“From a revenue generation perspective, domestic leisure really can’t make up for the losses in international and business,” said Tori Emerson Barnes, executive vice president for public affairs and policy at the U.S. Travel Association.
The stakes are highest for states with more tourism-dependent economies, such as Nevada and Hawaii. Although tax revenues have risen in many states thanks to trillions of dollars in federal COVID-19 relief and a quicker-than-expected economic recovery, tourism-dependent states are lagging.
Hawaii collected 17% less tax revenue from April to December 2020 than it did during the same period in 2019, according to the nonpartisan Urban Institute, a Washington, D.C., think tank. Nevada and Florida collected about 11% less tax revenue, the report showed.
Spending by international travelers is a small but important part of overall tourist spending in those states. Casino earnings from baccarat, a popular card game in East Asia, are one bellwether for international tourist spending in Nevada. Baccarat earnings dropped by nearly half between May 2020 and April 2021, according to state tax data.
“For Nevada to fully recover, we need large trade shows, conventions and special events to return at pre-pandemic levels, and we need international travel to resume,” said Virginia Valentine, president and CEO of the Nevada Resort Association, which advocates for the state’s gaming and resort industry, in an emailed statement to Stateline.
Originally Appeared On: https://www.columbian.com/news/2021/jul/04/absence-of-international-tourists-hits-some-states-hard/