1. AAHOA National Public Policy Update
The Lodging Conference
AAHOA National Public Policy Update
Chip Rogers, President & CEO

2. National Update
Stock market hit record high at 26,616 and continues to hover near 26,000
Economy at full employment - July unemployment at 3.9%
Second quarter GDP jumped to 4.2% - its best pace since 2014
Atlanta Fed projects 4.4% GDP growth for Q3
Small business confidence at all-time high
Consumer confidence surges to near 18-year high
Average hourly earnings rose 2.9% in August
Wages in hospitality up 3.2%
Number of job openings (6.7M) outpacing number of unemployed Americans (6.6M)

3. Travel Outlook

4. Travel Outlook
Travel to and within the U.S. grew 4% year-over-year in June, marking the industry's 102nd straight month of overall expansion
Total U.S. room revenue increased 6.7% and room demand increased 3.7% from a year ago in June total room revenue reached $15.6B, according to STR
Average gas price below $3
Strength of dollar increasing may impact international travel

5. Human Trafficking Awareness & Prevention

6. Industry Imperative
Modern day slavery through force, fraud, or coercion - sex trafficking, forced labor, domestic servitude
Millions trafficked worldwide annually
Tens of thousands of reported cases in the United States
Traffickers use hotels due to privacy
and anonymity inherent in the industry

7. “ “”

9. Legislative Wins

10. Congressional Action
ADA Education and Reform Act passed the House with bipartisan support - this legislation would create a notice and cure period that would help end predatory lawsuits
Save Local Business Act passed the House with bipartisan support, which would create a statutory definition of the historic joint employer standard
Tax Reform
Lowers Corporate and Pass-Through Rates
Preserves Section 1031 (Like-Kind Exchanges)
Allows Immediate Expensing for Business Investments
Doubles the Estate Tax Exemption
Increases Discretionary Income for Business and Leisure Travelers
AAHOA supports “Tax Reform 2.0” which would make tax cuts permanent; some key provisions of the TCJA are set to expire in 2025
AAHOA supports the JOLT Act which will modernize the Visa Waiver Program and make it easier for verified travelers to visit the U.S.

11. Administrative Action
Joint Employer the National Labor Relations Board will use the rulemaking process to bring clarity to the joint employer standard by returning to the historical definition
60-Day Comment Period hoteliers are encouraged to voice their support for a joint employer standard that clearly articulates direct and indirect control of employees
Cutting Regulations President Trump cut the most problematic regulations, saving $1.3B in taxpayer dollars in 2018
2 for 1 Executive Order directed agencies to eliminate two regulations for each new rule enacted - in 2017, agencies eliminated 22 regulations for every new rule
Expanding Healthcare Access the Labor Department issued a final rule that expands the availability of Association Health Plans - this will allow hotel owners to join together to negotiate lower rates with insurance companies

12. Occupancy Taxes

13. Occupancy Taxes Cities with the highest state occupancy taxes
Columbus, GA %
Macon, GA %
Augusta, GA %
Atlanta, GA %
Kansas City, MO %
Anaheim, CA %
Overland Park, KS %
Birmingham, AL %
Omaha, NE %
Cincinnati, OH %
Source: “U.S. Lodging Tax Study.” STR, Inc. June 2016.

14. Oklahoma: A Case Study in Winning
In a misguided attempt to create more revenue, Oklahoma attempted to impose a $5.00 per night hotel/motel tax. This would have pushed hotel rates in Tulsa and Oklahoma City higher than cities like Los Angeles, Chicago, and New York. Thanks to the hard work of Oklahoma’s hoteliers, the Oklahoma Hotel and Lodging Association, and others, the measure ultimately failed.
This is what democracy looks like Over 125 hoteliers rallied in Oklahoma City to protest the occupancy tax
Thousands of letters and phone calls Hoteliers wrote and called their lawmakers to let them know of the disastrous effect the occupancy tax would have on not only hotels but also businesses that would be hurt by the drop in travelers
Hundreds of meetings with elected officials Face-to-face meetings with lawmakers went a long way to personalize the issue and educate elected officials on the tax’s negative impact

15. AAHOA.COM