AHLA Interim President & CEO Kevin Carey responds to President Biden’s 2024 State of the Union Address

Friday, March 8, 2024

In response to President Biden’s delivery of the 2024 State of the Union Address, Kevin Carey, the Interim President & CEO of the American Hotel & Lodging Association (AHLA), issued a statement today.

President Biden affirmed the strength of the nation in his address tonight, outlining his administration’s priorities to propel the economy and advance the nation.

While AHLA remains optimistic about the future of the hotel industry, hoteliers encounter various challenges at the federal level. These challenges include labor shortages, persistent inflation, and a plethora of federal regulations that pose obstacles for hoteliers.

To address these issues and ensure the industry’s continued growth, AHLA is committed to advocating on behalf of hoteliers.

AHLA’s key federal advocacy priorities for 2024 include:

1. Establishing a uniform fee-display standard for all lodging businesses, encompassing hotels, online travel agencies, metasearch sites, and short-term rental platforms. To achieve this goal, AHLA urges Congress to pass the bipartisan Hotel Fees Transparency Act and the No Hidden Fees Act, which offer the most effective solutions for achieving consistency in fee display across the lodging ecosystem.

2. Opposing various federal regulatory initiatives that could impede hoteliers’ operations, such as:

– The National Labor Relations Board’s joint-employer regulation, which specifically targets the franchise model—a model that has contributed significantly to minority entrepreneurship and job creation nationwide. AHLA is actively involved in litigation to halt the implementation of this rule and is collaborating with bipartisan members of Congress to overturn it.
– The Department of Labor’s proposed overtime-pay regulation, which threatens to eliminate hotel jobs, hinder employee advancement opportunities, and jeopardize the viability of small business hoteliers. AHLA has submitted opposition comments regarding this rule.
– A new Department of Labor regulation that alters the classification of workers as independent contractors or employees. This regulation is anticipated to restrict opportunities for individuals to work as independent contractors and undermine hotels’ operational capabilities. AHLA is endorsing a Congressional Review Act resolution to overturn this regulation.

Efforts to Secure Fair Federal Per Diem Rates for Fiscal Year 2025:

Annually, AHLA advocates with the General Services Administration to establish equitable per diem rates. In the fiscal year 2024, our lobbying efforts resulted in a $9 increase to the lodging rate, generating an estimated $300 million for hoteliers. AHLA will pursue another increase for FY 2025 to address ongoing inflationary pressures.

Congressional Urgency to Address Workforce Shortages with Bipartisan Solutions:

1. Expansion and Streamlining of the H-2B Guestworker Program: AHLA seeks to expand and streamline the H-2B program to meet the seasonal staffing needs of independent hotels and resorts in remote vacation destinations. Currently capped at 66,000 visas annually, the program requires enhancement to adequately serve industry demands.
2. Passage of the Asylum Seeker Work Authorization Act (S.255/H.R.1325): This bipartisan legislation, if passed, would enable asylum seekers housed in hotels across the nation to enter the workforce within 30 days of applying for asylum, thereby assisting hotels in addressing critical staffing shortages.
3. Passage of the H-2 Improvements to Relieve Employers (HIRE) Act: AHLA supports the HIRE Act, which proposes to extend the H-2A/H-2B labor certification period to three years and permanently authorize the waiver of in-person interviews for returning workers. This measure aims to expand the seasonal workforce, providing much-needed relief to seasonal small business hotels and facilitating industry recovery.
4. Swift Passage of H.R. 7024, the Tax Relief for American Families and Workers Act, in the Senate:

This bipartisan tax package includes extensions of business interest deductibility and bonus depreciation, critical tax policies that bolster hotels’ resilience, foster investment, and enhance competitiveness in the marketplace.

These bipartisan tax policies offer a pathway to stability during challenging operating conditions for many in the industry.

With continued support, AHLA remains dedicated to achieving policy victories for hoteliers nationwide and within governmental spheres.

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