AAHOA endorses Essential Workers for Economic Advancement Act
The act creates an H-2C visa program for non-immigrant, non-agricultural service workers
By Vishnu Rageev RJul 21, 2023
AAHOA HAS ENDORSED the Essential Workers for Economic Advancement Act in response to the ongoing hotel workforce shortages. This legislation proposes a market-driven visa system, aimed at assisting employers in hiring workers for difficult-to-fill positions, while maintaining priority for U.S. workers, AAHOA said in a statement.
AAHOA held a meeting with members of the Critical Labor Coalition and U.S. Rep. Lloyd Smucker's office, the lead sponsor of the Essential Workers Act from Pennsylvania, according to AAHOA. AAHOA members employ more than 1 million people, collectively earning $47 billion annually, representing 60 percent of U.S. hotel owners.
Hiring challenges
Hotels are facing significant challenges in the post-COVID workforce as they experience a surge in guest numbers but struggle to hire enough employees. According to AAHOA, federal data shows that employment in the leisure and hospitality industry remains 369,000 jobs below its February 2020 level. Also, job posting website Indeed lists more than 100,000 open hotel positions.
The Essential Workers Act creates an H-2C visa program for non-immigrant, non-agricultural service workers. It targets small businesses in industries with lower educational requirements and allows visas for three years, renewable for up to six more years. In the first year of the program, H-2C visas would be capped at 65,000 workers. Afterward, the annual visa limit would range between 45,000 and 85,000 visas, the statement said.
"Americans are traveling more than ever, but the hospitality workforce has yet to return to normal,” said Laura Lee Blake, president and CEO of AAHOA. “The hotel industry still grapples with a worker shortage. However, progress is being made with potentially modifying the cap and providing a returning worker exemption for H-2B visas. The creation of an H-2C visa category, with 65,000 temporary visas and potential future adjustments, will benefit all hoteliers, including our 20,000 AAHOA members."
Service industry hardest hit
According to the Critical Labor Coalition, the service industry has been hit hardest by the labor shortage. An increase in virtual and hybrid work-from-home options has reduced demand for positions that require in-person attendance. In fact, leisure and hospitality, along with the retail industries, have the highest quit rates since November 2020, consistently tracking at 4.1 percent and higher.
The Biden Administration has expanded the number of temporary non-agricultural worker H-2B visas by an additional 64,000 for FY 2023, supplementing the existing annual quota of 66,000 visas. However, this combined total falls far short of the approximately 1.5 million open jobs in the hospitality industry, the statement added.
"The Essential Workers Act will tackle the labor shortage, enabling hoteliers to maintain the service levels that guests expect and deserve," said Bharat Patel, AAHOA chairman.
U.S. corporate travel in 2025 shows greater caution after two years of recovery.
Companies face turbulence as they adjust to rising costs and shifting priorities.
Managers also say their companies are optimizing travel for sustainability.
U.S. CORPORATE TRAVEL shows more “nuance and caution” in 2025 after two years of recovery, according to Deloitte. Many companies plan to increase spending, but retrenchment among larger organizations clouds the outlook.
Deloitte’s “2025 Corporate Travel Study” found that one in five large companies with 2024 travel spend above $7.5 million expect cuts in 2025. Large companies are more likely than smaller ones to cite higher prices, sustainability concerns, lower event attendance and reduced client interest in in-person meetings. Rising costs remain the main constraint, cited by 54 percent of managers, up from 48 percent in 2024.
“Corporate travel continues to be important to business and employee growth, but companies are facing potential turbulence as they adapt to conditions like rising costs and shifting internal priorities,” said Kate Ferrara, Deloitte’s vice chair and U.S. transportation, hospitality and services sector leader. “This moment calls for agility and partnership between companies and their travel providers, as well as companies and their traveling employees.”
The study is based on two surveys of travel managers, team leaders and corporate travelers.
Travel spending trends
Most companies have shifted from reactivating travel to redefining its value, experimenting with ROI metrics, sustainability goals and strategic alignment. Only 59 percent of large-company respondents expect budget increases this year, compared with smaller firms.
Three in four travel managers report budget increases, similar to 2024. Among travelers, trip frequency expectations are mixed. More plan 6 to 10 or more than 10 trips, but many frequent travelers expect to shift from three or more trips a month to two.
Nearly two-thirds of business travelers expect to attend a conference in 2025, making it the largest driver of travel incidence. One in five travel managers cite conferences as their top growth driver and two-thirds report rising spend in this area, up from 54 percent in 2024.
International trips account for about half of spending, similar to 2024, but North America’s share has declined over two years. This reflects increased travel to distant destinations and fewer Canadian and Mexican visitors to the U.S. in the first half of 2025.
