Skift Take
Is the revamped tax code a "gift for hard-working Americans" as President Trump declared, or just a gift for corporations already reaping record profits? For now, travel executives seem way more excited than the general public.
The tax bill that Congress passed Wednesday might not be a hit with the general public — statistical analysis site FiveThirtyEight calls it historically unpopular — but corporate America sounds pleased as punch.
Travel industry executives, some of whom have been vocal advocates for years for changes to the U.S. tax code, belong in that satisfied group.
In recent days, Skift reached out to multiple companies to ask for a reaction to the tax legislation. We also searched earnings call transcripts, regulatory filings, television interviews, and other sources to get a sense of the impact industry players expect — and how they might use the extra cash in hand as a result of the changes to the tax code.
It's not clear when President Donald Trump will sign the bill, which lowers the corporate tax rate from 35 percent to 21 percent, but the White House held an event Wednesday afternoon to celebrate its passage by the House and Senate.
The Immediate Reaction
The bill's passage was touted as a victory for Republicans, and those in the travel industry who offered comments on Wednesday seemed to count it as a win for their companies as well.
“We applaud the passage of the tax reform legislation which is aimed at reenergizing the economy through tax cuts for businesses and individuals,” David Kong, President and CEO of Best Western Hotels & Resorts, said in a statement. “As taxes decrease, small business owners will have more resources to reinvest in their businesses, resulting in a stronger economy overall. With key indicators such as the stock market on the rise, the travel and tourism industry will be one of many sectors to see a direct benefit.”
In a statement, Hilton Hotels and Resorts said the tax changes were positive for hotel owners and builders.
"As each new property brings with it potential economic activity and local employment, we choose to be optimistic about what this can mean for our industry," the statement said.
Several other hotel companies pointed to an enthusiastic statement from the American Hotel & Lodging Association.
"Our industry is proud to support legislation that will reform U.S. tax policies and create a pro-growth tax environment,” said the association's president and CEO, Katherine Lugar. "Tax reform will enable hoteliers to expand their businesses, create more jobs, and help keep our economy strong. Tax cuts will contribute to the overall economic growth of our nation and strengthen our
