California Lodging Industry Association Supports Internet Travel Tax Fairness Act

Stands Beside Online Travel Companies

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. April 14, 2010

April 7, 2010 - The California Lodging Industry Association (CLIA) voted in support of the Internet Travel Tax Fairness Act (ITTFA) and took a strong stand supporting independent hotel owners and operators everywhere.

The purpose of the ITTFA is to promote employment in the travel and tourism industry by ensuring a robust online travel industry through fair and equitable tax treatment. The Act creates a national standard that will govern the taxation of travel booking services.

"The lodging industry has suffered in this weakened economy. Online Travel Companies (OTCs) such as Expedia, Orbitz, Travelocity, and others are playing a vital role in boosting room sales in these difficult times," said Bobbie Singh-Allen, Executive Vice President / COO for CLIA. The heads OTCs put in beds often is the difference between profitability or loss for many hotel operators.

CLIA is one of the fastest growing associations in the country made up of independent hotel owners and operators not controlled by large hotel corporations. CLIA's members rely heavily on relationships with OTCs. "Most hotels in the country are independently owned and operated and OTCs help market hotel rooms to prospective customers all over the world," said Singh-Allen.

Independents can't match large corporate hotel's marketing war chests, thus they rely heavily on OTCs to compete with branded hotels. Without a robust OTC channel, independent hoteliers will be put at a competitive disadvantage with chain hotels. "It's critical that OTCs not be marginalized as it would diminish the ability of independent hotels to compete effectively," said Singh-Allen.

Hotels, with the help of Online Travel Companies, boost the local economy by supporting jobs and increase tourism. When people travel, many supporting businesses benefit. "Every effort must be made to stimulate the economy and job growth. ITTFA will help boost internet hotel sales and get people traveling again," said Singh-Allen.

CLIA is urging all of its members to send letters of support to Congress and seek other state and national partners to stand beside the OTCs.

Online Travel Companies employ 32,000 workers. In 2008, they booked $39 billion in travel and bookings which resulted in the collection of $4.7 billion in Federal, State, and Local taxes. Over 125 million people each month shop for travel online.

"CLIA will vigorously fight with our Online Travel Company friends who, in these difficult economic times, have been the lifeline for business to independent hotel owners and operators," said Singh-Allen. "There is a lot of misinformation out there advocated by large corporate hotels and it is time to hold them accountable".

CLIA has joined hundreds of hotels and other associations throughout the country advocating support for the Internet Travel Tax Fairness Act.

About CLIA
CLIA was founded in 1946 and is a dynamic, growing organization committed to serving California's lodging owners and their management teams. Based in Sacramento, CLIA is the recognized lodging advocacy leader. CLIA has served as a major voice for the independent lodging industry when group action has been needed, especially important when lobbying industry views before government agencies. In addition, the association is continually aware of the need to provide programs and services required by members to more effectively and profitably operate their businesses. Focused exclusively on California, CLIA works in concert with other leading hospitality and business groups to protect California's $95 billion tourism industry through responsible advocacy. In addition, CLIA continually provides education and training to improve profitability and performance. CLIA is an organization you can count on to get answers and a productive place to network.

"The mission of the California Lodging Industry Association is to promote, protect and advance the interests of lodging owners and their management teams statewide, and to provide a network of resources to support member efficiency, profitability and professionalism."

Contact:
Bobbie Singh-Allen
916-826-2075