Perhaps more than any other one industry, the travel industry has been flattened by the COVID-19 crisis. Airlines, hotels, destination businesses, and theme parks are all struggling to survive while their would-be clientele are kept away by travel restrictions, stay-at-home orders, or simply fear. Experts predict that recovery in the travel sector will take at least a decade, if at all. Certain tourist industries, like cruise ships, aren’t expected to recover at all. Thus, the American TRIP Act.
According to Arizona Senator Martha McSally (R), the tourism and hospitality industries are absolutely vital to American economic recovery.
“The tourism and hospitality industries were among the hardest hit sectors across the country and their revival is critical to our economic recovery,” said McSally in a statement on Monday, June 22. “My legislation will help boost domestic travel and jump-start the comeback of our hotels, entertainment sectors, local tourism agencies . . . and encourage Americans to safely get out of their homes and discover or rediscover Arizona along with the rest of the amazing destinations our country has to offer, after a difficult several months stuck inside.”
Her statement comes after she introduced her proposed bill, the American Tax Rebate and Incentive Program Act, or American TRIP Act.
The act is meant to provide a tax credit of up to $4,000 per tax year for money spent on vacationing between now and January 1, 2022, with an extra $500 per child. To be eligible, travel would have to be domestic, meaning inside the United States and its territories, and more than 50 miles from the traveler’s home. Money spent on transportation, lodging, entertainment, and food would be eligible for the credit.
As the bill is yet new, there has been no exploration so far into what would balance the budget to make up for the loss of tax revenue, or the $50 million also included in the bill to pay for destination marketing around the country.
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