As the Trump administration reconsiders several key policies, the U.S. hotel industry is closely monitoring the potential impacts of hospitality tax cuts under Trump and worker visas in hospitality.
With certain provisions of the Tax Cuts and Jobs Act of 2017 nearing expiration, hoteliers are anxious about a potential 33% tax increase that could affect their operations and growth. Notably, these concerns come as significant tax benefits previously realized under the act, such as the $194 million for Marriott and $610 million for Hilton, are at risk.
Continuing Tax Cuts for Hoteliers Essential for Growth
During a recent industry conference, Lisa Lombardo, president of ARK Holdings Group, highlighted the urgency of extending these tax cuts for hoteliers, noting the critical nature of fiscal certainty for hotel owners aiming to expand.
The industry hopes to see the permanent extension of a 20% deduction for small businesses, continued 100% write-offs for commercial assets, and the preservation of like-kind exchanges in real estate to avoid hefty capital gains taxes.
Concurrently, the hospitality industry is advocating for adjustments in immigration policy, particularly concerning H-2B visas for temporary workers crucial for seasonal operations in remote locations.
The Grand Hotel on Mackinac Island has been vocal about the necessity of these visas for maintaining their workforce. The industry is also seeking to exempt returning H-2B workers from annual visa caps, arguing that these workers are vital for the hospitality sector’s stability under Trump’s policies on worker visas.
Broader Economic Impact of Trump on the Hotel Industry
Moreover, Trump’s policies on tariffs and energy could potentially have broader economic implications that could indirectly affect the hotel industry by influencing development costs and travel patterns.
As the administration moves forward with plans for widespread deportations targeting those illegally in the U.S., beginning with actions in Chicago, industry leaders remain alert to the broader implications these policies may have on their operations and workforce.
Hoteliers like Christopher Nassetta of Hilton remain optimistic about the positive impact of these policies on the broader economy and the lodging industry. They reflect on past benefits and look forward to continued prosperity under favorable tax conditions.
However, uncertainty looms large as the industry seeks clarity and stability in the face of these potential changes, highlighting Trump’s impact on the hotel industry.
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