US: Travel industry seeks government assistance, new tax breaks to spur trips

The coronavirus-hit US travel industry on Friday asked Congress for $10b in federal grants to promote safe practices, new liability protections and tax credits for travellers and the industry. The US Travel Association, which represents hotels, car rental companies, American Express, airports and tourism agencies, also wants $13b for US airports and a refundable tax credit of up to 50% of travel expenses through the end of 2022 of up to $3,000 per family. “As the virus continues to wreak havoc on society, the situation in the travel industry is only getting worse. The industry is now on track to shrink by $1.2 trillion by the end of the year,” the group’s policy chief, Tori Emerson Barnes, told Congress. “The travel industry is facing an economic environment that is 10 times worse than the aftermath of 9/11.” The Labor Department has said that the travel industry has lost more than 4m jobs since March. The group also called for additional payroll assistance, and asked to restore the food and entertainment business expense deduction to encourage business spending, for boosting an employee retention tax credit. Airline unions have sought $32b in funds for carriers and contractors for payroll costs.<br/>