California Travel Needs Your Help Now!
AB 285 was introduced in February and amended March 16. The California Tourism Recovery Act will implement a new advertising campaign known as the “Calling All Californians” which is a media blitz designed to promote travel and tourism in our state and to get us back on the “places to go” radar with national and international travel managers. This program is being created “for the purpose of reversing the impact of the COVID-19 pandemic on the travel and tourism industry in California, including all of us in surface transportation,” according to CalTravel.org.
California’s travel industry one of the 5 largest economic drivers for the state. Before COVID-19, more than 1.2 million California workers earned their livelihoods in line hospitality. Visitors spent $145 billion annually at California line businesses, generating $12.3 billion in state and local tax revenues. International travelers spent $28.1 billion in California, making travel the state’s largest export.
The coronavirus pandemic has impacted travel and hospitality more than any other industry. More than 1/2 of California’s 1.2 million travel line 15 and hospitality industry workers lost their jobs because of the line 16 pandemic. California lost $78.8 billion in visitor spending in 2020, which is a 54.5 percent decline.
The “Calling All Californians” campaign is in the approval stages now. The state is expected to earmark $45 million spread out over the next three years in advertising and marketing spend all focused on reviving travel within the borders of California. This is a VERY good start and about time!
According to the Bill, California is already behind many other states. For example, New Mexico, with a travel economy 20 times smaller than California’s, is earmarking $25 million for tourism marketing as part of its COVID-19 recovery plan.
Yesterday a letter was produced by the California Travel Association that I’ve added below. It is CRITICAL that ALL OF YOU who need the rebound in California tourism to happen sooner than later sign this and send it into your Senator and/or Assembly Member so we can get the much-needed advertising money from the state to market travel to return. If you don’t know who that person in in your district click here: http://www.legislature.ca.gov/legislators_and_districts.html
LETTER TO BE PUT ON YOUR OWN LETTER HEAD AND SENT IN VIA EMAIL
Dear [Senator or Assembly Member],
As your constituent and a member of the California travel and tourism industry, I am writing in support of a $45 million budget allocation to Visit California for implementing the “Calling All Californians” campaign to jump-start travel when it is safe to do so.
COVID-19 has affected travel and hospitality jobs more than any other industry, confirmed by the report of the Governor’s Task Force on Business and Jobs Recovery. More than half of California’s 1.2 million travel and hospitality industry workers lost their jobs because of the pandemic. Lower-wage workers have disproportionately borne the impact of job losses and the January Budget proposal suggests that these jobs may never return. For every tourism job lost, a ripple effect occurs in the ecosystem that supports the travel industry. Every three travel industry jobs support another two California jobs.
Before the coronavirus, California’s travel industry was one of the largest economic drivers for the state. In 2019, more than 1.2 million California workers earned their livelihoods in hospitality. Visitors spent $145 billion annually at California businesses, generating $12.3 billion in state and local tax revenues (Source: Dean Runyan Associates). International travelers spent $28.1 billion in California, making travel the state’s largest export. However, in 2020, California lost $85.9 billion in visitor spending— a 59.3% decline.
It's critically important to [MY BUSINESS/INSERT BUSINESS/ORGANIZATION] that you please support allocating $45 million to Visit California’s marketing program to accelerate California’s economic recovery.
Funding the rebound of the travel and tourism industry will provide a ripple effect for our communities and will get hundreds of thousands of Californians back to work. This allocation will be an important down payment to help California recover from the dire economic impact of the coronavirus once it is safe to travel again. Please reach out to Emellia Zamani at ezamani@caltravel.org if you have any questions. Your continued commitment to service is needed now more than ever.
Thank you,
[YOUR NAME,
ORGANIZATION]
Here is What You Will Learn at the GCLA Spring Conference
With less than 2 weeks to go, 75% of the conference seats have been reserved. Many more operators are waiting to make sure their schedules permit the time away from businesses to attend. That said, we expect a full house at the FIRST business conference in the travel industry to be hosted LIVE in the state of California since the onset of Covid restrictions 365 days ago.
If you’re trying to weigh out your time and money investment, here is what your payoff is for attending:
1. A one-hour State of the Industry that will detail where the industry stands today and what is happening in real time in all areas of transportation.