The study found managers expecting to cut travel by 20 percent or more nearly doubled, from 24 percent to 45 percent. Among companies with spend above $7.5 million, 55 percent anticipate reducing volume by 20 percent or more.
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USTA said the U.S. travel economy could lose $1 billion a week in a government shutdown.
White House reportedly ordered agencies to plan layoffs of nonessential staff.
Around 88 percent of Americans want Congress to prevent a shutdown.
A LOOMING U.S. government shutdown could cost America’s travel economy $1 billion a week, the U.S. Travel Association said. Federal funding runs through Sept. 30 and without a stopgap budget, many operations would halt on Oct. 1.
President Donald Trump blames Democrats for failing to reach a deal, while Democrats criticize him for canceling a negotiation meeting. Senate Democrats had previously resisted a shutdown over fears of mass firings and deep spending cuts, but a similar threat now looms, Fox News reported.
Meanwhile, the White House budget office is directing federal agencies to prepare layoff plans for nonessential employees in a potential shutdown, Politico reported. The Office of Management and Budget’s plan to permanently cut the workforce, detailed in a memo shared with POLITICO ahead of release to agencies, raises the stakes of a shutdown next week.
A shutdown would disrupt federal agencies, including the Transportation Security Administration and hurt the travel economy, U.S. Travel Association CEO Geoff Freeman wrote in a Sept. 25 letter to Congress.
USTA called on Congress to act to prevent the looming threat.
“A shutdown is a wholly preventable blow to America’s travel economy—costing $1 billion each week—and affecting millions of travelers and businesses while straining an already overextended federal travel workforce,” Freeman said. “While Congress recently provided a $12.5 billion down payment to modernize our nation’s air travel system and improve safety and efficiency, this modernization will stop in the event of a shutdown.”
USTA said that halting air traffic controller hiring and training would worsen a nationwide shortage of more than 2,800 controllers and further strain the air travel system.
If the Federal Aviation Administration cannot hire or train controllers, longer security lines, flight delays and cancellations are likely, Freeman wrote in the letter. Programs for air traffic control, however, are slated to continue during a shutdown.
A recent Ipsos survey cited in the USTA letter found 60 percent of Americans would cancel or avoid air travel during a shutdown. Approximately 81 percent said shutdowns harm the economy and inconvenience travelers and 88 percent said Congress should work across party lines to prevent one.
About 50,000 Transportation Security Administration employees, responsible for airport security, would work without pay, worsening staffing challenges, Reuters reported.
Shutdown losses would add to a projected $29 billion drop in visitor spending in 2025, driven by fewer international visitors and weaker domestic demand, according to Forbes.
The U.S. tourism industry entered 2025 expecting growth in travel demand and visitor spending. International arrivals, however, are down due to an eight-month Canadian travel boycott and a summer decline in Indian tourists amid disputes between Trump and Prime Minister Narendra Modi over tariffs, Russian oil and credit for an India-Pakistan ceasefire, Forbes said.
In December, President Joe Biden signed the American Relief Act, preventing a shutdown before Christmas and funding the government through March 14.
The House introduced the Lawsuit Abuse Reduction Act of 2025 to reform tort law.
AAHOA said the bill would restore accountability in the legal system.
In 2023, the Supreme Court vacated a case on “tester lawsuits” under the ADA.
THE HOUSE OF Representatives recently introduced the Lawsuit Abuse Reduction Act of 2025 to reform tort law and mandate sanctions for frivolous lawsuits. AAHOA supported the bill, saying it would restore accountability to the legal system, an issue for small-business owners such as hoteliers.
The bill — introduced in the U.S. House by Republican Reps. Mike Collins of Georgia, Brandon Gill of Texas, Tom Tiffany of Wisconsin and Harriet Hageman of Wyoming — would amend Rule 11 of the Federal Rules of Civil Procedure.
“This legislation will help restore accountability in our courts, protect job creators from frivolous legal attacks and reform a civil justice system that too often favors abuse over fairness,” said Rep. Collins. “We’re sending a clear message: the courtroom should be a place for justice, not a playground for abuse.”
The act would:
Require sanctions for frivolous lawsuits instead of leaving them discretionary.
Remove the 21-day delay for filing sanctions if the challenged pleading is withdrawn or corrected.
Mandate payment of reasonable expenses, including attorney fees, to parties harmed by frivolous filings.
Allow additional sanctions, such as striking pleadings, dismissing cases, or imposing financial penalties to deter future violations.
Kamalesh “KP” Patel, AAHOA chairman, said that for small-business owners, a single frivolous lawsuit can threaten their livelihoods and undo years of work.
"This legislation gives hoteliers a fighting chance by ensuring those who weaponize the courts face real consequences,” he said. “It's about restoring fairness so our members can focus on what they do best: running their businesses and supporting their teams."
