troy flanagan, vice president government affairs & industry relations · 2018-06-22 · per...
TRANSCRIPT
June 5, 2018
Troy Flanagan, Vice PresidentGovernment Affairs & Industry Relations
Owners
Management Companies
Brands
2018 Properties: over 25,000
Rooms: over 3 million
2013 Properties: 8,500
Rooms: 1.3 Million
+280% growth
MEMBERSHIP & ENGAGEMENT
Our National Impact
Advocacy Agenda
Short Term Rentals
OTAs & Distribution Policy
Employment and Workforce Issues
Per Diems
We support the current system overall, but recognize it is not perfect.
Higher rates are always better, but have to be realistic that the government needs to
save money.
Our goal is to preserve current rates and make sure the system does not become
unfair to hotels.
o For example, DOD cut per diems rates for long-term travel dramatically at the end of 2014.
▪ 25% over 30 days, 45% over 180 days.
o We’ve been lobbying to get the cuts reversed.
Per Diems
Both the Senate and House Armed Services
Committees have now voted to repeal the cuts in
the National Defense Authorization Act
AHLA will be working to ensure that the language
stays in the final bill.
Senate language is stronger because the House
language asks DOD to consider other types of
savings.
Senate Armed Services voted 14-13 to repeal per
diems cuts.
Per Diems
• Worker Visa/Immigration title slide
Worker Visas and Immigration
Worker Visas
H-2B• Temporary visa program for non-agricultural workers• Secured legislation allowing the Executive Branch to expand the number of visas available
this year
J-1• Visa program for international students (often for summer internships)• Secured appropriation language prohibiting Administration from acting without formal
rulemaking process to modify the program; Administration had been rumored to be considering negative restrictions on J-1s
DACA• AHLA is working to protect workers with DACA status.
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Short-Term Rentals
Federal Workers and STRs
How Far the Short Term
Rental Market has Come
0
10
20
30
40
50
60
MarriottInternational
Airbnb Hilton InterContinental
Hotels Group
Hyatt Choice Hotels
Val
uat
ion
(in
bill
ion
s)
Valuation Comparison
‘Illegal Hotels’Commercial operators listing multiple units in the
same metropolitan area or listing units for
extended periods of time without adhering to
commonsense regulations or tax obligations
New Research Shines a Spotlight on STRs
Largest and most comprehensive study of its kind to date
Focused on 13 US markets of the largest metropolitan areas
Two troubling findings: > “Hosts” who rent multiple units > “Hosts” who rent units full-time
National Findings
11,350 unit hosts rented out over 43,000 units
˃ Equates to 17% of Airbnb’s inventory
Multi-unit hosts generated over $700 million in
revenue
All markets saw an increase in multi-unit hosts
˃ Equates to 30% of the revenue
All markets saw an increase in multi-unit hosts
~11% of entire-home hosts have 2 or more units
˃ They manage 30% of properties
˃ Make up 37% of revenue
AHLA’s Study Shatters Airbnb Homesharing Myth
250M+ Media Impressions in 24 Hours
CNBC Short-Term Rental Report
Target
Pass short-term rental
regulations in more
cities and states
Unoccupied
Rentals
Caps total number of nights
allowed
TaxesVerifiable transient occupancy tax
remittance
Housing
Affordability
Prohibited in units designated for
affordable housing
RegistrationRequires registration with relevant
local authorities
Advertising
Postings must display registration
number; platforms must remove
noncompliant listings
Commercial
Operations
Prohibits commercial operations;
Primary home only
Passing meaningful regulations in states and local markets.
Principles of STR Policy
Advancing City Legislation
San Diego
States
“Licensed bed and breakfasts charge more because theiroperating costs are much higher. Bed and breakfasts mustcomply with fire codes and health codes, among others, for theirspace. That means upgrading to an indoor alarm and sprinklersystem and commercial kitchen items, as well as taking foodsafety courses for the breakfast aspect. They also pay for alicense. That all costs money — money that people who rent outtheir homes or a room through Airbnb don't need to pay.”Tampa Bay Times, 4/21/17
Equal application of city/state/federal laws
✓ Government shouldn’t be picking winners and losers
✓ Protecting neighborhoods: hotels follow zoning and business regulations. Maintain the integrity and quality of life around residential communities.