2. Incentive / Business travel update on the return of our bread-and-butter revenue stream.
3. Meetings, conventions and live events “come-back” details from top experts.
4. Electric vehicles – a very interesting look into the not-too-distant future of luxury vehicles in California.
5. Luxury and Retail travel trends (including tours) – leisure and luxury travel is up this year so it’s time to chase that side of the business. Experts will tell you how to cash in.
6. Airport status in California – how Covid changes at airports from San Diego to SFO are affecting ground transportation, plus, we will cover what’s happening at small airports and private FOBs.
7. Weddings in California this year – a full report on how Covid has impacted wedding trends. There’s very good news for transportation professionals.
8. Insurance update – a detailed status of California transportation insurance and answers to your most pressing questions. You will also be able to talk one on one with our two insurance sponsors for more personalized questions.
9. Legislation – an update on all pertinent issues impacting ground transportation, presented by the GCLA lobbyist and attorney.
If you are not in the state of California, but farming out jobs to operators who reside in the state, your presence is necessary and we hope you come. California is the nation’s bellwether state on many levels, especially when it comes to travel and tourism trends.
Here is how your register:
www.gcla.show
www.gcla.org – click EVENTS tab
Email us at sara@gcla.org
Call us at 213-349-0190
Urgent Message Regarding Federal Loans and Grants - Time Sensitive
Dear Colleagues,
Today, I am going to keep this message short and to the point since time is of the essence. This week is your only window of opportunity to apply for the new PPP2 program. The applications are processed on a first-come, first served basis and when the money is gone, it’s gone.
In the spirit of time, I’ve researched the best tutorials for you to watch and came up with the one below that will take you through the entire application for sole proprietors, independent contractors and partnerships. Review this as soon as possible and get going on the application if you haven’t already:
https://www.youtube.com/watch?v=MRNKKSpPDaw
Also, hidden way down on the SBA website regarding the EIDL, there is a $10,000 grant program (free money). Some caveats to receiving this money apply so watch this video to find out if you are eligible. The amount of money in this grant program is $40 million and will pay out mid-February which is double that of the grant program from last June so don’t shirk this off! This link is extremely helpful to know exactly what’s entailed so watch:
https://www.youtube.com/watch?v=4xbjas5xwUI
For Greater California Livery Association members only – our office hours are 9am - 5pm, PST. My team and I have actually applied for relief on behalf of the GCLA and know the ins and outs too. If you need personal assistance, you should call our offices immediately or email us at www.sara@gcla.org and set up an appointment for one of us to help you. Our office number is (213) 349-0190.
If you are not a GCLA member, you need to join now. Our annual dues are $75 – that is $6.25 per month, or the cost of a Starbucks coffee and donut! The benefits to belonging to the GCLA extend out to offerings like this, a personal help desk, and go far deeper. Just go to our website and see what’s cook’n. www.gcla.org
We encourage members from all states and all countries to become members to connect with us. The state of California represents the 6th largest economy in the world with over than 165 Billionaires and more than 1 million Millionaires. The state is the Mecca of tech and entertainment. It also attracts more than 300 million visitors a year who vacation here. This is where the major networking opportunities abound. Come one, come all – you are welcomed here. We are enjoying an explosion of growth in our community and we’re only in month ONE of the New Year.
Our motto is real: We are in this to win this and so we shall!
Sara Eastwood-Richardson
Executive Director, GCLA
PPP – Part 2: Applications Should Be Filled Out NOW!
Just in case the crazy news cycle has distracted you from getting new information about another round of funding (PPP 2) which was approved December 27th I am highlighting the details for you. Applications opened this week and small businesses ONLY may apply so that, this time around, money goes to those who need it the most, first. Remember, this is a LOAN that must be paid back. This is not free money. Read the loan terms so you are clear on this point.
The New Year, A Renewed Sense of Hope
My son came home from college for the winter break and needed a job. Luckily there was a short-term vacancy at my office for him – a paid internship as it so happens. (smile)
Alec’s first task was to contact 150 or so members as part of an outreach program. We’ve sent lots of emails about changes to our billing program at the GCLA over the past few months to let everyone know we are now on a fiscal calendar and the $75 annual dues are paid at the beginning of the year. Also, thanks to the generosity of two GCLA board directors, Patrick O’Brien and Jeff Brodsly, we have a new Membership Grant program that covers a year’s worth of dues for any member that plans to stay in this fight but is in financial need of help. On that note, Alec spent the last five days calling on members expecting to get an earful due to the terrible Covid-19 situation we are in. Instead, aside from a few exasperated operators (understandably so) my son was met with warmth and appreciation and hope! 71 operators renewed with the GCLA from Alec’s outreach efforts. And, our offices learned a lot about what’s happening on the frontlines. That intel will help us prioritize our tasks. Some stories were heartbreaking while others were inspirational. All in all, people were lovely and gracious. We have the best people in the transportation world here in California, and beyond.