In 2023, the U.S. Supreme Court vacated as moot a case that could have set a precedent limiting “tester lawsuits” against hotels under the Americans with Disabilities Act. The court noted it may still address whether someone can sue a hotel without intending to stay there. The case, Acheson Hotels, LLC v. Laufer, was filed by Deborah Laufer, who claimed the hotels’ websites failed to disclose whether accessible rooms were available.
“Frivolous lawsuits don't just waste time — they siphon resources away from job creation, community investment and growth,” said Laura Lee Blake, AAHOA president and CEO. “This legislation provides protection for small-business owners who cannot afford to fend off meritless claims. Protecting them means protecting the vitality of Main Street economies across the country.”
AAHOA urges Congress to pass the legislation and protect small-business owners from abusive lawsuits.
The H-2B visa program protects U.S. jobs and wages, according to AHLA citing a study.
It allows hotels and resorts to meet travelers’ needs while supporting the economy.
It provides foreign workers for seasonal jobs when domestic workers are unavailable.
THE H-2B VISA program does not harm U.S. jobs or wages but increases pay and supports the labor force, according to an Edgeworth Economics study. Citing that study, the American Hotel & Lodging Association said the program enables hotels and resorts to meet travelers’ needs while supporting the workforce and economy.
The Edgeworth study for the H-2B Workforce Coalition found the program allows businesses to hire foreign workers for seasonal jobs when domestic workers are unavailable. It showed no evidence that increases in H-2B visas reduce U.S. employment or wages. Instead, each H-2B worker supports three to five local jobs and areas with more H-2B workers saw wages grow 1.6 percent faster.
“Areas that hired more H-2B workers under the higher visa cap saw greater job and wage growth among U.S. workers,” said Steve Bronars, partner at Edgeworth Economics, citing findings consistent with an earlier analysis by the U.S. Government Accountability Office.
Ashley McNeil, AHLA’s vice president of federal government affairs and chair of the H-2B Workforce Coalition, said the new analysis underscores the H-2B program’s clear value to local communities.
“The hotel industry, which is still 200,000 workers short compared to pre-pandemic levels, relies on legal guest worker programs to augment our workforce, particularly to address seasonal demands,” McNeil said. “Access to the H-2B visa program has been critical in allowing hotels and resorts of all sizes to meet travelers’ needs, while supporting the local workforce and economy.”
The program has also helped businesses manage peak-season labor shortages, easing the workload for full-time employees. Landscaping accounts for nearly 40 percent of certified H-2B workers. Hotels and motels account for 8.67 percent, support activities for forestry 6.3 percent and seafood processing and packaging 5.65 percent.
“This study reaffirms what our members have long recognized: despite extensive recruitment efforts, there remains a critical shortage of U.S. workers willing or available to fill temporary positions that are currently being filled by H-2B workers,” said Arnulfo Hinojosa, COO of the Federation of Workers and Employers of America and vice chair of the H-2B Workforce Coalition. “H-2B workers allow seasonal businesses to operate at a higher capacity and create more U.S. jobs.”
Meanwhile, President Donald Trump recently signed a proclamation raising the H-1B visa fee to $100,000 annually, a move that could affect Indian professionals in the U.S.
AHLA’s survey finds reduced hotel development and renovation plans.
Only 8 percent of property owners are moving forward with new investments.
Survey participants included 387 property owners and operators.
ABOUT 32 PERCENT of U.S. hotel owners and operators are delaying development projects and 24 percent are scaling back plans, according to a recent survey by the American Hotel & Lodging Association. About 8 percent have canceled projects entirely.
“Hotels are eager to invest in their properties and communities but rising costs and uncertain demand are forcing many to put projects on hold,” said AHLA President and CEO Rosanna Maietta. “It’s been a tough year for hotel operators, especially our small business owners. As Congress gets back to work, we’ll focus on advancing policies to spur travel, ease operational pressures and provide our industry the certainty it needs to grow, create jobs and strengthen local economies nationwide.”
The workforce challenges further compound pressures, with nearly half of the respondents, 49 percent, reporting understaffed properties. On the demand side, leisure travel continues to decline. Thirty percent of hotels reported declines in completed leisure stays, while 26 percent saw drops in upcoming bookings compared with the same period last year.
Business, group and government travel also showed weakness, with 15 to 17 percent of properties experiencing decreases in bookings.
The AHLA survey, conducted between Aug. 21 and 29, included responses from 387 property owners and operators across the U.S., representing all hotel segments.
In another recent survey by the Hospitality Asset Managers Association, more than 70 percent of respondents expect a 1 to 3 percent RevPAR increase in the fourth quarter of 2025.