. Maximize SBA loan programs by increasing loan limits and guarantee percentages, waiving loan fees, and providing forbearance on interest and loan payments through 2020.
- Provide tax relief to mitigate economic losses and spur recovery: Permit affected businesses to temporarily defer tax liability, delay or eliminate estimated quarterly tax payments and filing deadlines and allow for a carryback of the Net Operating Loss (NOL) deduction.
- Reverse declines in travel demand—keep America moving and working: Install a temporary travel tax credit to encourage travel spending, restore the entertainment business expense deduction, boost community development block grants to promote healthy travel and provide a temporary payroll tax cut.
Additionally:
- Three House Committee chairs called for the Department of Homeland Security to delay the REAL ID compliance deadline due to the impact of coronavirus and continually low numbers of Americans with compliant identification. U.S. Travel has been coordinating with key members in both chambers on this call for an extension.
- AAHOA is providing comprehensive Coronavirus Updates for America's Hotel Owners.
- AHLA has made their recent webinar materials available to all hoteliers, regardless of AHLA membership status
- CDC is hosting a webinar this Thursday, March 19, at 3:00 p.m. ET. You can register at this link and submit questions in advance to eocevent337@cdc.gov.
- Meetings Mean Business issued a statement on the new federal guidance on large events and mass gatherings
- Meeting Professionals International has a host of resources on emergency preparedness, recent news and how the meetings industry is responding to the outbreak, as well as a survey to collect information on event cancellations and their impact around the country.
That’s a lot of information, but I hope it’s helpful as you make plans for your destinations, attractions and businesses. Public leadership in South Carolina as well as the nation, recognize travel and tourism for the impact it makes on our economy, from the volume of wages and salaries it generates to the tax savings it creates for our communities. You are not alone, and will not be forgotten, in the challenge we’re currently facing.
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