While many other associations suspended operations this past year, the GCLA invested in its organization and accomplished so much for the betterment of things to come. We are ready. We have all new committees that will get to work for you starting with onboarding meetings set for early next week. Your new leadership is now posted on www.GCLA.org We encourage anyone who wants to become part of the back-to-business efforts we are putting in place, reach out to me directly at sara@gcla.org
Other news; I sent out personal emails to all members about a state grant program that is FREE money for you. The application deadline was January 8th but it’s been extended to the 13th due to all the glitches on the system. Watch your inbox for more on that – we have people here that can help you apply.
Federal money is coming. Now that our elections and the final decision has been made for our country’s president we can expect to hear more in the coming months about aid. Meanwhile, eyes on California. We are in the traditionally slowest season of the year, but spring is around the corner. I spoke to Jay Glick this morning. He’s one of the countries largest retail operators. He moved 600 weddings from 2020 to 2021 and they are NOT going to wait any longer, so he tells me. Weddings may shift to being outside (in our state that means more beach events; barn weddings; wineries and mountain places) but they will happen, with a nice bump from those that stalled out in 2020.
Stay strong and keep those positive attitudes alive. We are in this to win this and sooner or later, people will need to move again.
A Second Stimulus Package - What's in it for You
Senate Comes Back Next Week:
What You Need to Know About the Bill That's on The Table
On September 8th, the Senate returns from recess and will take up the matter of finalizing another economic stimulus package.
Steve Mnuchin and House Speaker Nancy Pelosi met by phone yesterday to try and find a compromise. President Trump is considering more executive orders to sidestep Congress if the bottle neck is not fixed.
This excerpt is from CNET. These are actions underway that are specifically important for you to understand:
1. The new eviction moratorium
What it is: On Sept. 1, the Trump administration under the CDC banner issued a nationwide order temporarily halting millions of US renters from being evicted, in hopes of reducing the spread of COVID-19. The order will cover all 43 million US residential renters so long as they meet certain requirements, and will last through Dec. 31, 2020.
How it could help you: To be eligible for the CDC's eviction moratorium, you must not expect to earn more than $99,000 this year (or $198,000 for joint filers). You're also eligible if you did not report income in 2019, or if you received a stimulus check earlier this year. You must also demonstrate that you've sought government assistance to pay rent, declare that you are unable to pay rent because of COVID-19 hardships, and affirm that you are likely to become homeless if you are evicted.
However, it's important to note that the order does not set aside any new federal funding for renters -- even if renters can't be evicted, they will eventually owe that rent, along with any late fees, penalties or interest. And in the meantime, landlords might struggle without that income from renters. Renters can also still be evicted for reasons other than not paying their rent.
2. A second stimulus payment to spur spending
What it is: A payment sent to qualifying individuals and families, based on annual income, age, number of dependents and other factors. The first stimulus payment authorized under the CARES Act has been sent to over 160 million Americans -- as a check, as a prepaid credit card or via direct deposit. But there have been problems, and after three months some are still waiting for their stimulus payment.
How it could help you: The payment isn't taxable and you can use it however you want -- to pay for food, housing, clothing and so on. The idea is that spending the checks will help the economy recover faster.
Why we think a second payment will pass: The CARES Act authorized payments of up to $1,200 per eligible adult and so does the $1 trillion HEALS Act. The House of Representatives' $3 trillion Heroes Act also called for $1,200 stimulus payments, but for more people. The White House supports another round of checks, which makes it likely that sending out payments will be part of the final bill.
3. Payroll Protection Program designed to help small businesses retain employees
What it is: Intended to help you retain your job, the Paycheck Protection Program provides forgivable loans to small businesses as an incentive to keep employees on the payroll.
