With no firm dates announced as to when licensed inn and B&B properties may re-open, all innkeepers are feeling the sting of ongoing fixed costs, continued cancellations with deposit refunds, and lack of incoming revenues. Negative cash flow combined with ongoing operational expenses are placing burdens on our industry that many fear they may never recover.
These issues, coupled with the potential for a very slow re-opening, cause innkeepers to question whether or not to reopen at all even when the OK is given as the cost to ramp up (replenishing inventories plus the expense of meeting new protocols) would exceed the immediate revenue that might be realized.
As such, VIBBA is asking innkeepers of Vermont's licensed and legal properties to reach out to their legislators, the Governor, and department commissioners to share some ideas that would help remediate the impact that COVID-19 has had on our industry. Since lodging will probably be one of the last sectors to reopen given the fear that those in our drive markets provide a greater risk to Vermonters, we will also be further effected detrimentally.
As such, we are asking State leaders to consider instituting some or all of the following measures:
- Allow employers to reopen but keep employees on State Unemployment Insurance through the end of July. Since properties will be opening slowly, employees will not be receiving their usual hours which will result in employee disadvantage and dissent. Once the economy returns, the State would increase the UI Experience rating to recoup the UI fund. Further, PPP is virtually useless for most inns unless the rules are updated. All it is right now is another debt that we do not need.
- Fully abate February through May Meals & Rooms Tax. Rebate those dollars to those inns who already paid.
- Eliminate Meals & Rooms tax on lodging cancellation fees. These fees generally only cover expenses already incurred on credit card processing and software costs.
- Eliminate the the Employer Healthcare tax (HCC) for 2020 and refund to those already paid.
- Eliminate licensing fees for 2020
- Health Department License fee
- Liquor licensing fees and extend required training one more year
- Water system operator fees / operator training renewals waived
- Encourage VT Dept of Financial Regulation to reduce Worker's Compensation rates for this year retroactive to January 1, 2020.
YOUR CALL TO ACTION:
Now is the time to reach out to our public servants so that they may better understand how they can help. Please email your legislators and include the talking points above. Be respectful in your discourse. They are doing the best they can addressing the needs of each of the sectors of the State's economy and VIBBA appreciates their efforts. We are but one voice in a sea of many.
Include the following people in your recommendations:
