Marriott CEO backs tourists' tax credit

Bloomberg News
Copyright 2001 The Washington Post
Article date: December 24, 2001
 

Marriott International Inc. chief executive J. Willard Marriott said yesterday that a $500 tax credit for tourists is needed to reverse the travel industry slump that followed the Sept. 11 terrorist attacks.

Revenue at the largest U.S. hotel company fell 25 percent to 30 percent in the past three months, worse than during a typical recession, Marriott said on ABC-TV's "This Week." After the Gulf War, business fell about 5 percent, he said. The proposal would give a one-time tax credit to consumers who book airline tickets or hotels, probably during a 90-day period. Marriott said the plan has received "mute" response from Capitol Hill. President Bush said last month he was not considering the idea.

The response "has not been good, frankly, but there are some people pushing it," Marriott said. "The states that have been severely impacted -- Nevada, Florida, California, Hawaii, the big tourist states -- are really behind it."

Tourism is the first or second biggest industry in 28 states and in the District, he said. About 18 million people are employed in the travel industry, although at least 500,000 have lost jobs since Sept. 11, he said.

"It's a huge industry impacting a lot of jobs," Marriott said. "We need to get people who have been concerned about traveling to begin to travel again and feel good about it."

Moody's Investors Service last week cut the debt ratings for the Bethesda-based hotel chain and also for Hilton Hotels Corp. of Beverly Hills, Calif., because of lower demand for hotel rooms. Lodgian Inc., which has 107 hotels in the United States and Canada, filed for Chapter 11 bankruptcy protection last week.

Revenue per U.S. hotel room fell about 8 percent in November from a year earlier, according to Smith Travel Research, after falling 23 percent in September and 18 percent in October.
 

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