How it could help you: The PPP is intended to encourage businesses to keep employing workers who would otherwise have lost their jobs during the pandemic.
Why we think it could get extended: The Republican proposal will target the hardest-hit small businesses, Sen. Susan Collins of Maine said during the rollout of the bill. That includes those with revenue losses of 50% or more over last year.
4. Employee retention tax credit could help companies cover worker pay
What it is: Under the program, an employer can receive refundable tax credits for wages paid to an employee during the pandemic. The employer can then use the credits to subtract from -- and even receive a refund for -- taxes they owe.
How it could help you: Again, it's not a direct payment to workers, but the program encourages businesses to keep workers on the payroll.
Why we think it could happen: The HEALS Act includes further tax relief for businesses that hire and rehire workers, and the Democratic-backed Heroes Act also builds on the tax credits that were part of the initial CARES Act. And there's additional bipartisan support besides.
5. What's happening with Trump's payroll tax cut?
What it is: The president has for months pushed the idea of including temporary payroll tax cuts in the next stimulus package. Another directive he signed earlier this month includes deferring certain taxes retroactively from Aug. 1, through December for people earning less than $100,000.
How it could help you: If you have a job, a payroll tax cut would let you keep more of your earnings from each paycheck for now. The plan would not help those who are unemployed and don't receive a paycheck. Workers and employers would still need to pay those taxes the following year.
Will it stick? Trump signed a memorandum Aug. 8 to enact the payroll tax cut, but it isn't clear if he has the legal right to do so. Typically, financial decisions like tax cuts are authorized by congressional vote, not a presidential order. We'll have to wait and see if legal action is brought against the order. Neither the proposed Heroes Act nor the Senate plan includes a payroll tax cut. US Industry trade groups say the tax cuts may be "unworkable."
Stay Safe,
Sara Eastwood-Richardson
Clean is the New Safe
Clean is the new safe
There was an interesting article recently in Fast Company written by a futurist who sees this pandemic as a very real turning point for transportation in the future. The article goes on to describe all the great lengths transportation businesses will need to take to make their business models work. Of particular interest to me was the part about ride-hail companies. Think about it for a minute. The hail-model of transportation–from a germ standpoint–is fraught with peril. They move random people who come in and out of the vehicles with no duty of care, no insurance of sanitizing protocols, no quality control. Now, think about the chauffeured transportation industry. We have ALWAYS had vehicle cleaning protocols between runs. It’s not a big deal to add a few new kinds of procedures to what we are already set up to do. The article mentions new technologies such as touchless doors but just how in the world is Uber or Lyft going to be able to deliver that product consistently? On the other hand, our chauffeurs handle the doors so for our part this is easy to ensure.
My final takeaway from reading this article (and others similar to this) is that we have a golden opportunity to reclaim the lost “mid-tier” market of business that went to Uber and Lyft simply for being who we’ve always been—high end services. CLEAN is the NEW SAFE. Coming out of this mothball, more consumers will be frightened by interactions with strangers. We have the upper hand here. Our chauffeurs are not random drivers. Our clients know where to find us. We can easily prove our cleaning protocols. Let’s imagine that somehow, we limp through this terrible time only to find what is waiting for us is a new world of consumer consciousness that opens doors for us. Envision you are talking to travelers who do not feel safe (yet) to fly but are willing to travel by vehicle to get from place to place and they (or their employer) chooses YOU over a ride-hail company because you can prove your service is clean therefore, safe. Clean saves lives. This is our new reality and our industry is better poised to sell “cleanliness” than any other transportation vertical in the world.
In the meantime, Silicon Valley is already fast at work for new technologies for the ride-hail industry to include in-vehicle cameras that see in advance who else is in the vehicle pool, including thermal cameras that detect if other passengers have fevers or other indications of disease. Talk abut Big Brother! If our clients are uncomfortable with the drive cams mounted on our windshields, just think how they’d feel getting into a car loaded with virus sensors and backseat cameras? I argue that the tech world’s utopia is our client’s dystopia.
As the markets begin to re-open (the governor of Georgia is opening up the state this weekend), we must start to really imagine the opportunities before us. On this note, we will be offering free webinars, beginning in May. Our first one will be a training video on vehicle sanitation procedures. More on that next week. I love the emails from everyone. Please keep ‘em coming!
Sara Eastwood-Richardson