The September 11th attack
Inouye backs tax credit for people who vacation
By Doug Abrahms
Gannett News Service
WASHINGTON — Hawai'i's Sen. Daniel Inouye threw his support behind a travel industry proposal to give $500 tax credits to people who book a vacation this year.
Associated Press
Without fast government aid, the travel sector could pull the U.S. economy further into a recession, experts told the Senate Commerce subcommittee on consumer affairs, foreign commerce and tourism yesterday.
Lt. Gov. Mazie Hirono, testifying yesterday before a Senate subcommittee along with Washington Mayor Anthony Williams, said Hawai'i's dependence on tourism may lead to the state's worst economic decline in modern times.
Hawai'i is particularly vulnerable to a travel slowdown, said Lt. Gov. Mazie Hirono. More than 95 percent of all the job losses — more than 11,000 since the Sept. 11 terrorist attacks — have been in the tourism industry, Hirono said.
"Hawai'i is experiencing an unprecedented increase in the number of displaced workers in the wake of Sept. 11," she said. "Hawai'i could face its steepest economic decline in modern history. Swift action is needed by Congress."
Domestic and international travelers spent $14.5 billion in Hawai'i last year.
Hirono also asked Congress to provide money for international tourism promotion, make disaster grants available and extend unemployment benefits. State officials also asked the federal government to hold more conferences in the state.
"Most Americans don't realize this but in many (federal) departments and bureaus, Hawai'i is considered overseas and therefore travel to Hawai'i is considered a special luxury as if you're going to Hong Kong," Inouye said. "Keep in mind we're one of the 50 states."
Travel and tourism make up the country's third largest retail industry, generating more than $582 billion in revenue per year and directly or indirectly employing 19 million people.
Nationwide, industry and government officials offered a number of grim statistics since Sept. 11 including:
• The hotel industry has laid off or severely cut the hours of half its work force.
• About 90,000 restaurant workers lost their jobs last month.
• The U.S. travel industry is forecast to lose about $77 billion through next year because of the attacks.
"Simply put, Americans are not traveling," said Marilyn Carlson Nelson, chief executive of the Carlson Companies, one of the nation's largest hotel companies. "Unchecked, this crisis has the potential to put more than 2.2 million Americans out of work in the next 60 to 90 days."
Sen. Jon Kyl, R-Ariz., has introduced a bill that would offer a $500-per-person tax credit to those who book or take a trip this year by plane, car or boat.
Tourism, which is Arizona's largest industry, took a "body blow" from the Sept. 11 attacks, he said. "We've got to focus our attention immediately on this industry," Kyl said.
Inouye supports Kyl's bill, but it will have to compete with other proposals to revive the economy.
