Friday, March 20, 2020
The new corona virus will create economic crises in the states and cities that are most reliant on tourism, with lower tax revenue resulting from empty hotel rooms and canceled trips, conventions and events.
However, analysts predict that those economies would improve dramatically in the months to come if tourist facilities can hang on until the pandemic gets over. Residents held by quarantines are likely to seek refuge at beaches and casinos.
The states most affected will be Nevada and Hawaii, which have by far the highest share of tourism in their economies.
Hawaii is anticipating a $300 million impact on tax collections and a loss of 6,000 jobs in the service industry due to decline in visitors, and Las Vegas Mayor Carolyn Goodman told the area’s convention authority board at its monthly meeting that all publicity about corona virus “is absolutely destroying us.”
Florida, which is another tourism-intensive state, backed off some of its corona virus advisory plans amid concerns from the tourist industry. The state health officials said initially that anyone returning from abroad should isolate themselves, but then retreated from that.
About 16% of Nevada’s economy came from tourism in 2018, almost $28 billion, and Hawaii was at 10% with about $10 billion. Other states ranking high on tourism were Vermont, Florida and Tennessee, at about 6%.
Tags: corona virus, economic crises, US
Friday, March 24, 2023
