The canary in the coal mine for the impacts to be levied by the COVID-19 global pandemic was the travel and tourism industry. Abrupt and sudden, pandemic-induced impacts began slashing business levels for airlines, hotels, restaurants and attractions before other industry segments realized precipitous drops in business levels. 

Given the staggering drop in economic activity, pressure mounted on the federal government to act quickly; Congress, the Treasury Department and the White House did, in fact, move at rapid speed to invoke relief programs through legislation to help American citizens and businesses. The result is the signature legislation we all know now as the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Needed quickly, the CARES Act has helped many people and businesses stay afloat. However, civic-oriented nonprofit tourism bureaus, known in the industry as Destination Marketing Organizations (DMOs) that play a critical role in the tourism ecosystem, were left out of key provisions of the CARES Act, most notably the loan forgiveness available under the Paycheck Protection Program (PPP). When the opportunity arose to correct this issue in the second round of CARES Act stimulus – even with the support of many in the House of Representatives and Senate members – nonprofit DMOs were left out again. And so were smaller cities (less than 250,000 in population). These two realities go hand in hand.

DMOs enhance communities in many ways, from driving economic activity through drawing visitors to a region, but the role goes so far beyond that mission. DMOs enhance a destination’s reputation, add vital leadership between businesses and local organizations so that better collaboration brings about a more livable, economically and socially vibrant communities. Also, Transient Occupancy Taxes (TOT) flow to the city and county general fund, reducing the tax burden on residents. In most communities that have a tourism economy, the tax savings for each resident equates to $400 to $1,200 per year.

In California in 2019, tourism drove over $140-billion in economic impact to businesses across the state. What is happening now: $72 billion in projected losses in 2020, which amounts to half of the state’s tourism economy. More painfully, 613,000 California travel jobs are expected to be lost by the end of May. It is happening everywhere, including Rancho Cordova, California, where our tourism bureau has furloughed our small but mighty team. In our community, tourism drives $182-million in direct economic impact, $7-million in TOT, and over $10-million in sales tax.  In Rancho Cordova, one-hundred-percent of the TOT revenue goes to the county and city general fund, paying for things like police, public works projects and other critical services.

Where does it matter most? Likely, in your community.

Let us not forget about the canary. DMOs structured as 501(c)6 and 501(c)4 organizations desperately need and deserve access to PPP.  The country, your state, your county and likely your community depend on it.

Marc Sapoznik is executive director of Rancho Cordova Travel & Tourism and serves on the board of directors for California Travel Association (CalTravel).