✓ Guest safeguards: hotels implement latest safety and procedures to protect the traveling public.
Ensure a Level Playing Field
Ensure a Level Playing Field
‘Voluntary Collection Agreements’
✓ Violate standards of transparency and democratic governance.
✓ Improperly cede tax authority to a single private company.
✓ Fail to address other market players.
"If they're going to write you a check, they can tell you where it's coming from ... Why can't they disclose that information to a government official?”
– Doug Belden, Hillsborough County Tax Collector
Tax DayExposing Airbnb secret deals.
Tax Fight: Airbnb Called
Out For "Sweetheart
Deals“ WXPR Radio
"It's like putting an empty jar at the counter of a
retail store and asking customers to voluntarily
pay sales taxes. There's no accountability”
Troy Flanagan, AHLA
Hotel Association
Attacks Airbnb On
'Secret Tax Deals’ Texas Public Radio
Hotel industry
pushes for taxation
of Airbnb, on Tax DayBaltimore Business Journal
Airbnb faces Collier
County lawsuit, lingering
criticism from hoteliers News-Press and Naples Daily News
(USA Today papers)
Airbnb On Defense
Momentum building.
Airbnb cost New York City renters
$616 million in 2016, city says
Landlords turned 14 SF apartments
into illegal Airbnbs, city attorney says
Airbnb Vs. Boston City Council:
It’s On!
Los Angeles moves to regulate
Airbnb rentals
Basic business registration
Compliance with state and local tax obligations
Adherence to state lodging regulations
Platforms must remove noncompliant listings
Commercial insurance for commercial businesses
A Path Forward
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Labor and
Employment Issues
Hotel Worker Safety/‘Panic Button’ Legislation
• Hotel-only ordinances are popping up across the country that require panic buttons• Most include onerous workforce rules• AHLA establishing a safety button taskforce
Industry Progressing with Safety Devices in Key Markets
Human Trafficking Training Seminars
OTA / Distribution Policy
OTA Consumer Poll Results
Source: Morning Consult survey of 2,201 adults, February 26-28, 2018
Action on Online Booking Scams
Search Smarter Campaign
Refresh Search Smarter campaign;
drive direct booking message
Underscore FTC Reservation Counter
settlement and need for government action
Advance Stop Online Booking Scams Act
as a permanent solution
AHLA Partners with Better BusinessBureau
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Travel and Tourism
Visit US Coalition How to Reverse America’s
Foreign Tourist Problem (1/17/18)
Coalition formed to reverse drop in
international visitors to the U.S.
“Travel and tourism is our country’s second largest export,” said Katherine Lugar, CEO of the American Hotel & Lodging Association. “We can’t afford to lose ground to other countries.” She
said the average overseas traveler spends $4,400 visiting the U.S., adding that “fewer visitors mean fewer hotel stays, fewer meals, fewer goods purchased in our retail stores and fewer visits
to our national attractions.”
US travel industry launches plan
to reverse tourism decline (1/16/18)
Visit U. S. Coalition
MEMBERS• American Gaming Association
• American Hotel & Lodging Association
• American Resort Development Association
• American Society of Association Executives
• Asian American Hotel Owners Association
• International Association of Exhibitions And Events
• National Restaurant Association
• National Retail Federation
• Real Estate Roundtable
• Society of Independent Show Organizers
• Travel Technology Association
• U.S. Chamber Of Commerce
• U.S. Travel Association
CONGRESSIONALCHAMPIONS
ENGAGEVISIT U.S.
Fighting for Brand USA
September 12-13, 2018 Capital Hilton
ahla.com/las
Thank you.
Troy Flanagan
Vice President,Government Affairs & Industry Relations
202-289-3125